This North Jersey rep says he’ll support federal debt ceiling deal

Daniel Munoz, NorthJersey.com
Updated ·2 min read

Rep. Josh Gottheimer, a Bergen County Democrat, said he’ll endorse the bipartisan deal struck over Memorial Day weekend to raise the U.S. debt ceiling while cutting spending over the next two years.

Hitting the debt limit could have a potentially devastating effect on the U.S. and global economy if talks dragged on for weeks or months.

Federal benefits like Social Security, Medicare and Medicaid could be cut off for millions of Americans, and economists warned of a recession and steep job cuts.

Rep. Josh Gottheimer speaks to reporters about actions he said should be taken to end mail fraud at the post office at 751 Palisade Ave. in Teaneck on Nov. 29.
Rep. Josh Gottheimer speaks to reporters about actions he said should be taken to end mail fraud at the post office at 751 Palisade Ave. in Teaneck on Nov. 29.

“Defaulting is not an option,” Gottheimer, who co-chairs the bipartisan 64-member Problem Solvers Caucus, said Wednesday. “It would hurt our children and families, our seniors and our veterans — and put our leadership in the world at risk. In divided government, you have to actually work together to find a solution that can make it across the finish line.

"The Problem Solvers Caucus is proud to endorse this bipartisan agreement to raise the debt ceiling, prevent an economic collapse and address our longer-term fiscal health," the Wyckoff resident said.

What's in the debt ceiling 2023 deal

Over the weekend, President Joe Biden and House Speaker Kevin McCarthy struck a deal to raise the debt ceiling until 2025, averting a June 5 default.

The bill faces an uncertain future in Congress, having drawn the ire of both progressive Democrats and hard-line Republicans. The House of Representatives is slated to vote on the debt ceiling bill Wednesday night before it goes to the U.S. Senate.

“I look forward to reviewing the fine print of this agreement,” tweeted U.S. Rep. Bill Pascrell Jr., a Democrat from Paterson.

Debt ceiling update

There are spending caps for two years, work requirements for aid programs like food stamps, and clawbacks to some IRS funding under Biden’s Inflation Reduction Act.

And there are no new taxes on wealthy individuals or corporations. The deal leaves Biden’s Inflation Reduction Act and student loan forgiveness plan intact.

Another piece is that the measure rescinds unspent COVID-19 rescue money, of which New Jersey has more than $5 billion, according to a recent state audit.

However, according to Jennifer Sciortino, a spokesperson for Gov. Phil Murphy's office, that money would not be impacted.

“Our bipartisan caucus is now proud to overwhelmingly endorse this two-party solution, the Fiscal Responsibility Act, that both avoids default and also begins the process of putting our nation on a path to fiscal sustainability,” said Rep. Brian Fitzpatrick, R-Pa., the other Problem Solvers Caucus co-chair.

This article originally appeared on NorthJersey.com: Debt ceiling 2023: Problem Solver's Caucus, North Jersey rep to endorse bill