Bipartisan FY2026 Spending Package Signals Cautious IRS Cuts, AI Push, and Real Estate Overhaul

The FY 2026 minibus trims IRS cuts to about 9% while boosting taxpayer services and allowing quicker hiring to address backlogs; GSA is urged to accelerate offloading underutilized federal office space, though funding may not fully address the maintenance backlog; lawmakers push AI tools to speed public-facing services and accessibility improvements with limited funding; State Department funding stays essentially flat after a major reorganization, and most independent agencies are spared elimination. The appropriations process moved forward amid tough negotiations and rejection of some earlier “poison pill” provisions.