The Fiscal Accountability and Financial Oversight Act of 2025 

A BILL (Rough Draft Submitted to Congress for Consideration) 

To establish strict deadlines for the federal budget process, enforce accountability measures for non-compliance, discourage reliance on continuing resolutions (CRs), mandate balanced budgets, and enhance transparency in government financial operations.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, with the approval of President Donald J. Trump,

SECTION 1. SHORT TITLE.

This Act may be cited as the "Fiscal Accountability and Financial Oversight Act of 2025" or the "FAFO Act."

SECTION 2. FINDINGS AND PURPOSE.

(a) Findings.

Congress finds the following:

1. Chronic delays in the federal budget process undermine public trust, increase operational costs, and jeopardize essential services.
2. The Congressional Budget and Impoundment Control Act of 1974 (2 U.S.C. § 621 et seq.) provides a framework but lacks adequate enforcement mechanisms.
3. Reliance on continuing resolutions (CRs) has become routine, undermining fiscal discipline and stable governance.
4. Transparent and timely budget processes are essential for effective governance and economic stability.
5. Balanced budgets are fundamental to ensuring long-term fiscal responsibility and economic stability.
6. Citizens must have adequate time to review proposed budgets to ensure transparency and public participation.

(b) Purpose.

The purpose of this Act is to:

1. Mandate strict deadlines for the submission, passage, and enactment of a balanced federal budget.
2. Enforce automatic penalties for non-compliance by Congress and the Executive Branch.
3. Discourage the use of continuing resolutions (CRs), allowing them only after a government shutdown and limiting them to a single 14-day duration.
4. Prohibit concurrent CRs to prevent perpetual budgetary extensions.
5. Ensure that the federal budget does not incur a deficit.
6. Guarantee citizens no less than five (5) days to review the full text of all proposed budgets before any vote.

SECTION 3. DEFINITIONS.

For the purposes of this Act:

1. "Budget Resolution" means the concurrent resolution on the budget as defined under 2 U.S.C. § 632.
2. "Appropriations Bills" refer to the twelve regular appropriations bills pursuant to 31 U.S.C. §§ 1105 and 1106.
3. "Continuing Resolution (CR)" means a joint resolution providing continuing appropriations as referenced in 31 U.S.C. § 1105(a), subject to the limitations under this Act.
4. "Essential Services" include operations exempt from shutdown under the Antideficiency Act (31 U.S.C. §§ 1341–1354).
5. "Balanced Budget" means a budget where total outlays do not exceed total receipts for the fiscal year.
6. "Public Disclosure Platform" means the online platform established under Section 6(c) to provide transparency.

SECTION 4. BUDGET PROCESS DEADLINES.

(a) Budget Timeline Alignment.

To ensure fiscal responsibility and timely planning, the budget process shall be fully aligned with the fiscal year, which runs from October 1 to September 30 of the following year.  All deadlines for submissions, reviews, and adoptions shall be adjusted to ensure that the budget is fully enacted and in place before the start of the fiscal year. Any conflicting statutory deadlines in the United States Code (USC) shall be amended to conform with the timelines established by this Act.

(b) Agency Submissions.

Federal agencies shall submit budget requests to the Office of Management and Budget (OMB) no later than May 1 of each year for the following fiscal year. Budget requests must include detailed line items for every program or expenditure.

(c) Citizen Review of Agency Budgets.

Citizens shall have the right to review all federal agency proposed budgets as submitted to the OMB. Proposed budgets shall be posted on the Public Disclosure Platform no later than May 10 of each year to ensure transparency and public engagement.

(d) Presidential Budget Submission.

The President shall submit a comprehensive and balanced budget proposal to Congress by June 1 of each year. (31 U.S.C. § 1105)

(e) Congressional Budget Resolution.

Congress shall adopt a balanced budget resolution under 2 U.S.C. § 632 by July 1 of each year.

(f) Appropriations Bills.

