DEPARTMENT OF THE TREASURY 

WASHINGTON, D.C. 20220 

The Honorable Paul D. Ryan 

Speaker of the House 

U.S. House of Representatives 

Washington, DC 20515 

Dear Mr. Speaker: 

July 27, 2018 

Title 5 of the United States Code requires the Secretary of the Treasury to report to Congress on 

the operation and status of certain fund accounts during any debt issuance suspension period. 

Enclosed is the report covering the operation and status of relevant fund accounts during the debt 

issuance suspension period that ended on February 9, 2018. As directed by law and explained in 

the report, Treasury has fully restored the federal fund accounts to the condition they would have 

been in had there not been a debt issuance suspension period. 

Enclosure 

Identical letter sent to: 

Sincerely, 

tr���tley 

Acting Assistant Secretary 

Office of Legislative Affairs 

The Honorable Nancy Pelosi, House Democratic Leader 

The Honorable Mitch McConnell, Senate Majority Leader 

The Honorable Charles E. Schumer, Senate Democratic Leader 

cc: The Honorable Kevin Brady, Chairman, House Committee on Ways and Means 

The Honorable Richard E. Neal, Ranking Member, House Committee on Ways and Means 

The Honorable Orrin G. Hatch, Chairman, Senate Committee on Finance 

The Honorable Ron Wyden, Ranking Member, Senate Committee on Finance 
1

Report on Fund Operations and Status

From December 11, 2017 to June 29, 2018

Pursuant to 5 U.S.C. § 8348(l)(1)

July 27, 2018

On December 9, 2017, the outstanding debt subject to limit was at the statutory debt limit. The following 

business day, Secretary Steven Mnuchin notified Congress of his determination that a “debt issuance 

suspension period” (DISP) would begin on or after December 11, 2017, and last until January 31, 2018. 

On January 30, 2018, the Secretary determined the DISP would continue through February 28, 2018. On 

February 9, 2018, the President signed the Bipartisan Budget Act of 2018 (P.L. 115-123), temporarily 

suspending the statutory debt limit through March 1, 2019, rendering further use of extraordinary 

measures unnecessary.

Legal Authority and Requirements: 

 Section 8348(j)(1) of Title 5 of the United States Code authorizes the Secretary to “suspend 

additional investment of amounts in the [Civil Service Retirement and Disability Fund (CSRDF)] 

if such additional investment could not be made without causing the public debt of the United 

States to exceed the public debt limit.” The statute defines a “debt issuance suspension period” as 

any period for which the Secretary determines that the issuance of obligations of the United 

States may not be made without exceeding the public debt limit. 

 Section 8348(k)(1) of Title 5 of the United States Code authorizes the Secretary to “sell or 

redeem securities, obligations, or other invested assets of the [CSRDF] before maturity in order to 

prevent the public debt of the United States from exceeding the public debt limit.” The Secretary 

may redeem such investments only during a debt issuance suspension period, and only to the 

extent necessary to obtain an amount of funds up to the total amount of payments authorized to be 

made from the CSRDF during such period.

 Section 8348(j)(3) requires the Secretary, upon expiration of a debt issuance suspension period, to 

immediately issue to the CSRDF obligations that “bear such interest rates and maturity dates as 

are necessary to ensure that, after such obligations are issued, the holdings of the [CSRDF] will 

replicate to the maximum extent practicable the obligations that would then be held by the 

[CSRDF] if the suspension of investment ... and any redemption or disinvestment ... had not 

occurred.” Section 8348(j)(4) further requires the Secretary, on the first normal interest payment 

date after the expiration of the debt issuance suspension period, to pay to the CSRDF any interest 

that would have been earned during the debt issuance suspension period.

 Section 8348(l)(1) requires the Secretary to report to Congress on the operation and status of the 

CSRDF during a debt issuance suspension period. The report is to be made “as soon as possible 

after the expiration of such period, but not later than the date that is 30 days after the first normal 

interest payment date occurring after the expiration of such period.” The first normal interest 

payment date after February 9, 2018, was June 29, 2018. This document fulfills this requirement.

 Section 8909a(c) states that investments of the Postal Service Retiree Health Benefits Fund 

(PSRHBF) “shall be made in the same manner” as investments for the CSRDF under section 

8348.

