Congress passes FY 2026 financial services appropriations bill with focus on taxpayer services

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Susan Collins, Chair of the Senate Appropriations Committee | https://www.appropriations.senate.gov

Congress passes FY 2026 financial services appropriations bill with focus on taxpayer services

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The U.S. Congress has approved the Fiscal Year 2026 Financial Services and General Government (FSGG) Appropriations Act, following a 217 to 214 vote in the House of Representatives and a 71 to 29 vote in the Senate. The legislation will now proceed to the President for signature.

The bill allocates $26.3 billion in discretionary funding, with $26.3 billion designated as nondefense spending and $45 million as defense spending. Funding is directed toward federal buildings, courts, taxpayer services, law enforcement, financial crime detection, court security, and disaster response.

Senator Susan Collins, Chair of the Appropriations Committee, stated: “This bill provides the highest level of funding for taxpayer services in four years while taking a more fiscally responsible approach to IRS enforcement spending. It also funds a wide range of core government functions, including court security, law enforcement, federal building maintenance and financial oversight, as well as supporting fraud detection and critical grant programs for our nation’s small businesses.”

Senator Bill Hagerty, Chairman of the Appropriations Subcommittee on Financial Services and General Government, said: “I’m pleased that this fiscally responsible legislation, which prioritizes only the core functions of government, fulfills our responsibility to uphold the rule of law, and makes targeted investments to strengthen public safety, is heading to President Trump’s desk. This bill replaces outdated Biden-era spending priorities and implements the current needs of our country. President Trump and his administration will be able to continue carrying out their mission of enacting policies that best serve the interest of hardworking Americans across the country with this critical legislation.”

Key allocations include $13 billion for the Department of Treasury—$11.2 billion for the Internal Revenue Service (IRS), whose funding remains flat or reduced for a fourth year; $873 million for the Executive Office of the President; $9.2 billion for federal judiciary activities; $878 million for District of Columbia operations; $9.7 billion for General Services Administration support; $1.2 billion for Small Business Administration programs; full funding for Office of Personnel Management requests; an increase in fraud detection resources by $7.3 million above presidential request levels; and a reduction in regulator funding compared to FY 2025.

The Senate Appropriations Committee plays a central role in managing federal government operations through appropriations bills such as this one by examining expenditures and ensuring accountability in public money management (official website). The committee draws its authority from constitutional mandates requiring that treasury funds be allocated only through laws passed by Congress (official website). It oversees budgeting processes across many areas including trade policy and program oversight (official website).

Since its establishment on March 6, 1867 (official website), the committee has influenced fiscal policy through hearings on spending proposals and ongoing review of government programs (official website). Today’s passage reflects its continuing role in shaping federal appropriations.

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