U.S. Treasury to Begin Extraordinary Measures as Debt Ceiling Reached

The federal government will hit its $36 trillion borrowing limit on January 21, prompting urgent calls for Congress to act to avoid default.

Treasury Secretary Janet Yellen announced that the U.S. will hit its $36 trillion debt ceiling on January 21, requiring the use of extraordinary measures to meet financial obligations.
Extraordinary measures include suspending investments in federal employee retirement funds, with assurances that these will be replenished once the debt ceiling is raised or suspended.
Yellen has urged Congress to act promptly to raise or suspend the debt limit, warning of significant economic risks if the government defaults on its obligations.
The debt ceiling, reinstated on January 2 after a suspension in 2023, has become a contentious issue, with President-elect Donald Trump advocating for its permanent abolition.
The timeline for when extraordinary measures will expire is uncertain, with some experts predicting Congress has until mid-2025 to address the issue before a potential default.