Department of the Treasury 

Departmental Offices 

Salaries and Expenses 

Congressional Budget 

Justification and Annual 

Performance Report and Plan 

FY 2021 

 
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Table of Contents

Section I – Budget Request........................................................................................................... 3

A – Mission Statement ................................................................................................................ 3

B – Summary of the Request ...................................................................................................... 3

1.1 – Appropriations Detail Table .............................................................................................. 3

1.2 – Budget Adjustments Table ................................................................................................. 4

C – Budget Increases and Decreases Description ....................................................................... 4

1.3 – Object Classification (Schedule O) Obligations ................................................................ 9

D – Appropriations Language and Explanation of Changes .................................................... 10

E – Legislative Proposals .......................................................................................................... 11

Section II – Annual Performance Plan and Report ................................................................. 12

A – Strategic Alignment ........................................................................................................... 12

B – Budget and Performance by Budget Activity .................................................................... 12

2.1.1 – Executive Direction Resources and Measures .............................................................. 12

Executive Direction Budget and Performance .......................................................................... 12

2.1.2 – International Affairs and Economic Policy Resources and Measures .......................... 13

International Affairs and Economic Policy Budget and Performance ...................................... 13

2.1.3 – Domestic Finance and Tax Policy Resources and Measures ........................................ 18

Domestic Finance and Tax Policy Budget and Performance .................................................... 18

2.1.4 – Treasury-wide Management and Programs Resources and Measures .......................... 23

Treasury-wide Management and Programs Budget and Performance ..................................... 24

2.1.5 – Committee on Foreign Investment in the United States Resources and Measures....... 30

Committee on Foreign Investment in the United States Budget and Performance .................. 30

C – Changes in Performance Measures .................................................................................... 31

D – Evidence-Building Activity ............................................................................................... 31

Section III – Additional Information ........................................................................................ 34

A – Summary of Capital Investments ....................................................................................... 34
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Section I – Budget Request 

A – Mission Statement 

Maintain a strong economy and create economic and job opportunities by promoting conditions 

that enable economic growth and stability at home and abroad, and manage the U.S. 

Government’s finances and resources effectively. 

B – Summary of the Request 

The FY 2021 Request proposes increases to help implement programs that bolster U.S. economic 

growth, promote financial stability, enhance national security, transform government-wide 

financial stewardship, and achieve operational excellence. Particular focuses of this request are 

continued expansion of the Office of Cybersecurity and Critical Infrastructure Protection’s 

(OCCIP’s)1 efforts to protect the U.S. financial services sector from cyberattacks and improve 

resilience of critical infrastructure, continued expansion of the Office of Tax Policy’s impact 

analyses of tax regulations, funding to pay the State Department’s increased bill for the Capital 

Security Cost Share Program, the creation of a maintenance and minor repair budget to support 

the Treasury-owned facilities, and funding to support the Evidence Act and Office of Minority 

and Women Inclusion mandates. 

In addition to requested increases for the Treasury Departmental Offices (DO) Salaries and 

Expenses (SE) account, DO anticipates transferring in and executing $15 million from the 

$20 million request for the Committee on Foreign Investment in the United States (CFIUS) 

Fund, discussed separately. 

1.1 – Appropriations Detail Table 

Note: FY 2019 FTEs are Actuals 

Note: $1.5 million of the Treasury-wide Management and Programs request in 2021 is contingent on enactment of legislation transferring the 

U.S. Secret Service to the Department of the Treasury. 

 

1 The Department of the Treasury has recognized the continuing increase in cyber threats and the need to continue enhancing 

cybersecurity in the financial sector. To reflect these changes, Treasury has refocused and renamed the office from the former

“Office of Critical Infrastructure Protection and Compliance Policy” name to the “Office of Cybersecurity and Critical 

Infrastructure Protection” (OCCIP). 

Dollars In Thousands

Appropriated Resources

New Appropriated Resources FTE AMO UNT FTE AMO UNT FTE AMO UNT FTE AMO UNT

Executive Direction 98 $35,407 106 $36,775 102 $37,714 -3.8% 2.6%

International Affairs and Economic Policy 157 $52,428 180 $52,825 181 $54,367 0.6% 2.9%

Domestic Finance and Tax Policy 210 $72,570 226 $78,153 237 $84,506 4.9% 8.1%

Treasury-wide Management and Programs 99 $39,171 110 $38,279 125 $40,740 13.6% 6.4%

Committee on Foreign Investment in the 

United States 32 $15,000 81 $22,341 120 $24,146 48.1% 8.1%

Subtotal New Appropriated Resources 596 $214,576 703 $228,373 765 $241,473 8.8% 5.7%

Other Resources

Reimbursable 46 $12,432 40 $9,071 40 $9,242 0.0% 1.9%

Transfer from CFIUS Fund 0 $0 0 $15,000 0 $15,000 NA 0.0%

Subtotal O ther Resources 46 $12,432 40 $24,071 40 $24,242 0.0% 0.7%

Total Budgetary Resources 642 $227,008 743 $252,444 805 $265,715 8.3% 5.3%

% Change

FY 2019 FY 2020 FY 2021 FY 2020 to FY 2021

O perating Plan Enacted Request
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1.2 – Budget Adjustments Table 

Note: $1.5 million of the Treasury-wide Management and Programs request in 2021 is contingent on enactment of legislation transferring the 

U.S. Secret Service to the Department of the Treasury

C – Budget Increases and Decreases Description 

Maintaining Current Levels (MCLs) ..................................................... +$5,472,000 / + 0 FTE 

Pay Annualization (3.1%) +$1,023,000 / +0 FTE 

Funds are requested for annualization of the January 2020 3.1% average pay raise. 

Pay Raise (1.0% in 2021) +$998,000 / +0 FTE 

Funds are requested for a 1.0% average pay raise in January 2021. 

FERS Contribution Increase +$1,100,000 / +0 FTE 

Funds are requested for the Federal Employee Retirement System (FERS) contribution rates 

effective FY 2021.

Non-Pay +$2,351,000 / +0 FTE 

Funds are requested for non-labor expenses such as travel, contracts, rent, supplies, and 

equipment. 

Dollars in Thousands FTE Amount

FY 2020 Enacted 703 $228,373

Changes to Base:

Maintaining Current Levels (MCLs): 0 5,472

Pay Annualization (2020 3.1% average pay raise) 0 $1,023

Pay Raise (1% average pay raise) 0 $998

FERS Contribution Increase 0 $1,100

Non-Pay 0 $2,351

Efficiency Savings 0 ($1,246)

Subtotal Changes to Base 0 $4,226

FY 2021 Base 703 $232,599

Program Changes:

Reinvestments 39 $0

Staffing to Support CFIUS Caseload Growth 39 $0

Program Increases: 23 $8,874

Strengthen Cybersecurity of the Financial Services Sector 8 $3,700

Impact Analyis of Tax Regulations 3 $1,063

Operations and Maintenance (O&M) of Prior-year Enterprise-wide Cybersecurity Investments 0 $333

Attaché Cost Increases from State Department 0 $498

Implementation of Evidence Act of 2018 3 $723

Main Treasury and Freedman's Bank Building Annual Maintenance 0 $550

Increase Office of Minority and Women Inclusion staffing 2 $507

Management and Oversight for US Secret Service 7 $1,500

FY 2021 President's Budget Request 765 $241,473
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Efficiency Savings ......................................................................................... -$1,246,000 / -0 FTE 

Contractual Support -$1,246,000 / -0 FTE 

DO will achieve cost savings and efficiencies in contract services through more efficient contract 

oversight, consolidating contracts where appropriate, and partnering with other agencies and DO 

components to leverage common technology or administrative support needs. 

Reinvestments .......................................................................................................... +$0 / +39 FTE

Staffing to Support CFIUS Caseload Growth +$0 / +39 FTE 

Increase in CFIUS staffing to support anticipated program growth. Funding will come from 

redirecting contract spending. 

