July 27, 2021

Treasury Department Announces Suspension of Sales of State and Local Government Series Securities

Holland & Knight Alert
Luisella Perri

The U.S. Department of the Treasury's Bureau of the Fiscal Service (Treasury Department) announced on July 23, 2021, the suspension of sales of State and Local Government Series (SLGS) nonmarketable Treasury securities. The suspension is effective on July 30, 2021, at noon EDT until further notice.

The SLGS suspension, also known as "closing the SLGS window," is necessary due to the statutory debt ceiling and to assist the Treasury Department's management of the debt subject to limit. The Treasury Department will reopen the SLGS window when Congress enacts, and the President signs, legislation suspending or raising the debt limit.

New subscriptions for SLGS will not be accepted after noon EDT on July 30, 2021. Open-market Treasury securities, which are purchased after soliciting bids from banks and other financial institutions, are still an option.

Information contained in this alert is for the general education and knowledge of our readers. It is not designed to be, and should not be used as, the sole source of information when analyzing and resolving a legal problem, and it should not be substituted for legal advice, which relies on a specific factual analysis. Moreover, the laws of each jurisdiction are different and are constantly changing. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. If you have specific questions regarding a particular fact situation, we urge you to consult the authors of this publication, your Holland & Knight representative or other competent legal counsel.

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