DIRECT Act
- Bill Number
- H.R. 374
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Economics and Public Finance
- Status
- Introduced
- Latest Action
- 2025-01-13: Referred to the Committee on Appropriations, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- Last Updated
- 2025-05-02T17:55:29Z
AI-Generated Summary
Summary of H.R. 374: Diverting IRS Resources to the Exigent Crisis Today Act (DIRECT Act)
Purpose
This bill aims to cancel (rescind) unspent funds previously allocated to the Internal Revenue Service (IRS) for enforcement activities and redirect those funds to U.S. Customs and Border Protection (CBP) to hire additional agents and officers focused on securing the southern U.S. border.
Key Provisions
- Rescission of IRS Funds: Cancels all unspent (unobligated) balances from funds appropriated to the IRS for enforcement activities under section 10301(1)(A)(ii) of the Inflation Reduction Act of 2022 (Public Law 117-169). This applies as of the date the bill is enacted.
- Redirection to CBP: Appropriates an amount equal to the rescinded IRS funds directly to CBP for salaries and expenses related to hiring new agents and officers specifically for southern border security.
Significant Changes to Existing Law
- Reduces funding available to the IRS for enforcement tasks, such as audits and investigations, by rescinding portions of the 2022 Inflation Reduction Act's allocation (which provided about $80 billion overall for IRS modernization and enforcement, though the exact rescinded amount here depends on unspent balances).
- Shifts budget priorities without requiring new taxpayer money, effectively reallocating existing appropriations from internal tax enforcement to border protection, which was not previously funded this way in the referenced act.
Potential Impacts
- On Government Agencies: The IRS would have fewer resources for tax enforcement, potentially leading to reduced audits or slower processing of tax-related cases. CBP could expand its workforce at the southern border, enhancing patrol and security operations.
- On Citizens: Taxpayers might face less aggressive IRS oversight in the short term, but could see indirect effects like changes in federal revenue collection if enforcement weakens. Border communities and travelers may experience heightened security measures.
- On International Relations: Could strengthen U.S. border enforcement with Mexico, potentially influencing migration flows and bilateral discussions on immigration and trade, though it might strain relations if perceived as overly militarized.
Main Stakeholders Affected
- IRS and Taxpayers: IRS loses funding for enforcement, impacting its ability to pursue tax compliance; individual and business taxpayers may see varying levels of scrutiny.
- CBP and Border Personnel: Gains resources for hiring, directly benefiting agents, officers, and border security operations.
- Immigrants and Border Communities: Affected by increased southern border enforcement, which could alter migration patterns or local economies.
- Congress and Administration: Involves fiscal priorities between tax authority (under Treasury Department) and homeland security (under Department of Homeland Security).
Notable Legal, Constitutional, or Political Implications
- Legal: Relies on Congress's constitutional authority over appropriations (the "power of the purse" under Article I), allowing rescission of unspent funds without violating prior laws, but could face challenges if seen as undermining the Inflation Reduction Act's intent.
- Constitutional: Aligns with separation of powers, as it adjusts executive branch spending without new taxes, though it highlights tensions between legislative control and agency autonomy.
- Political: Sparks debate on budget priorities—balancing tax enforcement (to boost revenue) against border security (a key immigration issue)—potentially polarizing along partisan lines, with implications for future appropriations bills. No direct impact on civil rights, but enforcement shifts could raise equity concerns in tax auditing or border policing.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Tenney, Claudia [R-NY-24]
Cosponsors (1)
Recent Actions
- 2025-01-13: Referred to the Committee on Appropriations, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-01-13: Referred to the Committee on Appropriations, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-01-13: Introduced in House
- 2025-01-13: Introduced in House
Bill Versions
- Diverting IRS Resources to the Exigent Crisis Today Act — issued 2025-01-13 — PDF (2 pages)