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☆ Debt ceiling: Republicans still have to deal with the debt limit in 2025
▼ + stars: | 2024-12-27 | by ( Tami Luhby | ) edition.cnn.com time to read: +7 min

CNN —Although President-elect Donald Trump wanted to start 2025 without having to worry about the debt ceiling, he did not get his wish. Addressing the debt ceiling, which will be reinstated on January 2, is still on the list of congressional Republicans’ New Year’s resolutions. Chip Somodevilla/Getty ImagesThe US last dealt with a debt ceiling crisis in early 2023, when it hit its $31.4 trillion debt limit. Moody’s cited the increasing cost of the nation’s swiftly rising debt load and the political polarization – including “renewed debt limit brinkmanship” – as the main reasons for concern. That will give lawmakers several months of breathing room to determine how to address the debt ceiling.

Persons: Donald Trump, Trump, Joe Biden, ”, JD Vance, Janet Yellen, Chip Somodevilla, it’s, Mandel Ngan, Fitch, Moody’s, “, –, Trump’s, Shai Akabas, Akabas, Annie Grayer Organizations: CNN, Republicans, GOP, Treasury Department, Senate, White House, Treasury, Civil, Disability Fund, Postal Service, Government Securities Investment Fund, Savings Fund, Federal Employees, Security, Getty, Fitch, Democrats Locations: AFP, America

☆ A US debt default or even a near-nonpayment could plunge the economy into recession, top Goldman Sachs economist says
▼ + stars: | 2023-01-26 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +2 min

A US debt default or even a near-nonpayment could send the US economy into recession, says Goldman Sachs' top economist. Any doubts on the US government's ability to pay back its debt could have "very adverse consequences," he said. The US has reached the $31.4 trillion borrowing limit, forcing the Treasury to step in with "extraordinary measures." The prospect of a longer-term solution remains clouded amid continued political wrangling over how much more money the government can borrow to meet its payments. If the US escapes risks of defaulting on its debt, it's likely to avoid a recession, Hatzius said, maintaining the house view.

☆ Factbox: The U.S. Treasury's tools to avoid breaching debt limit
▼ + stars: | 2023-01-25 | by ( ) www.reuters.com time to read: +5 min

Here's a rundown of the Treasury's tools to keep borrowing under the limit. Slugs issues, which count against the debt limit, have recently averaged $6 billion per month, but monthly volumes vary. Savings bond sales increased the federal debt by just $5.7 billion since the start of the 2023 fiscal year last October. SWAP FEDERAL FINANCING BANK DEBTThe Federal Financing Bank can issue up to $15 billion in debt on behalf of other government agencies that is not subject to the debt limit. So the Treasury could exchange FFB debt for other debt to reduce the total amount subject to the limit.

☆ Treasury Secretary Janet Yellen Takes Measures to Ease Debt-Ceiling Woes
▼ + stars: | 2023-01-24 | by ( David Harrison | ) www.wsj.com time to read: 1 min

The Treasury Department will stop fully investing in a government investment vehicle for federal employees as the U.S. bumps up against its debt ceiling, Secretary Janet Yellen said Tuesday in a letter to congressional leaders. The department will hold back money from the Government Securities Investment Fund of the Thrift Savings Fund, known as the “G Fund,” Ms. Yellen said. The G Fund allows government employees to save in interest-bearing U.S. securities as part of their retirement savings.

☆ Janet Yellen Takes Measures to Ease Debt-Ceiling Woes
▼ + stars: | 2023-01-24 | by ( David Harrison | ) www.wsj.com time to read: 1 min

☆ Treasury tells Congress it will suspend some federal retirement funding after debt limit breach
▼ + stars: | 2023-01-24 | by ( Chelsey Cox | ) www.cnbc.com time to read: +2 min

The U.S. Treasury will suspend full funding of a federal retirement program, the latest in a string of actions it has taken to prevent default after the government hit its debt ceiling, Treasury Secretary Janet Yellen told congressional leaders Tuesday. The Treasury is taking so-called extraordinary measures to keep paying its bills after it breached its $31.4 trillion borrowing limit Thursday. Lawmakers are trying to strike a deal to lift the U.S. borrowing limit and prevent a first-ever default on U.S. debt. Some members of the new Republican House majority have pushed to tie spending cuts to an increase in the borrowing limit. Yellen on Tuesday said interest-bearing securities for the Government Securities Investment Fund, or the so-called "G Fund," will be underfunded until the debt limit is increased or suspended.

☆ U.S. Treasury activates another maneuver to avoid breaching debt limit
▼ + stars: | 2023-01-24 | by ( David Lawder | ) www.reuters.com time to read: +2 min

WASHINGTON, Jan 24 (Reuters) - U.S. Treasury Secretary Janet Yellen activated another extraordinary cash management measure on Tuesday to avoid breaching the federal debt limit, suspending daily reinvestments in a large government retirement fund that holds Treasury debt, the department said. Republicans who now control the House have threatened to oppose a debt ceiling increase without spending reductions from the Biden administration. The G-Fund maneuver is one of the largest tools that Treasury can employ to reclaim borrowing capacity under the debt ceiling. Normally the money market-like retirement fund reinvests its entire balance daily into special-issue Treasury securities that count against the debt limit. But the Treasury is required by law to replenish the fund, along with any lost earnings, once a debt limit impasse ends.

WASHINGTON, Jan 13 (Reuters) - U.S. Treasury Secretary Janet Yellen said on Friday that the United States will likely hit the $31.4 trillion statutory debt limit on Jan. 19, forcing the Treasury to launch extraordinary cash management measures that can likely prevent default until early June. As of Wednesday, Treasury data showed that U.S. federal debt stood $78 billion below the limit, with a Treasury operating cash balance of $346.4 billion. The department on Thursday reported an $85 billion December deficit as revenues eased and outlays grew, particularly for debt interest costs. "The use of extraordinary measures enables the government to meet its obligations for only a limited amount of time," Yellen wrote to McCarthy and other congressional leaders. "It is therefore critical that Congress act in a timely manner to increase or suspend the debt limit.

☆ Combat Vet shares financial advice for military families
▼ + stars: | 2019-05-28 | by ( Bill Simonet | Managing Partner At Simonet Financial Group | ) www.nbcnews.com time to read: +7 min

The following programs are positioned to give a vet some financial guidance:Blended Retirement System (for active duty and reservists): In January 2018, the traditional military pension system was converted to the Blended Retirement System. The BRS combines elements of the legacy retirement system with benefits similar to those offered in many civilian 401(k) plans. Fewer than 20% of service members who enlist actually choose to make the military their career and retire out. Here are some pros:Provides a benefit to service members even if they choose not to spend 20 years in the military. Thrift Savings Plan (for service members not on the BRS): The Thrift Savings Plan is the federal government's version of the civilian 401(k) plan.

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