A debt ceiling endgame could be in sight, even if an agreement is far from a sure thing. And part of the deal in helping America avoid default may be tightening work requirements on safety-net programs.
It may not be an obvious play. The biggest drivers of our federal deficits are entitlement spending on Social Security and Medicare. Prime-age labor force participation rates are at their highest in the past 15 years. And the potential consequences of default far outweigh domestic policy disagreements.
Yet Republicans have leverage in these debt ceiling negotiations, whether the Biden White House wishes to acknowledge it or not, and safety-net reform has emerged as a place of some consensus on the right. According to Punchbowl News’ Jake Sherman, House Speaker Kevin McCarthy now sees work requirements as a “red line” in any potential deal.