DEPARTMENT OF THE TREASURY 

WASHINGTON, D.C. 

SECRETARY OF THE TREASURY 

The Honorable John A. Boehner 

Speaker 

U.S. House of Representatives 

Washington, DC 20515 

Dear Mr. Speaker: 

September 10, 2015 

I am writing to provide an update regarding the Treasury Department's ability to continue to 

finance the government, the extraordinary measures we have undertaken to avoid default, and 

our current levels of cash on hand. 

On July 29, I wrote to inform you that the extraordinary naeasures we have been employing to 

preserve borrowing capacity would not be exhausted before late October, and that they likely 

would last for at least a brief additional period of time. That continues to be our view, based 

upon our best and most recent information. 

Since my previous letter, I have taken additional action to implement the extraordinary measures 

that allow us, on a temporary basis, to continue paying th~~ nation's bills. Specifically, on 

August 31, I suspended, as necessary, the daily reinvestment of the portion of the Exchange 

Stabilization Fund that is invested in Treasury securities. Each of the measures employed to date 

is authorized by law, and each has been used during past debt limit impasses. The effective 

duration of these measures depends on factors that are inherently variable and irregular, 

including the unpredictability of tax receipts and changes in expenditure flows. If Treasury 

exhausts these measures, the United States will have reached the limit of its borrowing authority, 

and Treasury would be left to fund the government with only the cash on hand on any given day. 

Earlier this year, Treasury implemented a new policy of n1aintaining a cash balance generally 

sufficient to cover one week of outflows, subject to a minimum of roughly $150 billion. In a 

public release, we explained that the policy will help protect against a potential interruption in 

market access resulting from events such as Hurricane Sandy, September 11, or a potential 

cyber-attack. Maintaining this higher cash balance does not increase the debt limit, nor does it 

alter in any way the length of time Treasury can continue to pay the nation's bills. On 

August 19, our cash balance fell below this minimum level. We anticipate that it will rise 

temporarily after the September 15 deadline for corporate and individual tax receipts- possibly 

above $150 billion-and then will decline again. 
As I have stated previously, extending borrowing authority does not increase government 

spending. It simply allows Treasury to pay for expenditures Congress has previously approved. 

In the past, failure to raise the debt limit in a timely manner has negatively impacted business 

and consumer confidence, financial markets, and the credit rating of the United States. To avoid 

these unnecessary risks, I respectfully urge Congress to raise the debt limit as soon as possible, 

protect the full faith and credit of the United States, and remove the threat of default. 

Sincerely, 

Jacob J. Levv 

Identical letter sent to: 

The Honorable Nancy Pelosi, House Democratic Leader 

The Honorable Mitch McConnell, Senate Majority Leader 

The Honorable Harry Reid, Senate Democratic Leader 

cc: The Honorable Paul Ryan, Chairman, House Committee on Ways and Means 

The Honorable Sander M. Levin, 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 

All other Members of the 114 th Congress