DIRECT Act Proposes Cutting IRS Enforcement Funds to Hire More Border Patrol Agents

The "Diverting IRS Resources to the Exigent Crisis Today Act," or DIRECT Act, lays out a straightforward plan: take money previously earmarked for the Internal Revenue Service (IRS) and give it to U.S. Customs and Border Protection (CBP). Specifically, it targets unobligated funds—money set aside but not yet officially spent or committed—that were allocated for IRS enforcement activities under Public Law 117-169 (often known as the Inflation Reduction Act). Section 2 of the DIRECT Act proposes rescinding these enforcement funds and reappropriating the exact same amount to CBP, solely for covering the salaries and expenses of new agents and officers assigned to secure the southern border.

Trading Tax Audits for Border Boots?

This bill enacts a direct swap in funding priorities. The money in question was originally intended to boost the IRS's capacity to pursue tax evasion and ensure compliance, a key component of the Inflation Reduction Act's design. By redirecting these specific enforcement funds before they are spent, the DIRECT Act effectively cancels that planned enhancement of IRS enforcement capabilities. Instead, those dollars are moved to CBP with the explicit instruction to use them for personnel costs associated with increasing staffing levels on the U.S.-Mexico border.

The Ripple Effect: What Fewer IRS Auditors Might Mean

The core function impacted at the IRS is enforcement. Reducing funds dedicated to audits, investigations, and collection activities could mean the agency has fewer resources to identify and pursue individuals and corporations not paying what they legally owe. While the bill doesn't specify an amount, removing any funds designated for enforcement could potentially lead to a decrease in recovered tax revenue for the U.S. Treasury. For the average taxpayer who files and pays on time, a reduction in enforcement might raise questions about fairness, as it could lessen the chances that tax cheats are caught, potentially increasing the relative burden on compliant citizens.

Beefing Up the Border: The Stated Goal

On the receiving end, CBP would get a funding injection specifically for hiring. The bill is clear that the reappropriated money must go towards "salaries and expenses" for new agents and officers tasked with securing the southern border. This directly addresses calls for increased staffing and resources at the border, aiming to enhance CBP's operational capacity in that region. The practical effect is intended to be more personnel on the ground, funded by the dollars originally meant for tax enforcement.