American Economic Strength

ON THE WORLD STAGE

U.S. DEPARTMENT OF THE TREASURY

OFFICE OF PUBLIC AFFAIRS

U.S. DEPARTMENT OF THE TREASURY

WASHINGTON, D.C.

JANUARY 2021
"America's economic strength and

competitiveness is a bright spot in the world."

SECRETARY OF THE TREASURY

Steven T. Mnuchin

Secretary of the Treasury
In the first 3 years of President Trump’s and Secretary Mnuchin’s leadership, 6.84 million jobs

were added to the economy.

For the first time on record there were more job openings than unemployed Americans.

In February 2020, there were 7 million job openings, outnumbering job seekers by 1.2

million.

Just prior to the pandemic, two-thirds of Americans rated that it was a good time to find a

quality job, empowering more Americans with rewarding careers.

Prior to the pandemic, the unemployment rate fell to its lowest level in half a century.

As of February 2020, the unemployment rate had held at or below 4 percent for 24 consecutive

months.

The unemployment rate for women reached its lowest rate in 66 years.

Jobless claims in early 2020 hit their lowest level in half a century.

Prior to COVID-19, the number of people claiming unemployment insurance as a share of the

population fell to the lowest level on record.

Priorto the COVID-19pandemic, President Trumppresidedoverthe longest economic

expansion on record.

PROMOTING ECONOMIC PROSPERITY FOR ALL: President Trump’s pro-growth policies have

led to an economic boom that is lifting up Americans of all backgrounds.

U.S. DEPARTMENT OF THE TREASURY, OFFICE OF PUBLIC AFFAIRS

Treasury's Implementation of President Trump's Agenda

Delivered Record Breaking Results forthe American

People Priorto the Coronavirus Pandemic

“I am proudof all ofthe work we havedone to create conditions forgreater economicgrowth, more andbetter

opportunities for workingfamilies, andhigher wages for allAmericans.” – Secretary Steven T. Mnuchin
American workers of all backgrounds were thriving under Treasury’s pro-growth policies

before the pandemic hit.

The unemployment rates for African Americans, Hispanic Americans, Asian Americans,

veterans, individuals with disabilities, and those without a high school diploma all reached

record lows.·

Through February 2020, the booming economy put more money in Americans’ pockets.

Wage growth accelerated, rising at the fastest rate in a decade, with year-over-year wage

gains exceeding 3 percent for the first time since 2009.

February 2020 marked the 19th consecutive month that wages rose at an annual rate of at

or over 3 percent.

Real median household income grew by a record 6.8% to surpass $68,700 in 2019 – the

highest level on record.

Americans have come off the sidelines and back into the workforce.

Through February 2020, the prime age labor force grew by 2.2 million.

In the fourth quarter of 2019, 74 percent of workers entering employment came from out of

the labor force rather than from unemployment, the highest share since the series began

in1990.

Treasury’s pro-growth agenda helped businesses of all sizes thrive like never before.

Small business optimism rose to a record high level in 2018 and remained at historically

high levels through February 2020.

U.S. DEPARTMENT OF THE TREASURY, OFFICE OF PUBLIC AFFAIRS
The DOW, S&P 500, and NASDAQ have all repeatedly notched record highs.

These economic policies have revitalized American manufacturing, with more than a half

million manufacturing jobs added since the 2016 election through early 2020.·

Secretary Mnuchin has prioritized workforce development to ensure American workers are

prepared to fill high quality jobs.

Secretary Mnuchin contributed to the National Council for the American Worker, tasked

with developing a workforce strategy for the jobs of the future.

Secretary Mnuchin co-chaired the White House’s Pledge to America’s Workers, which was

signed by over 430 companies pledging to provide more than 16 million employment and

training opportunities.

Treasury implemented its piece of the National Cyber Strategy by helping safeguard the

financial system against malign cyber activity and confronting and countering those that

perpetrate it.

Through the Financial Literacy and Education Commission (FLEC), Treasury is ensuring

Americans have skills they need to make informed financial decisions.o

Treasury is executing its national strategy to reform federal financial literacy and

educations activities.

In June 2019, FLEC released its report on Best Practices for Financial Literacy and

Education in Institutions of Higher Education.

U.S. DEPARTMENT OF THE TREASURY, OFFICE OF PUBLIC AFFAIRS
In July 2019, Treasury released its report, Federal Financial Literacy Reform: Coordinating

and Improving Financial Literacy Efforts, to identify ways to efficiently and effectively

deliver financial education to all Americans and make recommendations to improve

federal efforts in this space.

Throughout the COVID-19 pandemic, FLEC and Treasury worked together to educate

consumers, including small businesses and sole proprietorships, on the financial resources

available to support them through the pandemic.

Treasury released FLEC’s National Strategy for Financial Literacy in September 2020,

providing a framework that will promote access to quality financial literacy and education

tools for all Americans.

Treasury led an interagency task force on the regulation of long-term care insurance (LTCI),

which resulted in an August 2020 report.

The report’s recommendations, when implemented, will remove barriers to innovation and

increase regulatory efficiency and alignment.

These reforms could make LTCI more affordable and accessible while allowing the market

to continue shaping the evolution of this product line.

Since the report’srelease, Treasury has been coordinating and monitoring implementation

of the recommendations.

Secretary Mnuchin has been a key part of the Trump Administration’s work to ensure that

America is prepared to lead the world in the industries of the future, by promoting American

leadership in emerging technologies like 5G and AI.

The Administration named artificial intelligence, quantum information science, and 5G,

among other emerging technologies, as national research and development priorities.

Secretary Mnuchin introduced a focus on AI to the Administration which led to

establishingthe American AI Initiative to invest in AI research, unleash innovation, and

build the American workforce of thefuture.

Secretary Mnuchin has made supporting working families a priority of Treasury’s agenda.o

Secretary Mnuchin helped secure historic levels of funding for the Child Care and

Development Block Grant, helping low-income families access child care.

Secretary Mnuchin has joined the President in calling on Congress to pass a nationwide

paid family leave plan.

Secretary Mnuchin also played a role in passing 12-weeks of paid parental leave for federal

workers.

