Official announcements from the U.S. Congress or Treasury Department

U.S. Treasury to Implement Extraordinary Measures as Debt Ceiling Hits $36.373 Trillion

Jan 21, 2025, 03:46 AM

Outgoing U.S. Treasury Secretary Janet Yellen has announced that the United States will begin implementing "extraordinary measures" on January 21 to avoid breaching the federal debt ceiling, which has been reached at $36.373 trillion. Yellen's letter to Congress emphasized the urgent need to protect the "full faith and credit" of the U.S. government and called on lawmakers to act promptly to raise or suspend the debt limit. These measures include suspending investments in the Civil Service Retirement and Disability Fund and the Postal Service Retiree Health Benefits Fund, actions that will not affect federal retirees and employees. The measures are expected to last until March 14, though their duration is uncertain. The debt ceiling does not authorize new spending but prevents the government from borrowing further to meet existing obligations. Yellen warned that failure to address the debt ceiling could lead to the U.S. defaulting on its obligations, a scenario that could have severe economic consequences. This announcement comes just before the Trump administration assumes office, inheriting the fiscal challenges associated with the debt ceiling.