Spending Deal Includes GOP $10 Billion Cut to IRS

The new spending deal agreed on by Senate Democrats and House Republicans includes funding cuts to the Internal Revenue Service, a key priority for Republicans.

Speaker Mike Johnson, R-La., touted the cuts in a letter to Republican colleagues announcing the spending deal Sunday night.

"The concessions we achieved will include an additional $10 billion in cuts to the IRS mandatory funding (for a total of $20 billion), which was a key part of the Democrats’ ‘Inflation Reduction Act,'" Johnson said in the letter.

Republicans have targeted IRS funding since the agency was slated to receive an additional $80 billion through the Inflation Reduction Act, passed in August 2022.

The $1.59 trillion agreement announced Sunday was reached after weeks of negotiation between House Republicans and Senate Democrats ahead of the government spending deadline on Jan. 19.