'It Was Starting to Get Hot': Shalanda Young Defends the Debt Deal and Biden's '$1.7 Trillion' Claim (May 30, 2023)

White House budget director Shalanda Young came to the briefing room to sell the debt-limit deal President Joe Biden had struck with House Speaker Kevin McCarthy. Before the first question, press secretary Karine Jean-Pierre called on a reporter “who just came back from Beyoncé, in Paris” [1].

Young took questions on the deal, then left with a complaint about the room. “All right, thank you. It was starting to get hot,” she said, to laughter [1].

The video above shows that moment from the May 30, 2023, briefing. Quotes are from the official transcript published by the American Presidency Project [1].

”$1.7 Trillion”

Young credited Biden with cutting the deficit. “This President takes a backseat to nobody on deficit reduction. $1.7 trillion reduction in the first two years. He presided over that,” she said [1].

A reporter pushed back. “But, quickly, most of that $1.7 trillion that went off in the first two years was COVID spending that ran off. And the CBO says the deficit actually will increase next year. It’s 1.7. It was 1.4 this year, 1.7 next year, and then up to 2-point-something by — in 10 years” [1].

“So, I get the argument: You didn’t need COVID spending anymore, so you shouldn’t take credit for deficit reduction. Well, he got it under control,” Young answered [1].

The reporter’s numbers held up. The Treasury’s year-end figures show a deficit of $1.38 trillion for fiscal 2022 and $1.70 trillion for fiscal 2023 [3].

”We Saved It in This Bill”

A reporter Jean-Pierre called Steve Portnoy asked about student loans. “Can you explain to student loan borrowers, who might be confused about what’s been agreed to here, how the Supreme Court decision may implicate that and explain the President’s continued commitment to forgiveness now?” [1]

“Supreme Court will opine on the President’s action to forgive $10,000 in student debt and $20,000 for those with Pell Grants. But in this bill, even though House Republicans’ bill sought to do away with that, we saved it in this bill,” Young said [1].

“The one thing is: This bill does end the payment pause,” she added [1].

”What You Lost On”

“Yeah, you talk about this as a compromise. I’m wondering if you could talk about what you lost on,” another reporter asked [1].

“Look, you — when the American people win and we avoid default, and retirement accounts are not in flux and the global economy is not crashing, I’m going to call that a win every day,” Young said. The deal would “allow Republicans to have some — some curbing of spending, which is flatlined for non-defense discretionary” [1].

”Until 2025”

Asked whether the White House had reconsidered “doing away with the debt ceiling,” Young kept her focus on the bill. “Right now, I’m thinking about how quickly this can get to the President’s desk and we can avoid default. And not only avoid default for a little while — until 2025, which is what this bill does,” she said [1].

”Add Age Up to 54”

A reporter said that under the deal’s new food-stamp work requirements, “Republicans estimate 700,000 Americans are going to lose those benefits.” Young said the change cut both ways: “So, while, yes, there will be a phase-in to add age up to 54, remember, we also got new exemptions in this bill that both parties agree to do” [1].

She said the new exemptions covered people who are homeless, veterans and young adults who aged out of foster care. “And you have to remember this: This entire SNAP change is sunset in 2030,” Young said [1].

”I Didn’t Think She Wanted to Leave”

When Jean-Pierre thanked her, Young blamed the room. “It’s the lights,” she said. After Young left, Jean-Pierre joked: “I didn’t think she wanted to leave for a second” [1].

Later, Jean-Pierre had a question of her own for the reporter back from Paris. “I know, but I have a question for you. (Laughter.) What’s your — what your favorite Beyoncé song?” she asked. “I — there’s too many to list — (laughter) — on camera in this moment,” the reporter said [1].

”Is President Biden Going to Hold a Campaign Event Ever?”

One reporter asked about Biden’s re-election bid. “It’s been more than a month since the re-election announcement. Is President Biden going to hold a campaign event ever?” [1]

“As it relates to anything that — that is connected to the campaign, any rallies, any events, any — any endorsement, anything that is connected to the 2024 re-election, that is not going to certainly come from here,” Jean-Pierre said. “The Hatch Act does exist” [1].

By the Numbers

$1.7 trillion: the deficit reduction Young credited to Biden’s first two years [1].
$1.70 trillion: the fiscal 2023 deficit, up from $1.38 trillion in fiscal 2022 [3].
54: the new top age for SNAP work requirements, per Young [1].
$10,000: the student debt relief per borrower Young described, or $20,000 with Pell Grants [1].
700,000: Americans who would lose benefits, per the Republican estimate a reporter cited [1].
$4.7 trillion: about how much the debt rose while the debt limit was suspended [4].

What Happened Next

The deal became law. Biden signed the Fiscal Responsibility Act on June 3, 2023. It said the debt limit “shall not apply for the period beginning on the date of the enactment of this Act and ending on January 1, 2025” [2].

The debt kept climbing. The total public debt was $31.47 trillion on June 2, 2023, the day before the law took effect, and $36.17 trillion on Jan. 2, 2025, the first business day after the suspension ended, according to the Treasury [4].

The Supreme Court ended the forgiveness plan. A month later, on June 30, 2023, the Court ruled in Biden v. Nebraska that the law Biden relied on “does not allow the Secretary to rewrite that statute to the extent of canceling $430 billion of student loan principal.” [5]

For Biden’s announcement of the deal two days earlier, see HYGO News’ page on the food-stamp work requirements. For the debt-limit fight before it, see the page on Biden’s launch day, and for more of Jean-Pierre’s answers checked against the record, the Karine Jean-Pierre record page.