S. 2950Senate118th Congress (2023-2025)In Committee

A bill to align the fiscal year with the calendar year.

AI-Generated Summary

Updated January 20, 2026 at 11:52 AM UTC

The bill changes the federal government’s fiscal year to match the calendar year, moving the start date from October 1 to January 1. The change takes effect on January 1, 2026 and applies to all federal departments, agencies, and the District of Columbia. It also updates related budget‑process deadlines and accounting rules to reflect the new fiscal year.

Key Provisions

Amends the U.S. Code to shift the federal fiscal year start from October 1 to January 1, effective Jan 1 2026.
Requires the President to submit a short‑term budget for Oct 1 2025‑Dec 31 2025 and propose any needed legislation for that period.
Directs the OMB Director to issue regulations and guidance for agencies to transition to the new fiscal year and to propose additional legislation if needed.
Changes accounting provisions so that fiscal‑year reporting ends on December 31 instead of September 30 for years beginning Jan 1 2026 onward.
Reinterprets existing authorization‑of‑appropriations laws so that dates referencing October 1–September 30 are read as January 1–December 31 for fiscal years after 2025.
Updates numerous budget‑process deadlines (e.g., moving the President’s budget submission deadline to May 15 and other timetable dates) and related statutory references to align with the calendar‑year fiscal schedule.

Legislative Activity

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1 earlier action

SenateIntro Referral Latest Action

Read twice and referred to the Committee on Homeland Security and Governmental Affairs. (Sponsor introductory remarks on measure: CR S4723-4724)

Homeland Security and Governmental Affairs Committee

September 27, 2023

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SenateIntro Referral

Introduced in Senate

September 27, 2023

SenateIntro Referral

Read twice and referred to the Committee on Homeland Security and Governmental Affairs. (Sponsor introductory remarks on measure: CR S4723-4724)

Homeland Security and Governmental Affairs Committee

September 27, 2023

Floor Debate

1 member

What members said about S. 2950 on the floor

1 Democrat

Sen. Tim KaineD-VA · Sep 27, 2023

Madam President, today I want to discuss legislation I am introducing, the Modernizing the Federal Calendar Act. This bill would shift the start of each fiscal year from October 1 to January 1 and,…

Madam President, today I want to discuss legislation I am introducing, the Modernizing the Federal Calendar Act.

This bill would shift the start of each fiscal year from October 1 to January 1 and, in doing so, align the deadline for appropriations with the deadline that Congress typically sees as the real target. This bill would eliminate the risk of government shutdowns in October, reduce the time spent on CRs, and lead to a higher probability of completing government funding work on time.

Congress's recurring reliance on continuing resolutions, CRs, to temporarily fund the government from the start of the fiscal year until the winter holidays poses significant challenges for Federal Agencies due to delays to contracts, grants, and hiring while operating under CRs. Even if Congress misses the December 31 deadline, changing the fiscal calendar will still yield benefits, as it will give Federal Agencies more time to enact the appropriations bills once passed and eliminate the annual uncertainty around a short-term CR in September among Agencies, government employees, and industries that rely on government operations.

In addition, Americans are forced to worry about a potential government shutdown if Congress can't reach an agreement on a year-long government funding bill or CR, creating unnecessary stress and uncertainty for the millions of Americans who work for or with the Federal Government, as well as the countless people and small businesses that rely on full-scale government operations and services. Starting

the fiscal year on January 1 will not end the possibility of shutdowns, but it will eliminate need to pass a CR by October 1 to fund the government and help ensure that Congress passes government funding bills without a shutdown.

Today, as the Federal Government rapidly approaches the end of the fiscal year, I am reminded that Congress has never passed all 12 appropriations bills by the October 1 deadline during my entire time in the Senate. Since the Budget and Impoundment Control Act of 1974 updated the start of the fiscal year from July 1 to October 1, there have only been 4 years where Congress has passed yearlong government funding bills by October 1. The last time Congress did so was for fiscal year 1997. This trend makes clear that Congress already sees the December holidays as the real deadline and that the time to improve the certainty and reliability of the appropriations process is now.

Sen. Tim KaineD-VA · Sep 27, 2023

Madam President, today I want to discuss legislation I am introducing, the Modernizing the Federal Calendar Act.

Bill Text

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Introduced in SenateIssued September 27, 2023

118th CONGRESS

1st Session

S. 2950

IN THE SENATE OF THE UNITED STATES

September 27 (legislative day, September 22), 2023

Mr. Kaine introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs

A BILL

To align the fiscal year with the calendar year.

Change of fiscal year

(a)

In general

(1)

Change of calendar period

Section 1102 of title 31, United States Code, is amended—

(A)

by striking October 1 and inserting January 1; and

(B)

by striking September 30 of the following year and inserting December 31 of that year.

(2)

Effective date

The amendments made by paragraph (1) shall take effect on January 1, 2026.

(b)

Transition to new fiscal year

(1)

Transition period budget

As soon as practicable, the President shall prepare and submit to Congress—

(A)

after consultation with the Committee on the Budget and the Committee on Appropriations of the House of Representatives and the Committee on the Budget and the Committee on Appropriations of the Senate, budget estimates for the Federal Government for the period commencing October 1, 2025, and ending on December 31, 2025, in such form and detail as the President may determine; and

(B)

proposed legislation the President considers appropriate with respect to changes in law necessary to provide authorizations of appropriations for that period.