U.S. DEPARTMENT OF THE TREASURY, OFFICE OF PUBLIC AFFAIRS
TCJA provided a new tax credit to incentivize businesses to offer paid family leave to their

employees and doubled the child tax credit, benefitting nearly 40 million American families

with an average of over $2,200 dollars in 2019.

Enactment of pro-growth policies are helping forgotten Americans across the country prosper,

driving down income inequality.

On a Q4/Q4 basis in 2019, wages rose fastest for low-income workers.o Middle-class and

low-income workers enjoyed faster wage growth than high- earners in 2019.

When measured as the share of income earned by the top 20 percent, income inequality

fell in 2018 by the largestamount in over adecade and edged lower in 2019.

Americans were lifted out of poverty as a result of the booming economy.

Since 2017, over 6.6 million Americans have been lifted out of poverty through 2019.

Poverty rates for African Americans and Hispanic Americans reached record lows in 2019.

6.3 million Americanshave been lifted off of foodstamps through February 2020.

REVITALIZING UNDERSERVED COMMUNITIES AND SUPPORTING LOW INCOME WORKERS:

Treasury’s policies have helped Americans that need it most.

U.S. DEPARTMENT OF THE TREASURY, OFFICE OF PUBLIC AFFAIRS
Treasury is a key agency helping to revitalize distressed communities through Opportunity

Zones, which encourage investment and growth in underserved communities.

More than 8,760 communities in all 50 States, the District of Columbia, and 5 Territories

have been designated as Opportunity Zones, which Treasury certified.

Treasury issued two sets of rules on Opportunity Zones to ensure sound and transparent

implementation.

Treasury and the White House Opportunity and Revitalization Council have taken 175

actions to encourage investment and promote growth within Opportunity Zones.

Treasury and the White House Opportunity and Revitalization Council are engaging all

levels of government to identify best practices and assist leaders, investors, and

entrepreneurs in using the Opportunity Zone incentive to revitalize low-income

communities.

Treasury is also modernizing the Community Reinvestment Act (CRA) to better align CRA

activity with the needs of the communities that banks serve.

Treasury is implementing and administering the Social Impact Partnerships to Pay for Results

Act (SIPPRA), a new, $100 million competitive federal grant program.

SIPPRA will enable state and local governments to find new, innovative, and data-driven

ways to solve entrenched social problems, including homelessness, recidivism,

unemployment, family instability, and health care.

U.S. DEPARTMENT OF THE TREASURY, OFFICE OF PUBLIC AFFAIRS
Treasury has helped roll back nearly eight regulations for every new significant one, slashing

regulatory costs by more than $50 billion.

In the coming years, the average American household is projected to see an income gain of

$3,100 per year thanks to the historic regulatory reform.

Once fully in effect, 20 major deregulatory actions undertaken by the Administration are

expected to save American consumers and businesses over $220 billion per year.

Treasury worked with President Trump to sign 16 pieces of deregulatory legislation that are

expected to result in a $40 billion increase in annual real incomes.

The Trump Administration established the Governors Initiative on Regulatory Innovation.

This initiative is working to reduce outdated regulations at the State, local, and tribal levels,

advance occupational licensing reform, and align Federal and State regulation.

Treasury assisted the President in eliminating regulatory barriers that made offering retirement

benefits difficult for small businesses.

Secretary Mnuchin and the Trump Administration took action to increase transparency in

Federal agencies and protect Americans from administrative abuse.

Treasury has implemented the President’s promise to repeal the Obama-era Waters of the

United States Rule, lifting a burden off American farmers.

Secretary Mnuchin contributed to the White House Council on Reducing Regulatory Barriers

to Affordable Housing Development to bring down the costs of housing across the country.·

Treasury’s deregulatory actions are removing government barriers to personal freedom and

consumer choice in healthcare.

LIFTING THE BURDEN OF OVERREGULATION: Secretary Mnuchin has implemented the

President’s historic deregulation efforts to drive economic growth, cut unnecessary costs,

and increase transparency.

U.S. DEPARTMENT OF THE TREASURY, OFFICE OF PUBLIC AFFAIRS
Through a series of Treasury recommendations made pursuant to Executive Order 13772 on

Core Principles for Regulating the United States Financial System, Secretary Mnuchin drove

changes that provided meaningful relief to the banks and credit unions that serve local

communities across America

Secretary Mnuchin advocated for tailoring regulation based on the size and complexity of

regulated firms to make it more efficient and effective. These changes included, among

others:

Simplifying the regulatory regime for community banks by implementing the Community

Bank Leverage Ratio;

Providing capital flexibility for community banks by raising the asset threshold for the

Federal Reserve’s Small Bank Holding Company Policy Statement; and

Reforming the Volcker Rule by exempting community banks that do not engage in

significant proprietary trading.

ROLLING BACK DODD-FRANK: Secretary Mnuchin helped community banks by

implementing legislation that rolled back costly provisions of Dodd-Frank.

U.S. DEPARTMENT OF THE TREASURY, OFFICE OF PUBLIC AFFAIRS
Secretary Mnuchin worked with Ambassador Lighthizer to help secure the U.S.-MexicoCanada agreement (USMCA) to replace the outdated North American Free Trade Agreement

(NAFTA).

USMCA includes tremendous wins for American workers, farmers, ranchers,

manufacturers, and businesses, generating over $68 billion in economic activity and

creating 176,000 new jobs.

Secretary Mnuchin worked frequently with his Mexican and Canadian counterparts on the

currency and financial services chapters of the USMCA.

As part of the negotiations, Secretary Mnuchin updated and signed a new Exchange

Stabilization Agreement with Mexico, modernizing the previous agreement that was 24

years old.

Treasury will continue to work frequently with its counterparts to monitor and enforce the

USMCA.

Treasury played a large role in reaching the historic Phase One trade agreement with China

that will begin rebalancing our countries’ trade relationship.

As a result of the Administration’s leadership, China has agreed to structural reforms in areas of

intellectual property, technology transfer, agriculture, financial services, and currency and

foreign exchange.

China is making substantial purchases of American agricultural products, marking a

monumental win for American farmers.

