WASHINGTON (Reuters) – The budget deal struck by President Joe Biden and House Speaker Kevin McCarthy to end a debt ceiling crisis is unlikely to change the short-term capabilities of tax collectors, according to White House officials.
The deal would move $10 billion each in fiscal years 2024 and 2025 in funding from the Internal Revenue Service, but officials believe the IRS can pay off in the short term since they were funded over a period of 10 years. They may have to seek more funding from Congress for years to come, one of the officials said.
Text of the House of Representatives legislation released on Sunday showed the deal would only take back $1 billion from the IRS, but the White House agreed to the additional cuts as part of the appropriations process that will unfold over the next two years.
(Reporting by Trevor Hunnicutt; Editing by Muralikumar Anantharaman)