1. Each chamber shall pass all regular appropriations bills by August 1.
2. Conference committees shall reconcile differences by August 15.
3. The final appropriations package shall be enacted by August 31, ensuring the budget is in place before the start of the fiscal year on October 1.

(g) Implementation Preparation.

Agencies shall prepare for budget implementation between September 1 and September 30 to ensure seamless execution at the start of the fiscal year on October 1.

(h) Public Review Requirement.

The full written text of all proposed budgets shall be made publicly available on the Public Disclosure Platform no less than five (5) days before any congressional vote.

SECTION 5. ENFORCEMENT AND PENALTIES.

(a) Automatic Government Shutdown.

Failure to enact appropriations by September 30 shall result in an automatic shutdown beginning at 12:01 AM on October 1, excluding essential services. Essential services included, but are not limited to:

1. National defense and military operations.
2. Medicare and Medicaid benefits administration, specifically related to US Citizens’ healthcare.
3. Social Security benefit administration and disbursements.
4. Emergency services as determined under the Antideficiency Act (31 U.S.C. §§ 1341–1354).

All other government operations shall cease, and all non-essential government employees shall be placed on leave without pay (furlough). Furloughed employees shall receive back pay only upon the enactment of a fully funded, balanced budget as required by this Act. If a balanced budget is not enacted, back pay shall not be authorized. The United States Government shall pay federal unemployment benefits to those employees placed on leave without pay, until such time as the enactment of a fully funded, balanced budget.

(b) Continuing Resolution Restrictions.

1. CRs may only be enacted after a government shutdown has commenced.
2. Any CR passed shall be limited to a single duration of 14 days.
3. Concurrent or consecutive CRs are prohibited. No additional CR may be enacted following the expiration of the initial 14-day CR.
4. Use of CRs shall be documented with justification published on the Public Disclosure Platform.

(c) Balanced Budget Requirement.

1. All budgets must be balanced with no deficit permitted.
2. Any attempt to submit or enact an unbalanced budget shall be deemed a violation of this Act and subject to legal challenge.

(d) Congressional Penalties.

1. Member salaries shall be withheld under 2 U.S.C. § 4501 until all appropriations are passed. No back pay will be available to members during a government shutdown.  The United Staes Citizens shall not be liable for the salaries of elected officials who do not meet budget deadlines or for the members failure to enact a fully funded, and balanced budget.
2. No recess shall be permitted after July 31 until all appropriations bills are enacted. Therefore, members are encouraged to engage in the budget process early with a good faith effort and the intentions of meeting all deadlines.
3. Travel expenses for non-essential congressional activities shall be suspended during periods of non-compliance.

(e) Executive Branch Penalties.

Non-compliance by the Executive Branch shall result in:

1. Suspension of non-essential travel and operational budgets.
2. Restrictions on executive agency hiring and bonuses until compliance is achieved.

SECTION 6. TRANSPARENCY MEASURES.

(a) Public Reporting.

OMB shall publish weekly progress reports on budget negotiations and appropriations status on the Public Disclosure Platform.

(b) Voting Records Disclosure.

Congress shall publicly disclose voting records on budget-related legislation within 24 hours of each vote.

(c) Citizen Access.

An online platform shall be established by the Government Accountability Office (GAO) to provide:

1. Real-time updates on the budget process.
2. Voting records and accountability measures.
3. Public comment sections on proposed budgetary measures.
4. Access to full budget texts at least five (5) days before congressional voting.

SECTION 7. PRESIDENTIAL TRANSITION YEAR ADJUSTMENTS

(a) Transition Year Deadline Exceptions.

An exception to the budget deadlines shall be mandated every four years during a presidential election cycle.

In such years, all budget deadlines shall be adjusted accordingly to accommodate the transition while ensuring minimal disruption to government operations.

(b) Transition Year Agency Budget Submission.

