Official U.S. Treasury Department releases or credible news reports

Yellen Warns of $36 Trillion Debt Limit Breach on January 21, Urges Congress to Act

Jan 17, 2025, 10:22 PM

Outgoing U.S. Treasury Secretary Janet Yellen has informed congressional leaders that the U.S. government will reach its statutory debt limit of $36 trillion on January 21 and will begin employing 'extraordinary measures' to avoid a default. These measures, which include special accounting maneuvers, are intended to prevent the nation from breaching the debt ceiling. Yellen urged Congress to act promptly to protect the full faith and credit of the United States. The debt limit was reinstated on January 2 after a suspension in 2023. Yellen's letter marks her second notification in the ongoing debate over the debt limit, and it is likely her last before the transition to the Trump administration on January 20.