Treasury Secretary Timothy Geithner sent letters to congressional leaders Monday to explain that his money shuffle will buy them until August 2 to reach a deal on the debt limit. The measure won’t have an impact on retirees because the Treasury is legally required to reimburse the program. The Treasury's moves buy time for the White House and congressional leaders to reach a deficit-reduction agreement that could clear the way for enough lawmakers to vote to raise the amount of money Congress allows the nation to borrow. What’s more, Republican leaders are insisting that Congress cut spending by as much as the Obama administration wants to raise the debt limit, without any new taxes. Many Republicans and some Democrats have said they won't vote to increase the debt ceiling without an accompanying deal to cut spending or tackle such longer-term fiscal problems as health-care costs. “Everything should be on the table, except raising taxes,” House Speaker John Boehner (R-Ohio) said on CBS’s “Face the Nation.” “Because raising taxes will hurt our economy and hurt our ability to create jobs in our country.” 
 
 The Obama administration has warned that it is dangerous to make a vote on raising the debt limit contingent on other proposals. Mr. Boehner appeared to agree, saying Sunday a deal doesn't "have to wait until the eleventh hour." We have a moment, a window of opportunity to act, because if we don’t act, the markets are going to act for us.” 
 
 Geithner’s plan to tap federal retiree programs as a temporary means to avoid a government default comes as the Obama administration has shown growing interest in altering those programs to curb the debt in the long run. Meanwhile, back in Washington, the staffs of lawmakers sitting on a bipartisan, bicameral panel with Vice President Joe Biden charged with coming up with long-term deficit solutions are slated to be working all week, even as House members are on recess. The U.S. government has hit the debt ceiling before, most notably in 1995 and 1996 when the Clinton administration and House Republicans squared off over government spending. Because the government is projected to run a $1.5 trillion deficit this year, it must borrow money to cover its obligations, ranging from military spending to interest on existing debt. Treasury Secretary Timothy Geithner said in a letter to Sen. Michael Bennet (D., Colo.) last week that failing to raise the debt ceiling would lead to a default on obligations "such as payments to our service members, citizens, investors, and businesses." “Default would not only increase borrowing costs for the federal government, but also for families, businesses and local governments — reducing investment and job creation throughout the economy,” Geithner wrote. The debt limit is about paying what we already owe.” 
 
 Boehner, Nancy Pelosi, Reid, Minority Leader Mitch McConnell (R-Ky.) and the top lawmakers on the House Ways and Means Committee and Senate Finance Committee also received Geithner’s letter.
– Washington hit the debt ceiling today, barring the Treasury Department from borrowing from the public, so it will begin borrowing from federal workers’ pensions to keep the government afloat. Treasury is legally bound to reimburse the pensions, so retirees won't be affected, notes the Washington Post, but if the debt ceiling isn’t raised by Aug. 2, secretary Timothy Geithner warned again today that the US will hit default. Republicans, however, aren't buying Dems' dire predictions, and the Wall Street Journal notes that a deal is likely far off, though both sides appear to want to avoid coming down to the wire. “There will be no debt-limit increase without serious budget reforms and significant spending cuts that are greater than any increase in the debt limit,” John Boehner said today, Politico reports. Consensus on where cuts might focus remains vague, but federal pension reform is said to be among items on the chopping block. Since 1985, the government has borrowed from special programs six times to prevent default—but this time, it needs much more money.