Program Increases ................................................................................... +$8,874,000 / +23 FTE 

Strengthen the Financial Services Sector’s Cybersecurity and Critical Infrastructure Protection 

+$3,700,000 / +8 FTE 

The U.S. financial services sector faces a broad range of cybersecurity vulnerabilities and 

physical hazards. Adversaries and malicious actors have recently exploited vulnerabilities in the 

financial sector, leading to major financial industry breaches and disruptions. The potential for 

damage in the event of a major breach is massive. The scale of transactions of the largest 

financial systems dwarfs the U.S. GDP. For example, the largest U.S. real-time gross settlement 

system transmitted over $700 trillion in 2018. Although many U.S. financial institutions are well 

protected from attack, adversaries and malicious actors continue to grow in technical capability, 

and their attacks continue to increase in sophistication and severity. 

The FY 2021 Request would enable Treasury, the sector-specific agency for financial services 

critical infrastructure, to help the private sector and regulators shift toward a more proactive 

posture toward these risks and challenges. This request would reduce risks by allowing Treasury 

and its partners to identify and address vulnerabilities before they can be exploited. This request 

builds on FY 2020 initiatives for which Congress provided the Office of Cybersecurity and 

Critical Infrastructure Protection (OCCIP) a $4.0 million increase. It expands FY 2020 efforts to 

map critical financial processes, assess and mitigate financial institution-level vulnerabilities, and 

study new technologies for potential risks to the sector. The FY 2021 Request also proposes 

funding one additional cyber center liaison to meet the increasing demands from the financial 

services sector for more information sharing and a new staff member to provide cybersecurity 

expertise to the CFIUS review process. 

Identify, Map, and Prioritize Risks and Vulnerabilities +$3,194,000 / +6 FTE

This initiative will support efforts to identify risks to large financial institutions, key third parties, 

and the other infrastructures and technologies on which the sector relies (e.g., energy and 

telecommunications) to pinpoint shared vulnerabilities with potential systemic implications. 

This would include completion of the first version of comprehensive financial process maps. 

Through this initiative, Treasury will identify and diagram the infrastructure required to deliver 

critical financial transactions; automate maintenance of the maps; and implement visualization 

techniques to further understand cascading effects of cyber events in the sector to mitigate 

damage to the infrastructure. Additionally, Treasury will use the requested funding to conduct 

cross-cutting studies of the firms that are critical and how they support key national critical 

functions. In conjunction with process mapping, this examination will allow Treasury to identify 

and reduce vulnerabilities to these key financial sector institutions. Finally, Treasury will 
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proactively assess new and emerging technologies in the financial sector to identify 

vulnerabilities and mitigate any associated risks. 

The FY 2021 Request focuses on three ongoing activities: 

 Map critical processes, institutions, and data flows +$1,085,000 / +0 FTE: OCCIP will work 

with industry to identify, map, and prioritize vulnerabilities, focusing on 27 key financial 

sector institutions, critical infrastructure (e.g., electrical grid), and industry processes (e.g., 

credit card authorization and settlement). 

 Identify, study, and analyze vulnerabilities by engaging key financial institutions 

+$1,249,000 / +3 FTE: Identify and mitigate cybersecurity and operational risks and 

vulnerabilities at key financial institutions. Improve the security and resilience of the 

sector’s cybersecurity to reduce exploitable vulnerabilities. 

 Assess emerging technologies +$860,000 / +3 FTE: Analyze emerging technologies for their 

potential security risks to financial sector networks, systems, and processes. Continuously 

develop and improve OCCIP’s knowledge of emerging technologies in order to provide risk 

reduction advice for the sector. 

Mitigate/Avoid Risks +$506,000 / +2 FTE 

Treasury/OCCIP plays an important role in the National Cyber Strategy, which the President 

announced in September 2018. In addition, Treasury partners with the Departments of Energy 

and Homeland Security (i.e., the “Tri-Sector Council”) to mitigate risks from specific threat 

actors against financial institutions, energy infrastructure, and telecom companies. Treasury’s 

partnerships among sectors and agencies ultimately enable more timely and actionable 

dissemination of threat and vulnerability information to support risk mitigation. The FY 2021 

Request will help prevent the introduction of new vulnerabilities into systems, lower risks to the 

sector, and reduce recovery costs from incidents. This initiative comprises two ongoing 

activities: 

 Enhance OCCIP’s protection of the financial sector via the Committee on Foreign 

Investment in the United States (CFIUS) +$233,000 / +1 FTE: Assist in understanding 

product and supply chain dependencies and potential risks of transactions under review by 

CFIUS. 

 Cyber Command Liaison Officer +$273,000 / +1 FTE: Fund a full-time Liaison Officer at 

U.S. Cyber Command, which is one of the unified commands of the Department of Defense. 

This liaison will increase cyber threat information-sharing with financial institutions to 

provide early indications of malicious activity and cyber vulnerabilities that could harm the 

sector and the American people. 

Impact Analysis of Tax Regulations +$1,063,000 / +3 FTE 

One of the Administration’s goals is to bring clarity to the complex Internal Revenue Code and 

to provide useful guidance to taxpayers. Following enactment of the Tax Cuts and Job Act 

(TCJA) of 2017, pursuant to a Memorandum of Agreement between Treasury and OMB in April 

2018, Treasury agreed to create a new framework to accommodate Executive Order (EO) 12866 

– Regulatory Planning and Review. The EO requires a review of tax regulations with the 

objective of providing taxpayers with economic analysis for significant tax regulations while 

reducing regulatory burdens and providing timely tax guidance for taxpayers. To accomplish 

this, the Office of Tax Policy (OTP) requests $1.1 million and three FTE to conduct robust 
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regulatory impact analyses of “significant” tax regulations as determined by OMB. Failure to 

adequately fund this effort will result in fewer regulations available for OMB review and 

subsequent publication and lead to an increase in taxpayer confusion, lowering compliance with 

the TCJA. 

Operations and Maintenance (O&M) of Prior-year Enterprise-wide Cybersecurity Investments 

+$333,000 / +0 FTE 

Treasury’s Cybersecurity Enhancement Account has made a number of key investments over the 

past two years which have resulted in significant improvements in Treasury’s Cross Agency 

Priority (CAP) scores. From FY 2018 Quarter 2 to FY 2019 Quarter 2, Treasury has seen, met 

or exceeded six out of 10 federal-wide targets, which represented a 30 percent improvement over 

the prior year. This request level will sustain those prior year investments, to include operations 

and maintenance costs for improvements to the Treasury Secure Data Network (TSDN), 

Treasury’s secret network, and advanced monitoring and mitigation capabilities for the Treasury 

Government Security Operations Center consistent with the National Continuous Diagnostics 

and Mitigation (CDM) strategy. 

Attaché Cost Increases from State Department +$498,000 / +0 FTE 

As representatives of the United States’ financial diplomacy efforts, attachés possess expertise 

on financial authorities, financial intelligence, economic policy, sanctions, and anti-money 

laundering/countering the financing of terrorism. The State Department considers Treasury 

attachés to be significant force multipliers on the embassy teams in which they operate. 

Incremental annual increases in mandatory overseas support costs continue to erode the program 

office base budget. In FY 2017 and FY 2018, agencies were provided a credit on their State 

Department Capital Security Cost Share bill to partially mitigate the impact of increases. 

Reduced payroll cost within non-CFIUS functions of the Office of International Affairs (IA), in 

addition to the closure of an overseas duty post, allowed IA to absorb the remainder of these cost 

increases through FY 2019, but this funding will no longer be available to support these costs in 

FY 2021. 

Implementation of Evidence Act of 2018 +$723,000 / +3 FTE 

This initiative is to support Treasury-wide data-driven strategic management processes and 

bolster evidence-building capability in furtherance of the Foundations for Evidence-Based 

Policymaking Act of 2018. It would fund key investments in personnel to increase DO’s 

analytic capacity and better understand areas of potential risk and investment. 

Office of the Chief Data Officer +$472,000 / +2 FTE: P.L. 115-435 (The Evidence Act) requires 

agencies to designate a Chief Data Officer. This funding request is to stand up an office of the 

Chief Data Officer to be comprised initially of two positions. The Chief Data Officer’s goals are 

to ensure data is used as a strategic asset, increase use of data in decision-making and evidencebuilding, and increase coordination of data collection and use. 

Treasury Organizational Performance and Evaluation Program +$251,000 / +1 FTE: The 

Office of Strategic Planning and Performance Improvement (OSPPI) requests one position to 

better support implementation of the Evidence Act, by dedicating a senior program lead to serve 
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as the Department’s Evaluation Officer and Government Performance and Results 

Modernization Act Program Manager. This investment would enable the Department to build a 

better evidence base for informing policy and strategy decisions as well as address priority 

questions identified in the agency learning agenda. A dedicated senior accountable official will 

enable the Department to build a better evidence-base for informing policy and strategy 

decisions. This request will also enable dedicating a modest amount of funding to procure 

evaluation and research support from other agencies or academic institutions to address priority 

questions identified in the agency learning agenda.

