House Bill Slashes IRS Budget by $2.89B, Tightens Oversight on E-Filing and Free Speech！

Congressional Republicans have already clawed back more than $40 million in Inflation Reduction Act funding to the IRS. A newly approved U.S. House Appropriations Financial Services and General Services Subcommittee bill would further cut the IRS’s budget. For the fiscal year ending Sept. 30, 2026, the bill provides the Treasury Dept. with $11.29 billion, which is $2.89 billion less than funding made available for fiscal year 2025. The bill would also prohibit the IRS from (among other actions) targeting taxpayers for their ideological beliefs and exercise of free speech. And it wouldn’t allow funding to be used to develop a free e-filing service option without prior Congressional approval.