On Sept. 25, the U.S. House and Senate passed the Continuing Appropriations and Extensions Act, 2025 (H.R. 9747) to prevent a federal government shutdown without passing a final appropriations bill. Although H.R. 9747 doesn’t add new policy proposals, it includes a rescission of $20 billion in IRS funding from the original $80 billion allocated to the IRS by the Inflation Reduction Act. President Biden has agreed to a reallocation of $20 billion (to be clawed back from the IRS’s budget in 2024). But if the language in H.R. 9747 isn’t removed from the final appropriations bill, $20 billion could potentially be cut from the IRS’s budget every year going forward.
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