WASHINGTON (AP) — Treasury Secretary Jacob Lew says he will begin tapping into two government employee retirement funds to buy more time before the U.S. Treasury is faced with the prospect of defaulting on the national debt.
In a letter to congressional leaders, Lew said Monday that he would begin tapping the civil service retirement and disability fund and a similar fund that covers retired postal workers. The law allows him to remove investments from these funds to clear room for more borrowing until Congress votes to raise the debt limit.
Lew has said the various bookkeeping measures can provide enough maneuvering room to keep the government from defaulting on its debt until after Labor Day. Earlier this year, Congress voted to temporarily suspend the debt limit but on Sunday that suspension ended.