Operations and Status: Between December 11, 2017, and February 9, 2018, in connection with the 

declaration of the debt issuance suspension period, $13,200,000,000 and $700,000,000 were redeemed 

from the CSRDF and PSRHBF, respectively, earlier than otherwise required in order to avoid exceeding 

the debt limit. In addition, interest payable to the CSRDF and PSRHBF on December 29, 2017, of 

$12,723,795,000 and $661,867,000, respectively, was not invested. Finally, throughout the period of

December 11, 2017, to February 9, 2018, new CSRDF and PSRHBF receipts were not invested in order 
2

to avoid exceeding the debt limit. Steps were taken on February 9, 2018, and June 29, 2018, as 

appropriate, to replicate the portfolios the CSRDF and PSRHBF would have held if the DISP had not 

occurred. A summary of the operations and status of the CSRDF and PSRHBF between December 11, 

2017, and June 29, 2018 is included as Attachment 1.
Attachment 1

3

Daily

Receipt Inv.

 Suspended/

(Reinvested)

Payments

Covered by

DISP

Redemptions

for Payments 

During DISP/

(Reinvested)

Princ. and Int.

Suspended/

(Reinvested)

Payments

Covered by

DISP

Redemptions

for Payments 

During DISP/

(Reinvested)

Princ. and Int.

Suspended/

(Reinvested)

December 11, 2017 $8,538,000 $3,344,000 $2,211,206,000 $0 $0 $0 $500,000,000 $0 $0 1

December 12, 2017 $20,438,000 $0 $4,588,794,000 $0 $0 $0 $0 $0 $0

December 13, 2017 ($28,976,000) $801,000 ($6,795,855,000) $0 $0 $0 ($500,000,000) $0 $0 2

December 14, 2017 $900,000 $2,147,000 $6,795,855,000 $0 $0 $292,401,000 $500,000,000 $0 $0

December 15, 2017 $612,343,000 $33,056,000 $0 $0 $0 $0 $0 $0 $0

December 18, 2017 $383,088,000 $537,000 $0 $0 $0 $0 $0 $0 $0

December 19, 2017 $149,126,000 $12,530,000 $0 $0 $0 $0 $0 $0 $0

December 20, 2017 $30,451,000 $1,797,000 $0 $0 $0 $0 $0 $0 $0

December 21, 2017 $147,189,000 $1,922,000 $0 $0 $0 $0 $0 $0 $0

December 22, 2017 $617,000 $3,493,000 $0 $0 $0 $0 $0 $0 $0

December 26, 2017 $1,183,000 $1,718,000 $0 $0 $0 $0 $0 $0 $0

December 27, 2017 $1,412,000 $2,177,000 $0 $0 $0 $0 $0 $0 $0

December 28, 2017 $2,446,000 $2,752,000 $0 $0 $0 $0 $0 $0 $0

December 29, 2017 $611,014,000 $721,000 $0 $12,723,795,000 $0 $0 $0 $661,867,000 $0 3

