Businessman Steven Welch (R) announced Monday that he will run for the 7th district seat currently held by Rep. Joe Sestak (D), who is expected to run for Senate.

“Joe Sestak and the leadership in Congress think the solution to all of our problems is to spend more,— Welch said in a statement. “I believe the Republican principles of empowering individuals and personal freedom are what can revive our economy and ensure that the United States remains the beacon of hope to the world.—

Republicans had been hoping that former U.S. Attorney Patrick Meehan would decide to switch gears and drop out of the gubernatorial race to run for Sestak’s seat instead. Although party strategists agree that Meehan would be their best candidate, they may be content with Welch, who has personal wealth — a major advantage in the district that is covered by the expensive Philadelphia media market.

The 7th district slightly favors Democrats, and both parties are preparing for a competitive race to succeed Sestak once he launches his Senate bid.