Main Treasury and Freedman’s Bank Building Annual Maintenance +$550,000 / +0 FTE 

This request represents a portion of the maintenance and minor repair budget of Treasury-owned 

space, including the Main Treasury (MT) Building and the Freedman’s Bank Building (FBB). 

Treasury is in a unique position from many other Federal agencies in that it owns historic 

buildings, which require more and complex routine maintenance. The scope supported by this 

funding represents a broad range of continuous facility needs that include historical preservation; 

significant water leaks/intrusion; failure of minor electrical components, plumbing components 

and fixtures, hardware and doors, plaster, and paint; and all small projects that fall below the 

capital improvements level. While the MT and FBB have been kept functional under limited 

funding, it has not been sufficient to properly maintain the buildings, resulting in the deferral of 

important maintenance and repair work. Deferred maintenance results in additional costs and 

scope to perform the work later. 

Increase Office of Minority Women and Inclusion Staffing +$507,000 / +2 FTE 

The Office of Minority and Women Inclusion (OMWI) was mandated under Section 342 of the 

Dodd Frank Act (P.L.111-203). The initiative will expand steps to seek diversity in the 

workforce at all levels and fair utilization of minority and women-owned businesses in the 

business activities of the agency. The new staff will support efforts to institute a more 

transparent and data-driven accountability structure to measure success, review the impact 

agency policies on minority and women-owned businesses, and inform evidence-based decisionmaking. This request will also strive to create a more efficient and effective team of diversity 

and inclusion experts to implement innovative solutions and new technologies that address 

behavioral and systematic impediments to success. 

Management and Oversight for United States Secret Service (USSS) +$1,500,000 / +7 FTE 

Contingent upon enactment of authorizing legislation to transfer the United States Secret Service 

to the Department of the Treasury, an additional $1.5 million will be necessary for expenses of 

the Departmental Offices related to oversight of the USSS in areas such as IT, human capital, 

and budget. 

 
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1.3 – Object Classification (Schedule O) Obligations 

Note: $1.5 million of the Treasury-wide Management and Programs request in 2021 is contingent on enactment of legislation transferring the 

U.S. Secret Service to the Department of the Treasury 

Dollars in Thousands

FY 2019 FY 2020 FY 2021

O bject Classification Actual 

O bligations

Estimated 

O bligations

Estimated 

O bligations

11.1 - Full-time permanent 88,194 98,184 105,718

11.3 - Other than full-time permanent 1,504 1,760 1,760

11.5 - Other personnel compensation 2,493 2,535 2,535

11.8 - Special personal services payments 1,343 0 0

11.9 - Personnel Compensation (Total) 93,534 102,479 110,013

12.0 - Personnel benefits 27,249 30,599 31,810

Total Personnel and Compensation Benefits $120,783 $133,078 $141,823

21.0 - Travel and transportation of persons 4,614 2,970 3,174

22.0 - Transportation of things 200 183 190

23.1 - Rental payments to GSA 0 291 346

23.2 - Rental payments to others 1,528 670 699

23.3 - Communications, utilities, and miscellaneous charges 76 174 203

24.0 - Printing and reproduction 0 42 44

25.1 - Advisory and assistance services 12,555 12,945 14,095

25.2 - Other services from non-Federal sources 3,197 5,849 5,960

25.3 - Other goods and services from Federal sources 81,275 84,671 88,801

25.4 - Operation and maintenance of facilities 121 0 0

25.7 - Operation and maintenance of equipment 271 1,417 1,476

26.0 - Supplies and materials 2,551 3,960 4,259

31.0 - Equipment 2,345 2,195 2,145

32.0 - Land and structures 536 4,000 2,500

42.0 - Insurance claims and indemnities 65 0 0

Total Non-Personnel $109,334 $119,366 $123,893

Total O bligations $230,117 $252,444 $265,715

Full Time Equivalents (FTE) 642 743 805

Amounts reflect obligations of annually appropriated resources, carryover balances, reimbursables, and transfers. 
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D – Appropriations Language and Explanation of Changes 

Appropriations Language Explanation of 

Changes 

DEPARTMENT OF THE TREASURY 

DEPARTMENTAL OFFICES 

Federal Funds 

SALARIES AND EXPENSES 

For necessary expenses of the Departmental Offices including operation 

and maintenance of the Treasury Building and Freedman's Bank 

Building; hire of passenger motor vehicles; maintenance, repairs, and 

improvements of, and purchase of commercial insurance policies for, 

real properties leased or owned overseas, when necessary for the 

performance of official business; executive direction program activities; 

international affairs and economic policy activities; domestic finance 

and tax policy activities, including technical assistance to State, local, 

and territorial entities; and Treasury-wide management policies and 

programs activities, $239,973,000 [$228,373,000]: 

Provided, That of the amount appropriated under this heading- 

(1) not to exceed $350,000 is for official reception and representation 

expenses; 

(2) not to exceed $258,000 is for unforeseen emergencies of a 

confidential nature to be allocated and expended under the direction of 

the Secretary of the Treasury and to be accounted for solely on the 

Secretary's certificate; and 

(3) not to exceed $24,000,000 shall remain available until September 30, 

[2021] 2022, for- 

(A) the Treasury-wide Financial Statement Audit and Internal Control 

Program; 

(B) information technology modernization requirements; 

(C) the audit, oversight, and administration of the Gulf Coast Restoration 

Trust Fund; 

(D) the development and implementation of programs within the Office 

of Critical Infrastructure Protection and Compliance Policy, including 

entering into cooperative agreements; 

(E) operations and maintenance of facilities; and 

(F) international operations. (Department of the Treasury Appropriations 

Act, 2020.) 

Contingent upon enactment of authorizing legislation to transfer the 

United States Secret Service to the Department of the Treasury, an 

additional $1,500,000 for necessary expenses of the Departmental 

Offices of the Department of the Treasury. 

 

 
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E – Legislative Proposals 

Transfer the United States Secret Service to the Department of the Treasury

The Budget proposes to transfer the United States Secret Service from the Department of 

Homeland Security to the Department of the Treasury. The proposed funding will support 

necessary expenses for the coordination and oversight of the transfer by the Departmental 

Offices of the Department of the Treasury. For additional information on the transfer proposal, 

please consult the Department of the Treasury chapters of the Main Budget Volume and the 

Major Savings and Reform Volume. 

“Contingent upon enactment of authorizing legislation to transfer the United States Secret 

Service to the Department of the Treasury, an additional $1,500,000 for necessary expenses of 

the Departmental Offices of the Department of the Treasury.” 

Create a Freedom of Information Act exemption for certain financial sector cybersecurityrelated information to increase protection of the U.S. financial services sector. 

This proposal would provide Treasury with an appropriately scoped Freedom of Information Act 

(FOIA) exemption for cybersecurity-related information, in furtherance of the Department’s 

responsibilities to enhance the security and resilience of the financial services sector’s critical 

infrastructure. To identify risks to financial sector critical infrastructure, Treasury relies on 

private-sector financial organizations to provide a range of cyber threat and vulnerability 

information. Firms in the sector have not been sharing such information with Treasury due to 

concerns that their sensitive information will be subject to public disclosure under FOIA. A 

narrowly-tailored FOIA exemption would enable Treasury to leverage its relationship with the 

sector to improve information sharing. This proposal would strengthen Treasury’s ability to 

identify risks to financial sector critical infrastructure and enable public and private-sector action 

to mitigate significant risks. 

 
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Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

Departmental Offices (DO) is Treasury’s headquarters bureau. It provides leadership in 

economic and financial policy, financial intelligence, and general management. Treasury utilizes 

effective management, policies, and leadership to protect our national security through targeted 

financial actions, promote the stability of the nation’s financial markets, and ensure the 

government’s ability to collect revenue and fund its operations. DO aligns to all Treasury 

strategic goals and objectives. Specific alignment by budget activity is indicated below. 

