BETHLEHEM, Pa. — Hours before the U.S. House voted on a controversial bill to raise the nation's debt ceiling, Rep. Susan Wild said she'd support the bill that would stave off the first default in American history.
The country is days away from potentially defaulting on $31.4 trillion dollars of debt.
- Rep. Susan Wild voted Wednesday in favor of suspending the debt ceiling to avoid a catastrophic default on U.S. debt
- Wild called the agreement imperfect but said it was better than the GOP proposal or a default
- In return for suspending the debt ceiling, House Republicans negotiated for cuts to the IRS, raising the age of work requirements for people on SNAP and restarting the collection of student debt loans
Economists have warned for weeks that a default would devastate the world economy, upend the stock market and endanger the hegemony of the U.S. dollar.
Estimates from the House Budget Committee estimated a default would lead to the loss of 7 million jobs nationwide, including more than 7,600 positions in Pennsylvania's 7th Congressional District. It would also mean millions of retired Americans missing their Social Security checks and disrupting the nation's hospitals as Medicare and Medicaid payments were missed.
Wild, D-Lehigh Valley, said danger of that fallout would lead her to vote for the debt ceiling package that ultimately had broad bipartisan support on Wednesday night in a 314-117 vote to send legislation to the Senate.
The toughest sticking point, she said, was the fact the deal would cause thousands of Americans receiving SNAP benefits, also known as food stamps, to lose their eligibility. However, she said the negotiated deal was better than the alternatives of the Republican's original proposal or sinking America's credit. The work requirement is also offset by expanded eligibility for the program, but it would mean some people currently getting the benefit will be pushed out.
"I will be a 'yes' vote this evening because I recognize the importance of compromise on incredibly important issues."U.S. Rep. Susan Wild, D-Lehigh Valley
"I will be a 'yes' vote this evening because I recognize the importance of compromise on incredibly important issues. And America defaulting on its debt is about as important an issue as I can think of," Wild said during a conference call with reporters Wednesday afternoon.
Details of the bill
Wednesday night's vote came after months of posturing and verbal tits-for-tats between the White House and House Republicans. After weeks of impasse, President Joe Biden, House Speaker Kevin McCarthy, R-Calif., and their negotiation teams reached an agreement in principle on Friday night. Under the terms, the U.S. would mostly freeze non-military spending in 2024 and raise it by 1% for 2025. In addition, the bill would achieve several goals sought by Republicans, including:
- Rescinding about $30 billion in unspent coronavirus relief funding
- Raising the work requirement age for people seeking SNAP benefits, formerly known as food stamps, to 54
- Pulling $1.4 billion in funding from the IRS, reducing its enforcement capabilities
- Restarting collections on student loan payments. Biden had paused collections as his student loan forgiveness plan goes through court appeals. The forgiveness plan is expected to go before the U.S. Supreme Court later this summer.
In return, Congress would suspend the debt limit until January 2025, essentially allowing the federal government to borrow as much as needed until then. The length of the suspension puts off another debt ceiling showdown until after the 2024 presidential election.
The proposal has proven unpopular with Democratic progressives but especially with conservative Republicans. American debt is currently around $31.4 trillion, and conservatives argue the nation cannot afford to pile up more debt. Former President Donald Trump had urged Republicans allow the nation to default if Biden didn't cave to their demands for steeper spending cuts. Rep. Scott Perry, chair of the conservative House Freedom Caucus, criticized McCarthy for not driving a harder bargain.
"The Speaker himself has said on numerous occasions the greatest threat to America is our debt, and now is the time to act. We had the time to act. And this deal fails, fails completely," Perry, R-Pa., said at a news conference Tuesday.
Wild's hesitancy
Wild's support comes despite concerns she raised during a closed-door caucus meeting last week that were later leaked. At the time, Wild warned Democratic leadership in the House that the White House could not assume that Democrats in vulnerable districts like hers would automatically get in line behind a deal if it gave too much away.
On Wednesday, Wild said the reports were accurate. At the time, rank-and-file members were not receiving detailed updates on the negotiations, and she feared members would be asked to support a deal with steeper cuts to SNAP, veterans' benefits and other cuts. Many of those issues ultimately were left out of the deal, she said.
"We were literally in the dark. It was very frustrating to me because we were hearing a lot of rumors," Wild said.
Despite the opposition, Wild said she was confident the package would pass the House Wednesday night. She was less sure about what will happen in the Democratic-controlled Senate. On Tuesday, U.S. Sen. Bob Casey, D-Pa., acknowledged the damage a US default would be or even getting too close to the deadline. In 2011, Standard & Poor's downgraded the nation's credit rating after Congress passed a debt ceiling law at the 11th hour.
While he said it was up to McCarthy to overcome the MAGA wing of his own party, Casey stopped short of endorsing the deal himself.
"I've got some more review to do, but the most important consideration is avoiding default," Casey told LehighValleyNews.com following a Tuesday news conference in Allentown.
It was not clear how Sen. John Fetterman, D-Pa., would vote when he bill reaches the Senate. Earlier this month, he objected to the Republican plan that would have introduced more stringent changes to the SNAP program. His office did not respond to a request for comment Wednesday afternoon.
"I cannot in good conscience support a debt ceiling proposal that pushes people into poverty," Fetterman said earlier this month.
