WASHINGTON - Treasury Secretary Jack Lew warned Congress on Friday that the federal government will reach the debt limit by Feb. 27, having exhausted all of the extraordinary measures it can take to avoid it.
"Based on our best and most recent information we are not confident that the extraordinary measures will last beyond Thursday, Feb. 27," he told congressional leaders in a two-page letter. "At that point, Treasury would be left with only the cash on hand and any incoming revenue to meet our country's commitments."
Lew sent the letter the same day Treasury halted sales of state and local government series securities, or SLGS, which muni issuers use for advance refunding escrows to comply with tax requirements. Halting SLGS sales is one of the extraordinary measures the Treasury takes to avoid reaching the debt limit.
"Protecting the full faith and credit of the United States is the responsibility of Congress because only Congress can extend the Nation's borrowing authority," Lew said. "No Congress in our history has failed to meet that responsibility, and time is short."
Lew noted that Congress will be out of session for the President's Day week and said "it would be a mistake to wait until the last possible minute to act."