FIGHTING FOR FAIRER TRADE: Secretary Mnuchin is working with and on behalf of President

Trump to help negotiate fairer, more reciprocal trade deals for the American people.

U.S. DEPARTMENT OF THE TREASURY, OFFICE OF PUBLIC AFFAIRS
Secretary Mnuchin helped to lead on tax reform negotiations, interagency meetings, and

industry engagements from February to December 2017.

The Tax Cuts and Jobs Act was signed into law by President Trump on December 22, 2017 and

immediately began generating economic activity that led to strong growth.

Thanks to the tax cuts, more than 6 million American workers received wage increases, bonuses,

andincreased benefits.

As of February 2020, wages grew by 3% year-over-year for 19 straight months.

The typical family earning $75,000 received a tax cut of over $2,000.

The Census Bureau’s Current Population Survey’s income inequality measure declined in 2018.

With the passage of TCJA, the stock market has reached unprecedented heights, allowing the

average American to put away more money for their retirement.

Due to TCJA’s corporate tax policies, businesses have been able to invest more in workers and

U.S. business operations.

Corporations brought back to the country $1.4 trillion following the comprehensive tax reform.

LEADING TAX REFORM: Secretary Mnuchin played a leading role in the fight to reform our

outdated, broken tax code.·

LETTING AMERICANS KEEP THEIR HARD-EARNED MONEY: The Tax Cuts and Jobs Act (TCJA)

led to increased wages and lower tax bills for hardworking Americans.

ENABLING AMERICAN BUSINESSES TO THRIVE: TCJA created economic conditions favorable

for building and growing American businesses.

U.S. DEPARTMENT OF THE TREASURY, OFFICE OF PUBLIC AFFAIRS

Treasury Implemented the Tax Cuts and Jobs Act,

Delivering Real, Tangible Benefits to All Americans

“We are focusedon the cornerstone of ourpro-growth economicprogram: comprehensive tax reform.We are

simplifyingtheprocess, eliminatingspecial interestdeductions, andprovidinga tax cutfor middle income families.“

– Secretary Steven T. Mnuchin
Secretary Mnuchin played a critical role in designing and passing TCJA in 2017 – the largest

tax reform package in history.

Secretary Mnuchin frequently met with Members of Congress to provide analysis and

shape the bill.

Secretary Mnuchin met with industry groups and business leaders to ensure the bill met

the needs of American workers and businesses.

Once TCJA was passed by Congress and signed into law by the President, Treasury worked

around the clock to implement its changes in record time.

As of August 2020, Treasury issued over 419 items of guidance related to TCJA

implementation.

CONTINUING AGGRESSIVE IMPLEMENTATION: Treasury’s commitment to implementing tax

reform for the American people remains steadfast and unwavering.

U.S. DEPARTMENT OF THE TREASURY, OFFICE OF PUBLIC AFFAIRS
On March 6, 2020, prior to the World Health Organization declaring COVID-19 a pandemic,

President Trump signed into law a bill providing $8.3 billion in emergency funding to combat

the virus. Secretary Mnuchin worked with Congress on a bipartisan basis to get this bill

passed quickly.

On March 18, 2020, the President signed the Families First Coronavirus Response Act into law,

which Secretary Mnuchin negotiated, to provide supplemental appropriations related to

COVID-19, assistance for Federal nutrition programs, employment-related protections and

benefits, health programs and insurance coverage requirements, and related tax credits.

The CARES Act passed unanimously in the U.S. Senate, 96-0, on March 25, 2020, and it was

passed in the House the next day via voice vote.

DELIVERED IMMEDIATE RELIEF: Secretary Mnuchin led the Congressional negotiations to

achieve the two initial pieces of economic relief legislation before the U.S. economy was

greatly impacted by the pandemic.

SECURED THE LARGEST ECONOMIC RELIEF PACKAGE IN HISTORY: Secretary Mnuchin

negotiated with Congress on a bipartisan basis to secure the Coronavirus Aid, Relief, and

Economic Security (CARES) Act, a $2.2 trillion package.

U.S. DEPARTMENT OF THE TREASURY, OFFICE OF PUBLIC AFFAIRS

Treasury is Implementing the Largest Economic Relief

Packages in U.S. History in Response to the Coronavirus

Pandemic

“Thebipartisan CARESActis thebiggest economic reliefpackage inAmerican history. Itis havinga tremendous

impact on the economy, leadingto increases in jobs,retail sales,business activity andhome sales.”

– Secretary Steven T. Mnuchin
This $2.2 trillion relief package has delivered on Treasury’s commitment to support the

American people through the economic impacts of COVID-19.

Treasury worked around the clock to implement the CARES Act’s critical programs to provide

relief to Americans in record time.

The Coronavirus Response and Relief Supplemental Appropriations Act of 2021 passed on an

overwhelmingly bipartisan basis, and President Trump signed the bill into law on December

27, 2020.

The Act provided $900 billion in critical additional economic assistance for American workers,

families, and small businesses, and preserves jobs for American industries.

Treasury continues to work with unprecedented speed and efficiency to implement this new

relief package as quickly as possible and ensure our robust economic recovery continues.

The CARES Act provided tax free economic impact payments—treated as a refundable tax

credit—to Americans, giving families the immediate financial support they need.

Couples earning up to $150,000 received $2,400, plus an additional $500 for each child.

Individuals earning up to $75,000 received $1,200, plus an additional $500 for each child.

These payments phased out for those earning over $75,000, $112,500 for head of

household filers, and $150,000 for married couples filing joint tax returns.

The Coronavirus Response and Relief Supplemental Appropriations Act of 2021 provided a

second round of Economic Impact Payments for Americans still impacted by the pandemic.

Couples earning up to $150,000 received $1,200, plus an additional $600 for each child.

Individuals earning up to $75,000 received $600, plus an additional $600 for each child.

These payments phased out for those earning over $75,000, $112,500 for head of

household filers, and $150,000 for married couples filing joint tax returns.

The relief packages provided much needed assistance to Americans out of work.

The CARES Act allowed States to temporarily increase unemployment benefits and receive

Federal reimbursement for the additional amount.

