The nonpartisan Congressional Budget Office released a review of the House Republicans' plan to provide $14.3 billion in aid to Israel by cutting Internal Revenue Service funding by that amount, saying it will raise the U.S. budget deficit in 2024 by $12 billion.
The data released by the CBO on Wednesday estimated that cutting funding of President Joe Biden's massive IRS agent staffing expansion would decrease tax revenues collected from Americans by $26 billion.
Tax cut Republicans would consider that a benefit, but Democrats' spending initiatives under Biden necessitates greater tax revenues.
A $26 billion decrease in IRS tax revenue would effectively raise the U.S. projected budget deficit by $12 billion, according to the CBO report.
"CBO anticipates that rescinding those funds would result in fewer enforcement actions over the next decade and in a reduction in revenue collections," the report concluded. "In total, CBO estimates, enacting section 306 would decrease outlays by $14.3 billion and decrease revenues by $26.8 billion over the 2024–2033 period, resulting in a net increase in the deficit of $12.5 billion over that period."
Republicans might that argue without using already IRS-allocated funds from the Biden IRS expansion, the $14.3 billion would raise the deficit by that full amount instead of $12.5 billion.
Senators from both parties voiced doubts Tuesday about House Republicans' plan to provide $14.3 billion in aid to Israel by cutting Internal Revenue Service funding, without providing aid to Ukraine, and Democratic President Joe Biden threatened to veto the bill were it to pass.
In the first major legislative action under new Speaker Mike Johnson, the House GOP unveiled a standalone supplemental spending bill only for Israel on Monday.
This is despite President Joe Biden's request for a new $106 billion package that would include aid for both Israel and Ukraine and to boost competition with China in the Indo-Pacific, as well as strengthen security along the U.S. border with Mexico.
Republicans have a 221-212 majority in the House, but Biden's fellow Democrats control the Senate 51-49. To become law, the bill would have to pass both the House and Senate and be signed by President Biden.
The top Senate Democrat said the Republican bill would be dead on arrival in the upper chamber, even if it passed in the House.
"The bottom line is it's not a serious proposal," Senate Majority Leader Chuck Schumer, D-N.Y., told reporters.
The administration said Biden would veto such a bill were it to reach his desk.
"This bill is bad for Israel, for the Middle East region, and for our own national security," the White House's Office of Management and Budget said.
Senate Minority Leader Mitch McConnell, R-Ky., said he felt the four issues needed to be addressed.
"We need to treat all four of these areas, all four of them, Ukraine, Israel, Taiwan, and the border," McConnell told reporters.
Secretary of State Antony Blinken met with Johnson on Tuesday after testifying in the Senate. At the hearing, Blinken and Secretary of Defense Lloyd Austin said Ukraine needed continued U.S. assistance to win its fight against Russian invaders.
Blinken told reporters: "It was a very good meeting. I appreciate the opportunity. I'll leave our conversation at that."
State Department spokesperson Matthew Miller said they had discussed issues including Biden's request for support for Ukraine and Israel.
Republicans are expected to pass the legislation in the House as soon as this week.
Information from The Associated Press was used in this report.