House lawmakers this week could vote to approve a smaller IRS budget for the current fiscal year as Congress races to avoid another government shutdown. While the funding is higher than earlier proposals, the cuts may still create challenges for the agency, experts say.
The appropriations agreement would allocate $11.2 billion for the IRS for the remainder of the 2026 fiscal year, which is about 9% lower than the agency’s 2025 budget of $12.3 billion. The bill “restrains the IRS, while investing in taxpayer services,” Republican lawmakers said in a summary.
The House could vote on the bill Wednesday. If approved, the measure would provide $3 billion for taxpayer service, an increase of about $256 million from fiscal year 2025, and roughly $5 billion for enforcement, a reduction of $439 million, according to a joint statement from both chambers of Congress.
While the bill represents the fourth consecutive year of flat or reduced funding for the IRS, the appropriation is bigger than previous proposals.
The Trump administration’s 2026 budget request from May included a 20% agency funding cut. Meanwhile, a House Appropriations Committee bill approved in September would have slashed the agency’s budget by 23% from current spending.
