Official announcements from the U.S. Congress or U.S. Treasury Department, credible financial news sources

U.S. Treasury to Use Extraordinary Measures on January 21 to Avert $36 Trillion Debt Default Amid Trump's Presidency

Jan 17, 2025, 10:32 PM

U.S. Treasury Secretary Janet Yellen has informed congressional leaders that the federal government will reach its statutory debt limit of approximately $36 trillion on January 21, 2025. In response, the Treasury Department will initiate 'extraordinary measures' to prevent the government from defaulting on its obligations. These measures are set to begin on the same day, which coincides with the first full day of Donald Trump's presidency following his inauguration. Yellen's letter, sent on January 17, emphasizes the uncertainty regarding how long these measures can sustain the government's financial operations. She urged Congress to act promptly to address the debt ceiling issue to protect the full faith and credit of the United States. The Treasury's actions include suspending investments in the Civil Service Retirement and Disability Fund and the Postal Service Retiree Health Benefits Fund, with assurances that these funds will be restored once the debt ceiling is addressed by Congress.