Potential SLGS Program Suspension

Article | December 12, 2024

Barring congressional action, the federal debt limit will be reinstated on January 2, 2025 and the borrowing capacity of the Treasury Department may be significantly constrained. If extraordinary measures are implemented by the Treasury Department, this may result in a suspension of the State and Local Government Series (SLGS) securities program.

If the SLGS window closes, municipal issuers will have to choose between leaving escrows uninvested in cash or purchasing open-market-securities. PFM’s Structured Products Group, in coordination with your financial advisory and legal teams, will be ready to assist with the structuring and competitive procurement of open-market securities if the SLGS program is suspended yet again.

Please contact your local PFM representative to discuss how we can best assist you.

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