House Republicans propose to rescind IRS funding for Israel aid

House Republicans, led by Speaker Mike Johnson, on Monday unveiled a $14.3 billion Israel aid plan that breaks with the Biden administration on how to handle assistance for the conflict, complicating prospects for passage. 

The package separates the Israel aid from a broader Biden emergency funding request that includes assistance for Ukraine and Taiwan. It also leaves out humanitarian assistance for civilians in Gaza and Israel that the White House requested.

Johnson’s plan pays for Israel aid by cutting President Joe Biden’s signature Inflation Reduction Act, calling for a $14.3 billion reduction in funding for the IRS. Conservatives have been critical of additional funding for the tax enforcement agency, while advocates say more resources for the IRS will cut the federal deficit by capturing revenue lost to tax cheats.

The offsetting cuts are a break with precedent since Congress typically doesn’t cut other programs to pay for emergency spending.

House Speaker Mike Johnson speaks to a Republican Jewish Coalition meeting in Las Vegas on Saturday.

The package is among the new speaker’s first major legislative efforts and he told reporters he expects a House vote on the measure Thursday. Johnson discussed the package with Biden last week. 

Separating Ukraine funds from more popular aid to Israel creates a risk that Congress will fail to continue help for the country’s counter-offensive against Russia, especially if House Republicans repeat a September attempt to require changes to US immigration laws in return for Ukraine funding. 

Johnson’s approach will bolster support for the Israel package among House conservatives but provoke opposition from Democrats. The Israeli measure isn’t likely to pass the Senate without changes, potentially bogging down the funding.

Senate Majority Leader Chuck Schumer, a New York Democrat, said the cuts to IRS enforcement and operations make the aid “much harder to pass” and he criticized Republican leaders for leaving out assistance to Ukraine and Taiwan, suggesting they were giving in to “the false allures of isolationism.”

The demand for spending cuts to pay for aid to Israel is already drawing condemnation from Democrats who worry it sets a dangerous new precedent for funding emergencies. 

“When your neighbor’s house is on fire, you don’t haggle over the price of the garden hose. Speaker Johnson’s political games are offensive to all pro-Israel Americans, and I hope he reverses course immediately,” Florida Democrat Debbie Wasserman Schultz said in a statement.

But Texas Republican Chip Roy, a member of the ultra-conservative House Freedom Caucus, said on the Hill Country Patriot radio show Monday that he would vote against an Israel aid package unless it includes offsetting spending cuts.

“It should be paid for with real money, not budgetary gimmicks,” Roy said. 

The $14 billion House Republicans propose for Israel is in line with the level Biden requested for the country. 

The House package includes $4 billion for Israel’s Iron Dome and David’s Sling made by Rafael Advanced Defense Systems and RTX. Another $1.2 billion in research and development funds would go directly for the development of Israel’s Iron Beam defense system to counter short-range rockets.

Johnson, who has previously voted against aid to Ukraine, said since becoming speaker last week that he supports funding Ukraine but wants to handle it separately and require enhanced oversight over the spending.  

In the Senate, bipartisan talks are underway to move forward with a combined package meeting all aspects of the $106 billion Biden request, including $61.4 billion for Ukraine. 

The Senate plans a hearing Tuesday on the Biden administration request with Secretary of State Antony Blinken and Defense Secretary Lloyd Austin testifying. The Appropriations Committee could unveil a Senate version of the emergency bill as soon as this week.