Agencies shall specifically identify and disclose no later than July 1, funds held in reserve (a/k/a remaining budget and unspent balance) designated to operate the agency through September 30 of the current fiscal year.  Agencies that have budget shortfalls due to mismanagement of funds shall immediately begin cost-cutting measures.  Cost cutting measures should include but not be limited to consolidating operations and identifying efficiencies, institute hiring freezes and performance adjustments, and downsizing the agency’s employees where appropriate. Agencies must comply with the provisions of The Financial Accountability and Financial Oversight Act (FAFO) to ensure continuity of operations until Congress adopts a new budget. (31 U.S.C. § 1108).

(c) Presidential Transition Budget Submission.

In the event of the outgoing administration enacted a budget for the next fiscal year; to circumvent the new administration, The Financial Accountability and Financial Oversight Act (FAFO) allows an exception for transition years. The incoming President shall have full authority to submit a new comprehensive and balanced budget, which shall supersede any budget adopted under the previous administration. The exception ensures that no incoming administration is bound by the prior administration's budget.

Presidents and presidential candidates in election years shall submit their comprehensive and final balanced budget for the new year on or before November 5 of the preceding year (before election) to ensure transparency and continuity of fiscal planning. If the United States Code (USC) or any provisions thereof and rules require adjustments to comply with this requirement, they shall be amended in conjunction with this Act. (31 U.S.C. § 1105)
In presidential transition years, the incoming administration shall submit:

1. A preliminary balanced budget by September 1 (before the election).
2. A final balanced budget by November 20.

(d) Congressional Deadlines.

Congress shall adopt a balanced budget resolution under 2 U.S.C. § 632 by December 1 of the transition year, to be implemented in the next fiscal year, beginning January 1, recognizing the budget will not be affixed with the seal of the President prior to Inauguration Day.

1. Budget resolution shall be adopted by December 1.
2. Conference committees shall reconcile differences by December 15.
3. Appropriations bills shall be passed by January 10 and enacted by January 21.

SECTION 8. ENFORCEMENT THROUGH LEGAL REMEDIES

1. Only tax-paying U.S. citizens shall have standing to file suit in federal court for non-compliance under this Act. No foreign nationals, non-citizen entities, or non-taxpaying citizens shall have standing.

2. Non-profit watchdog organizations may join a complaint brought forth by a tax-paying U.S. citizen not affiliated with the watchdog organization if their interests align with the citizen's complaint. In such cases, the watchdog organization shall be enjoined to the complaint, have standing as a co-plaintiff, and must assume all legal fees going forward associated with the litigation.
3. Violations of the FAFO Act shall be subject to judicial review in the U.S. Court of Federal Claims.
4. Whistleblower protections under 5 U.S.C. § 2302 shall apply to disclosures of FAFO Act violations.

SECTION 9. SUPERSESSION AND CONFLICT RESOLUTION

(a) Supersession of Conflicting Laws:
The provisions of the Fiscal Accountability and Financial Oversight Act of 2025 (FAFO) shall supersede any conflicting provisions of the following laws and regulations:

1. Congressional Budget and Impoundment Control Act of 1974 (2 U.S.C. § 621 et seq.)
2. Budget and Accounting Act of 1921 (31 U.S.C. § 1101 et seq.)
3. Antideficiency Act (31 U.S.C. §§ 1341–1354), to the extent of conflicting budget deadlines and procedures.
4. Impoundment Control Act of 1974
5. OMB Circular A-11 and any subsequent Office of Management and Budget (OMB) guidance that conflicts with FAFO deadlines or requirements.
6. Government Performance and Results Act of 1993 (GPRA) and related reporting deadlines conflicting with FAFO.
7. Any other federal laws, codes, or regulations that impose conflicting deadlines or procedures on the federal budget process.

(b) Precedence:
Where conflicts arise, FAFO shall prevail, and all agencies, departments, and branches of the federal government shall comply with the deadlines, requirements, and enforcement mechanisms established under this Act.

(c) Intent and Fiscal Year Alignment:
The intent of this Act is to align the budget process entirely within the fiscal year (October 1 – September 30), with the sole exception of a presidential transition year as outlined in Section 7. All conflicting federal statutes, codes, regulations, and executive guidelines shall be interpreted or amended to fulfill this intent.