NEGOTIATED ADDITIONAL RELIEF: Secretary Mnuchin negotiated with Congress on a

bipartisan basis to secure $900 billion in additional COVID relief.

PROVIDED CASH DIRECTLY TO AMERICANS: Treasury delivered direct payments and

enhanced unemployment benefits to millions of Americans, providing a financial lifeline.

U.S. DEPARTMENT OF THE TREASURY, OFFICE OF PUBLIC AFFAIRS
Encouraged States to waive the typical one week waiting period and provided an additional

13 weeks of benefits.

Created a new program to assist the self-employed and independent contractors who are

unemployed due to the pandemic.

The Coronavirus Response and Relief Supplemental Appropriations Act of 2021 renewed

these programs to provide Americans unemployed due to COVID-19 with vital financial

assistance in 2021.

PPP supplied critical economic aid to America’s small businesses.

PPP prioritized the needs of workers by requiring borrowers to spend at least 60% of PPP funds

on payroll costs, keeping workers employed and connected to their health insurance.

The average PPP loan size has been $100,000, showing that the Program has supported even

the smallest of businesses.

Treasury and SBA recruited an army of lenders to ensure the broadest possible segment of small

businesses could access the PPP, particularly businesses in historically underserved

communities.

These efforts increased the number of participating lenders from the 1,700 that participated

in SBA 7(a) lending in 2019 to nearly 5,500 lenders participating in the PPP.

Treasury and SBA secured participation fromCDFIs, MDIs, and minority, women, veteran, or

military-owned lenders due to their unmatched ability to reach underserved communities.

As of August 8, 2020, when the first round of PPP closed to new loan applications, 432 MDIs

and CDFIs had participated from across the country, providing over 221,000 loans for more

than $16.4 billion.

PPP delivered $133 billion of loans to businesses in Historically Underutilized Business

Zones, accounting for more than 25 percent of all PPP funding in its first round.

In January 2021, PPP re-opened for new first draw borrowers and allowed eligible borrowers

who had previously received a PPP loan to receive a Second Draw PPP Loan.

Treasury and SBA worked around the clock to launch the second round within 10 days of

the Coronavirus Response and Relief Supplemental Appropriations Act of 2021 becoming

law.

SUPPORTED SMALL BUSINESSES, WORKERS, AND JOBS: Less than one week after the

passing of the CARES Act, the Treasury and SBA stood up the Paycheck Protection Program,

an unprecedented program.

U.S. DEPARTMENT OF THE TREASURY, OFFICE OF PUBLIC AFFAIRS
During the second round, Treasury and SBA took additional measures to ensure historically

underserved communities could easily access the PPP, including only accepting loans from

CDFIs and MDIs in the first few days of the Program’s re-opening.

Due to their efforts, up to an additional $284 billion will go to small businesses in need,

providing support for millions of more jobs.

Through the Coronavirus Relief Fund, Treasury delivered nearly $150 billion to state, local, and

tribal governments before the date required by the CARES Act and with as much flexibility as

possible to cover costs incurred due to the pandemic.

Treasury stood up the Emergency Rental Assistance Program quickly and efficiently to keep

Americans struggling to pay rent in their homes.

The Emergency Rental Assistance Program made available $25 billion to assist households

that are unable to pay rent and utilities due to the COVID-19 pandemic.

Treasury provided the funds directly to States, local governments, U.S. Territories and Tribal

governments.

Recipient governments then use the funds to provide assistance to eligible households

through existing or newly created rental assistance programs.

The CARES Act established two large programs to support aviation workers: the Payroll Support

Program (PSP) and a loan program.

These programs have supported hundreds of thousands of aviation industry jobs, keeping

workers employed and connected to their healthcare, and played a critical role in stabilizing and

preserving the U.S. airline industry.

The PSP, which Treasury implemented quickly and effectively, provided $28 billion in its first

round to eligible companies that can only be used to pay employee wages, salaries, and benefits.

The PSP re-opened on January 8, 2021 following the passage of the Consolidated

Appropriations Act, 2021.

The PSP and the loan program have supported hundreds of thousands of jobs in the aviation

industry and will continue to do so in 2021.

SUPPLIED $150 BILLION TO STATE AND LOCAL GOVERNMENTS: Treasury has supported state

and local governments’ fight against COVID-19.

RELIEVED THE UNPRECEDENTED STRAIN ON U.S. AIRLINES: Treasury acted decisively to

support aviation workers and preserve the strategically important airline industry.

U.S. DEPARTMENT OF THE TREASURY, OFFICE OF PUBLIC AFFAIRS
Under the ECIP, Treasury will provide up to $9 billion in capital for loans, grants, and forbearance

for small businesses, minority-owned businesses, and consumers, especially in low-income and

underserved communities.

The Federal Reserve, with Treasury’s approval, implemented 13 unique 13(3) lending facilities in

record time, enabling up to $454 billion to be injected into the economy.

This included the Main Street Lending Program, a unique lending facility designed to support

small and mid-sized businesses.

Businesses have used these facilities to support jobs and continue providing services to the

American people.

When Congress failed to act on a fourth COVID relief package in late summer 2020, President

Trump signed executive orders providing the American people with lost wages assistance,

student loan relief, an eviction moratorium, and a payroll tax holiday.

SUPPORTED LOW- AND MODERATE-INCOME COMMUNITIES: Treasury launched the

Emergency Capital Investment Program (ECIP) to provide low-cost, long-term capital

investments to MDIs and CDFIs.

INJECTED LIQUIDITY: CARES Act programs are ensured credit markets, households, businesses,

non-profits, and state and local governments remain liquid.

TOOK EXECUTIVE ACTION WHEN CONGRESS FAILED TO ACT: Throughout the pandemic, the

Trump Administration has never stopped fighting to support the American people.

SECURED PHASE FOUR ECONOMIC RELIEF FOR THE AMERICAN PEOPLE: Secretary Mnuchin

continued to work with Congress on a bipartisan basis to secure the Coronavirus Response and

Relief Supplemental Appropriations Act of 2021 to deliver additional economic assistance to the

American people.

