As has happened many times before, the Treasury Department will prevent the United States from defaulting on its obligations by suspending certain obligations that would count against the debt limit. Secretary Mnuchin indicated that “extraordinary measures” would be taken until Congress raises the debt limit, and that these measures could continue until around August or September.
One of the measures is to use funds that are dedicated to the Civil Service Disability and Retirement Fund and the G Fund of the Thrift Savings Plan. Every time in the past, once the debt limit was increased, these Funds were made whole, as required by law. Federal employees and retirees and their income were unaffected by these actions in the past, and we expect that to be the case this time. Secretary Mnuchin has asked Congress to raise the debt limit “at the first opportunity.”
NTEU will keep you informed on the progress of Congress to pass a new debt limit.