The BareStory
House Republican leaders have cleared the way for floor votes on a government funding package covering the Treasury, State Department, and Internal Revenue Service (IRS) ahead of a January 30 shutdown deadline. The House Rules Committee voted Tuesday to allow consideration of amendments demanded by fiscal conservatives, including measures to cut funding for the District of Columbia's appeals court and the National Endowment for Democracy.
One amendment, sponsored by Rep. Chip Roy, seeks to reduce the D.C. appeals court budget by 20 percent and eliminate salaries for two judges. Democratic Rep. Jim McGovern criticized the move as an act of "revenge," noting that the sponsors did not testify before the committee. Conversely, Rules Committee Chair Virginia Foxx defended the approach, stating that Republicans are ensuring a "member-driven" appropriations process.
The underlying legislation proposes funding the IRS at $11.2 billion for the remainder of fiscal year 2026, roughly 9 percent lower than the previous year. According to a summary from Republican lawmakers, the bill increases the allocation for taxpayer services to $3 billion while reducing enforcement funds to approximately $5 billion. While IRS CEO Frank Bisignano stated the agency is prepared for the tax filing season opening later this month, some Senate Democrats and tax experts have expressed concern that persistent budget reductions could hinder the agency's performance.
The legislative push comes as Speaker Mike Johnson navigates a slim majority, which has temporarily narrowed to a single vote due to absences and a vacancy. Internal party divisions recently stalled other legislation, including a bill on employer training programs that failed on the floor after six Republicans defected. Appropriations Chair Tom Cole acknowledged the "political challenges" facing the party as they attempt to finalize spending bills before government funding expires.
How it may affect me
As a U.S. reader:
• You face the risk of a government shutdown affecting Treasury and State Department services if Congress fails to pass funding before the January 30 deadline.
• Taxpayers may receive better assistance during the upcoming filing season as the legislation restructures the budget to increase funding for taxpayer services to $3 billion.
• Reduced tax enforcement and potential declines in long-term IRS performance are possible due to a proposed 9 percent overall budget cut and lower enforcement allocations.
• Future legislation on federal programs, such as employer training, faces uncertainty or delays as a slim majority and internal divisions complicate the passage of bills.
