The DOGE government watchdog has canceled IRS technology contracts worth $1.5 billion.
IRS Spending Cutbacks
Sam Corcos, CEO of Levels and a special advisor to the Treasury, announced significant IRS contract terminations aimed at updating outdated technology infrastructure. These budgetary adjustments cut $1.5 billion from modernization projects.
Modernization Halt
The reductions came from the IRS’s annual $3.7 billion modernization budget, separate from its $3.5 billion allocated for IT. The IRS announced a pause on modernization investments to reassess the approach in light of new AI technologies.
Legal Battle Over USIP Control
DOGE officials are also embroiled in a legal dispute over their attempts to control the US Institute of Peace (USIP), a congressionally funded think tank. A federal court denied USIP board members' request for a temporary restraining order to block Trump administration efforts.
The IRS budget cuts and the legal struggle over USIP highlight ongoing changes in government policies under the Trump administration.