January 2, 2018 $525,036,000 $6,733,005,000 $0 $0 $160,460,000 $0 $0 $0 $0 4

January 3, 2018 $15,807,000 $0 $0 $0 $0 $0 $0 $0 $0

January 4, 2018 $145,533,000 $0 $0 $0 $47,677,000 $0 $0 $0 $0

January 5, 2018 $13,726,000 $0 $0 $0 $0 $0 $0 $0 $0

January 8, 2018 $819,000 $0 $0 $0 $3,944,000 $0 $0 $0 $0

January 9, 2018 $1,076,000 $0 $0 $0 $2,707,000 $0 $0 $0 $0

January 10, 2018 $685,000 $0 $0 $0 $3,830,000 $0 $0 $0 $0

January 11, 2018 $27,296,000 $0 $0 $0 $3,754,000 $0 $0 $0 $0

January 12, 2018 $607,854,000 $0 $0 $0 $33,690,000 $0 $0 $0 $0

January 16, 2018 $520,067,000 $0 $0 $0 $3,577,000 $0 $0 $0 $0

January 17, 2018 $12,390,000 $0 $0 $0 $3,956,000 $0 $0 $0 $0

January 18, 2018 $146,081,000 $0 $0 $0 $4,128,000 $0 $0 $0 $0

January 19, 2018 $317,000 $0 $0 $0 $5,392,000 $0 $0 $0 $0

January 22, 2018 $726,000 $0 $0 $0 $3,211,000 $0 $0 $0 $0

January 23, 2018 $1,608,000 $0 $0 $0 $5,862,000 $207,599,000 $0 $0 $91,898,000

January 24, 2018 $581,000 $0 $0 $0 $956,000 $0 $0 $0 $0

January 25, 2018 $320,000 $0 $0 $0 $279,296,000 $0 $0 $0 $0

January 26, 2018 $628,943,000 $0 $0 $0 $19,397,000 $0 $0 $0 $0

January 29, 2018 $378,082,000 $0 $0 $0 $2,088,000 $0 $0 $0 $0

January 30, 2018 $158,660,000 $0 $0 $0 $527,000 $0 $0 $0 $0

Daily Transaction Detail

Report of the Operation and Status of the

Civil Service Retirement and Disability Fund and

the Postal Service Retiree Health Benefits Fund

December 11, 2017 - June 29, 2018

Date Notes

Daily Other

Redemptions

Not Included

In DISP

Early 

Redemption

Other

Redemptions

Not Included

In DISP

Early 

Redemption

Civil Service and Retirement Disability Fund Postal Service Retiree Health Benefits Fund
Attachment 1

4

Daily

Receipt Inv.

 Suspended/

(Reinvested)

Payments

Covered by

DISP

Redemptions

for Payments 

During DISP/

(Reinvested)

Princ. and Int.

Suspended/

(Reinvested)

Payments

Covered by

DISP

Redemptions

for Payments 

During DISP/

(Reinvested)

Princ. and Int.

Suspended/

(Reinvested)

January 31, 2018 $32,177,000 $1,485,000 $6,400,000,000 $0 $0 $0 $200,000,000 $0 $0 5

February 1, 2018 $149,931,000 $6,398,515,000 $0 $0 $512,754,000 $0 $0 $0 $0

February 2, 2018 $870,000 $0 $0 $0 $0 $0 $0 $0 $0

February 5, 2018 $266,000 $0 $0 $0 $49,961,000 $0 $0 $0 $0

February 6, 2018 $711,000 $0 $0 $0 $573,000 $0 $0 $0 $0

February 7, 2018 $11,236,000 $0 $0 $0 $3,517,000 $0 $0 $0 $0

February 8, 2018 $473,000 $0 $0 $0 $5,311,000 $0 $0 $0 $0

February 9, 2018 ($5,321,040,000) $0 $0 ($12,723,795,000) $0 $0 ($200,000,000) ($661,867,000) $0 6

Subtotal $0 $13,200,000,000 $13,200,000,000 $0 $1,156,568,000 $500,000,000 $500,000,000 $0 $91,898,000

June 29, 2018 ($218,307,637) ($29,191,962) 7

Total $0 $13,200,000,000 $13,200,000,000 ($218,307,637) $1,156,568,000 $500,000,000 $500,000,000 ($29,191,962) $91,898,000

Daily Transaction Detail

Report of the Operation and Status of the

Civil Service Retirement and Disability Fund and

the Postal Service Retiree Health Benefits Fund

December 11, 2017 - June 29, 2018

Date Notes

Daily Other

Redemptions

Not Included

In DISP

Early 

Redemption

Other

Redemptions

Not Included

In DISP

Early 

Redemption

Civil Service and Retirement Disability Fund Postal Service Retiree Health Benefits Fund
Attachment 1

5

Notes from the Daily Transaction Detail

Report on Fund Operations and Status 

From December 11, 2017 to June 29, 2018

1. December 11, 2017: 

o Secretary Mnuchin notified Congress that a “debt issuance suspension period” would 

begin on or after December 11, 2017, and last until January 31, 2018.

o Treasury did not invest $8,538,000 in new receipts to the CSRDF.

o Treasury did not redeem $3,344,000, which represented a portion of the payments 

authorized to be made from the CSRDF during the period of the DISP.

o Treasury redeemed $2,211,206,000 from a CSRDF 2.250 percent Special Issue Bond 

maturing June 30, 2032.

o Treasury redeemed $500,000,000 from a PSRHBF 5.000 percent Special Issue Bond 

maturing June 30, 2022.

2. December 13, 2017:

o As a result of a drop in the level of the debt subject to limit to an amount below the 

statutory debt limit:

 Treasury reinvested $28,976,000, which represented receipts received on 

December 11 and December 12 that were not invested in the CSRDF.

 Treasury invested normally $156,000, which represented new receipts to the 

CSRDF.

 Treasury reinvested $6,795,855,000, which represented the remainder of the 

early redemptions from the CSRDF through December 13.

