President Trump has released his 2026 federal budget proposal. It allocates $1.7 trillion in spending, including increases to defense and homeland security. It cuts $163 billion from other agencies, including double-digit percentages to Labor, Agriculture, the Small Business Administration and Commerce, as well as from scientific research and safety net programs. The IRS would lose 20% of its current funding, which probably would lead to more layoffs at the tax agency. Critics say that with a smaller budget, the IRS is unlikely to collect as much tax revenue and probably would need to scale back taxpayer services. Congress will decide which of Trump’s items will go into the final budget.
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