Treasury Department Begins Extraordinary Measures Ahead of Debt Limit


The Obama administration on Friday said it would expand emergency accounting measures to keep paying the nation's bills after the government hits a legal debt limit on borrowing next week.

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In a letter to congressional leaders, Treasury Secretary Jack Lew said the government would be at the statutory limit beginning on Monday.

Beginning that day, the Treasury will suspend investments in two government pension funds, Lew said. The Treasury on Friday suspended issuance of state and local government series securities, known as "slugs."

Together, the measures allow the Treasury to continue borrowing from investors at weekly auctions. (Reporting by Jason Lange; Editing by Andrea Ricci)