Taxpayer Funds Oversight and Accountability Act

Bill Number: H.R. 1558
Origin Chamber: House
Congress: 119th Congress, Session 1
Policy Area: Government Operations and Politics
Status: Introduced
Latest Action: 2025-09-15: ASSUMING FIRST SPONSORSHIP - Mr. Min asked unanimous consent that he may hereafter be considered as the first sponsor of H.R. 1558, a bill originally introduced by Representative Connolly, for the purpose of adding cosponsors and requesting reprintings pursuant to clause 7 of rule XII. Agreed to without objection.
Last Updated: 2026-04-30T12:28:55Z

AI-Generated Summary

Purpose of the Legislation

The Taxpayer Funds Oversight and Accountability Act (H.R. 1558) aims to strengthen federal financial management by expanding the responsibilities of Chief Financial Officers (CFOs) in agencies, updating the governmentwide financial management plan to a more focused 4-year cycle, and improving oversight of internal controls, reporting, and audits. This is intended to promote transparency, efficiency, and accountability in how taxpayer funds are managed across the executive branch.

Key Provisions

Enhanced Role of Agency CFOs (Amendments to 31 U.S.C. § 902):
CFOs must lead in areas like budget execution, performance planning, risk management, internal controls, financial systems, and accounting.
New duties include overseeing internal controls for financial reporting; creating agency-specific plans (within 90 days of a governmentwide plan) with performance metrics; submitting annual progress reports publicly; linking performance data with costs; and coordinating with other senior officials (e.g., Chief Data Officer, Chief Information Officer).
Deputy CFOs assist fully and serve as acting CFOs during vacancies.

Updated Governmentwide Financial Management Plan (Amendments to 31 U.S.C. § 3512):
Shifts from a 5-year to a 4-year plan, developed by the Director of the Office of Management and Budget (OMB) in consultation with councils of CFOs, CIOs, data officers, acquisition officers, Inspectors General, and experts like the Government Accountability Office (GAO).
The plan must include strategies for improving financial systems (e.g., linking performance and costs, reducing duplication, sharing services), workforce strengthening, and performance-based metrics for agencies.
Requires annual financial management status reports submitted with the President's budget, covering progress on the plan, agency performance against metrics, financial statements, audits, internal controls, and noncompliant systems.
Agencies must identify key financial data (e.g., spending and improper payments) and annually assess the effectiveness of internal controls over it.

Improved Audits and Reporting (Amendments to 31 U.S.C. § 3521 and Others):
Audits of agency financial statements must evaluate internal control design, implementation, and operation, with tests to ensure low risk; report weaknesses per government auditing standards.
Audits conducted by Inspectors General (where applicable) or independent external auditors.
Agency heads must report annually on internal control assessments.
Technical updates to align references and remove outdated provisions (e.g., in 5 U.S.C. § 3348).

Significant Changes to Existing Law

Expansion of CFO Duties: Previously focused on budget and systems, CFO roles now explicitly include leadership in internal controls, performance-cost integration, public reporting, and cross-agency coordination—adding metrics, plans, and annual assessments not previously required.
Plan Duration and Content: Replaces the 5-year plan with a shorter 4-year strategic plan, emphasizing cost-effectiveness, consultations, and metrics; adds detailed status reports and strategies for system sharing and workforce development.
Internal Controls and Audits: Introduces mandatory annual agency assessments of controls over key financial data; enhances audit scope to include control testing and reporting, replacing less rigorous prior requirements.
Reporting Timelines: Accelerates initial plan submission (from 15 to 6 months post-enactment) and aligns annual reports with the federal budget cycle, with public availability emphasized.
Conforming Changes: Removes obsolete references (e.g., to the 1982 Federal Managers' Financial Integrity Act) and updates cross-references.

Potential Impacts

On Government Agencies: Increases workload for CFOs and agencies through new planning, assessments, reporting, and coordination, potentially leading to better financial systems and reduced waste (e.g., via shared services and improper payment tracking). Noncompliant agencies face highlighted remediation efforts.
On Citizens (Taxpayers): Enhances transparency with public reports on spending, performance, and audits, fostering greater accountability for federal funds and potentially improving efficiency in government operations.
On International Relations: Minimal direct impact, though stronger financial management could indirectly support U.S. credibility in global fiscal discussions or aid programs by demonstrating robust oversight.
Broader Effects: Could reduce duplicative systems and improper payments, saving costs, but may require initial investments in training and technology.

Main Stakeholders Affected

Federal Agencies and Their CFOs/Deputies: Directly responsible for expanded duties, plans, assessments, and reporting.
Office of Management and Budget (OMB): Leads plan development and status reports; coordinates with councils.
Congress and Oversight Bodies: Receives detailed reports (e.g., committees on Oversight and Government Reform); GAO and Inspectors General provide input and audits.
Taxpayers and the Public: Benefit from increased transparency and accountability in federal spending.
Financial Management Experts and Councils: Involved in consultations (e.g., CFO Council, CIO Council) to shape the plan.

Notable Legal, Constitutional, or Political Implications

Legal Implications: Builds on existing frameworks like the Chief Financial Officers Act of 1990 and Federal Financial Management Improvement Act of 1996 by mandating stricter compliance with generally accepted accounting principles and auditing standards; no conflicts with statutory authority, but emphasizes enforcement through public reporting and metrics.
Constitutional Implications: Aligns with Congress's power of the purse (Article I, Section 9) by enhancing oversight of executive spending without infringing on separation of powers—agencies retain implementation flexibility.
Political Implications: Promotes bipartisan fiscal responsibility by targeting waste and duplication, potentially appealing to advocates of government reform; introduced by a diverse group of House members, it could influence budget debates and agency funding if enacted, though implementation challenges (e.g., resource strains) may spark debates on administrative burdens.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Connolly, Gerald E. [D-VA-11]

Cosponsors (18)

Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Lynch, Stephen F. [D-MA-8], Rep. Krishnamoorthi, Raja [D-IL-8], Rep. Khanna, Ro [D-CA-17], Rep. Mfume, Kweisi [D-MD-7], Rep. Brown, Shontel M. [D-OH-11], Rep. Stansbury, Melanie A. [D-NM-1], Rep. Garcia, Robert [D-CA-42], Rep. Frost, Maxwell [D-FL-10], Rep. Lee, Summer L. [D-PA-12], Rep. Crockett, Jasmine [D-TX-30], Rep. Randall, Emily [D-WA-6], Rep. Subramanyam, Suhas [D-VA-10], Rep. Ansari, Yassamin [D-AZ-3], Rep. Bell, Wesley [D-MO-1], Rep. Simon, Lateefah [D-CA-12], Rep. Min, Dave [D-CA-47], Rep. Tlaib, Rashida [D-MI-12]

Recent Actions

2025-09-15: ASSUMING FIRST SPONSORSHIP - Mr. Min asked unanimous consent that he may hereafter be considered as the first sponsor of H.R. 1558, a bill originally introduced by Representative Connolly, for the purpose of adding cosponsors and requesting reprintings pursuant to clause 7 of rule XII. Agreed to without objection.
2025-02-25: Referred to the House Committee on Oversight and Government Reform.
2025-02-25: Introduced in House
2025-02-25: Introduced in House

Bill Versions

Taxpayer Funds Oversight and Accountability Act — issued 2025-02-25 — PDF (19 pages)