Treasury Extends Debt Limit Measures Amidst Tariff Uncertainty

U.S. Treasury Secretary Scott Bessent extends special cash management measures to delay breaching the federal debt ceiling until July 24. The extension serves to pressure Congress to address the debt ceiling before its August recess, ensuring the U.S. meets its financial obligations amidst tariff-related uncertainties.

U.S. Treasury Secretary Scott Bessent has announced an extension of extraordinary cash management measures designed to prevent the breach of the federal debt ceiling. The deadline for these measures has been extended by nearly a month, now set to last until July 24.

In a letter addressed to congressional leaders, Bessent stressed the need for an ongoing "debt issuance suspension period" beyond its initial expiration this Friday. The Treasury has been granted authority to halt funding from certain government pension and healthcare funds, a move that does not immediately impact benefit payments.

The extension seeks to maintain pressure on Congress to either increase or suspend the debt ceiling as part of a larger tax-and-spending package before the August legislative recess, amid uncertainties such as potential court challenges to President Trump's tariffs.

(With inputs from agencies.)