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

Yellen Warns U.S. Will Hit Debt Limit Between January 14 and 23, 2025; Extraordinary Measures Needed

Dec 28, 2024, 12:00 AM

U.S. Treasury Secretary Janet Yellen has announced that a new debt limit will be established on January 2, 2025, based on the outstanding debt at the end of the previous day. Yellen indicated that the Treasury expects to reach this new limit between January 14 and January 23, 2025. At that point, extraordinary measures, which are special accounting maneuvers, will be necessary to prevent the U.S. from defaulting on its obligations. In her communication to Congress, Yellen emphasized the importance of lawmakers taking action to protect the full faith and credit of the United States, urging them to raise the debt limit promptly to avoid economic repercussions. The Treasury does not anticipate needing to initiate these extraordinary measures on January 2, but without action from Congress, the risk of default could escalate significantly by mid-January.