The U.S. Senate has passed the Fiscal Responsibility Act (FRA) and President Biden signed it last weekend. It suspends the debt ceiling until 2025 and makes several changes related to domestic spending. Among the discretionary spending cuts, the IRS will lose some of its $80 billion funding provided by the Inflation Reduction Act. The FRA rescinds $1.39 billion immediately and pares back funding by about $10 billion each year for 2024 and 2025. Also noteworthy, there are non-defense spending caps on scientific research, domestic law enforcement and environmental protection. The Congressional Budget Office projects the FRA will reduce the federal deficit by about $1.5 trillion over 10 years.
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