Secretary of the Treasury Janet L. Yellen has addressed a letter to Congressional leaders concerning the United States debt limit. In her communication, she outlined the measures the Treasury Department will take as the nation approaches its statutory debt ceiling.

In a letter dated December 27, 2024, Yellen informed Congress that the Fiscal Responsibility Act of 2023 had suspended the debt limit until January 1, 2025. The new limit was set to take effect on January 2, and it was anticipated that this threshold would be reached between January 14 and January 23.

Yellen stated in her recent letter, "This letter serves to notify you, pursuant to 5 U.S.C. § 8348(l)(2), of the extraordinary measures that Treasury will begin using on January 21." She explained that due to the statutory debt limit, she would be unable to fully invest portions of the Civil Service Retirement and Disability Fund (CSRDF) not immediately required for beneficiaries. Consequently, a "debt issuance suspension period" will commence on January 21 and continue through March 14.

The Treasury Department plans to suspend additional investments in both the CSRDF and Postal Service Retiree Health Benefits Fund (PSRHBF). Yellen assured that these funds would be restored once the debt limit is increased or suspended. She emphasized that federal retirees and employees would remain unaffected by these actions.

Yellen expressed concerns about uncertainties surrounding how long extraordinary measures might last due to difficulties in predicting government payments and receipts months ahead. She noted that while the debt limit does not permit new spending, it poses a risk to financing existing legal obligations made by previous Congresses and Presidents from both parties.

"I respectfully urge Congress to act promptly to protect the full faith and credit of the United States," Yellen concluded.

The letter was also sent to several other key figures in Congress, including House Democratic Leader Hakeem Jeffries, Senate Majority Leader John Thune, Senate Democratic Leader Charles E. Schumer, along with committee chairs and ranking members involved in finance matters.