(2)

Agency transition

The Director of the Office of Management and Budget shall—

(A)

provide by regulation, order, or otherwise for the orderly transition by all departments, agencies, and instrumentalities of the Federal Government and the government of the District of Columbia from the use of the fiscal year in effect on the date of the enactment of this Act to the use of the new fiscal year prescribed under the amendments made by subsection (a); and

(B)

prepare and submit to Congress such additional proposed legislation as the Director considers necessary to accomplish the orderly transition to such new fiscal year.

(c)

Accounting procedures

(1)

In general

Section 1552(a) of title 31, United States Code, is amended by striking September 30 and inserting December 31.

(2)

Effective date

The amendment made by paragraph (1) shall apply with respect to any fiscal year commencing on or after January 1, 2026.

(d)

Conversion of authorizations of appropriations

Any law providing for an authorization of appropriations commencing on October 1 of a year shall, if that year is any year after 2025, be considered as meaning January 1 of the following year. Any law providing for an authorization of appropriations ending on September 30 of a year shall, if that year is any year after 2025, be considered as meaning December 31 of that year. Any law providing for an authorization of appropriations for the fiscal year 2026 or any fiscal year thereafter shall be construed as referring to that fiscal year ending on December 31 of the calendar year having the same calendar year number as the fiscal year number.

(e)

Title of appropriation acts

(1)

In general

Section 105 of title 1, United States Code, is amended by striking September 30 and inserting December 31.

(2)

Effective date

The amendment made by paragraph (1) shall apply with respect to any fiscal year commencing on or after January 1, 2026.

Conforming amendments

(a)

In general

(1)

Section 202(e) of the Congressional Budget and Impoundment Control Act of 1974 (2 U.S.C. 602(e)) is amended—

(A)

in paragraph (1), in the first sentence—

(i)

by striking February 15 and inserting May 15; and

(ii)

by striking October 1 of that year and inserting January 1 of the next calendar year; and

(B)

in paragraph (3)—

(i)

by striking On or before January 15 of each year and inserting On or before April 15 of each year;

(ii)

by striking September 30 each place it appears and inserting December 31; and

(iii)

by striking October 1 of that calendar year and inserting January 1 of the next calendar year.

(2)

Section 300 of the Congressional Budget Act of 1974 (2 U.S.C. 631) is amended to read as follows:

300.

Timetable

The timetable with respect to the congressional budget process is as follows:

On or before:	Action to be completed:
First Monday in May	President submits to Congress the budget of the President.
May 15	Congressional Budget Office submits report to Budget Committees.
Not later than 6 weeks after President submits budget	Committees submit views and estimates to Budget Committees.
July 1	Senate Budget Committee reports concurrent resolution on the budget.
July 15	Congress completes action on concurrent resolution on the budget.
August 15	Annual appropriation bills may be considered in the House.
September 10	House appropriations Committee reports last annual appropriation bill.
September 15	Congress completes action on reconciliation legislation.
September 30	House completes action on annual appropriation bills.
January 1	Fiscal year begins.

(3)

Section 301(a) of the Congressional Budget Act of 1974 (2 U.S.C. 632(a)) is amended, in the matter preceding paragraph (1)—

(A)

by striking the first sentence and inserting On or before July 15 of each year, the Congress shall complete action on a concurrent resolution on the budget for the fiscal year beginning on January 1 of the following year.; and

(B)

in the second sentence, by striking October 1 of such year and inserting January 1 of the following year.

(4)

Section 302 of the Congressional Budget Act of 1974 (2 U.S.C. 633) is amended—

(A)

in subsection (a)(5), by striking April 15 and inserting July 15; and

(B)

in subsection (g)(1), by striking April 15 and inserting July 15.

(5)

Section 303(b)(2) of the Congressional Budget Act of 1974 (2 U.S.C. 634(b)(2)) is amended by striking May 15 and inserting August 15.

(6)

Section 307 of the Congressional Budget Act of 1974 (2 U.S.C. 638 et seq.) is amended—

(A)

in the section heading, by striking June 10 and inserting September 10;

(B)

by striking June 10 and inserting September 10; and

(C)

by striking October 1 of that year and inserting January 1 of the next year.

(7)

Section 309 of the Congressional Budget Act of 1974 (2 U.S.C. 640) is amended, in the first sentence—

(A)

by striking July and inserting October; and

(B)

by striking October 1 of such year and inserting January 1 of the next year.

(8)

Section 310(f) of the Congressional Budget Act of 1974 (2 U.S.C. 641(f)) is amended—

(A)

by striking July and inserting October; and

(B)

by striking the fiscal year beginning on October 1 of the calendar year to which the adjournment resolution pertains and inserting the fiscal year beginning on January 1 of the calendar year after the calendar year to the adjournment resolution pertains.

(9)

The table of contents in section 1(b) of the Congressional Budget and Impoundment Control Act of 1974 is amended by striking the item relating to section 307 and inserting the following:

Sec. 307. House committee action on all appropriation bills to be completed by September 10.

(10)

Section 250(c)(12) of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 900(c)(12)) is amended by striking October 1 of the calendar year in which that session begins and inserting January 1 of the calendar year after the year in which that session begins.

(11)

Section 1105(a) of title 31, United States Code, is amended in the matter preceding paragraph (1) by striking On or after the first Monday in January but not later than the first Monday in February of each year and inserting Not later than the first Monday in May of each year.

(b)

Effective date

The amendments made by subsection (a) shall apply with respect to any fiscal year commencing on or after January 1, 2026.