WASHINGTON—Mounting scandals at the Internal Revenue Service are jeopardizing critical funding for the agency as it gears up to play a big role in President Barack Obama's health care law. Obama sought a significant budget increase for the IRS for next year, when the agency will start doling out subsidies to help people buy health insurance on state-based exchanges. Congressional Republicans, however, see management problems at the IRS as an opportunity to limit the agency's funding just as it is trying to put in place the massive new law.
Republicans have been fighting the health care law ever since Democrats enacted it in 2010 without a single GOP vote. Unable to repeal the law, some Republicans hope to starve it by refusing to fund its implementation.
The IRS scandals are giving them a timely excuse.
"I think it's safe to say they're not going to get the kind of increase they're asking for," said Rep. Ander Crenshaw, R-Fla., chairman of the House appropriations subcommittee that funds the IRS.
"The question is, based on their bad behavior, are they going to end up with less money?" Crenshaw said.
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