US to Launch 'Extraordinary Measures' to Prevent Default on Jan 21

"This letter serves to notify you... of the extraordinary measures that Treasury will begin using on January 21," Yellen said in a letter to congressional leaders, noting that a “debt issuance suspension period” will start on Tuesday.

The period will last through March 14, 2025, she said.

Reports indicate that although Republicans control both houses of Congress, they remain divided on the issue of the national debt ceiling. They need to pass bills on border security, energy and tax relief, and government funding for fiscal year 2025, which began last October 1. A bill to raise or suspend the nation's debt ceiling could be included in one of those packages. House Republican leaders floated the idea of raising the debt limit by $1.5 trillion in December.