Fiscal Responsibility Act addresses debt ceiling, adjusts allocations, IRS funding

government building

President Biden signed the Fiscal Responsibility Act of 2023 (FRA) (H.R. 3746) into law on Saturday, June 3, 2023. The FRA addresses the debt ceiling and caps some spending over the next two years, and rescinds some of the $80 billion in IRS funding provided by the Inflation Reduction Act of 2022 (IRA) (H.R. 5376); over half of that $80 billion ($45 billion) was aimed at enforcement efforts, nearly doubling the IRS’s current enforcement budget. Specifically, the FRA will suspend the federal debt limit through Jan. 1, 2025, and increase the limit on Jan. 2, 2025, to accommodate the obligations issued during the suspension period. Additionally, the FRA will rescind approximately $1.39 billion that was provided to the Internal Revenue Service (IRS) pursuant to the IRA.

Furthermore, the FRA calls for an additional $20 billion in appropriations funding to be reallocated during 2024 and 2025, $10 billion to be repurposed in 2024, and $10 billion to be repurposed in 2025. The FRA does not impact the renewable energy incentives originally provided by the IRA.

CohnReznick’s National Tax Team is carefully monitoring legislative developments, including that of the FRA, with a keen focus on how it may impact our clients from a federal tax perspective. For more information, please reach out to any member of our National Tax Team.


Get in touch with our specialists

View All Specialists
Brian Newman

Brian Newman

CPA, Partner, Practice Leader, Federal Tax Services

Looking for the full list of our dedicated professionals here at CohnReznick?



Let’s start a conversation about your company’s strategic goals and vision for the future.

Please fill all required fields*

Please verify your information and check to see if all require fields have been filled in.

Please select job function
Please select job level
Please select country
Please select state
Please select industry
Please select topic

CohnReznick Tax: Alerts and Webinars

Related services

Any advice contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues. Nor is it sufficient to avoid tax-related penalties. This has been prepared for information purposes and general guidance only and does not constitute legal or professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice specific to, among other things, your individual facts, circumstances and jurisdiction. No representation or warranty (express or implied) is made as to the accuracy or completeness of the information contained in this publication, and CohnReznick LLP, its partners, employees and agents accept no liability, and disclaim all responsibility, for the consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.