In testimony to a congressional subcommittee, the U.S. Department of the Treasury outlined the fiscal year 2027 President’s Budget request, proposing a 12 percent decrease from the enacted level while seeking to maintain core government financial and payment operations and reallocate resources toward technology modernization and national security priorities. The statement highlighted recent tax filing outcomes and take-up of new tax provisions, including over 60 million returns claiming at least one new tax cut, and reported 7 million filers claiming “No Tax on Tips” (average deduction over USD 7,000), 28 million claiming “No Tax on Overtime” (average deduction over USD 3,100), and over 34 million seniors claiming an enhanced deduction (average deduction over USD 7,500). For the IRS, the request continues to streamline and modernize operations funding to encourage automation, a digital-first taxpayer experience, and greater direct deposit usage; it also introduces two service performance measures, the Assistor Service Rate and the Enterprise Service Completion Rate. On financial integrity and national security, the budget targets reductions in “operationally ineffective” areas while bolstering cyber capabilities, sanctions, and efforts to combat illicit financial activity, including additional funding to expand the Office of Terrorism and Financial Intelligence’s ability to trace, detect, and sanction malign financial networks, alongside a small investment to build expertise in digital assets, housing finance, and global financial markets linked to implementation of the GENIUS Act stablecoin framework.
U.S. Department of the Treasury 2026-04-22
U.S. Department of the Treasury presents fiscal year 2027 budget request with 12 percent decrease and renewed focus on IRS modernization and illicit finance tools
The U.S. Department of the Treasury, in testimony to a congressional subcommittee, outlined the fiscal year 2027 President’s Budget request, proposing a 12 percent decrease from the enacted level while maintaining core financial and payment operations and reallocating resources toward technology modernization and national security. The request seeks to modernize IRS operations, introduce new service performance measures, and expand capabilities to combat illicit finance, including enhanced cyber, sanctions and tracing functions, and a small investment to build expertise in digital assets, housing finance, and global financial markets linked to implementation of the GENIUS Act stablecoin framework.