Treasury Secretary Janet Yellen has informed congressional leaders that the Treasury Department will need to implement 'extraordinary measures' starting as early as January 14 to prevent the nation from reaching the debt ceiling. Yellen stated that the statutory debt ceiling is expected to be reached between January 14 and January 23, prompting the use of these special accounting maneuvers to avoid breaching the debt limit, which has been suspended until Jan. 1, 2025.
Historically, the Treasury has utilized extraordinary measures to keep the government functioning when faced with reaching the debt ceiling. However, once these measures are exhausted, there is a risk of default unless lawmakers and the president agree to raise the borrowing limit.
