(Archived Content)
December 24, 2002
The Honorable J. Dennis Hastert
Speaker
U.S. House of Representatives
Washington, D.C. 20515
Dear Mr. Speaker:
Due to the ongoing response to the September 11, 2001, terrorist attack and the economic slowdown which began in the summer of 2000, the Administration now projects that debt subject to limit may reach the statutory ceiling in the latter half of February 2003. This is consistent with estimates made when the statutory ceiling was raised earlier this year.
The federal government’s debt subject to limit continues to be driven largely by required investments of government trust fund balances. The remainder reflects the impact of waging the war on terrorism and restoring economic performance.
Accordingly, I am writing to request that Congress act promptly next year to ensure the government’s ability to finance its operations. This action is necessary to ensure success in our efforts to combat terrorism, continue the economic recovery and create jobs, and maintain the soundness of federal government securities. The Department of the Treasury stands ready to work with Congress to make this possible. Thank you for your attention to this matter.
Yours sincerely,
Kenneth Dam
Deputy Secretary