B – Budget and Performance by Budget Activity 

2.1.1 – Executive Direction Resources and Measures 

Dollars in Thousands 

 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 

 Resource Level Actual Actual Actual Actual Actual Enacted Request 

Appropriated Resources $35,200 $36,988 $36,980 $32,993 $35,407 $36,775 $37,714 

Other Resource $21,677 $29,632 $22,997 $25,455 $4,863 $1,538 $1,563 

Budget Activity Total $56,877 $66,620 $59,977 $58,448 $40,270 $38,313 $39,277 

Full-time Equivalents (FTE) 185 201 161 159 113 114 110 

Note: FY 2015 - FY 2019 Other Resources dollars are actuals. FY 2015 - FY 2019 FTE are actuals. 

Executive Direction Budget and Performance 

($37,714,000 from direct appropriations, $1,563,000 from reimbursable sources): 

The Executive Direction program area provides direction and policy formulation to DO and the 

rest of Treasury and interacts with Congress and the public on policy matters. 

No specific performance goals/measures are presented for this budget activity because the work 

of these offices is captured within the other budget activities. 
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2.1.2 – International Affairs and Economic Policy Resources and Measures 

Dollars in Thousands 

 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 

 Resource Level Actual Actual Actual Actual Actual Enacted Request 

Appropriated Resources $54,758 $56,886 $57,191 $48,460 $52,428 $52,825 $54,367 

Other Resource $5,896 $14,680 $10,617 $9,795 $2,701 $1,689 $1,735 

Budget Activity Total $60,654 $71,566 $67,808 $58,255 $55,129 $54,514 $56,102 

Full-time Equivalents (FTE) 249 262 253 220 161 182 183 

Note: FY 2015 - FY 2019 Other Resources dollars are actuals. FY 2015 - FY 2019 FTE are actuals. 

Measure FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 FY 2020 FY 2021 

Actual Actual Actual Actual Actual Target Target Target 

IA - Monitor Quality and Enhance 

Effectiveness of International Monetary 

Fund (IMF) Lending Through Review of

IMF Country Programs

100 100 100 100 100 100 100 100

IA - Monitor Quality and Enhance 

Effectiveness of MDB Lending Through

Review of MDB Grant and Loan 

Proposals

100 100 100 100 100 100 100 100

IA - Percentage of MDB Grant and Loan

Proposals Containing Satisfactory 

Frameworks for Results Measurement

93 89 96 97.6 95 95 95 95

OTA - Program Engagement 3.8 3.9 4.0 3.8 3.8 3.6 3.6 3.6

International Affairs and Economic Policy Budget and Performance 

($54,367,000 from direct appropriations, $1,735,000 from reimbursable sources): 

The offices in this budget activity promote economic growth in the U.S. by producing technical 

economic analyses for the Secretary and advancing U.S. economic and financial policy priorities 

around the world. 

Office of International Affairs (IA) 

This office supports the following strategic objectives for Strategic Goal 1, to boost U.S. 

economic growth: 

 Objective 1.2 – Strong Economic Fundamentals: Spur faster economic growth by right-sizing 

Treasury and other regulations and advancing domestic economic policies that boost 

investment, employment, and innovation. 

 Objective 1.4 – Free and Fair Trade: Advance a free and fair trade environment for U.S. 

businesses through successful negotiation of trade agreements and investment policies. 

This office supports the following strategic objectives for Strategic Goal 2, to promote financial 

stability: 

 Objective 2.3 – Foreign Technical Assistance: Provide technical assistance to enable foreign 

partner countries to better raise and manage financial resources and protect their financial 

sectors. 

 
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This office supports the following strategic objectives for Strategic Goal 3, to enhance national 

security: 

 Objective 3.1 – Strategic Threat Disruption: Identify, dismantle, and disrupt priority threats 

to the U.S. and international financial systems. 

 Objective 3.3 – Economic Strength and National Security: Advance American prosperity and 

security through growth, investment, trade, and expanding the American industrial base 

while protecting national security. 

This office supports the following strategic objective for Strategic Goal 4, to transform 

government-wide financial stewardship: 

 Objective 4.1 – Financial Data Access/Use: Increase the access and use of federal financial 

data to strengthen government-wide decision-making, transparency, and accountability. 

This office supports the following strategic objective for Strategic Goal 5, to achieve operational 

excellence: 

 Objective 5.1 – Workforce Management: Foster a culture of innovation to hire, engage, 

develop, and optimize a diverse workforce with the competencies necessary to accomplish 

our mission. 

International Affairs 

In FY 2019, IA worked to put in place policies that achieve faster U.S. and global growth and 

higher after-tax wages for American workers. This involved ambitious reforms for trade, energy, 

financial regulation, infrastructure, and international relations, all of which continue into 

FY 2020. 

Free, fair, and reciprocal trade has been a cornerstone of our economic agenda, and Treasury has 

worked with our interagency colleagues and trading partners in order to modernize trade for the 

benefit of all Americans. These values have been reflected in our government’s ongoing 

negotiations with China and in the historic trade deal we recently signed with Japan. The United 

States-Mexico-Canada Agreement, passed by the U.S. Congress in January 2020, will establish 

the highest standards ever in a trade agreement to enhance digital trade, protect intellectual 

property rights, support small and mid-sized businesses, open markets for agricultural products, 

and spur manufacturing. Treasury is playing a lead role in analyzing the implications for U.S. 

financial services firms of the United Kingdom’s exit from the European Union. In addition, as 

the lead U.S. agency in negotiating reductions of export finance subsidies, Treasury continues to 

press China and other major providers of export finance to agree to disciplines on government 

support, so that U.S. exporters can compete globally on a level playing field. These efforts serve 

not only to enhance U.S. competitiveness but also move export credit financing to a more 

market-reflective basis consistent with Congressional mandates. 

Treasury works to address the large and persistent global imbalances and unfair currency 

practices that threaten strong and sustainable U.S. economic growth. Treasury seeks to level the 

playing field for U.S. businesses through multilateral and bilateral engagements on foreign 

exchange practices. Treasury does this via multilateral and bilateral activities working through 

the International Monetary Fund (IMF) and the Group of 20 Nations (G-20). As an example, 

Treasury continues to press for stronger exchange rate surveillance in the IMF. Treasury 
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continues its close oversight of multilateral development bank (MDB) policies and programs and 

continues to promote reforms to further enhance their efficiency, effectiveness, and financial 

discipline. Recently negotiated reforms – led by the United States - will improve financial 

management and debt sustainability while increasing the MDBs’ focus on infrastructure, 

women’s economic empowerment, and assistance to fragile states. 

Treasury promotes economic growth by managing U.S. participation and leveraging U.S. 

leadership positions in the International Financial Institutions in order to mitigate emerging 

threats to the U.S. and global economies; support international trade and investment; and 

reinforce U.S. national security interests in key countries around the world. 

International Affairs Description of Performance: 

 Monitor Quality and Enhance Effectiveness of IMF Lending through Review of IMF 

Country Programs: This measure tracks efforts by IA staff to monitor the quality of IMF 

country programs and ensure the application of appropriately high standards for the use of 

IMF resources. The target (100 percent) was met in FY 2019. In FY 2020 and FY 2021, 

IA’s target for this measure remains 100 percent. 

 Monitor Quality and Enhance Effectiveness of MDB Lending through Timely Review of 

MDB Grant and Loan Proposals: IA reviews MDB loan and grant proposals to ensure that 

funded projects meet several key goals, which include supporting long-term U.S. objectives, 

having a measurable development impact, and being consistent with congressional mandates. 

The target (100 percent) was met in FY 2019. In FY 2020 and FY 2021, IA aims to continue 

its review of 100 percent of MDB loan and grant proposals prior to the date of the relevant 

Executive Board meeting and increase its oversight of projects during implementation. 

 Percentage of MDB Grant and Loan Proposals Containing Satisfactory Frameworks for 

Results Measurement: This measure tracks the percentage of grant and loan project proposals 

that contain a satisfactory framework for measuring project results (such as outcome 

indicators, quantifiable and time-bound targets, etc.) This information is measured on an 

annual basis. In FY 2019, 95 percent of MDB grant and loan project proposals had excellent 

or satisfactory ratings for the results matrices. The FY 2020 target is 95 percent, and the FY 

2021 target is 95 percent. 

