US Treasury Deploys Special Measures to Avert Debt Limit Breach
The US Treasury has announced the expansion of its extraordinary accounting measures to prevent reaching the federal debt limit, effective January 2023.
In a letter to congressional leaders, Acting Treasury Secretary David Lebryk disclosed the implementation of additional measures to supplement those initiated on January 21st.
As of Thursday, the Treasury has suspended full investments in the Government Securities Investment Fund (G-fund) within the Federal Employees Retirement System Thrift Savings Plan. The G-fund will be restored once the debt limit is raised or suspended.
Bond market strategists estimate that the Treasury's current measures, including drawing on its cash balance, will sustain operations until the third quarter of 2025.
The Treasury has employed similar measures in previous debt limit impasses. Other potential steps include utilizing the Treasury's Exchange Stabilization Fund.
President Trump's nominee for Treasury Secretary, Scott Bessent, awaits full Senate confirmation.