The Treasury Department temporarily will suspend investing between $5 billion and $35 billion of the $40 billion G-Fund an investment option offered by the $100.5 billion Federal Thrift Savings plan to avoid breaching the statutory debt limit, Treasury Secretary Paul H. ONeill announced today. The fund is invested in federal government securities.
The money will be used between Thursday and April 18, Mr. ONeill said in a letter to House Speaker Dennis Hastert, R-Ill., and other lawmakers. After April 18, a wave of federal income tax payments is expected to alleviate the governments financial crunch.
Mr. ONeill cited statutory authority that gives him "explicit authority to suspend this G-Fund investment to avoid breaching the statutory debt limit.
Robert Rubin, treasury secretary in the Clinton administration, made a similar move in 1995.