Treasury halts some fund payments; Snow urges Congress to raise debt ceiling soon.
October 14, 2004: 12:08 PM EDT
WASHINGTON (Reuters) - The Treasury Department suspended investments in a federal employee pension fund Thursday to keep the government below its borrowing limit, Treasury Secretary John Snow said in a letter to Congress.
Snow said payments to the $56 billion Federal Employee Retirement System's Government Securities Investment Fund, known as the G-fund, would be restored once Congress raises the $7.384 trillion debt ceiling.
"Such a suspension action has been taken in the past by my predecessors and by me," Snow said.
The government was just $10 billion below the limit as of Tuesday, according to the latest available data.
Congress adjourned for an election break last weekend without raising the politically sensitive limit. Snow said it was critical that lawmakers raise the debt ceiling when they return on Nov. 16.
"Given current projections, it is imperative that the Congress take action to increase the debt limit by mid-November, at which time all of our previously used prudent and legal actions to avoid breaching the statutory debt limit will be exhausted," he said.
Congress has already raised the debt limit twice during the Bush administration's tenure, in 2002 and 2003.
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