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Yellen Announces Treasury to Use Extraordinary Measures to Avoid Hitting $36 Trillion Debt Limit

Jan 17, 2025, 10:17 PM

Outgoing U.S. Treasury Secretary Janet Yellen has announced that the Treasury Department will begin implementing 'extraordinary measures' on January 21 to prevent the government from breaching the statutory debt limit, which is set at approximately $36 trillion. In a letter to congressional leaders, Yellen emphasized the urgency for Congress to act promptly to protect the full faith and credit of the United States. These measures include suspending investments in certain government funds, such as the Civil Service Retirement and Disability Fund and the Postal Service Retiree Health Benefits Fund, to manage the government's cash flow. Yellen's announcement comes just days before the transition to the new administration under President-elect Donald Trump, adding pressure on the incoming government to address the debt ceiling issue.