The U.S. Congress has approved the Fiscal Year 2026 Financial Services and General Government (FSGG) Appropriations Act, which now awaits the President’s signature to become law. The bill passed the House of Representatives by a narrow margin of 217 to 214 and cleared the Senate with a vote of 71 to 29.
The legislation allocates $26.3 billion in discretionary funding, including $26.3 billion for nondefense purposes and $45 million for defense spending. Key provisions include investments in 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 This bill replaces outdated Biden-era spending priorities and implements the current needs of our country.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.”
Among its highlights:
– The Department of the Treasury receives $13 billion overall; $11.2 billion goes to the Internal Revenue Service (IRS), whose funding remains flat or is reduced for a fourth year.
– The Executive Office of the President is allocated $873 million.
– Federal judiciary activities receive $9.2 billion for case processing efficiency, court security, and defender services.
– The District of Columbia gets $878 million for courts operation, offender supervision, defender services as well as education and security payments.
– The General Services Administration is funded at $9.7 billion for support through its Federal Buildings Fund.
– The Small Business Administration receives $1.2 billion aimed at technical assistance and grants for small businesses.
– The Office of Personnel Management is fully funded according to presidential request.
– Fraud detection efforts are backed by $694.1 million—$7.3 million above what was requested—to support nine Inspectors General targeting waste and abuse.
– Eight regulatory agencies overseeing financial markets and other sectors receive $3.7 billion—a reduction from FY 2025—to balance operational needs with fiscal restraint.
The bill also maintains all existing long-standing policy riders.
The Senate Appropriations Committee manages federal funding bills like this one and oversees government expenditures as required by law (official website). Its responsibilities include program oversight through hearings on spending proposals (official website), promoting accountability in public money management (official website), contributing to fiscal policy decisions (official website), and ensuring appropriations align with constitutional requirements (official website). Since its establishment in 1867 (official website), it has played a key role in shaping federal budgets across various domains including trade and international affairs (official website).
