Here is a look at recent tax-related happenings on the Hill, including the U.S. renewing two trade preference programs with Haiti and African nations.
Lately on the Hill
Trump Signs Funding Deal
The partial U.S. government shutdown ended late on February 3, after President Donald Trump signed a funding deal he negotiated with Senate Democrats. Trump signed the measure into law after the House voted 217 to 214 to advance the five-bill fiscal 2026 appropriations minibus alongside a stopgap funding bill for the sixth remaining funding legislation focused on the U.S. Department of Homeland Security (DHS).
As detailed in a previous From the Hill publication, included in the package of funding bills is the fiscal year 2026 financial services and general government bill, which will reduce the annual budget for the IRS to $11.2 billion. This represents a 9% decrease from the agency’s $12.3 billion budget for fiscal year 2025. Although the bill cuts funding, it also includes an expansion of transfer authority for the agency to move funding around among various buckets, which could provide more opportunity to fill any gaps, including with remaining Inflation Reduction Act of 2022 money. The minibus package also includes the fiscal 2026 Labor, Health, and Human Services bill, which contains an $11.7 billion rescission of boosted operations support funding that the IRS previously received in the 2022 tax-and-spending law. The clawback leaves just $10 billion in boosted funding for the agency out of nearly $80 billion originally, with $7 billion remaining specifically for operations support.1
The funding package funds the majority of the government through the end of the fiscal year, September 30, 2026, while the DHS is only funded through February 13, 2026. Although funding for the DHS will run out by the end of this week, at the time of this publication, Congress is working to resolve the issue.2
U.S. Trade Programs Renewed
With the signing of the funding package on February 3, the U.S. also renewed two trade preference programs with Haiti and African nations for a one-year term. The move to extend the African Growth and Opportunity Act (AGOA) and the Haiti Economic Lift Program Extension Act (Haiti HELP) marks the first significant trade legislation by Congress since January 2025. Even with preference extensions, importers must still check if reciprocal country tariffs apply. However, they could take on new importance once the U.S. Supreme Court rules on a challenge to global tariffs enacted under the International Emergency Economic Powers Act (IEEPA). If IEEPA tariffs are struck down, African countries in the program would still be subject to industry-specific tariffs Trump has imposed on goods such as aluminum and steel.3
Trade Deal Struck With Argentina
The U.S. and Argentina have agreed to remove hundreds of tariffs on each other’s goods in a trade and investment deal. The U.S. agreed to eliminate more than 1,600 reciprocal tariffs on Argentine goods while President Javier Milei’s government will terminate more than 220 levies on U.S. products. Argentina often ranks among the worst worldwide on trade barriers, given its tariffs averaged 13% in recent years. However, Argentina will now increase its imports of American beef, cars, and agricultural products; eliminate tariffs on U.S. machinery, medical parts, and chemical products; and reduce levies to 2% on certain auto parts.4
Trump Eases Path to Firing Federal Workers
Released in a final rule on February 6, the Trump administration announced changes to the way federal workers are classified, making it easier for the president to fire nonpolitical public employees. The changes will reclassify thousands of policy-related positions into a new category called “policy/career,” loosening job protections and allowing political appointees to fire them without violating civil service laws. It is unclear what impact this may have on the IRS.
Trump Launches TrumpRx Website
As detailed in this FORsights™ article, “Republican Study Committee Releases Reconciliation 2.0 Framework,” the president launched a new website, TrumpRx.gov, to help Americans buy select medicines at a discount. The website is now active.5
From Treasury & the IRS
IRS Advises Taxpayers to Create IRS Individual Online Account
In a news release, the IRS has encouraged taxpayers to create an IRS Individual Online Account to securely access their tax information and help protect against identity theft and fraud. The online account enables users to view key tax return information, request Identity Protection PINs, check refund status, access account transcripts, make payments, and view digital notices.
IRS Announces Spain-U.S. Implementing Arrangement
In Announcement 2026-3, the IRS announced that the “competent authorities of the United States of America and the Kingdom of Spain have entered into an arrangement regarding the implementation of the arbitration process provided for in paragraphs 5 and 6 of Article 26 of the Convention between the Kingdom of Spain and the United States of America for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income.”
This newsletter features developing content that is subject to change at any time. It does not constitute legal or tax advice. Consult your professional advisors prior to acting on the information set forth herein.
- 1“Trump Signs Funding Deal With IRS Cuts,” taxnotes.com, February 4, 2026.
- 2“US Shutdown Ends as Trump Signs His Funding Deal With Democrats,” bloomberglaw.com, February 3, 2026.
- 3“US Renews Africa Trade Program Though Trump Tariffs Remain,” bloombergtax.com, February 3, 2026.
- 4“Argentina Signs US Trade Deal That Cuts Hundreds of Tariffs,” bloombergtax.com, February 5, 2026.
- 5“Trump Touts Drug Cost Savings as He Launches TrumpRx Website,” bloombergtax.com, February 5, 2026.