White House directs IRS to pay tax refunds during shutdown

Lawyers for the Trump administration decided on Monday that the Internal Revenue Service will be able to issue tax refunds, despite the government shutdown.
During earlier shutdowns, including one last year, the IRS said it would not send out any refunds. A senior official with the Office of Management and Budget told The Washington Post that it was decided processing tax refunds is similar to paying Social Security benefits, which is allowed during a government shutdown.
Several Democrats say this not only goes against precedent but also the Antideficiency Act, which states that federal agencies cannot spend money that has not been authorized by Congress. "What we're seeing now is an effort by the administration to ignore legal views, to basically put aside the law and limit the political impact of what's going on," Sam Berger, who worked in the general counsel's office at the OMB during the Obama administration, told the Post.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Since the shutdown started on Dec. 22, 90 percent of IRS staffers have had to stay home without pay. Roughly 800,000 federal workers will miss out on their first paycheck this week.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Catherine Garcia has worked as a senior writer at The Week since 2014. Her writing and reporting have appeared in Entertainment Weekly, The New York Times, Wirecutter, NBC News and "The Book of Jezebel," among others. She's a graduate of the University of Redlands and the Columbia University Graduate School of Journalism.
-
Book reviews: 'Girl on Girl: How Pop Culture Turned a Generation of Women Against Themselves' and 'Notes to John'
Feature The aughts' toxic pop culture and Joan Didion's most private pages
-
The FDA plans to embrace AI agencywide
In the Spotlight Rumors are swirling about a bespoke AI chatbot being developed for the FDA by OpenAI
-
Digital consent: Law targets deepfake and revenge porn
Feature The Senate has passed a new bill that will make it a crime to share explicit AI-generated images of minors and adults without consent
-
Warren Buffet announces surprise retirement
speed read At the annual meeting of Berkshire Hathaway, the billionaire investor named Vice Chairman Greg Abel his replacement
-
Trump calls Amazon's Bezos over tariff display
Speed Read The president was not happy with reports that Amazon would list the added cost from tariffs alongside product prices
-
Markets notch worst quarter in years as new tariffs loom
Speed Read The S&P 500 is on track for its worst month since 2022 as investors brace for Trump's tariffs
-
Tesla Cybertrucks recalled over dislodging panels
Speed Read Almost every Cybertruck in the US has been recalled over a stainless steel panel that could fall off
-
Crafting emporium Joann is going out of business
Speed Read The 82-year-old fabric and crafts store will be closing all 800 of its stores
-
Trump's China tariffs start after Canada, Mexico pauses
Speed Read The president paused his tariffs on America's closest neighbors after speaking to their leaders, but his import tax on Chinese goods has taken effect
-
Chinese AI chatbot's rise slams US tech stocks
Speed Read The sudden popularity of a new AI chatbot from Chinese startup DeepSeek has sent U.S. tech stocks tumbling
-
US port strike averted with tentative labor deal
Speed Read The strike could have shut down major ports from Texas to Maine