U.S. DEPARTMENT OF THE TREASURY, OFFICE OF PUBLIC AFFAIRS
In just the four months from May to August 2020, the Trump Administration saw the U.S.

economy regain more jobs than were regained in nearly five years following the 2008

financial crisis under the Obama-Biden Administration.

This job growth is an all-time high, shattering the previous record set at the end of WWII.

Over 55% of all job losses from March and April 2020 have been recovered.

In November 2020, the unemployment rate decreased to 6.7% - a rate not expected to be

achieved until the end of 2021.

This is a notable achievement considering many projections anticipated up to 17%

unemployment at the height of the pandemic.

The Paycheck Protection Program has supported over 51 million jobs by delivering 5.2 million

loans, worth over $525 billion, to small businesses in need.

Studies have shown that PPP was instrumental in keeping Americans connected to their

health insurance during the pandemic.

The Payroll Support Program has preserved hundreds of thousands of jobs by providing $28

billion to over 500 airlines and other aviation businesses.

Even the hardest hit industries are recovering: leisure and hospitality firms added nearly 4.9

million jobs from April through November 2020, and retail trade firms added 1.8 million jobs

during that same period.

HELPING TO PUT AMERICANS BACK TO WORK: Treasury’s unprecedented implementation

of the CARES Act has led to record employment gains, halving the unemployment rate since

the height of the pandemic.

U.S. DEPARTMENT OF THE TREASURY, OFFICE OF PUBLIC AFFAIRS

Treasury is Leading the Fastest Economic Recovery from

any Crisis in American History

“Thebipartisan CARESActis thebiggest economic reliefpackage inAmerican history. Itis havinga tremendous

impact on the economy, leadingto increases in jobs,retail sales,business activity andhome sales.”

– Secretary Steven T. Mnuchin
Crushing all expectations, this figure was nearly twice the previous record that was set in 1950.

This unprecedented, monster GDP growth indicated that America’s historic economic comeback

is well underway.

In September 2020, retail sales reached a new all-time high, with growth more than double

market expectations, and coming in 5.4% higher than retail sales in September 2019.

As consumer confidence has increased, Americans have spent more on big ticket items. In

September 2020, spending on durable goods, such as cars and appliances, was 15.5% above its

February level.

New home sales recently peaked at 999,000 in October 2020. This was 41.5% higher than

October 2019 and the highest volume of sales since late 2005.

Personal incomes reached an all-time high in April, due income support through the CARES Act.

Household net worth has risen by almost 7% in the second quarter to new all-time highs.

In October 2020, manufacturers reported continued and fast than expected growth in new

orders for durable goods.

As of October 2020, new orders for core capital goods were 14.2% higher than in April and 5.4%

above pre-pandemic levels.

As of October 2020, total new manufacturing orders have risen for six consecutive months and

are now only 2.2% below pre-pandemic levels.

CREATED THE LARGEST GDP GROWTH IN OUR NATION’S HISTORY: Aggressive

implementation of the CARES Act enabled our economy to grow by 33.1% at an annual rate in

Q3 2020.

SUPPORTED STRONG CONSUMER CONSUMPTION: COVID-19 relief programs, such as

Economic Impact Payments, lost wages assistance, and PPP, have enabled a strong economic

rebound.

INCREASING AMERICANS’ WEALTH: Due to Treasury’s implementation of pro-growth policies

and the CARES Act, Americans are experiencing record prosperity.

REBOUNDING THE MANUFACTURING SECTOR: Secretary Mnuchin’s commitment to American

manufacturing continues.

CONTINUING IMPLEMENTATION OF CRITICAL RELIEF PROGRAMS: Secretary Mnuchin used

his final days in office to ensure the COVID relief programs passed in the Coronavirus Response

and Relief Supplemental Appropriations Act of 2021 were implemented with speed and

efficiency, ensuring our robust economic recovery continues.

U.S. DEPARTMENT OF THE TREASURY, OFFICE OF PUBLIC AFFAIRS
Secretary Mnuchin has chaired 24 Financial Stability Oversight Council (FSOC) meetings,

resulting in reforms and actions that protect the stability of our financial system.

Actions include reforming FSOC’s approach to addressing risks to financial stability by

emphasizing an activities-based approach and shifting FSOC’s focus to regulatory

coordination and simplification.

Treasury created a Cybersecurity Management Steering Group to promote cybersecurity,

resiliency, and fraud prevention in High Value Assets.

Secretary Mnuchin has focused on cybersecurity, supporting the security and resilience of

financial sector critical infrastructure.

Secretary Mnuchin increased meetings of the Financial Banking Information Infrastructure

Committee (FBIIC) to a quarterly basis to advance work on regulatory harmonization,

mutual assistance, and financial sector vulnerability assessment.

DELIVERING A STABLE, TRUSTED FINANCIAL SYSTEM: Under Secretary Mnuchin’s

leadership, Treasury is ensuring our country has a safe, reliable, and trusted financial

system.

Treasury is Ensuring the Stability, Prosperity, and

Trustworthiness of America's Financial System

“TheAdministration’spolicies ofregulatory reform andcorporate tax reform have succeededin loweringbarriers to

investment,therebyprimingthe economy forfastergrowth.”– Secretary Steven T. Mnuchin

U.S. DEPARTMENT OF THE TREASURY, OFFICE OF PUBLIC AFFAIRS
Treasury developed several tools that create a uniform way for the public and private sectors

to identify the severity of an incident and develop an appropriate response, including the

following

Worked closely with the private sector to create an incident severity assessment

methodology, which enables the rapid, consistent, and independent assessment of an

incident and guides appropriate response actions throughout.

In 2020, Treasury implemented an incident response playbook that enables unity of

action across U.S. government stakeholders in response to disruptive cyber incidents

impacting the financial sector.

Treasury also participates in the G-7 Cyber Expert Group, which developed a guide that

outlines the best practices for establishing a cyber-exercise program for a financial sector

organization.

Fulfilling a congressional request, Treasury completed a comprehensive study on the Current

Expected Credit Loss (CECL) Accounting Standard, which provided six recommendations for

prudential regulators.

