H.R. 8340

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8340 Referred in Senate (RFS)]

<DOC>
119th CONGRESS
2d Session
H. R. 8340

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

June 11, 2026

Received; read twice and referred to the Committee on Homeland Security 
and Governmental Affairs

_______________________________________________________________________

AN ACT

To modify the governmentwide financial management plan, and for other 
purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Taxpayer Funds Oversight and 
Accountability Act''.

SEC. 2. CHIEF FINANCIAL OFFICERS; GOVERNMENTWIDE FINANCIAL MANAGEMENT 
PLAN.

(a) Chief Financial Officer and Deputy Chief Financial Officer.--
Chapter 9 of title 31, United States Code, is amended--
(1) in section 902(a)--
(A) in the matter preceding paragraph (1), by 
striking ``An'' and inserting ``It shall be the duty 
and responsibility of each agency Chief Financial 
Officer to oversee and, unless specified otherwise in 
law, provide leadership in the areas of budget 
formulation and execution, planning and performance, 
risk management, internal controls, financial systems, 
accounting, and other areas as designated by the Deputy 
Director of Management under their authorities 
described in section 503 of this title. In carrying out 
the preceding sentence, each'';
(B) in paragraph (3)--
(i) in subparagraph (C), by inserting 
``areas and'' before ``systems''; and
(ii) in subparagraph (D)--
(I) in clause (iii), by striking 
``and'' at the end;
(II) in clause (iv), by striking 
``performance;'' and inserting 
``performance and integration of 
performance and cost information; 
and''; and
(III) by adding at the end the 
following:
``(v) annual agency financial statements 
prepared in accordance with applicable 
accounting standards;'';
(C) by redesignating paragraphs (5), (6), (7), and 
(8) as paragraphs (7), (8), (9), and (11) respectively;
(D) by inserting after paragraph (4) the following:
``(5) oversee and provide leadership over the design, 
implementation, and operation of the internal controls of the 
agency over financial reporting and key financial management 
information identified under section 3512(e)(1);
``(6) prepare, in consultation with financial management 
and other appropriate experts, an agency plan to implement the 
4-year financial management plan prepared by the Director of 
the Office of Management and Budget under section 3512(a)(2) of 
this title and to achieve and sustain effective financial 
management in the agency, which shall--
``(A) be completed within 120 days after the 
issuance of a governmentwide plan under such section 
3512(a)(2);
``(B) be revised as determined necessary by the 
Chief Financial Officer and the Director of the Office 
of Management and Budget;
``(C) include financial management metrics against 
which the financial management performance of the 
agency shall be assessed; and
``(D) be submitted upon completion or revision to 
the head of the agency, the Director of the Office of 
Management and Budget, the Comptroller General, and 
appropriate committees of Congress, and be made 
publicly available;'';
(E) in paragraph (7), as so redesignated--
(i) by striking subparagraph (A);
(ii) by redesignating subparagraphs (B) 
through (E) as subparagraphs (A) through (D), 
respectively; and
(iii) in subparagraph (C), as so 
redesignated, by adding ``and'' at the end;
(F) in paragraph (8), as so redesignated--
(i) in the matter preceding subparagraph 
(A), by striking ``and the Director of the 
Office of Management and Budget,'' and 
inserting ``, the Director of the Office of 
Management and Budget, the Comptroller General, 
and appropriate committees of Congress, which 
shall be made publicly available and'';
(ii) in subparagraph (A), by striking 
``agency;'' and inserting ``agency, including--
``(i) the progress of the agency in 
implementing the agency plan described in 
paragraph (5);
``(ii) the progress of the agency in 
implementing the governmentwide 4-year 
financial management plan prepared by the 
Director of the Office of Management and Budget 
under section 3512(a)(2) of this title; and
``(iii) the performance of the agency 
against financial management metrics 
established by the Director of the Office of 
Management and Budget;''; and
(iii) in subparagraph (D)--
(I) by striking ``of the reports'' 
and inserting ``of--
``(i) the reports'';
(II) in clause (i), as so 
designated, by striking ``the 
amendments made by the Federal 
Managers' Financial Integrity Act of 
1982 (Public Law 97-255); and'' and 
inserting ``section 3512(d) of this 
title; and''; and
(III) by adding at the end the 
following:
``(ii) the reporting of the agency under 
the Federal Financial Management Improvement 
Act of 1996 (31 U.S.C. 3512 note); and'';
(G) in paragraph (9), as so redesignated--
(i) by striking ``monitor the'' and insert 
``manage the formulation and''; and
(ii) by striking ``, and prepare and submit 
to the head of the agency timely performance 
