Article | Tax alert
Partial government shutdown includes IRS
Feb. 3, 2026 · Authored by Jessica L. Jeane
Update
On Feb. 3, 2026, the House narrowly approved a bipartisan, five-bill fiscal year (FY) 2026 appropriations package along with a two-week continuing resolution for the Department of Homeland Security (DHS), effectively ending the brief, partial government shutdown that began on Jan. 31, 2026. The president is expected to sign the legislation into law, providing funding for key federal agencies including Treasury and the IRS through Sept. 30, 2026.
A partial federal government shutdown began on Jan. 31, 2026, after funding for a significant portion of the government lapsed. While Congress continues efforts to pass FY 2026 appropriations legislation, the IRS has released its shutdown contingency plan.
Congress
On Jan. 30, 2026, the Senate advanced a bipartisan, Democratic-led and White House-negotiated government funding deal that separates the FY 2026 DHS bill from the FY 2026 appropriations package, instead including a two-week continuing resolution for DHS along with five other funding measures. Notably, the FY 2026 Financial Services and General Government appropriations bill, which provides annual funding for the IRS, is included in the package now on its way through the House.
The appropriations package faces a bumpy road ahead as some House Republican and Democratic lawmakers have already begun voicing their unwillingness to support the new FY 2026 appropriations path forward as-is because it is based off a deal between Senate leadership and the White House. The Senate-approved package, however, does not include any other changes to the previously House-approved, bipartisan appropriations bills.
At this time, Speaker Mike Johnson (R-LA) is not anticipating the requisite Democratic support for the package to move more swiftly through a process known as a suspension of the rules. Thus, Johnson will have to pass a rule to procedurally advance the legislation along party lines with a shrinking majority. A final floor vote on the FY 2026 appropriations package is expected on Tuesday, Feb. 3, 2026; its fate remains to be seen.
IRS contingency plan
Currently, the IRS is operating under its FY 2026 Lapsed Appropriations Contingency Plan released by Treasury on the evening of Jan. 30, 2026. Notably, the IRS will maintain current operations and staff levels until Feb. 7, 2026, under supplemental appropriations provided by the Inflation Reduction Act (P.L.117-169).
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