Office of Technical Assistance 

Treasury’s Office of Technical Assistance (OTA) complements Treasury’s international 

economic and terrorist financing policy work. Treasury’s offices of International Affairs and 

Terrorism and Financial Intelligence advocate for improvements in economic and terrorist 

financing policies internationally. OTA helps the governments of developing and transitioning 

countries build the human and institutional capacity to implement such policy improvements. 

 

Office of Technical Assistance Description of Performance: 

 Office of Technical Assistance (OTA) Program Engagement (Traction): Measures the 

degree to which foreign counterparts are engaging proactively and constructively with OTA 

advisors, at the working and policy levels. Counterpart engagement is both a key outcome of 

OTA efforts to structure and execute effective technical assistance projects that support host 
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country ownership as well as the most crucial input to the successful achievement of the 

intermediate goals and ultimate outcomes described in the project’s terms of reference and 

work plan during the fiscal year – such as passage of law or regulation, an increase in 

government revenues, an improvement in a government’s credit rating, or a reduction in 

economic crimes. The measure is scored on a 5-point scale and averaged across all projects 

to provide one overall measure of OTA’s performance. In FY 2019, the Traction score was 

3.8, exceeding the target of 3.6. In FY 2020 and FY 2021, IA’s target for Traction is 3.6. 

Office of Economic Policy (EP) 

This office supports the following strategic objective for Strategic Goal 1, to boost U.S. 

economic growth: 

 Objective 1.2 – Strong Economic Fundamentals: Spur faster economic growth by right-sizing 

Treasury and other regulations and advancing domestic economic policies that boost 

investment, employment, and innovation. 

This office supports the following strategic objective for Strategic Goal 3, to enhance national 

security: 

 Objective 3.2 – AML/CFT Framework: Identify and reduce vulnerabilities in the U.S. and 

international financial system to prevent abuse by illicit actors. 

This office supports the following strategic objective for Strategic Goal 5, to achieve operational 

excellence: 

 Objective 5.1 – Workforce Management: Foster a culture of innovation to hire, engage, 

develop, and optimize a diverse workforce with the competencies necessary to accomplish 

our mission. 

Macroeconomic Analysis 

During the past year, EP staff in the Office of Macroeconomic Analysis have closely monitored 

U.S. economic performance. The office’s high-quality analytic updates served as DO’s main 

internal source of information on U.S. macroeconomic developments and informed a wide range 

of high-level engagements and official publications, including the Bank/Fund and regional 

development bank meetings, meetings of the G-7 and G-20, the Quarterly Treasury Bulletin, the 

report to Congress titled, “Foreign Exchange Policies of Major Trading Partners of the U.S.,” the 

Economy Statement for the Treasury Borrowing Advisory Committee, and the U.S. 

Government’s Annual Financial Report. 

The office continued to deliver the High-Quality Market Corporate Yield Curve (a set of daily 

rates issued on a monthly basis) as mandated under the Pension Protection Act and to produce a 

Treasury Real Coupon-Issue Yield Curve, a companion to the Treasury Nominal Coupon-Issue 

Yield Curve, in addition to several other yield curves. These yield curve data are used 

extensively throughout the private sector and executive agencies that administer private and 

public pension programs and other future payment programs to calculate their annual liabilities. 

Finally, economists in the Macro office help prepare the economic assumptions used to create 

the Administration’s Budget. 
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Microeconomic Analysis 

The Office of Microeconomic Analysis has been actively engaged in helping the public and 

policymakers understand important economic policy issues including economic issue briefs 

covering a wide range of economic topics, including education finance reform, multiemployer 

pensions, digital assets, and labor market developments. Other activities included: 

 Significant contributions to Treasury’s September 2019 Housing Reform Plan, which aims 

to improve the U.S. housing finance system for borrowers while protecting taxpayers; 

 Regulatory Impact Analysis for Treasury’s Alcohol and Tobacco tax and Trade Bureau on a 

proposed deregulatory policy change; 

 A congressionally-mandated analysis of a potential Committee on Foreign Investment in the 

United States application fee; 

 Analysis of the potential impact on economic growth of the Administration’s infrastructure 

investment proposal; and 

 Ongoing coordination and analysis related to the Secretary’s role as Managing Trustee of 

the Social Security and Medicare Trust Funds. 

Social Impact Partnerships to Pay for Results Act 

Economic Policy is also responsible for implementation and ongoing management of the Social 

Impact Partnerships to Pay for Results Act (SIPPRA) program. SIPPRA, signed into law on 

February 9, 2018, appropriated $100 million to fund social impact partnership projects and 

feasibility studies to prepare for such projects. Program funds may be obligated through 

February 8, 2028, and not less than fifty percent of funding for social impact partnership projects 

must be provided for initiatives that directly benefit children. The SIPPRA program aspires to 

demonstrate a new model of implementing and funding projects designed to solve entrenched 

societal problems such as homelessness, recidivism among juvenile offenders, and incidences of 

childhood abuse and neglect. 

SIPPRA issued its first Notice of Funding Availability on February 21, 2019 with the 

expectation of awarding up to $66.29 million in funding for social impact partnership project 

grants with fifty percent of this funding allocated for initiatives designed to directly benefit 

children. Twenty-one applications were received and evaluated by Treasury staff and subject 

matter expert panels. Nine applications were provided to the Commission on Social Impact 

Partnerships (Commission) for review and funding recommendations to the Secretary of the 

Treasury (Secretary) and to the Federal Interagency Council on Social Impact Partnerships 

(Council) for application certification. The Commission, a federal advisory committee 

comprised of nine private-sector individuals nominated by the President and Congressional 

leadership, met multiple times in 2019 and made eight funding recommendations to the 

Secretary. SIPPRA anticipates issuing an additional Notice of Funding Availability for 

demonstration projects in FY 2022. The Council, which is chaired by OMB and includes 

representatives from ten federal agencies, was stood up in 2019. The Council is required to 

certify for each application that (1) the application “contains rigorous, independent data and 

reliable, evidence-based research methodologies to support the conclusion that the project will 

yield savings to the State or local government or the Federal Government if the project outcomes 

are achieved,” SIPPRA Section 2056(a)(8); (2) the “project will yield a projected savings to the 

Federal Government if the project outcomes are achieved,” SIPPRA Section 2056(a)(9); (3) the 

evaluation design proposed as the basis for outcome payments uses “experimental designs using 
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random assignment or other reliable, evidence-based research methodologies . . . that allow for 

the strongest possible causal inferences when random assignment is not feasible,” SIPPRA 

Section 2055(c); and (4) the applicant and proposed evaluator have “access to Federal 

administrative data to assist the State or local government and the evaluator in evaluating the 

performance and outcomes of the project.” SIPPRA Section 2056(a)(5); Treasury anticipates 

awarding grants by mid-calendar year 2020. 

2.1.3 – Domestic Finance and Tax Policy Resources and Measures 

Dollars in Thousands 

 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 

 Resource Level Actual Actual Actual Actual Actual Enacted Request 

Appropriated Resources $78,589 $84,591 $83,104 $73,804 $72,570 $78,153 $84,506 

Other Resource $40,240 $55,231 $38,650 $42,042 $8,539 $5,844 $5,944 

Budget Activity Total $118,829 $139,822 $121,754 $115,846 $81,109 $83,997 $90,450 

Full-time Equivalents (FTE) 364 398 365 311 236 256 267 

Note: FY 2015 - FY 2019 Other Resources dollars are actuals. FY 2015 - FY 2019 FTE are actuals. 

Measure FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 FY 2020 FY 2021 

Actual Actual Actual Actual Actual Target Target Target 

DF-Variance Between Estimated 

and Actual Receipts (Annual 

Forecast) (%)

2.80 3.10 4.00 2.33 3.14 4.25 4.25 4.25 

Domestic Finance and Tax Policy Budget and Performance 

($84,506,000 from direct appropriations, $5,944,000 from reimbursable sources): 

The Offices of Domestic Finance and Tax Policy monitor policy, legislation, and regulations, 

and provide advice and assistance to the Secretary about the financial services sector and taxes, 

as well as financial markets and the regulation of financial institutions. The Office of Tax Policy 

supports the Administration’s efforts in tax reform legislative proposals and regulatory 

implementation. 

Office of Domestic Finance (DF) 

This office supports the following strategic objective for Strategic Goal 1, to boost U.S. 

economic growth: 

 Objective 1.2 – Strong Economic Fundamentals: Spur faster economic growth by right-sizing 

regulations and advancing domestic economic policies that boost investment, employment, 

and innovation. 

