Treasury Secretary Janet Yellen warned in a letter to congressional leaders on Friday that the U.S. government could hit its debt ceiling between January 14 and January 23.
To avoid a breach, the Treasury will begin using “extraordinary measures”—special accounting strategies designed to keep the government from defaulting.
Yellen urged lawmakers to act quickly, stating that once these measures are exhausted, the U.S. risks default unless Congress and the president agree to lift the borrowing limit.
The debt ceiling had been suspended until January 1, 2025, under the Fiscal Responsibility Act, signed into law last week by President Joe Biden.
While this legislation avoided a government shutdown, it did not address former President Donald Trump’s request to raise or suspend the debt limit. With the federal debt currently at $36 trillion, this issue is expected to be a key topic as Republicans, who will control the White House and Congress in the new year, push for extensions to Trump’s 2017 tax cuts.
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