Financial Services and General Government Appropriations Act, 2026

Bill Number: S. 3290
Origin Chamber: Senate
Congress: 119th Congress, Session 1
Policy Area: Economics and Public Finance
Status: Introduced
Latest Action: 2025-12-01: Read twice and referred to the Committee on Appropriations.
Last Updated: 2026-07-12T06:38:26Z

AI-Generated Summary

Summary of S. 3290: Financial Services and General Government Appropriations Act, 2026

Purpose

This legislation provides funding for the Department of the Treasury, the Executive Office of the President, the federal judiciary, the District of Columbia (DC), and various independent agencies for fiscal year 2026 (ending September 30, 2026). It allocates approximately $70 billion in discretionary spending from the U.S. Treasury's general fund (not otherwise appropriated) to support financial services, government operations, judicial functions, DC programs, and related activities. The bill also includes general provisions restricting fund use and authorizing specific programs.

Key Provisions

The bill is structured into eight titles, outlining appropriations, transfers, and conditions for spending. Key funding areas include:

Title I: Department of the Treasury
Departmental Offices: $292 million for operations, including economic policy, international affairs, and cybersecurity (with up to $42 million available until 2027 for audits, IT modernization, and facilities).
Office of Terrorism and Financial Intelligence: $238 million to combat illicit finance, terrorism, and human rights abuses (with $3 million for Global Magnitsky Act enforcement).
Internal Revenue Service (IRS):
Taxpayer Services: $3.2 billion for assistance, education, and advocacy.
Enforcement: $5.4 billion for audits, collections, and investigations (including $60 million for interagency crime efforts).
Operations Support: $3.2 billion for IT, facilities, and administration.
Other Bureaus: Funding for Financial Crimes Enforcement Network ($190 million), Bureau of the Fiscal Service ($391 million), Alcohol and Tobacco Tax and Trade Bureau ($158 million), U.S. Mint ($50 million cap on liabilities), and Community Development Financial Institutions Fund ($324 million for loans and grants to underserved communities, prioritizing high-poverty and rural areas).
Administrative provisions limit IRS transfers, require taxpayer rights training, and prohibit targeting based on ideology or First Amendment activities.

Title II: Executive Office of the President
White House and Related Offices: $80 million for salaries and operations; $16 million for Executive Residence; $115 million for Office of Administration (including IT modernization).
Office of Management and Budget (OMB): $129 million for budget preparation and policy reviews.
Other: Funding for Council of Economic Advisers ($5 million), National Security Council ($18 million), Office of the National Cyber Director ($20 million), and Office of National Drug Control Policy ($22 million plus $435 million for drug control programs like High Intensity Drug Trafficking Areas).
Unanticipated Needs: $1 million for presidential emergencies.

Title III: The Judiciary
Supreme Court: $163 million for operations and security; $11 million for building maintenance.
Lower Courts: $6.1 billion for salaries, defender services ($1.6 billion), court security ($892 million), and administrative offices ($103 million).
Other: Funding for Federal Judicial Center ($35 million) and U.S. Sentencing Commission ($22 million).
Provisions allow limited fund transfers (up to 5%) and authorize services like those under 5 U.S.C. 3109 (temporary expert hires).

Title IV: District of Columbia
Federal Payments: $40 million for resident tuition support (up to $2,500 per student at private institutions); $50 million for emergency planning and security; $274 million for DC courts; $46 million for defender services (with $12 million rescission of prior unobligated funds); $277 million for offender supervision.
Local Funds: Approves DC's FY 2026 budget at rates set by local law, with caps tied to revenues; allows one-time increases for emergencies.
Other: $53 million for DC Public Defender Service; $52 million for school improvement scholarships.

Title V: Independent Agencies
Examples: Commodity Futures Trading Commission ($365 million); Consumer Product Safety Commission ($145 million, with restrictions on certain rules); Federal Trade Commission ($384 million, offset by fees); General Services Administration (GSA) Federal Buildings Fund ($9.8 billion for operations, repairs, and rentals); Securities and Exchange Commission ($2.1 billion, offset by fees); Small Business Administration ($640 million total for salaries, entrepreneurial programs, and loans up to $35.5 billion in guarantees).
Provisions include caps on GSA construction projects and bans on certain Consumer Product Safety Commission regulations (e.g., recreational off-highway vehicles).

