A recently released draft of the U.S. Senate’s Financial Services and General Government (FSGG) funding bill allocates $3.2 billion for taxpayer services, an increase over $2.78 billion in 2025. By contrast, the U.S. House’s FSGG bill keeps 2026 funding at 2025 levels. The House bill also includes a rider that forbids the IRS from spending funds on a “free, public electronic return-filing service,” such as Direct File, without certain committee approvals. The Senate’s FSGG bill is silent on that issue. And while the House and U.S. Treasury budget proposals make sharp cuts to funding for IRS enforcement, the Senate bill maintains current funding levels of more than $5.4 billion.
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