03/20/2025

Congress Passes Continuing Resolution

It removed $20 billion from the IRS enforcement budget

Last week, both chambers of the U.S. Congress approved a full-year continuing resolution to fund the federal government through September 30, 2025, thereby averting a potential shutdown.

The House narrowly passed the bill on March 11 by a vote of 217-213, with all Republicans present voting in favor and all Democrats present voting against, except for one Democrat who voted in favor.

The Senate followed on March 14, approving the legislation with a 54-46 vote, with two members of the Democratic caucus—Senators Jeanne Shaheen (D-N.H.) and Angus King (I-Maine)—joining Republicans in support. President Donald Trump signed the bill into law on March 15.

The legislation maintains overall discretionary spending at prior-year levels but includes specific adjustments: a $6 billion increase in defense spending and a $13 billion reduction in non-defense programs.

Notably, it rescinds more than $20 billion in funding allocated to the Internal Revenue Service (IRS) for enforcement activities. This reduction is expected to hinder the IRS's ability to conduct audits and enforce tax compliance, potentially resulting in tens of billions of dollars in lost revenue for the government.

Senate Minority Leader Chuck Schumer (D-N.Y.) faced criticism from progressives in his party for supporting the Republican-drafted bill, which was crafted without Democratic input in the House.

What they're saying: "I knew when I made this decision, I'd get a lot of criticism from a lot of quarters," Schumer said to The Washington Post. "Let's face it, the House was in a much easier position. They could vote no on the [funding bill] without shutting down the government. The Senate, we can't do that."

By securing government funding through the end of the fiscal year, the bill allows Republicans to focus on advancing President Trump's agenda.

This article was provided to OSAP by ASAE's Power of Associations and Inroads.