The U.S. Treasury Secretary Steven Mnuchin publicized that there will be cash management measures to prevent a U.S. bad debt on Monday.

A letter to House of Representatives Speaker Paul Ryan says that two retirement funds would not be funded by the Treasury anymore. This includes the Civil Service Retirement and Disability Fund and the Postal Service Retiree Health Benefits Fund as mentioned in the letter. Mnuchin said that all funds would fully be compensated when the debt ceiling has been adjusted.

The U.S. Treasury is trying to assess the limit of money that it can borrow to manage the budget loss which leads to the higher spending of Taxes more than the collection from Washington and Congress has the only power to increase the limit.

There was a short-term solution of suspending the debt limit until December 8. Nevertheless, the Treasury has the capacity of paying the bills up to January as a precautionary measure according to the department.

Selected countries require the legislature to consent the periodic increases in the legal limit on the maximum amount of money that allows the federal government to borrow.