The US Treasury suspended payments to pension and health funds due to debt limit restoration

The US Treasury suspended payments to pension and health funds due to debt limit restoration

the United States Treasury Secretary Janet YellenOn Monday, additional steps were taken to maintain capacity Federal government debt Under the reinstated debt limit, some investments in public employee retirement funds and health benefits are suspended.

In a letter addressed to the Speaker of Parliament House of Representatives, Nancy Pelosiand other congressional leaders, softens She suspended investment in Civil Service Disability and Retirement Fund and the Postal Service Retirement Health Benefits Fund They are not required to pay beneficiaries immediately.

The two-year suspension of the federal debt limit expired on Saturday, bringing the cap back to the current debt level of about $28.5 trillion.

the Congressional Budget Office (CBO) He estimated that the extraordinary measures could recover more than $340,000 million of debt capacity that lowered the limit.

CBO He said that these actions, along with the current cash balance of treasure Of about $459 billion, it will allow the government to avoid a default in October or November as a partisan battle unfolds for a new suspension or an increase in the debt ceiling.

softens Congress warned in late July that the crucial date could be October 1, when the government will face $150 billion in mandatory payments starting in fiscal 2022.

Speech softens On Monday, he did not provide a new timetable for how long the extraordinary measures would take, which also includes suspending daily reinvestments inG . chestFederal retirement.

“I respectfully urge Congress To protect faith and credit United State Acting ASAP,” Yellen wrote.

the treasure Required by law to complete the money once Congress Agree to the new debt limit.

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