Office of Management and Budget (OMB)

The fear of a painful shutdown is kicking in

Dollar sign.
Illustration: Sarah Grillo/Axios

It appears that the IRS has supplanted federal worker paychecks as the first true pain point in the Trump administration's partial government shutdown — IRS refunds will now be paid during the shutdown, a reversal from previous statements, the White House's Office of Management and Budget told reporters today.

Behind the scenes: Until recently, Trump had been saying privately that he doesn’t think the American people care about shutdowns and that a shutdown wouldn't hurt him politically, a source familiar with the situation told Axios.

White House: IRS will pay tax refunds amid shutdown

President Trump walks on the White House South Lawn
Photo: Chris Kleponis/Getty Images

The White House Office of Management and Budget said Monday that the IRS will send out federal income tax returns amid the partial government shutdown.

Why it matters: There has been mounting skepticism over how the shutdown will affect taxpayers and federal workers as the tax season looms, and as President Trump and Congress are at a standoff over wall funding for the southern border. As the WSJ notes, Monday's announcement will "allow hundreds of billions of dollars to flow once tax filing opens later this month in the event that the shutdown lasts that long."

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