Trump Seeks to Shrink IRS Watchdog’s Budget Amid Anti-Fraud Push

President Donald Trump proposed gutting funding for the agency tasked with oversight of the IRS by 20% even though its mission—to reduce fraud, waste, and abuse—aligns with the administration’s efforts.

This move in the White House’s proposed 2026 fiscal year budget would “substantially inhibit” the watchdog’s mission and require the agency to significantly drop audit, inspection, and evaluation staff which would result in about 35 fewer reviews that year, the Acting Treasury Inspector General for Tax Administration Heather Hill said in response the proposal. Funding would be reduced to $138 million from over $172 million.

TIGTA is an independent group ...