IRS Funds Would Be Clawed Back in Appropriations Bill: BGOV Tax

IRS Funding Clawback Floated in Bill

The IRS’s Biden-era supplemental funding is poised to take another hit, after lawmakers released a bipartisan spending plan early Tuesday.

A bill to fund the Labor and the Health and Human Services departments would in fiscal 2026 rescind $11.66 billion in funds from Democrats’ 2022 tax-and-climate law. The proposed rescission to multiyear funds would be in addition to the cut to the IRS’s annual appropriations that was floated in a separate spending bill the House passed last week.

Democrats in that 2022 law had initially provided the IRS with nearly $80 billion in additional ...