Marking a large-scale structural change, Treasury is facilitating the market transition from U.S.

dollar (USD) London Interbank Offered Rate (LIBOR) to create a safe and stable market for

investment.

Treasury continues to support responsible innovation in the financial sector, such as

cryptocurrencies, that could improve efficiency, enhance competition, and expand access.o

Under Secretary Mnuchin’s leadership, FSOC established the Working Group on Digital Assets

to evaluate risks associated with digital assets.

Treasury has implemented the necessary mechanisms to ensure that innovation does not

come at the expense of the integrity of our financial system or national security.

Treasury, in partnership with the SEC and the CFTC, has monitored the market for digital

assets to ensure consumer safety.

Treasury enhanced the Treasury Inflation Protected Securities (TIPS) Program to accommodate

the potential for an additional five-year Committee on Uniform Securities Identification

Procedures.

In 2019, Treasury added a five-year TIPS maturity; increased total TIPS issuance by

approximately $20-30 billion; and modified the TIPS auction calendar to accommodate

market demand.

U.S. DEPARTMENT OF THE TREASURY, OFFICE OF PUBLIC AFFAIRS
Treasury continues to modernize the mechanisms for government borrowing to finance current

government spending and provide more options to the American public.

Treasury has modernized the savings bond program by launching a new and efficient system

that provides innovative products and services to the American public.

Recognizing the need for additional bond programs to finance government debt, Treasury

offered the eight-week bill, a short-term bill to help address projected funding gaps, meet

investor demand, smooth cash balances, and reduce auction settlement risks.

Treasury has also increased transparency of Treasury securities by analyzing and enhancing

the available transaction data.

In April 2018, Treasury released 10-year vision for the future of federal financial management.

This vision transforms federal financial management and maximizes the government-wide

efficiency and effectiveness of common financial processes (disbursing, collections,

reporting, and administrative operations) through standardization, consolidation, and

automation.

Treasury regularly meets with other agencies to advance federal financial management

initiatives.

Treasury is modernizing the Internal Revenue Service (IRS) to improve service and enforcement.

In April 2019, Treasury submitted to Congress an IRS business operations and technology

modernization plan that provides a six-year plan to fundamentally transform IRS operations

and technology infrastructure.

The IRS made significant progress in the first year, deploying an online identity verification

tool for taxpayers affected by identity theft, a callback option on the balance due phone line

to reduce taxpayer wait times, and a secure text chat option for taxpayers seeking help with

automated collection notices.

As of October 2020, the IRS has delivered 60 new capabilities in just two years, and taxpayers

are beginning to experience visible improvements in their ability to interact with the IRS.

RESPONSIBLY MANAGING FEDERAL FINANCES: Treasury is using every tool at its disposal to

ensure America’s financial future is bright.

U.S. DEPARTMENT OF THE TREASURY, OFFICE OF PUBLIC AFFAIRS
Treasury is leading a task force to ensure the financial health of the United States Postal Service

(USPS), which has been on an unsustainable financial path for over a decade.

In a December 2018 report, Treasury provided a series of recommendations to reform the

USPS business model to return it to a sustainable path without burdening taxpayers with

additional costs.

Treasury continues to work with USPS management to encourage adoption of the report’s

recommendations.

In July 2020, Treasury signed a term sheet with the USPS to establish a $10 billion line of

credit per the CARES Act lending authority, ensuring the operating effectiveness of the USPS

throughout the COVID-19 pandemic.

Treasury is coordinating with federal partners to appropriately address Puerto Rico’s financial

issues.

Following Hurricane Maria in 2017, Treasury enabled deliveries of cash and checks to Puerto

Rico and activated the Financial and Banking Information Infrastructure Committee (FBIIC)

communications protocols to monitor financial sector infrastructure.

Treasury worked with Puerto Rico on potential Opportunity Zone projects to spur investment,

economic development, and growth.

In partnership with the Government of Puerto Rico, Treasury has reformed the property tax

system to improve the fiscal sustainability of municipalities on the Island.

Treasury is implementing the Digital Accountability and Transparency (DATA) Act to improve

spending transparency and data quality on USAspending.gov, improving taxpayer

accountability.

The USAspending.gov website, launched in May 2017, allows taxpayers to examine nearly

$4 trillion in federal spending and see how this money flows from congressional

appropriations to local communities and businesses.

Efforts continue to increase data accuracy and develop analytic tools to help government

agencies make more informed, strategic decisions about allocating funds.

Treasury is working to build a smaller, more efficient currency manufacturing facility that will

reduce the federal footprint.

U.S. DEPARTMENT OF THE TREASURY, OFFICE OF PUBLIC AFFAIRS
Since entering office, Secretary Mnuchin has been a leader in developing a long-term housing

finance policy.

From February – April 2019, Treasury met with over 55 organizations to solicit input on housing

finance reform.

In September 2019, Treasury released the Housing Finance Reform plan and Secretary Mnuchin

testified before the Senate Banking Committee on the report’s findings.

Executing the report’s recommendations, Treasury and FHFA negotiated a letter agreement that

would amend each Preferred Stock Purchase Agreement to permit each Government-Sponsored

Enterprises to retain capital in excess of the maximum $3 billion dollar capital reserve amount.

In September 2020, Secretary Mnuchin led a meeting of the FSOC focused on the financial

stability of Fannie Mae and Freddie Mac.

Treasury continues to work with Congress and the interagency to achieve housing finance

reform.

DRIVING HOUSING FINANCE REFORM: Treasury is committed to delivering comprehensive

housing finance reform, enabling Americans to achieve the American dream.

U.S. DEPARTMENT OF THE TREASURY, OFFICE OF PUBLIC AFFAIRS
The United States held the G7 presidency in 2020. Treasury is making the most of this

leadership role, convening the G7 as a critical forum to coordinate international and domestic

responses to COVID-19.

Under Treasury’s leadership, in March 2020, G7 Finance Ministers and Central Bank

Governors outlined policy actions and committed to do “whatever is necessary” to

counter COVID-19 instability.

Throughout the pandemic, the G7 has coordinated on domestic policy responses and the

international response to promote global financial stability.

