S3290-119

What This Bill Does

This bill funds financial-services and general-government operations for fiscal year 2026. It covers the Department of the Treasury, the Internal Revenue Service, the Executive Office of the President, the federal judiciary, independent agencies, government-wide administrative rules, and the District of Columbia.

The bill gives Treasury and IRS appropriations but places limits on how the IRS can move money and use enforcement funds. It caps transfers among IRS accounts at 5 percent with advance approval from congressional appropriations committees and bars transfers into the IRS Enforcement account. It also prohibits IRS funds from being used to target U.S. citizens for exercising First Amendment rights or to target groups for regulatory scrutiny based on ideology.

The bill includes several independent-agency and government-wide policy riders. It bars the Consumer Product Safety Commission from using funds to ban gas stoves as a class of products. It requires agencies using funds from the Act to block pornography on computer networks while preserving access for law-enforcement, prosecution, adjudication, and victim-assistance work. It authorizes agency transfers or reimbursements to the General Services Administration for government-wide management, financial, information-technology, procurement, human-capital, and performance-improvement initiatives, subject to OMB approval and dollar caps.

The bill also makes District of Columbia budget rules. It appropriates local District funds for refunds, legal settlements, and judgments; limits federal funds for certain District advocacy, statehood, needle-distribution, drug-law, and abortion-related activities; requires revised District operating and school budgets; allows certain District operating and capital fund transfers; and gives the District authority to spend local funds during fiscal year 2027 continuing-resolution periods when Congress does not make a specific District appropriation.

Finally, the bill rescinds $250 million from the Treasury Forfeiture Fund and includes additional rescissions, transfer limits, reporting requirements, and carryover rules for agencies funded by the Act.

Who Benefits and How

Taxpayers and organizations concerned about viewpoint-based enforcement benefit from the IRS targeting restrictions in sections 106 and 107. Gas stove manufacturers, retailers, and consumers who want continued access to gas stoves benefit from the Consumer Product Safety Commission funding ban in section 502. Federal law-enforcement, prosecution, adjudication, and victim-assistance users benefit from the exception to the computer-network pornography block in section 625.

Congressional appropriations committees benefit from approval and reporting controls over IRS transfers, District reprogramming, District quarterly budget reporting, and government-wide funding transfers. The General Services Administration benefits from authority to receive transfers and reimbursements for cross-agency management and technology initiatives. The District of Columbia government benefits from local-funds spending authority during fiscal year 2027 continuing resolutions that do not specifically appropriate District funds.

Who Bears the Burden and How

The IRS bears tighter constraints on moving funds and cannot shift money into the Enforcement account under section 101. IRS officials must comply with the First Amendment and ideology-based targeting prohibitions. The Consumer Product Safety Commission bears a funding restriction on gas-stove bans. Agencies funded by the Act must maintain computer-network filters unless activity falls within the law-enforcement or victim-assistance exception.

The Treasury Forfeiture Fund loses $250 million in unobligated balances. District of Columbia officials must comply with federal limits on spending for congressional representation offices, statehood-related assistance, needle distribution in locally inappropriate areas, drug-law liberalization, abortion except in specified cases, revised budget submissions, fund-transfer rules, and quarterly reporting. DC residents and local businesses benefit from continuity of District services during continuing resolutions, but the District government must operate within the local-fund authority and reporting conditions set by Congress.

Key Provisions

• Restricts IRS transfers to no more than 5 percent of an IRS appropriation with advance approval and bars transfers into IRS Enforcement.
• Prohibits IRS targeting of U.S. citizens for exercising First Amendment rights and prohibits IRS regulatory scrutiny based on ideological beliefs.
• Bars Consumer Product Safety Commission spending to promulgate, implement, administer, or enforce a gas-stove ban.
• Requires agencies funded by the Act to block pornography on computer networks while preserving law-enforcement, prosecution, adjudication, and victim-assistance uses.
• Rescinds $250 million from unobligated Treasury Forfeiture Fund balances by September 30, 2026.
• Authorizes OMB-approved transfers or reimbursements to GSA for government-wide management, information-technology, procurement, human-capital, and performance-improvement initiatives.
• Allows the District of Columbia to spend local funds during fiscal year 2027 continuing-resolution periods when Congress does not explicitly provide a separate District appropriation.
• Requires quarterly budget reports from federal and District agencies appropriated federal funds under the Act.