The U.S. debt ceiling, suspended since mid-2023, was reinstated in early January 2025, once again limiting the government’s borrowing capacity. The Treasury now faces the challenge of managing finances under the cap, with the debt limit expected to be reached between January 14 and 23. ‍

‍

Treasury Secretary Janet Yellen has warned that, without congressional action to raise or suspend the ceiling, the department will need to employ “extraordinary measures” to prevent a default. These stopgap tactics, such as reallocating retirement fund investments, could delay a fiscal crisis until summer.

‍