 Treasury reinvested $500,000,000, which represented the remainder of the early 

redemptions from the PSRHBF through December 13.

o Treasury did not redeem $801,000, which represented a portion of the payments 

authorized to be made from the CSRDF during the period of the DISP.

3. December 29, 2017:

o Treasury did not invest $12,723,795,000, which included $12,023,609,000 in semiannual interest, due to the CSRDF on December 29 and $700,186,000 of interest forgone 

by the CSRDF during the prior DISP between March 16, 2017, and September 8, 2017.

o Treasury did not invest $611,014,000 in new receipts to the CSRDF.

o Treasury did not redeem $721,000, which represented a portion of the payments 

authorized to be made from the CSRDF during the period of the DISP.

o Treasury did not invest $661,867,000, which included $630,270,000 in semi-annual 

interest, due to the PSRHBF on December 29 and $31,597,000 of interest forgone by the 

PSRHBF during the prior DISP between March 16, 2017 and September 8, 2017.

4. January 2, 2018:

o Treasury did not invest $525,036,000 in new receipts to the CSRDF

o Treasury did not redeem $6,733,005,000, which represented a portion of the payments 

authorized to be made from the CSRDF during the period of the DISP.

o Treasury redeemed normally $160,460,000, which represented the amount needed to 

make the remainder of the new disbursements from the CSRDF.
Attachment 1

6

5. January 30, 2018:

o Secretary Mnuchin notified Congress that the DISP would continue through February 28, 

2018.

o Treasury did not invest $32,177,000 in new receipts to the CSRDF.

o Treasury did not redeem $1,485,000, which represented a portion of the payments 

authorized to be made from the CSRDF during the period of the DISP. 

o Treasury redeemed $6,400,000,000 from a CSRDF 2.250 percent Special Issue Bond 

maturing June 30, 2032.

o Treasury redeemed $200,000,000 from a PSRHBF 5.000 percent Special Issue Bond 

maturing June 30, 2022.

6. February 9, 2018:

o The President signed the Bipartisan Budget Act of 2018 (P.L. 115-123), suspending the 

statutory debt limit through March 1, 2019. 

o Treasury invested $18,044,835,000 into the CSRDF in accordance with the established 

investment plan for the fund. This represented:

 $12,723,795,000, which included $12,023,609,000 for the December 29, 2017,

semi-annual interest payments that were not reinvested in the fund during the 

DISP and $700,186,000 for the December 29, 2017, payment of interest forgone 

by the CSRDF during the prior DISP between March 16, 2017, and September 8, 

2017.

 $5,321,040,000 in receipts not invested between December 11, 2017, and 

February 9, 2018.

o Treasury redeemed $13,200,000,000 from current CSRDF Certificates of Indebtedness 

and bonds, using normal redemption rules.

o Treasury invested $13,200,000,000 in the CSRDF 2.250 percent bond maturing on June 

30, 2032. This represented principal that was redeemed early from the 2.250 percent 

Special Issue Bond. (Had there been no DISP, benefit payments would have been paid 

through normal redemption rules.)

o Treasury invested $661,867,000 in the PSRHBF in accordance with the established 

investment plan for the fund. This represented:

 $630,270,000 for the December 29, 2017 semi-annual interest payments that

were not reinvested in the fund during the DISP.

 $31,597,000 for the December 29, 2017 payment of interest forgone by the 

PSRHBF during the prior DISP between March 16, 2017, and September 8, 

2017.

o Treasury redeemed $500,000,000 from current PSRHBF Certificates of Indebtedness 

and bonds, using normal redemption rules.

o Treasury invested $700,000,000 in the PSRHBF 5 percent bond maturing on June 30, 

2022. This represented:

 $500,000,000 principal that was redeemed early from the 5.000 percent Special 

Issue Bond. (Had there been no DISP, benefit payments would have been paid 

through normal redemption rules.)

 $200,000,000 in available funds from the early DISP redemptions that have not 

yet been disbursed.
Attachment 1

7

7. June 29, 2018:

o Treasury paid interest of $218,307,637 to the CSRDF. This amount represents the 

interest forgone during the period of the DISP from December 11, 2017, to February 9, 

2018, and accrued since February 9, 2018.

o Treasury paid interest of $ 29,191,962 to the PSRHBF. This amount represents the 

interest forgone during the period of the DISP from December 11, 2017, to February 9, 

2018, and accrued since February 9, 2018.