Key takeaways
- The federal fiscal year runs October 1 to September 30.
- 46 states start their fiscal year on July 1. The exceptions: New York (April 1), Texas (September 1), and Alabama and Michigan (October 1).
- Local governments and school districts set their own fiscal years; July 1 and January 1 are common for local governments.
- For large purchases, engage while departments are preparing budget requests — often six to twelve months before the fiscal year starts.
Government fiscal years at a glance
| Level of government | Fiscal year | Notes |
|---|---|---|
| Federal government | October 1 – September 30 | Funded through annual appropriations by Congress |
| 46 states | July 1 – June 30 | Some states adopt two-year (biennial) budgets |
| New York | April 1 – March 31 | |
| Texas | September 1 – August 31 | Budgets for two years at a time |
| Alabama and Michigan | October 1 – September 30 | |
| Local governments | Set locally | July 1 and January 1 are common; some use October 1 |
| School districts | Set by state law or locally | July 1 is common |
State fiscal years from the National Conference of State Legislatures.
Federal fiscal year
The federal fiscal year begins October 1 — so fiscal year 2027 runs from October 1, 2026, through September 30, 2027. Agencies spend money that Congress appropriates. When full-year appropriations aren't enacted by October 1, agencies often operate under continuing resolutions that extend prior funding temporarily, which can delay new starts. Many purchases are finalized in the fourth quarter, July through September, as agencies commit funds before the year ends.
State fiscal years
According to the National Conference of State Legislatures, 46 states begin their fiscal year on July 1. New York begins April 1, Texas September 1, and Alabama and Michigan October 1. Some states, including Texas, adopt budgets that cover two years; NCSL reports that 15 states enacted a biennial budget during their 2025 legislative sessions. In biennial states, the budget adopted in one session can set spending for both years of the cycle.
Local government fiscal years
Counties, cities, towns and special districts set their own fiscal years, often within limits set by state law. July 1 and January 1 are common starting points, and some local governments use October 1. The fastest way to confirm a jurisdiction's fiscal year is the cover or first pages of its adopted budget.
KSG maintains a fiscal-year-end database for U.S. local governments, built from Census Bureau data, so our outreach lines up with each jurisdiction's budget calendar.
School district fiscal years
Most school districts run a July 1 to June 30 fiscal year, although rules vary by state. Budgets are typically developed in the spring, and many districts schedule installations and implementations for the summer months.
Planning your outreach around the fiscal year
Exact timing varies, but most budget cycles follow a similar pattern relative to the start of the fiscal year:
| When | What's happening inside the agency | What to do |
|---|---|---|
| 9–12 months before | Departments identify needs and begin budget requests | Introduce the problem you solve and help shape the request |
| 6–9 months before | Requests and capital plans are compiled; the executive drafts a budget | Give your champion pricing and justification for the request |
| 3–6 months before | Budget hearings and adoption | Watch agendas; confirm what was funded |
| Start of the fiscal year | New funds become available | Move funded projects into procurement |
| Final quarter | Remaining funds are committed before they lapse | Be ready with quotes and contract vehicles for quick decisions |