This office supports the following strategic objectives for Strategic Goal 2, to promote financial 

stability: 

 Objective 2.1 – Housing Finance Reform: Support housing finance reform to resolve 

Government-Sponsored Enterprise (GSE) conservatorships and prevent taxpayer bailouts of 

public and private mortgage finance entities, while promoting consumer choice within the 

mortgage market. 

 Objective 2.4 – Financial Sector Cybersecurity and Critical Infrastructure Protection: 

Enhance security, improve resiliency, and reduce the risk of significant cybersecurity and 
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other incidents to the financial sector’s critical infrastructure, domestically and 

internationally. 

This office supports the following strategic objectives for Strategic Goal 4, to transform 

government-wide financial stewardship: 

 Objective 4.1 – Financial Data Access and Use: Increase the access and use of federal 

financial data to strengthen government-wide decision-making, transparency, and 

accountability. 

 Objective 4.2 – Debt Management: Fund the federal government at the least cost over time. 

 Objective 4.3 – Federal Financial Performance: Improve federal financial management 

performance using innovative practices to support effective government. 

This office supports the following strategic objective for Strategic Goal 5, to achieve operational 

excellence: 

 Objective 5.1 – Workforce Management: Foster a culture of innovation to hire, engage, 

develop, and optimize a diverse workforce with the competencies necessary to accomplish 

our mission. 

During FY 2019, DF worked to promote America’s long-term economic strength and stability 

by preserving confidence in the U.S. Treasury securities market, managing federal fiscal 

operations and the U.S. government’s debt, advising state and local governments on their 

finances, supporting community and economic development, and strengthening financial 

institutions and markets. DF advanced several key Administration policies, including financial 

regulatory reform, housing finance reform, and cybersecurity. 

Strong Economic Fundamentals 

To promote strong economic fundamentals, Treasury continued work to improve the financial 

regulatory system and strengthen the economy, consistent with the Administration’s “Core 

Principles” for regulating the U.S. financial system. These Core Principles, conveyed in 

February 2017 under Executive Order 13772, include empowering Americans to make 

independent financial decisions, preventing taxpayer-funded bailouts, and fostering economic 

growth. Given the breadth of the financial system and a complex regulatory environment, 

Treasury divided the review of the financial system into four reports, covering: (1) banks and 

credit unions; (2) capital markets; (3) asset management and insurance; and (4) non-bank 

financials, fintech, and innovation. 

Treasury published the fourth and final of the four Core Principles reports in July 2018. The 

reports make numerous recommendations for administrative and statutory reforms, which require 

action by the regulators and/or Congress. These reforms would, among other things, discourage 

taxpayer-funded bailouts, promote American companies’ competitiveness, and make regulation 

efficient, effective, and appropriately tailored. As of December 31, 2019, financial regulatory 

agencies and Congress had acted on or are acting on roughly 60 percent of about 370 

recommendations in the Core Principles reports. 
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During FYs 2020 and 2021, Treasury will continue to evaluate progress and work to support the 

implementation of the Core Principles recommendations for the U.S. financial system. 

Housing Finance Reform 

During the 2008 financial crisis, the GSEs (Fannie Mae and Freddie Mac) suffered significant 

losses because of structural flaws and inadequate oversight. To prevent the GSEs’ failure, the 

federal government placed them in conservatorship, which continues today. Treasury retains 

significant investments in the GSEs and continues to provide them capital support through the 

Senior Preferred Stock Purchase Agreements. These capital support agreements provide 

confidence to the financial markets that the GSEs will fulfill their financial obligations. These 

agreements have been amended several times since they were executed in 2008, most recently in 

FY 2019, when Treasury and the GSEs, acting through their conservator, the Federal Housing 

Finance Agency, agreed to increase the minimum capital reserve each entity is allowed to retain. 

In March 2019, the President signed a memorandum on the urgent need to reform the U.S. 

housing finance system. The memorandum directed Treasury to develop a plan for 

administrative and legislative reforms to end the GSE conservatorships, facilitate competition in 

the housing finance market, establish appropriate regulation of the GSEs, and provide for the 

federal government to be compensated for any support of the secondary housing finance market. 

In September 2019, Treasury released its Housing Finance Reform Plan. During FY 2020, 

Treasury is supporting congressional action, and administrative action pending legislation, to 

implement housing finance reform pursuant to the recommendations in its Plan. 

Financial Sector Cybersecurity and Critical Infrastructure Protection 

During FY 2019, DF also played an important role in supporting the cybersecurity and protecting 

critical infrastructure of the financial services sector. Treasury submitted to Congress, as 

required by law, a report on the risks of cyber threats. Further, the Office of Cybersecurity and 

Critical Infrastructure Protection (OCCIP) developed and executed twelve exercises, many cohosted with regional Federal Reserve Banks, involving other government and regional, small to 

medium-sized private-sector financial institutions. OCCIP also ran its first virtual tabletop 

exercise with participation from across the country remotely. Shortly afterwards, Treasury 

documented these results in an after action report for the participants that outlined areas for 

improvement to reduce vulnerabilities and risks in both the private and public sector. OCCIP 

will expand the number, type, and target audiences of these exercises in FYs 2020 and 2021. 

Also, in Treasury’s roles as chair of the Financial and Banking Information Infrastructure 

Committee and partner with the Financial Services Sector Coordinating Council, OCCIP 

continued pushing for enhanced voluntary cybersecurity information sharing among the member 

organizations. This is to minimize the time it takes to discover, contain, and mitigate cyber 

incidents, whether from malicious or natural causes. These efforts to enhance incident 

management coordination among the regulators and the private sector will also continue in 

FYs 2020 and 2021. 

Financial Data Access and Use 

During FY 2019, Treasury continued its leadership to increase the access to and use of federal 

financial data to strengthen government-wide decision-making, transparency, and accountability. 
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Treasury continued to make progress in government-wide implementation of the 2014 Digital 

Accountability and Transparency Act (DATA Act). The DATA Act requires the federal 

government to provide consistent, reliable, and useful online data about how it spends taxpayer 

dollars. In April 2018, DF fully transitioned to the new USAspending.gov website by sunsetting 

the legacy site. The new site allows taxpayers to examine nearly $4 trillion in annual federal 

spending and see how this money flows to local communities and businesses. In FY 2019, DF 

reviewed data quality. DF will work with OMB and federal agencies to drive continued 

improvements in FY 2020 and FY 2021. The data is compiled from federal agencies and 

published quarterly. In FY 2019, DF also continued to expand the sister site to 

USAspending.gov—the Data Lab—which provides additional use cases, data visualizations, and 

analysis with insights into federal spending and trends. Additionally, DF released the new online 

“Your Guide to America’s Finances,” which provides an overview of federal spending, revenues, 

debt, and deficit information. 

Debt Management

Another important DF responsibility is managing the U.S. government’s debt. The Office of 

Fiscal Projections (OFP) forecasts the government’s cash and debt activity. As discussed below, 

OFP achieved its performance goal for FY 2019 by ensuring that the variance between its 

projections of federal government receipts and actual federal receipts was no more than 4.25 

percent. 

Another DF office, the Office of Debt Management (ODM), seeks to fund the federal 

government at the least cost to the taxpayer over time by working to maintain predictable 

issuance of Treasury debt, minimizing the amount of interest the government must pay, and 

managing debt maturity over time. In FY 2019, Treasury introduced a new product to the 

Treasury securities market: the 8-week Treasury bill. In FY 2020, Treasury also announced the 

re-introduction of the 20-year Treasury bond. The goals for these new products are to satisfy 

investors and help Treasury to meet its goals for debt issuance. 

Domestic Finance Description of Performance: 

 Variance between estimated and actual receipts (annual forecast) (percent): As part of 

managing the federal government’s central operating account and cash position, OFP 

forecasts net cash flows (e.g., federal receipts and outlays) to ensure that adequate funds are 

available daily to cover federal payments. To determine its overall effectiveness, one of 

OFP’s metrics is to measure the variance between actual and projected federal receipts. A 

lower variance is better because that indicates a more accurate forecast. The actual variance 

for FY 2019 was 3.14 percent, which is lower than the 4.25 percent target. Because tax 

receipts are quite variable from year to year and are very sensitive to changes in macroeconomic conditions and legislative changes, accurate forecasts in one year do not 

necessarily portend accuracy in a subsequent year or period. OFP will maintain its target of 

4.25 percent for both FY 2020 and FY 2021. 

