US Treasury Secretary Becerra extends the "debt issuance suspension period" to avoid breaching the debt ceiling

Gate News bot message, U.S. Treasury Secretary Besant said on Wednesday that the Treasury will continue to take unconventional cash management measures to prevent the statutory extension of the federal debt ceiling from exceeding nearly a month, until July 24. In a letter to congressional leaders, Besant stated that he has determined the need to continue the "debt issuance suspension period" originally set to expire on Friday. This statement allows the Treasury to suspend withdrawals from government pension and retiree health funds for benefits that do not require immediate payment.

Besant estimates that if the debt ceiling is not raised or suspended, the Treasury will be unable to continue paying all debts in the late summer. His letter did not provide an updated prediction on specific dates, but he told reporters on Tuesday that if the courts intervene in President Trump's tariff policy, the so-called debt ceiling "X day" may change.

Trump's tariffs brought in a record $23 billion in customs revenue in May. However, one of his apparent purposes in extending the debt ceiling to July 24 seems to be to maintain pressure on Congress to raise the debt ceiling before the traditional August recess, as part of a massive tax and spending plan.

Besant said in the letter, "According to our current estimates, we still believe that Congress must take action to raise or suspend the debt ceiling as soon as possible before the August recess to protect the full confidence and credit of the United States."