The federal government suspended investments into a fund in the $291.8 billion Federal Thrift Savings Plan, Washington, to avoid breaching the $15.194 trillion debt limit.
Treasury Secretary Timothy F. Geithner informed Senate Majority Leader Harry Reid of the move in a letter Tuesday. The so-called G Fund will be “made whole once the debt limit is increased,” Mr. Geithner said.
Lawmakers this week will debate a symbolic vote on the debt limit. Under legislation passed in August after months of negotiations between the Obama administration and Republican lawmakers, the president has authority to veto any disapproval resolution that clears both chambers of Congress. The limit would then be raised Jan. 27.
House Republicans plan to adopt a resolution on Wednesday rejecting President Barack Obama’s Jan. 12 request to raise the debt limit by $1.2 trillion, though the measure will die either in the Senate or by presidential veto. That will allow Mr. Obama to lift the cap on his own after Republicans have gone on record against it.
The debt-ceiling increase is to meet commitments already made by the government. The Treasury has been relying on accounting maneuvers similar to ones employed last year to ensure that the limit isn’t breached.
Since the budget law was approved, the debt limit has been raised twice, by a total of $900 billion. In the latest request, the ceiling would rise to $16.394 trillion, which the Treasury estimates will fund the government until late 2012.