It’s About Time Act
Summary
The "It's About Time Act" proposes to shift the Federal fiscal year from October 1 - September 30 to January 1 - December 31, starting in 2027. This change requires a transition period budget for October 1, 2026 - December 31, 2026. It also mandates the Office of Management and Budget (OMB) to ensure an orderly transition for all federal departments and agencies.
Expected Effects
The primary effect will be a realignment of the federal fiscal year with the calendar year. This shift necessitates adjustments in budget cycles, appropriations, and agency operations. The OMB will play a crucial role in managing this transition.
Potential Benefits
- Potential for better alignment with economic cycles and data reporting.
- Streamlined budget processes by aligning with the calendar year.
- Improved comparability of federal financial data with other organizations using calendar year reporting.
- Enhanced transparency in government financial operations.
- Simplification of financial planning for states and localities that rely on federal funding.
Most Benefited Areas:
Potential Disadvantages
- Potential disruption during the transition period as agencies adapt to the new fiscal year.
- Increased complexity in budget planning for the transition period.
- Possible need for revisions to existing laws and regulations to accommodate the change.
- Risk of confusion and errors during the initial implementation phase.
- Potential for short-term budget uncertainties during the transition.
Constitutional Alignment
The Act appears to align with the US Constitution, particularly Article I, Section 8, which grants Congress the power to lay and collect taxes, duties, imposts, and excises, to pay the debts and provide for the common defense and general welfare of the United States. The establishment of a fiscal year is an implied power necessary for executing these enumerated powers. The Act does not infringe on any specific constitutional provision.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).