Lew Takes Extra Steps to Stay Under Federal Debt Limit

http://www.bloomberg.com/news/2013-05-21/u-s-treasury-takes-extra-steps-to-stay-under-federal-debt-limit.html

The Treasury Department announced further steps to keep funding the government without going over the nation’s debt limit, amid a stalemate between Congress and the Obama administration on approving an increase in the ceiling.

The U.S. declared a “debt-issuance suspension period”under the statute governing the Civil Service Retirement and Disability Fund. That allows the U.S. to redeem existing Treasury securities held by the fund as investments, and suspend new investment. Each month a debt-issuance suspension period lasts frees up about $6.4 billion, according to the Treasury.

During this period, civil service benefit payments will continue to be paid and won’t be affected by the action. However, once all of the so-called extraordinary measures it has at its disposal to avoid breaching the limit have been exhausted, the U.S. government will be limited in its ability to make payments across the government, the Treasury says.