The international policy response has centered on the G20 Debt Service Suspension

Initiative (DSSI) and the G20 Common Framework for Debt Treatments.

LEADING ON THE WORLD STAGE: Treasury closely engages with international organizations

to promote free enterprise, human rights, and economic opportunity.

THE G7 PRESIDENCY

U.S. DEPARTMENT OF THE TREASURY, OFFICE OF PUBLIC AFFAIRS

Treasury is Supporting U.S. Economic Prosperity by

Strengthening the External Environmentfor U.S. Growth,

Preventing and Mitigating Global Financial Instability,

and Managing Key Global Challenges

“The UnitedStates economy isbuilt on the strength of open, competitive markets that stimulateprivate sector

investment. Thisphilosophy has alreadydeliveredresults for ourpartners, and we are seekingtobuildon that

success.” – Secretary Steven T. Mnuchin
G7 Finance Ministers issued two statements, in June and September, on the DSSI, the

Common Framework, and debt issues more broadly.

Treasury has focused the G7 on furthering work on digital payments.

Treasury established a working-level G7 Digital Payments Experts Group to discuss digital

payments issues.

Based on this technical work, G7 Finance Ministers and Central Bank Governors culminated

in the release of a statement at the end of the year that touched on a number of issues that

the group discussed, including:

The role of the public vs. private sector in payments systems;

Central bank digital currencies;

Global stablecoins;

Ransomware; and

Supporting the ongoing work of standard-setting bodies in areas like improving

payment systems.

Ongoing G7 work in various other areas and through several technical expert groups also

continued to advance under our presidency.

The United States has engaged at the G20 to improve global cooperation on key economic

issues.

In response to the COVID-19 pandemic, the G20 provided an important forum for

international economic cooperation and policy response.

With strong support from the United States and the G7, the G20 developed and is

implementing the Debt Service Suspension Initiative (DSSI) to provide official bilateral debt

service suspension to low-income countries.

The G20 also endorsed the Common Framework for Debt Treatments beyond the DSSI,

which will provide a framework for official bilateral and private creditors to coordinate on

debt restructurings for low-income countries in the context of IMF programs on a case-bycase basis.

With U.S. support, in 2019, the G20 endorsed a set of principles for Quality Infrastructure

Investment, which will catalyze responsible, growth-enhancing investment around the

world to strengthen the global economy.

With other G20 members, the United States led in tasking the Financial Stability Board and

the Financial Action Task Force to deepen their work on global stablecoins and financial

innovation.

THE G20

U.S. DEPARTMENT OF THE TREASURY, OFFICE OF PUBLIC AFFAIRS
Treasury has actively participated in discussions at the G20 and Organization for Economic

Co-operation and Development (OECD) in an effort to reach an international consensus

regarding taxation of the modern global economy.

The proposal, referred to as “pillar 1,” would reform the international tax system to allocate

greater taxing rights to market jurisdictions, without singling out United States digital

firms.

Treasury proposed that only companies that voluntarily elect to be subject to pillar 1 rules

would be subject to the new system.

Treasury led the G20 and OECD to embrace minimum levels of taxation to put an end to

harmful tax competition and a “race to the bottom” on global income tax rates.

The OECD’s minimum tax proposal, referred to as “pillar 2,” builds on the U.S. global

minimum tax rules, the Global Intangible Low-Taxed Income (or GILTI), enacted as part of

the Tax Cuts and Jobs Act.

Treasury negotiated an agreement with France to defer the collection of a harmful and

discriminatory French digital service tax (DST) and defer the imposition of counter measures.

Treasury has also actively coordinated with the United States Trade Representative on

responses to other foreign governments’ DSTs.

Through Treasury, the United States continued its leadership at the IMF, supporting the

continuation of the IMF’s critical role in the global financial system.

Treasury participated in an increase in the IMF’s auxiliary resources, the New

Arrangements to Borrow, safeguarding the adequacy of the IMF assets in response to

possible crises and maintaining our ability to influence IMF lending.

The IMF, with U.S. support, undertook a major reform of its lending conditionality that

included a greater focus on good governance by borrowing countries to ensure IMF

funds are safeguarded.

THE OECD

THE INTERNATIONAL MONETARY FUND

U.S. DEPARTMENT OF THE TREASURY, OFFICE OF PUBLIC AFFAIRS
The United States has also supported the IMF’s efforts to increase public debt

transparency, including through the incorporation in IMF documents of a debt holder’s

profile broken down on a creditor-by-creditor basis.

The United States led several countries in pressing successfully for comprehensive reform

of the IMF’s employee compensation program to bring it in line with industry norms and

ensure the continued quality of IMF staff while reducing overall costs.

Since the onset of COVID-19 crisis, the IMF has provided $102 billion in emergency and

precautionary financing to 81 countries, and $490 million in debt service relief to 29 hardhit low-income countries.

During the last four years the United States has supported IMF engagement on the

economic transformations of key U.S. partners, including Jordan (3 programs, $1.83 billion

in financing), Egypt (3 programs, $20 billion in financing), Ukraine (2 programs, $4.3 billion

in financing), and Pakistan (2 programs, $2.8 billion in financing.)

The IMF, with U.S. support, bolstered its framework for evaluating exchange rates and

external positions through a number of modeling refinements, providing more rigorous

assessments of global imbalances.

Treasury has led U.S. engagement with the World Bank to further international finance

policies.

The World Bank, with U.S. support, launched the Sustainable Development Financing

Policy, which seeks to incentivize International Development Association (IDA)-eligible

countries to move toward transparent and sustainable financing and promote

coordination between IDA and other creditors.

The U.S. strongly supported the release of the World Bank’s DSSI website that reports the

debt stocks and payments of DSSI-eligible countries on an official bilateral creditor-bycreditor basis.

THE WORLD BANK

U.S. DEPARTMENT OF THE TREASURY, OFFICE OF PUBLIC AFFAIRS
Secretary Mnuchin led the U.S. delegation to the World Economic Forum (WEF) in Davos,

Switzerland in 2017 and 2019.

