Official announcements from the U.S. Congress, Treasury Department, or verified news outlets

Yellen's Last Act: 'Extraordinary Measures' to Avert $36 Trillion U.S. Debt Ceiling Breach Starting January 21

Jan 17, 2025, 11:49 PM

U.S. Treasury Secretary Janet Yellen, in what will be one of her last acts before leaving office, has announced that the Treasury Department will implement 'extraordinary measures' starting January 21 to prevent the government from breaching the statutory debt ceiling, currently set at $36 trillion. This action comes as the U.S. government is set to reach its borrowing limit on Tuesday. Yellen communicated this in a letter to congressional leaders, emphasizing the need for Congress to act promptly to protect the full faith and credit of the United States. The measures include suspending investments in the Civil Service Retirement and Disability Fund and the Postal Service Retiree Health Benefits Fund, which will be reinstated once Congress addresses the debt ceiling. Yellen noted the uncertainty regarding how long these measures will last due to challenges in forecasting future government payments and receipts. This announcement follows President Joe Biden's signing of a bill in December that averted a government shutdown but did not address the debt ceiling.