reports; and'' and inserting a semicolon;
(H) by inserting after paragraph (9), as so 
redesignated, the following:
``(10) coordinating with the responsible agency official to 
ensure performance and cost information are linked, including 
in the preparation and submission to the head of the agency of 
timely performance reports that incorporate cost 
information;'';
(I) in paragraph (11), as so redesignated--
(i) by inserting ``inflation and'' before 
``costs''; and
(ii) by striking the period at the end and 
inserting ``; and''; and
(J) by adding at the end the following:
``(12) coordinate with senior agency personnel, including 
but not limited to, those with statutory, regulatory, and 
related policy responsibility which may include the Chief Data 
Officer, Chief Information Officer, Chief Performance Officer, 
Chief Acquisition Officer, Chief Risk Officer, and Chief 
Evaluation Officer of the agency on--
``(A) the exercise of authorities under this 
subsection; and
``(B) the strategic planning, performance 
measurement and reporting, and risk management 
functions of the agency.''; and
(2) in section 903--
(A) in subsection (a), by inserting ``and who shall 
assist the agency Chief Financial Officer in the 
performance of each of the duties of the agency Chief 
Financial Officer under this chapter'' after 
``matters''; and
(B) by adding at the end the following:
``(c) Notwithstanding subchapter III of chapter 33 of title 5, in 
the event of a vacancy in the position of Chief Financial Officer of an 
agency, the Deputy Chief Financial Officer of the agency shall serve as 
the acting Chief Financial Officer.''.
(b) Governmentwide Financial Management Plan.--Section 3512 of 
title 31, United States Code, is amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``a financial 
management status report and a governmentwide 5-year 
financial management plan'' and inserting ``a 
governmentwide 4-year financial management plan, to be 
included within the Federal Government performance plan 
described in section 1115, and a financial management 
status report'';
(B) by striking paragraph (2);
(C) by redesignating paragraph (3) as paragraph 
(2);
(D) in paragraph (2), as so redesignated--
(i) in subparagraph (A)--
(I) by striking ``5-year'' and 
inserting ``4-year'';
(II) by striking ``shall describe'' 
and inserting the following: ``shall--
``(i) describe'';
(III) in clause (i), as so 
redesignated, by striking ``5 fiscal 
years to improve the financial 
management of the Federal Government.'' 
and inserting ``4 fiscal years to 
improve the financial management of the 
Federal Government in a manner that is 
strategic, comprehensive, and cost-
effective, and shall also include 
strategies for enabling data sharing in 
accordance with applicable law and 
joint fraud prevention initiatives with 
State (meaning a State of the United 
States, the District of Columbia, a 
territory or possession of the United 
States, or a federally recognized 
Indian tribe) and local governments 
that administer federally funded 
programs or disburse Federal funds on 
behalf of the Federal Government; 
and''; and
(IV) by adding at the end the 
following:
``(ii) be developed in consultation with the Chief 
Financial Officers Council and, as appropriate, other councils 
and financial management experts, including the Chief 
Information Officers Council, the Chief Data Officer Council, 
the Chief Acquisition Officers Council, and the Government 
Accountability Office, as determined by the Director of the 
Office of Management and Budget in consultation with the Chief 
Financial Officers Council.''; and
(ii) in subparagraph (B)--
(I) in the matter preceding clause 
(i), by striking ``5-year'' and 
inserting ``4-year'';
(II) in clause (iii)--
(aa) by striking ``for 
developing'' and inserting 
``for improving financial 
management systems, including--
``(I) developing''; and
(bb) by adding at the end 
the following:
``(II) describe how performance and cost 
information are linked in order to facilitate effective 
and efficient decision making;
``(III) eliminating duplicative and unnecessary 
systems and activities; and
``(IV) identifying opportunities for agencies to 
share systems and services and encouraging agencies to 
do so where practicable;'';
(III) by striking clause (iv);
(IV) by redesignating clause (v) as 
clause (iv);
(V) by inserting after clause (iv), 
as so redesignated, the following:
``(v) provide a strategy for reporting performance and cost 
information;'';
(VI) in clause (vi), by striking 
``5-year'' and inserting ``4-year'';
(VII) in clause (vii), by striking 
``identify'' and inserting ``provide a 
strategy for strengthening the Federal 
financial management workforce, 
including identification of'';
(VIII) in clause (viii), by 
striking ``and'' at the end;
(IX) by redesignating clause (ix) 
as clause (x);
(X) by inserting after clause 
(viii) the following:
``(ix) include financial management metrics against which 
the performance of executive agencies can be assessed; and''; 