He participated in official WEF programs on the global economy, the American economy,

trade, and other issues; engaged with his international counterparts; and addressed future

economic challenges.

In 2017 and 2018, Secretary Mnuchin worked with Congress on a bipartisan basis to

modernize the Committee on Foreign Investment in the United States (CFIUS) process with

the Foreign Investment Risk Review Modernization Act (FIRRMA).

FIRRMA passed Congress with overwhelming bipartisan support and was signed into law

in August 2018.

Immediately after FIRRMA’s passage, Treasury updated CFIUS regulations, implementing the

new authority to review investments in U.S. businesses with critical technology, critical

infrastructure, or sensitive personal data.

This new and modernized process ensures the protection of U.S. national security

interests, while also welcoming and encourage benign foreign investment.

In 2019, CFIUS initiatedassessments for 113 declarations under the new authorities.

Since FIRRMA’s enactment, CFIUS has cleared transactions totaling more than $400

billion in value.

THE WORLD ECONOMIC FORUM

ENSURING THE UNITED STATES IS THE GREATEST PLACE IN THE WORLD TO BRING

FOREIGN CAPITAL: Treasury modernized its CFIUS process to encourage benign foreign

investment while protecting national security interests.

U.S. DEPARTMENT OF THE TREASURY, OFFICE OF PUBLIC AFFAIRS
Treasury is instrumental in implementing the Abraham Accords, the landmark peace

agreement between Israel and the United Arab Emirates, Bahrain, and Sudan.

Under the Abraham Accords, Israel will work with each nation to develop full economic

relations, spurring greater prosperity and security for the region.

Secretary Mnuchin traveled to the region in October 2020 and January 2021 to facilitate

implementation of the economic and security relationships.

In Greece, Treasury has been actively involved in supporting a solution for Greece that

includes Greece’s commitment to robust reforms and significant debt relief from Europe,

putting Greece’s economy on a sustainable path.

Secretary Mnuchin has engaged with G7 Finance Ministers, the IMF, and Greek leadership

numerous times since May 2017 to raise the importance of this issue and contribute to

solutions.

Following Argentina’s request for financial assistance from the IMF in May 2018, Treasury has

been a staunch ally in helping Argentina address near-term financing pressures and lay a

strong basis for sustainable growth.

In Central America, Treasury has been focused on accelerating growth- and securityenhancing reforms in El Salvador, Guatemala, and Honduras.

Through a series of international meetings, Treasury helped to obtain the approval of

multilateral development projects in Guatemala and El Salvador, which will spur economic

growth for Guatemalans and El Salvadorans.

Treasury’s efforts have also helped address the drivers of illegal immigration to the United

States in northern Central America.

Treasury has worked closely with Brazil, Latin America’s largest economy and a key market for

U.S. firms, to strengthen the bilateral relationship.

On October 19, 2020, the United States and Brazil signed the U.S.-Brazil Protocol on Trade

Rules and Transparency. This builds on the U.S.-Brazil Agreement on Trade and

Economic Cooperation by agreeing to the standard set by USMCA in three areas: Good

Regulatory Practices, Customs Administration and Trade Facilitation, and Anti-Corruption.

LIFTING UP OUR PARTNERS: Treasury is working tirelessly to develop solutions to economic

issues around the globe, working to increase global economic opportunity and prosperity.

U.S. DEPARTMENT OF THE TREASURY, OFFICE OF PUBLIC AFFAIRS
In Jordan, Treasury has engaged with the Government of Jordan, donors, and IFIs to set

Jordan on a sustainable economic path.

In Venezuela, Treasury has been working closely with the international financial community to

assist the new sovereign government under Interim President Juan Guaido and enable

Venezuela to begin the process of economic recovery as soon as political conditions permit.

Treasury led efforts on behalf of the U.S. Government to facilitate a trilateral agreement

between Egypt, Ethiopia, Sudan on the filling and operation of the Grand Ethiopian

Renaissance Dam (GERD).

Secretary Mnuchin led the ‘Washington Process’ convening with the Foreign Ministers

and Water Ministers of Egypt, Ethiopia, and Sudan in a series of high level meetings to

address key issues.

Secretary Mnuchin traveled to Egypt and Sudan in January 2021 to support the

negotiation process, and Treasury will continue to encourage the three countries to reach

a fair agreement.

GERD

U.S. DEPARTMENT OF THE TREASURY, OFFICE OF PUBLIC AFFAIRS
Since 2018, Treasury has actively supported the development of energy and infrastructure

markets in Latin America through the Growth in the Americas initiative.

Secretary Mnuchin helped formally launch the initiative at the White House in December

2019 in front of representatives from 35 countries across the region.

Treasury has negotiated and executed bilateral energy and infrastructure cooperation

frameworks with Panama (August 17, 2018), Chile (September 27, 2018), Jamaica

(November 28, 2018), Argentina (November 30, 2018), Colombia (November 29, 2019),

Brazil (March 12, 2020), and Guyana (September 18, 2020). Treasury also supported

Growth in the Americas MOU signings with the Governments of El Salvador (January 30,

2020), Ecuador (February 12, 2020), Honduras (July 21, 2020), and the Dominican

Republic (October 15, 2020).

Results include successful assistance to Panama’s electric utility to increase the credit

rating, saving the country upto $50 million in borrowing costs.

In Asia, Treasury commenced negotiations with nine priority countries to build frameworks to

support the infrastructure finance markets.

Treasury has negotiated and executed frameworks with Singapore (October 16, 2019), the

Republic of Korea (October 17, 2019), Vietnam (November 6, 2019), Japan (February 4,

2020), Taiwan (September 17, 2020), Indonesia (September 18, 2020), and Thailand

(September 22, 2020).

REVITALIZING GLOBAL INVESTMENT: Treasury is working with its international partners to

drive investment in global markets.

U.S. DEPARTMENT OF THE TREASURY, OFFICE OF PUBLIC AFFAIRS
TWO YEAR REVIEW, ASSISTANT SECRETARY TONY E. SAYEGH, JR.

U.S. DEPARTMENT OF THE TREASURY

@USTREASURYDEPT @TREASURYSPOX @TREASURYDEPT