In its April 6, 2026, budget request for fiscal year (FY) 2027 (https://bit.ly/3Of7xNI), the White House proposes allocating $9.8 billion to the IRS. This represents a $1.4 billion reduction from FY 2026. The White House says that IRS personnel cuts of 27% and the termination of the Direct File program make such cuts possible. It also reiterates previous statements that new technology is helping to streamline IRS operations and lower costs. IRS cuts represent the majority of the $1.5 billion decrease in the U.S. Treasury Department’s FY 2027 budget. The budget proposes additional cuts to the Treasury’s Community Development Financial Institutions Fund.
