The US House of Representatives has approved a budget bill that would reduce IRS funding by roughly USD 1.1 billion for fiscal year 2026, setting the agency’s budget at about USD 11.2 billion. The measure still requires Senate approval and the President’s signature, while lawmakers race to finalise remaining spending bills before current funding expires on 30 January.
The US House of Representatives passed H.R. 7006 by a 341–79 vote on 14 January 2026, moving closer to finalising the FY 2026 federal budget.
The bill would cut US Internal Revenue Service (IRS) funding by about USD 1.1 billion, roughly 9% below FY 2025 levels, reducing the agency’s budget to about USD 11.2 billion for the year ending 30 September 2026. The measure still needs Senate approval and the President’s signature.
The appropriations package combines funding for the IRS through the Treasury Department with funding for the National Security and State Departments. The Congressional Budget Office provided a cost estimate for the bill on the same day.
A Senate proposal mirrors the House’s USD 11.2 billion total and allocates USD 5 billion for enforcement, USD 3.2 billion for technology and operations, and USD 3 billion for taxpayer services. It also allows the IRS to shift up to 5% of funds between accounts with committee approval.
The White House had recommended a larger cut—about 20%, or USD 2.5 billion—reducing the IRS budget to roughly USD 9.8 billion for FY 2026.
