Project 2025 Tracker / What’s done, what’s next

22. Department of the Treasury · Major · Needs Congress

Reverse the Inflation Reduction Act's $80 billion IRS expansion

Partially done

699 22. Department of the Treasury

“The Inflation Reduction Act contains a radical $80 billion expansion of the IRS—enough to double the size of its workforce. Unless Congress reverses this policy, the IRS will become much more intrusive and impose still greater costs on the American people.”

What has happened

  1. Partially done

    Section 528 of the FY2026 Consolidated Appropriations Act (Public Law 119-75) rescinded $11,661,000,000 of the unobligated balances of the Inflation Reduction Act's IRS enforcement account, section 10301(1)(A)(iii) of Public Law 117-169 — the largest single reversal of the $80 billion expansion inside the tracking window. Division E of the same act funds the IRS through annual appropriations at $3.04 billion for taxpayer services, $4.999 billion for enforcement and $3.16 billion for technology and operations support. The Inflation Reduction Act appropriation is reduced, not repealed.

Research log

What was searched, and what didn’t count as evidence

Research notes

  • The enrolled text of Public Law 119-21 (the 2025 reconciliation act) was searched for Internal Revenue Service and Public Law 117-169: the reconciliation act rescinds Inflation Reduction Act money from Agriculture, EPA, Energy, Interior and Transportation accounts but touches no IRS account. The only IRS provision is section 70607, a task force on replacing Direct File.
  • Public Law 119-4, the Full-Year Continuing Appropriations and Extensions Act, 2025, was also read: it contains no reference to Internal Revenue Service or to Public Law 117-169. It continues the FY2024 acts, and whether that carries forward the $20.2 billion rescission made in the FY2024 Financial Services division is a question the text does not settle on its face — left as an open question for review rather than counted here.
  • Rescissions before 2025-01-20 (the Fiscal Responsibility Act of 2023 and the FY2024 appropriations clawback, together about $21.6 billion) are outside the tracking window and are not recorded as events.
  • Public Law 119-28, the Rescissions Act of 2025, contains no IRS or Public Law 117-169 reference.
  • IRS workforce reductions during 2025 are agency management, not the congressional reversal the Mandate asks for (“Unless Congress reverses this policy”); the Recommendation is flagged Requires Congress and only enacted law is counted.
Action
repeal
Object
$80 billion IRS funding expansion in the Inflation Reduction Act
ID
1944