IRS Faces Potential 23% Budget Cut as Funding Battle Heats Up!

The IRS could face additional funding cuts this fall. Lawmakers have until the end of the fiscal year (Sept. 30) to pass legislation to continue funding the government and avoid a shutdown. The House Appropriations Committee advanced a funding bill that calls for even deeper IRS funding cuts than those proposed by the Trump administration. The bill would allocate $9.5 billion to the IRS for fiscal year 2026. That’s a 23% cut from the IRS’s current funding level. (President Trump proposed $9.8 billion, a 20% cut.) The committee also rejected Trump’s funding request to hire 11,000 additional call center representatives. The committee’s funding bill will now be voted on by the full House.