Statements or reports from the U.S. Treasury Department

Yellen Says U.S. to Hit Debt Ceiling by Jan. 23, Urges Congress to Act to Avoid Default

Dec 27, 2024, 11:09 PM

US Treasury Secretary Janet Yellen has informed Congress that the United States is expected to reach its new debt limit between January 14 and January 23, 2025. In a letter sent to congressional leaders on December 27, 2024, Yellen explained that when the debt limit pause ends on January 2, 2025, a new debt limit will be established based on the amount of outstanding debt as of January 1, 2025. She noted that the Treasury does not anticipate needing to take extraordinary measures immediately on January 2, 2025, but expects it will be necessary to begin such measures between January 14 and January 23 to prevent the country from defaulting on its obligations. Yellen urged Congress to act promptly to raise or suspend the debt ceiling, emphasizing the importance of protecting the 'full faith and credit' of the United States.