Musk's Ally Slashes $1.5 Billion from IRS Tech Budget

The Trump administration, through its DOGE (Department of Government Efficiency) initiative, is aggressively cutting down IRS technology spending, citing inefficiency and waste. So far, $1.5 billion in modernization contracts have been eliminated, largely targeting projects deemed overly complex and unnecessary.

🧾 Goodbye to Overpriced IRS IT Contracts Sam Corcos, CEO of health tech company Levels and a special advisor to the Treasury, announced he had terminated major IRS contracts with external IT consultants.

“We’ve cut about $1.5 billion from the modernization budget so far – mostly from projects that were dragging us deeper into complexity,” Corcos told Fox News.

IRS currently operates with over $7 billion in tech budgets, which Corcos claims would be unacceptable by private sector standards.

🤖 IRS Halts Modernization – AI to Take Over? The decision comes as the IRS suspends further modernization investments to reassess its approach in light of emerging artificial intelligence technologies. This move calls into question the $80 billion investment originally approved under President Biden’s 2022 Inflation Reduction Act, which aimed to update IRS systems from the 1960s and increase enforcement, especially on wealthy individuals and corporations. Republicans have long argued that the funding would only lead to unnecessary pressure on taxpayers. Since then, emergency funding measures have already cut that $80B nearly in half.

“You find a contract worth $30 million and ask why we’re doing it, and no one knows. You cancel it—and nothing happens. It’s just inertia,” said Corcos.

Trump Administration Targets USIP Leadership While DOGE slashes budgets, another legal battle is brewing over the U.S. Institute of Peace (USIP), a government-funded think tank. Trump’s team is moving to take control. Federal Judge Beryl Howell rejected USIP board members’ attempt to block the administration from intervening. Trump’s executive order removed 11 board members and called for deep budget cuts.

🚓 Police Called, Courtroom Drama, and a New President USIP staff reportedly tried to physically block DOGE representatives from entering the building, even calling the police. Nevertheless, changes are underway, and Kenneth Jackson was appointed as acting president of the institute.

“The court affirms the President’s authority to appoint and remove board members and ensure USIP operates in alignment with executive policy,” a White House official said.

🔍 What Does It All Mean? The Trump administration is not only cutting costs but reshaping government institutions from the inside out. While the IRS rethinks digital transformation, USIP is undergoing a full-scale leadership overhaul. How this impacts taxation, government spending, or foreign policy remains to be seen—but one thing is clear: DOGE and the Musk-linked insiders are changing the rules of the game in Washington.

#IRS , #CryptoNewss , #DOGE , #ElonMusk , #DonaldTrump

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