The bipartisan Problem Solvers Caucus has endorsed the debt ceiling brokered by President Biden and House Speaker Kevin McCarthy (R-CA).
Caucus Co-Chairs Reps. Josh Gottheimer (R-NJ) and Brian Fitzpatrick (R-PA) issued a joint statement on Wednesday, praising the legislation as fiscally responsible.
The pair said the caucus was made up of 64 lawmakers, “evenly split” between Democrats and Republicans.
The endorsement comes as the legislation was set for a vote in the House of Representative Wednesday evening, amid a threat of revolt from far-right Republicans and foot-dragging by far-left Democrats.
The deal suspends the debt ceiling beyond next year’s presidential election into 2025. It also caps spending in the 2024 and 2025 budgets, claws back unused Covid pandemic funds, speeds up the permitting process for some energy projects, and includes extra work requirements for aid programs like food stamps, though overall funding is mostly held flat for domestic programs.
“I’ve said for months that all sides have to sit down at the table to get this done, because defaulting is not an option,” Gottheimer said, adding that “the Problem Solvers will play a key role in getting this legislation across the finish line and preventing a default.”
Fitzpatrick added that the debt deal is a “two-party solution” that “begins the process of putting our nation on a path to fiscal sustainability.”
According to U.S. Treasury Secretary Janet Yellen, the federal government will completely run out of money on Monday, June 5 unless the debt ceiling is lifted. Not passing the legislation would spell “catastrophe” for the country, she has said.
Wall Street analysts have further noted that a stock market plunge as a result of debt default could wipe out 6 million jobs and $15 trillion in wealth.