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: 

October 15, 2015 

I am writing to follow up on my previous letters regarding the debt limit and to provide 

additional information regarding the Department of the Treasury's ability to continue to finance 

the government. 

On October 1, I wrote to inform you that the extraordinary measures we have been employing to 

preserve borrowing capacity likely would be exhausted on or about Thursday, November 5. 

The letter noted, however, that Treasury's estimates are subject to inherent variability and could 

change as we receive additional information. It is impossible to forecast thousands of daily 

government transactions with precision. The letter also noted that the trend in our projected net 

resources had been negative in late September, which had reduced the projected amount of time 

we could finance the government. Accordingly, I cautioned that the ultimate date that Treasury 

exhausts extraordinary measures could be sooner or later than November 5. 

Over the past two weeks, Treasury has continued to receive information about daily receipts, 

investments, and expenditures. The trend in our projected net resources has continued to be 

negative, and our projections for the relevant period have declined an additional $4-6 billion. 

Based on our best and most recent information, we now estimate that extraordinary measures 

will be exhausted no later than Tuesday, November 3. At that point, we expect Treasury would 

be left with less than $30 billion to meet all of the nation's commitments-an amount far short of 

net expenditures on certain days, which can be as high as $60 billion. 

Operating the United States government with no borrowing authority, and with only the cash on 

hand on a given day, would be profoundly irresponsible. As I wrote previously, we anticipate 

that a remaining cash balance of less than $30 billion would be depleted quickly. In fact, we do 

not foresee any reasonable scenario in which it would last for an extended period of time. The 

government makes approximately 80 million payments a month, including Social Security and 

veteran benefits, military salaries, Medicare reimbursements, and many others. In the absence of 

congressional action, Treasury would be unable to satisfy all of these obligations for the first 

time in the history of the United States. 
In recent letters, I also have cautioned that Treasury's cash balance already has fallen below a 

minimum prudent level of $150 billion. Maintaining this minimum balance helps protect against 

potential market interruptions, which in the past have been caused by events such as 

Hurricane Sandy and the 9/11 terrorist attacks. It does not increase the debt limit or alter the 

time we can continue to pay the nation's bills. Treasury's cash balance is now substantially 

below that minimum level. 

The creditworthiness of the United States is an essential component of our strength as a nation. 

Protecting that strength is the sole responsibility of Congress, because only Congress can extend 

the nation's borrowing authority. Moreover, as you know, increasing the debt limit does not 

authorize any new spending. It simply allows Treasury to pay for expenditures Congress already 

has approved, in full and on time. 

For these reasons, I respectfully urge Congress to take action as soon as possible, raise the debt 

limit without delay, and remove an unnecessary threat to our economy. We have learned from 

the past that failing to act until the last minute can cause serious harm to business and consumer 

confidence, raise short-term borrowing costs for taxpayers, and negatively impact the credit 

rating of the United States. And there is no way to predict the irreparable damage that default 

would have on global financial markets and the American people. 

Sincerely, 

Jacob J. Lew 

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 114th Congress