and
(XI) in clause (x), as so 
redesignated, by striking ``5-year'' 
and inserting ``4-year'';
(E) by inserting after paragraph (2) the following:
``(3) A financial management status report under this subsection 
shall include--
``(A) a description and analysis of the status of 
financial management in the executive branch, including 
the progress made towards implementing the 
governmentwide 4-year financial management plan, and 
the status of remaining challenges to implementing the 
governmentwide 4-year financial management plan;
``(B) a summary of the performance of agencies 
against the metrics developed and identified by the 
Director of the Office of Management and Budget in the 
governmentwide 4-year financial management plan;
``(C) a summary of the most recently completed 
financial statements--
``(i) of Federal agencies under section 
3515 of this title; and
``(ii) of Government corporations;
``(D) a summary of the most recently completed 
financial statement audits and reports--
``(i) of Federal agencies under subsections 
(e) and (f) of section 3521 of this title; and
``(ii) of Government corporations;
``(E) a summary of reports on internal accounting 
and administrative control systems submitted to the 
President and Congress under subsection (d);
``(F) a listing of agencies whose financial 
management systems do not comply substantially with the 
requirements of section 803(a) of the Federal Financial 
Management Improvement Act of 1996 (31 U.S.C. 3512 
note), and a summary statement of the efforts underway 
to remedy the noncompliance; and
``(G) any other information the Director considers 
appropriate to fully inform Congress regarding the 
financial management of the Federal Government.'';
(F) in paragraph (4)--
(i) in subparagraph (A)--
(I) by striking ``15 months after 
the date of the enactment of this 
subsection'' and inserting ``12 months 
after the date of the enactment of the 
Taxpayer Funds Oversight and 
Accountability Act''; and
(II) by striking ``5-year'' and 
inserting ``4-year'';
(ii) in subparagraph (B)--
(I) in clause (i)--
(aa) by striking ``Not 
later than January 31 of each 
year thereafter'' and inserting 
``At a minimum, concurrently 
with the submission of the 
budget of the United States 
Government under section 
1105(a) of this title made in 
the first full fiscal year 
following any year in which the 
term of the President commences 
under section 101 of title 3'';
(bb) by striking 
``financial management status 
report and a revised 
governmentwide 5-year'' and 
inserting ``governmentwide 4-
year''; and
(cc) by striking ``5 fiscal 
years'' and all that follows 
through the period at the end 
and inserting ``4 fiscal 
years.''; and
(II) in clause (ii)--
(aa) by striking ``revised 
governmentwide 5-year'' and 
inserting ``governmentwide 4-
year''; and
(bb) by striking 
``paragraph (3)(B)(viii)'' and 
inserting ``paragraph 
(2)(B)(viii)''; and
(iii) by adding at the end the following:
``(C) Each year, concurrently with the submission of the budget of 
the United States Government under section 1105(a) of this title, the 
Director of the Office of Management and Budget shall submit to the 
appropriate committees of Congress and the Comptroller General a 
financial management status report.''; and
(G) by striking paragraph (5);
(2) in subsection (d)(2)--
(A) in subparagraph (A), by striking ``and'' at the 
end;
(B) in subparagraph (B), by striking the period at 
the end and inserting ``; and''; and
(C) by adding at the end the following:
``(C) a separate report on the results of the assessment 
and conclusion required under subsection (e)(2).'';
(3) by redesignating subsections (e), (f), and (g) as 
subsections (f), (g), and (h), respectively; and
(4) by inserting after subsection (d) the following:
``(e) The head of each executive agency shall--
``(1) in establishing the internal accounting and 
administrative controls under subsection (c), identify the key 
financial management information needed for effective financial 
management and decision making, which shall include a 
consideration of--
``(A) the agency spending data required to be 
published under the Federal Funding Accountability and 
Transparency Act of 2006 (31 U.S.C. 6101 note); and
``(B) the information used by the agency to report 
on improper payments under section 3352 of this title; 
and
``(2) annually assess and make a conclusion on the 
effectiveness of the internal controls of the executive agency 
over financial reporting and key financial management 
information identified under paragraph (1) consistent with 
guidance provided by the Director of the Office of Management 
and Budget.''.
(c) Technical and Conforming Amendment.--Section 3348(e) of title 
5, United States Code, is amended--
(1) in paragraph (3), by adding ``or'' at the end;
(2) by striking paragraph (4); and
(3) by redesignating paragraph (5) as paragraph (4).

Passed the House of Representatives June 10, 2026.

Attest:

KEVIN F. MCCUMBER,

Clerk.