Office of Tax Policy (OTP) 

This office supports the following strategic objectives for Strategic Goal 1, to boost U.S. 

economic growth: 
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 Objective 1.1 – Tax Law Implementation: Administer tax law to better enable all taxpayers 

to meet their obligations, while protecting the integrity of the tax system. 

This office supports the following strategic objective for Strategic Goal 5, to achieve operational 

excellence: 

 Objective 5.1 – Workforce Management: Foster a culture of innovation to hire, engage, 

develop, and optimize a diverse workforce with the competencies necessary to accomplish 

our mission. 

Tax Policy 

During FY 2019, the Office of Tax Policy (OTP) worked closely with the IRS in implementing 

provisions of the Tax Cuts and Jobs Act (TCJA). Together, they published final regulations on a 

number of TCJA provisions including changes related to the new section 199A pass-through 

deduction, the 100-percent additional depreciation deduction under section 168(k) and section 

170 that preserves the revenue in TCJA related to the imposition of a cap on state and local 

income tax deductions. Treasury and the IRS also implemented TCJA provisions related to the 

section 965 one-time repatriation tax and new section 951A regulations dealing with the 

computation of global intangible low-taxed income, including income by U.S. shareholders of 

foreign subsidiaries. In addition, OTP and the IRS promulgated proposed regulations and issued 

sub-regulatory guidance on a number of TCJA provisions, including the Opportunity Zones 

incentives, the base erosion and anti-abuse tax under section 59A, the foreign-derived intangible 

income rules of section 250, the disallowed interest deduction rules under section 163(j), and the 

income timing rules under section 451. The IRS also issued a number of updates to forms and 

updated the web page on IRS.gov to provide easy and comprehensive access for the public to 

final regulations, proposed regulations, and sub-regulatory guidance on TCJA provisions as they 

became available. Since TCJA’s passage in November 2017, Treasury has issued nearly 400 

items of guidance, including regulations, revenue procedures, revenue rulings and notices related 

to every section of TCJA. 

OTP also provided analysis in support of tax reform implementation, including updated tax 

withholding tables and inflation-adjusted tax parameters and regulatory impact analyses. The 

office also estimated the effects of proposed and final tax reform provisions on tax revenue 

(overall and for specific types of taxpayers), to inform policymakers and to produce the baseline 

for the Administration’s FY 2020 Budget. 

OTP continues to provide leadership for the Organisation for Economic Co-operation and 

Development (OECD), the Inclusive Framework, the Global Forum, and the G20, advocating for 

the interests of U.S. based businesses. In particular, during FY 2019, OTP played a leading role 

in developing OECD proposals (Pillar 1 and Pillar 2) intended to change certain aspects of the 

allocation of international taxing rights in an effort to combat the unilateral tax actions of 

multiple jurisdictions (e.g., the French digital services tax). As part of this effort, OTP attended 

and led numerous meetings at the OECD and organized numerous meetings with stakeholders 

(including with executives of major digital and non-digital companies) to discuss various 

alternatives. OTP plans to continue this effort in FY 2020. 
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In FY 2020 – FY 2021, OTP’s primary mission will continue to be leading tax reform 

implementation. This work will include regulatory and sub-regulatory guidance required to 

implement changes to the law by conducting cost-benefit analyses of many regulatory actions. 

The resulting Regulatory Impact Analyses (RIA) require detailed work. OTP received funding 

for FY 2019 to start hiring professionals to work on the RIA and hired seven new staff members. 

In 2020-2021, OTP hopes to continue the implementation with additional staff and technology 

funding to conduct the necessary analyses. 

2.1.4 – Treasury-wide Management and Programs Resources and Measures 

Dollars in Thousands 

 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 

 Resource Level Actual Actual Actual Actual Actual Enacted Request 

Appropriated Resources $39,143 $41,446 $43,365 $40,494 $39,171 $38,279 $40,740 

Other Resource $55,213 $3,339 $4,284 $2,398 $226 0 0 

Budget Activity Total $94,356 $44,785 $47,649 $42,892 $39,397 $38,279 $40,740 

Full-time Equivalents (FTE) 171 124 153 147 100 110 125 

Note: FY 2015 - FY 2019 Other Resources dollars are actuals. FY 2015 - FY 2019 FTE are actuals. 

Measure FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 FY 2020 FY 2021 

Actual Actual Actual Actual Actual Target Target Target 

EO 13771 - Number of Deregulatory 

Actions Issued* N/A N/A N/A 4 N/A I I I 

EO 13771 - Number of Deregulatory 

Actions Issued that Address 

Recommendations by the Regulatory 

Reform Task Force*

N/A N/A N/A 2 N/A I I I 

EO 13771 - Number of Deregulatory 

Actions Issued that Address 

Recommendations by the Regulatory 

Reform Task Force to the Agency Head 

Consistent with Applicable Law*

N/A N/A N/A 0 N/A I I I 

EO 13771 - Number of Evaluations to 

Identify Potential Deregulatory Actions 

That Included Opportunity for Public Input 

and/or Peer Review*

N/A N/A N/A 1 N/A I I I 

EO 13771 - Number of Regulatory Actions 

Issued* N/A N/A N/A 0 N/A I I I 

EO 13771 - Total Incremental Cost of All 

Regulatory Actions and Deregulatory 

Actions (Including Costs or Cost Savings 

Carried Over From Previous Fiscal 

Years)*

N/A N/A N/A $0 N/A I I I 

Percent of Procurement Dollars Spent on 

Small Business 35.11 36.17 35.01 42.63 40.4 38.5 39.0 N/A 

Treasury-wide Employee Engagement 

Index of the FEVS 66 67 68 68 69 69 70 71 

Treasury-wide Footprint (Square Footage) 35,439 34,894 34,100 33,766 33,209 33,356 32,895 32,593 

Treasury-wide Leaders Lead Index of the 

Federal Employee Viewpoint Survey 

(FEVS)

54 55 56 56 58 58 59 60 

Note: I – Performance Indicator 

*FY 2019 Actuals for these indicators pending review by OMB’s Office of Information and Regulatory Affairs 
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Treasury-wide Management and Programs Budget and Performance 

($40,740,000 from direct appropriations): 

This budget activity includes offices that are responsible for the internal management and policy 

of the Department: the Office of the Assistant Secretary for Management; the Office of the 

Chief Information Officer; the Office of Privacy, Transparency, and Records; the Office of the 

Senior Procurement Executive; the Office of the Chief Human Capital Officer; the Office of 

Treasury Operations; the Office of the Deputy Chief Financial Officer; the Office of Civil Rights 

and Diversity; the Office of Minority and Women Inclusion; the Office of Strategic Planning and 

Performance Improvement; the Office of Risk Management; and the Office of the Deputy 

Assistant Secretary for Management and Budget. 

This office supports the following strategic objective for Strategic Goal 2, to promote financial 

stability: 

 Objective 2.4 – Financial Sector Critical Infrastructure and Cybersecurity: Enhance security, 

improve resiliency, and reduce the risk of significant cybersecurity and other incidents to the 

financial sector’s critical infrastructure, domestically and internationally. 

This office leads the following strategic objectives for Strategic Goal 5, to achieve operational 

excellence: 

 Objective 5.1 – Workforce Management: Foster a culture of innovation to hire, engage, 

develop, and optimize a diverse workforce with the competencies necessary to accomplish 

our mission. 

 Objective 5.2 – Treasury Infrastructure: Better enable mission delivery by improving the 

reliability, security, and resiliency of Treasury’s infrastructure. 

 Objective 5.3 – Customer Value: Enhance the experience of interacting with Treasury by 

providing high quality products and services and by delivering excellent customer service. 

