Debt Limit Letter To Congress 20210928

DEPARTMENT OF THE TREASURY
WASHINGTON, D.C.
SECRETARY OF THE TREASURY
September 28, 2021
The Honorable Nancy Pelosi

Speaker
U.S. House of Representatives
Washington, DC 20515
Dear Madam Speaker:
I am writing to follow up on my previous letters regarding the debt limit and to provide
additional information regarding the Department of the Treasury's ability to continue to finance
the operations of the U.S. government.
In my September 8 letter, I explained that Treasury's cash and extraordinary measures would
most likely be exhausted sometime during the month of October. Based on our most recent
information, including tax payments associated with the September 15 deadline for third quarter
estimated tax payments for businesses and individuals, I am now able to further refine that
projection.
We now estimate that Treasury is likely to exhaust its extraordinary measures if Congress has
not acted to raise or suspend the debt limit by October 18. At that point, we expect Treasury
would be left with very limited resources that would be depleted quickly. It is uncertain whether
we could continue to meet all the nation's commitments after that date. While this is our best
estimate, the federal government's cash flows are subject to unavoidable variability. For
example, the government's daily gross cash flow (excluding financing) over the past year
averages nearly $50 billion per day and has exceeded $300 billion. As a result, it is important to
remember that estimates regarding how long our remaining extraordinary measures and cash
may last can unpredictably shift forward or backward. This uncertainty underscores the critical
importance of not waiting to raise or suspend the debt limit. The full faith and credit of the
United States should not be put at risk.
Furthermore, we know from previous debt limit impasses that waiting until the last minute can
cause serious harm to business and consumer confidence, raise borrowing costs for taxpayers,
and negatively impact the credit rating of the United States for years to come. Failure to act
promptly could also result in substantial disruptions to financial markets, as heightened
uncertainty can exacerbate volatility and erode investor confidence.
I am also writing to notify you, pursuant to 5 U.S.C. §§ 8348(1)(2), of my determination that, by

reason of the statutory debt limit, I will continue to be unable to fully invest the portion of the
Civil Service Retirement and Disability Fund (CSRDF) not immediately required to pay
beneficiaries, and that a "debt issuance suspension period," previously determined to end on
September 30, 2021, will continue through October 18, 2021. As a result, the Treasury
Department will continue to suspend additional investments of amounts credited to, and will
redeem an additional portion of the investment held by, the CSRDF, as authorized by law.
In addition, because the Postal Accountability and Enhancement Act of 2006 provides that
investments in the Postal Service Retiree Health Benefits Fund (PSRHBF) shall be made in the
same manner as investments for the CSRDF, the Treasury Department will also continue to
suspend additional investments of amounts credited to, and will redeem an additional portion of
the investments held by, the PSRHBF. By law, the CSRDF and PSRHBF will be made whole
once the debt limit is increased or suspended. Federal retirees and employees will be unaffected
by these actions.
Again, I respectfully urge Congress to protect the full faith and credit of the United States by
acting as soon as possible.
Sincerely,
Identical letter sent to:

The Honorable Kevin McCarthy, House Republican Leader
The Honorable Charles E. Schumer, Senate Majority Leader
The Honorable Mitch McConnell, Senate Republican Leader
cc: The Honorable Richard E. Neal, Chairman, House Committee on Ways and Means
The Honorable Kevin Brady, Ranking Member, House Committee on Ways and Means
The Honorable Ron Wyden, Chairman, Senate Committee on Finance
The Honorable Mike Crapo, Ranking Member, Senate Committee on Finance

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Debt Limit Letter To Congress 20210928

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DEPARTMENT OF THE TREASURY

SECRETARY OF THE TREASURY

September 28, 2021

The Honorable Nancy Pelosi

Dear Madam Speaker:

I am also writing to notify you, pursuant to 5 U.S.C. §§ 8348(1)(2), of my determination that, by

Identical letter sent to:

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