How does the debt ceiling affect the CSRDF?
The CSRDF is invested in special-issue Treasury securities, which count against the debt limit. In 1986, Congress provided Treasury statutory authority to take certain actions in the event that the outstanding debt reaches the debt limit. Specifically, the statute authorizes the Secretary of the Treasury to determine that a “debt issuance suspension period” exists and, once he has done so, Treasury can (1) redeem certain existing investments in the CSRDF, and (2) suspend new investments by the CSRDF.
