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Treasury Secretary Yellin announces “extraordinary measures” to deal with debt limit [1]

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Date: 2025-01-18

Department of the Treasury



The Honorable Mike Johnson

Speaker

U.S. House of Representatives

Washington, DC 20515



Dear Mr. Speaker:



I write to keep you apprised of actions the Treasury Department is taking in regard to the debt limit.

In my letter of December 27, 2024, I noted that the Fiscal Responsibility Act of 2023 suspended the statutory debt limit through January 1, 2025, and established a new limit effective January 2, and I informed you that Treasury expected to reach the new limit between January 14 and January 23.

This letter serves to notify you, pursuant to S U.S.C. § 8348(2), of the extraordinary measures that Treasury will begin using on January 21.

First, I have determined that, by reason of the statutory debt limit, I will be unable to fully invest the portion of the Civil Service Retirement and Disability Fund (CSRDF) not immediately required to pay beneficiaries, and that a "debt issuance suspension period" will begin on Tuesday, January 21, 2025, and last through Friday, March 14, 2025.



My predecessors have declared debt issuance suspension periods under similar circumstances. With these determinations, the Treasury Department will suspend additional investments of amounts credited to, and redeem a portion of the

investments held by, the CSRDF, as expressly authorized by law.

In addition, because the Postal Accountability and Enhancement Act of 2006 provides that

investments in the Postal Service Retiree Health Benefits Fund (PSRHBF) shall be made in the same manner as investments for the CSRDF, the Treasury Department will suspend additional investments of amounts credited to the PSRHBF. By law, the CSRDF and the PSRHBF will be made whole once the debt limit is increased or suspended. Federal retirees and employees will be unaffected by these actions.

The period of time that extraordinary measures may last is subject to considerable uncertainty, including the challenges of forecasting the payments and receipts of the U.S. Government months into the future. The debt limit does not authorize new spending, but it creates a risk that the federal government might not be able to finance its existing legal obligations that Congresses and Presidents of both parties have made in the past. I respectfully urge Congress to act promptly to protect the full faith and credit of the United States.

Sincerely,

Janet Yellen

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