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Congress·Reported·6 months ago

House Appropriations Committee Advances 2026 Funding Bill Blocking IRS Free Filing, Digital Dollar

Also known as: Judiciary Appropriations Act, 2026

Legislative Progress

✓ Filed
Review
House
Senate
President

Impact Analysis

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

State Impacts

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

Key Points

  • Sets 2026 funding levels for the Treasury Department, including Treasury cybersecurity ($99 million) and key oversight offices.
  • Funds the IRS for customer help and tax enforcement, including money for phone help, identity-theft casework, and low-income tax clinic grants.
  • Blocks some Treasury actions, including work on a U.S. central bank digital currency and any move to end paper cash as legal tender.
  • Limits the IRS from creating a free government e-filing option unless Congress approves, and bars buying more IRS firearms above 2022 levels.
  • Directs Treasury to report on a possible Strategic Bitcoin Reserve and how the government would securely hold digital assets.
Economy FinanceTaxesTechnology Digital

Milestones

2 actions
Sep 5, 2025House

Placed on the Union Calendar, Calendar No. 193.

Sep 5, 2025House

The House Committee on Appropriations reported an original measure, H. Rept. 119-236, by Mr. Joyce (OH).

What Happens Next

Projected impacts based on AI analysis

Treasury must report on the feasibility of a Strategic Bitcoin Reserve and digital asset custody plans

Congress will get its first formal assessment of whether the U.S. government should hold Bitcoin as a strategic asset, which could influence future crypto policy and markets

Related News

3 articles
Thomson Reuters·3 months ago

Senate Funding Plan for IRS, SEC Unveiled

Senate appropriators released their 2026 funding plan for the Treasury and IRS, proposing a boost for taxpayer services. The bill includes policy riders from the House version that prohibit the IRS from spending funds on public electronic return-filing services without congressional approval.

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American Banker·about 1 month ago

IRS faces $1.1 billion budget cut in 2026 spending deal

Under a bipartisan agreement for FY2026, the IRS faces a 9% budget reduction to $11.2 billion. The deal also includes provisions to block the Treasury from pursuing a central bank digital currency (CBDC), reflecting a shift toward protecting traditional banking and financial privacy.

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Bipartisan Policy Center·about 1 month ago

The 2026 Tax Filing Season: IRS Funding Cuts and Modernization Challenges

A bicameral agreement for FY2026 would cut IRS funding by $1.1 billion relative to 2025 levels. Watchdogs warn that completing IT modernization and enforcing tax laws with a reduced budget will be challenging as the agency implements major new tax law changes.

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Source Information

Document Type

Congressional Bill

Official Title

Financial Services and General Government Appropriations Act, 2026

Bill NumberHR 5166
Congress119th Congress
ChamberHouse of Representatives
Latest ActionPlaced on the Union Calendar, Calendar No. 193.

Sponsor

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.