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I've not read the laws, nor am I a lawyer, but I suspect that the budget laws say something like "The [FBI] shall provide a budget by [date]", but there is no following section attaching a penalty as there are in criminal laws, so there is likely no recourse.
I imagine that this is the same as when you don't have that report ready for the big meeting, or skipped out early before your end-of-shift duties were done: a reprimand from your boss and potentially getting fired.... but his boss is, I think, Pam Bondi, the AG, in this case.
Theoretically Kash could be impeached or censured, as could Pam if she doesn't act. But we know how well that will go. Until then, his inaction is illegal, but unlike some of trumps actions, which can be stayed or reversed via court, I don't think you can stay inaction.
Maybe it means Kash isn't the FBI director since he didn't provide the budget. Whoever provides the budget first wins the title!