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U.S. Treasury suspends some federal retirement funding to avoid debt limit breach
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U.S. Treasury suspends some federal retirement funding to avoid debt limit breach

U.S. Treasury Secretary Janet Yellen sends letter to Congress regarding move to access the G Fund. Projections suggest Treasury may no longer be able to meet nation’s bills by early June.

Where: United States

The Facts

On January 24th, U.S. Treasury Secretary Janet Yellen sent a letter notifying Congress of the move to access the Government Securities Investment Fund (G Fund).
The decision was made to avoid breaching the federal debt limit and would suspend daily reinvestments in a large government retirement fund that holds Treasury debt.
Yellen did not alter a projected early June deadline (Monday, June 5th, 2023) for when the Treasury may no longer be able to pay the nation’s bills.
“As of January 23, I have also determined that, by reason of the statutory debt limit, I will be unable to invest fully the Government Securities Investment Fund (G Fund) of the Thrift Savings Fund, part of the Federal Employees’ Retirement System, in interest-bearing securities of the United States,” Yellen wrote in the letter to House of Representatives Speaker Kevin McCarthy and other congressional leaders.
“The statute governing G Fund investments expressly authorizes the Secretary of the Treasury to suspend investment of the G Fund to avoid breaching the statutory debt limit. My predecessors have taken this suspension action in similar circumstances,” she added.

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