# The "It's About Time Act" Explained

Right now, the federal government's fiscal year runs from October 1st through September 30th—a schedule that's been in place for over a century. This bill would change that to align with the calendar year, meaning the federal fiscal year would run from January 1st through December 31st instead. The change would take effect on January 1, 2025.

This might sound like a minor administrative tweak, but it actually affects how the government budgets, spends money, and plans for the future. Currently, when Congress debates the federal budget in the fall, they're preparing for a fiscal year that's already started. Switching to a calendar-year system would mean budget discussions happen before the fiscal year begins, potentially making the process more straightforward. It would also align the federal government's accounting with how most businesses, states, and other organizations operate, which could reduce confusion when comparing budgets across different entities.

To make this transition work, the bill requires the President to create a special three-month budget for October through December 2024—essentially a bridge period to shift from the old system to the new one. The Office of Management and Budget would also need to update regulations and procedures across all federal agencies and the District of Columbia to ensure the changeover happens smoothly. Any existing laws that reference the old October-to-September fiscal year would automatically be interpreted as referring to the new January-to-December system going forward.

For most everyday Americans, this change would be largely invisible. However, federal employees, contractors, and organizations that receive federal funding might experience some disruption during the transition period, and government agencies would need time to reprogram their accounting systems and adjust their planning calendars.

It’s About Time Act

Turner, Michael R.

It's About Time Act This bill changes the calendar period for the federal fiscal year (currently October 1-September 30) to January 1-December 31 beginning in 2025.