This bill requires OMB to submit a four-year governmentwide financial management plan to Congress and expands CFO responsibilities. CFOs must oversee budget execution, risk management, internal controls, and performance reporting. Agencies must submit annual progress reports on implementation.
Latest Action
Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
AI Summary
Plain-English explanation of this bill
This bill requires OMB to submit a four-year governmentwide financial management plan to Congress and expands CFO responsibilities. CFOs must oversee budget execution, risk management, internal controls, and performance reporting. Agencies must submit annual progress reports on implementation.
Last updated: 1/5/2026
Official Summary
Congressional Research Service summary
<p><strong>Improving Federal Financial Management Act</strong><br/> <br/>This bill requires the Office of Management and Budget (OMB) to take certain actions to improve financial management systems across the federal government and expands the responsibilities of federal agency Chief Financial Officers (CFOs).<br/> <br/>The bill requires OMB to submit a four-year governmentwide financial management plan to Congress within six months of enactment and thereafter with the budget submitted in the first full fiscal year following the start of a presidential term. Such plans must address certain topics, including strategies for (1) improving financial management systems; (2) strengthening the financial management workforce; and (3) reporting performance and cost information. OMB must annually submit related status reports to Congress and the Government Accountability Office. <br/> <br/>Each agency CFO is assigned new responsibilities, including</p><ul><li>preparing the agency plan to implement OMB's governmentwide financial management plan;</li><li>overseeing and providing leadership in the areas of budget formulation and execution, planning and performance, risk management, internal controls, financial systems, accounting, and other areas designated by OMB;</li><li>coordinating with designated agency personnel on the strategic planning, performance measurement and reporting, and risk management functions of the agency;</li><li>managing the formulation and financial execution of the agency budget;</li><li>linking performance and cost information; and</li><li>preparing annual reports on progress in implementing the governmentwide financial management plan and transmitting such reports to the agency head, OMB, and Congress.</li></ul><p>The bill establishes new requirements for audits of agency accounts, such as having auditors evaluate the design of the agency's internal controls over financial reporting.</p>
Key Points
Main provisions of the bill
Requires OMB four-year governmentwide financial management plan
Expands agency CFO responsibilities significantly
Adds CFO oversight of budget execution and risk management
Mandates linking performance and cost information
Establishes new audit requirements for internal controls
How This Impacts Americans
Potential effects on citizens and communities
Federal financial management would become more coordinated across agencies. CFOs would gain broader authority but also more accountability for financial systems, risk management, and connecting spending to performance outcomes.
Policy Areas
Primary Policy Area
Government Operations and Politics
Related Subjects
Accounting and auditing
Budget process
Congressional oversight
Executive agency funding and structure
Federal officials
Performance measurement
Scope & Jurisdiction
Jurisdiction Level
federal
Congressional Session
119th Congress
Citation Reference
75, 119th Congress (2025). "Improving Federal Financial Management Act". Source: Voter's Right Platform. https://votersright.org/bills/118-s-75