Titles VI-VIII: General and Government-Wide Provisions
Restrictions: Prohibit funding for non-competitive contracts, certain travel, abortions (except in life-endangering cases or rape/incest), and IRS targeting of ideological groups.
Rescissions: $250 million from Treasury Forfeiture Fund; all unobligated Special Inspector General for Pandemic Recovery funds.
DC-Specific: Bans on using funds for marijuana legalization, needle exchanges in inappropriate areas, and certain vehicles; requires budget revisions for schools and overall operations.
Government-Wide: Limits on employee pay increases (e.g., no raises for certain political appointees in 2026), conference spending (> $500,000 requires notice), and nondisclosure agreements; promotes whistleblower protections and anti-discrimination.

Significant Changes to Existing Law

IRS Operations: Increases enforcement funding to $5.4 billion (from prior years' levels), but adds provisos barring ideological targeting and requiring quarterly IT reports—continuing post-2013 reforms.
DC Programs: Raises tuition support eligibility thresholds (e.g., from $10,000 to $15,000 for certain grants under DC College Access Act); rescinds $12 million in prior defender funds; amends DC Code to increase scholarship caps.
Independent Agencies: Extends availability of certain fees (e.g., SEC offsets to $2.1 billion); prohibits FTC from finalizing gas stove bans or certain food marketing rules; delays Consumer Product Safety Commission standards pending studies.
Pay and Benefits: Freezes 2026 pay increases for Vice President, Executive Schedule positions, and certain Senior Executive Service political appointees at 2025 levels (via new section 747-like provision); limits prevailing rate employee pay adjustments.
Other: Authorizes GSA transfers for multi-agency innovations (up to $32 million); extends DC National Guard retention program; prohibits OMB from reviewing certain agricultural or water resource reports beyond 60 days.

Potential Impacts

Government Agencies: Provides stable funding for core operations (e.g., IRS taxpayer services could improve filing assistance amid rising demands; Treasury cybersecurity enhancements bolster national security). Independent agencies like SBA may expand small business loans, aiding economic recovery. GSA's $9.8 billion supports federal building maintenance, reducing backlog risks.
Citizens: Enhanced IRS enforcement may increase tax compliance and collections (potentially $100+ billion annually), benefiting public services. DC residents gain from tuition aid (up to 10,000+ students) and court funding, improving access to justice. Small businesses and underserved communities (e.g., via $324 million CDFI Fund) could see more loans and technical assistance, fostering entrepreneurship.
International Relations: Treasury's $238 million for financial intelligence supports sanctions against rogue nations and terrorists, strengthening U.S. global anti-money laundering efforts. Funding for G20 Summit ($1 million) aids diplomatic engagement.

Main Stakeholders Affected

Federal Agencies: Treasury (IRS, FinCEN), OMB, GSA, SEC, FTC, SBA, and judiciary—directly funded for operations and enforcement.
District of Columbia: Local government, courts, schools, and residents—receiving federal payments for tuition, security, and justice services.
Businesses and Financial Sector: Banks, small businesses, investors—impacted by SEC/FTC oversight, SBA loans ($52 billion total), and Treasury anti-illicit finance measures.
Citizens and Taxpayers: Individuals using IRS services, DC residents eligible for scholarships, and whistleblowers protected by nondisclosure reforms.
Vulnerable Groups: Low-income, rural, Native American, and disabled communities—targeted by CDFI Fund grants; drug control programs affect at-risk populations.

Notable Legal, Constitutional, or Political Implications

Legal: Enforces strict reprogramming rules (e.g., no changes >$5 million without approval), promoting fiscal accountability under the Impoundment Control Act. Prohibits funding violations of the Privacy Act or Fourth Amendment in surveillance; mandates whistleblower protections in contracts.
Constitutional: Reinforces First Amendment by barring IRS actions against protected speech or ideological groups (echoing post-2013 Tea Party scandal reforms). DC provisions respect home rule while limiting local policies (e.g., on marijuana, abortions) via federal oversight.
Political: Reflects congressional priorities like IRS enforcement boosts (for revenue) and pay freezes for appointees (fiscal restraint). DC restrictions (e.g., no recreational marijuana funding) highlight partisan divides on local autonomy. Overall, the bill balances spending with anti-waste measures, potentially influencing 2026 budget debates amid debt ceiling concerns.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Sen. Hagerty, Bill [R-TN]

Recent Actions

2025-12-01: Read twice and referred to the Committee on Appropriations.
2025-12-01: Introduced in Senate

Bill Versions

Financial Services and General Government Appropriations Act, 2026 — issued 2025-12-01 — PDF (187 pages)