Treasury-Wide Management and Program Description of Performance:

 EO 13771: FY 2019 Actuals for these indicators pending review by OMB’s Office of 

Information and Regulatory Affairs 

 Percentage of Procurement Dollars Spent on Small Business: Based on preliminary data in 

FY 2019, Treasury met and exceeded all small business prime contracting goals. However, 

Treasury may not meet all small business subcontracting goals. The Small Business 

Administration (SBA) is expected to calculate the data in March 2020. All Treasury 

bureaus were included in the goaling report, with no exclusions. The FY 2019 overall small 

business goal was set for 38.5 percent, and Treasury currently exceeds the goal at 40.4 

percent. The FY 2020 small business goal is set at 39 percent. One overarching challenge in 

FY 2019 was that Treasury must follow OMB’s directive to utilize Category Management 

principles and Best-in-Class (BIC) contracts to leverage use of existing government-wide 

contracting vehicles: there are not enough small business firms included in category 

management/BIC contract solutions. With a Treasury BIC goal of 35 percent utilization, 

Treasury Office of Small and Disadvantaged Business Utilization issued a Category 

Management and BIC Small Business Utilization policy which is believed to have enhanced 

the overall small business goal achievement. Particularly noteworthy is that Treasury far 

exceeded the contracting goals for the following socioeconomic groups: 

o Small and Disadvantaged Business – goal five percent, achieved 11.85 percent; 
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o Women Owned Small Business – goal five percent, achieved 11.42 percent; 

o Historically Underutilized Business zone – goal three percent, achieved 3.44 percent; 

and 

o Service Disabled Veteran Owned Small Business – goal three percent, achieved 4.29 

percent. 

 Treasury-wide “Employee Engagement” Index of Federal Employee Viewpoint Survey 

(FEVS): Treasury’s strategy focused on improving employee engagement in a number of 

areas to create an opportunity to improve the effectiveness of our workforce while improving 

our ranking among other federal agencies. Treasury’s scores for the Engagement Index 

increased from 68 percent to 69 percent in FY 2019. Treasury’s engagement score exceeded 

the government-wide average and the average score for very large agencies by one percent. 

Targets are 70 percent for FY 2020 and 71 percent for FY 2021. 

 Treasury-wide Footprint (Square Footage): This goal measures the total square footage 

occupied by Treasury’s owned and leased buildings. To reduce the Department’s real 

property footprint and maximize the use of existing real property assets, the Department 

maximized space utilization by undertaking space realignments, consolidations, and 

improved work station standards. GSA is still in the process of certifying the FY 2019 

square footage inventories. Several fourth quarter space reductions were not reflected within 

GSA’s end of fiscal year square footage numbers. The Department is currently working with 

GSA to establish the Q4 space release effective dates. Once these dates have been mutually 

agreed upon, Treasury should be on target to meet the FY 2019 target of 33,356 square feet. 

The Department will continue targeting metropolitan areas with multiple posts of duty sites 

to pursue consolidation opportunities or space reductions where it makes business and 

financial sense. It should be noted that several Treasury programs focused on economic 

expansion and national security, including CFIUS, OCCIP and the Office of Terrorism and 

Financial Intelligence (TFI), will be experiencing considerable growth in investments and 

personnel. As a result, Treasury’s out-year facilities projects are expected to reflect these 

changes, including the possible expansion of real property holdings in certain geographic 

areas. 

 Treasury-wide “Leaders Lead” Index of Federal Employee Viewpoint Survey (FEVS): 

Treasury also set the goal to increase the “Leaders Lead” index above FY 2018 results. 

Treasury’s score for the Leaders Lead Index increased from 56 percent in FY 2018 to 58 

percent in FY 2019. Treasury’s score in FY 2019 exceeded the government-wide average 

and the average score for very large agencies by one percent. Targets are 59 percent for 

FY 2020 and 60 percent for FY 2021. 

Office of the Chief Human Capital Officer 

In FY 2018, Treasury published a strategic plan for 2018-2022 that continued the Department’s 

focus on operational excellence by including a specific goal on workforce management. The 

Office of the Deputy Assistant Secretary for Human Resources and Chief Human Capital Officer 

(DASHR-CHCO), based on annual Human Capital Review feedback from the Office of 

Personnel Management and Office of Management and Budget, is confident that the Treasury 

human capital strategy is appropriately aligned to Treasury’s overall strategic priorities. For FY 

2020, the Treasury CHCO issued the following goals: enhance integration of human capital 

management practices with front-line mission requirements, identify and mitigate risks 

associated with human capital management, improve the customer experience with HR services, 
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more actively manage and coordinate HR information technology investments, and further 

maturing Treasury’s human capital evaluation system. 

 

Treasury’s human capital community is also providing direct support for priority Administration 

initiatives including the 21st Century Workforce driver under the President’s Management 

Agenda, especially in the areas of reskilling and upskilling. These are critical needs in light of 

IRS processing center consolidations and closures, IRS IT modernization, the Bureau of 

Engraving and Printing’s planned move to a new production facility, and the Ten Year Vision for 

the Future of Federal Financial Management. In addition, during FY 2019 DASHR-CHCO 

continued its effort to support the expansion of the Office of Terrorism and Financial Intelligence 

as well as the Committee on Foreign Investment in the United States. 

 

Two key drivers of continual improvement in strategic human capital management are updating 

governance under the Human Capital Advisory Council (HCAC) and reorganizing DASHRCHCO. These actions are designed to improve the value and impact of interactions between 

DASHR-CHCO, Treasury bureaus, and external stakeholders. Treasury’s CHCO and the 

Director of the Office of Civil Rights and Diversity Co-Chair the HCAC and updated its charter 

during FY 2019. They concurrently established the goal of chartering six subsidiary bodies 

during FY 2020, including the HR IT Executive Steering Committee, the HR Policy Council, the 

Executive Diversity and Inclusion Committee, the Learning Leaders Council, the Workforce and 

Succession Planning Council, and Treasury’s Certified Strategic Partners. These groups are 

responsible for staff work and Treasury-wide coordination of their portfolios, taking direction 

from the HCAC and raising issues of mutual interest for decision by the HCAC membership. 

The CHCO initiated the DASHR-CHCO reorganization in January 2019 and completed all 

necessary personnel actions to establish and staff new organizational units that better align with 

OPM’s Human Capital Business Reference Model and also recognize the emergence of 

workforce data analysis as a key capability for the agency. 

 

Specific initiatives undertaken in support of the FY20 goals will include the following: 

 Continuing strategic workforce planning conversations between bureau Human Resources 

Officers and owners of Treasury and bureau strategic objectives; 

 Staging a coordinated rollout of multi-modal training across Treasury in the key 

competencies of data literacy, digital transformation, front-line supervision, and leadership at 

all levels (self, team, organization); 

 Conducting an workforce planning occupational study for the IT workforce to validate 

competency models, assess current competency levels, identify skills gaps, and develop 

mitigation plans; 

 Streamlining and digitizing new employee orientation and improving the pre-appointment 

experience for individuals selected as members of Treasury’s Senior Executive Service. 

 Successfully implementing specific recommendations from OPM’s 2019 assessment of 

Treasury’s human capital evaluation system to achieve a higher level of maturity in the 2020 

assessment. 

 

Finally, Treasury will continue implementation of an enterprise Integrated Talent Management 

(ITM) system. In FY 2019, Treasury achieved a full transition to the learning management 

module, placing all Treasury employees in a single enterprise-wide platform for online employee 
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development. Treasury also brought all Senior Executive Service performance plans into ITM, 

and three bureaus implemented GS performance management in ITM. During FY 2020, bureaus 

will continue phasing in the ITM performance management module and begin working to utilize 

talent management modules. When fully deployed, the ITM system will provide employees a 

single, modern system for learning, performance, and career planning; give leadership a 

consolidated view of the Department’s human capital landscape; and consolidate 24 stand-alone 

legacy systems into a single, cloud-based system. 

 

Office of Civil Rights and Diversity (OCRD) 

In FY 2020, OCRD will work with Treasury bureaus to either update or establish Diversity and 

Inclusion (D&I) and Equal Employment Opportunity (EEO) Strategic Plans (FY 2021-2025), 

which map to both the Treasury Strategic Plan and the Human Capital Plan. OCRD will 

continue the audits of bureaus’ EEO, D&I, and External Civil Rights Programs in FY 2020. 

These audits will critically look at bureaus’ D&I and EEO programs to determine any areas 

where bureaus need a sharper focus and to find and recreate “best practices.” EEO offices 

worked on Human Capital engagement teams to improve inclusion scores – this will also be a 

continuing focus in FY 2020 and FY 2021. While scores for “Fairness” continue to be a 

concern, efforts have been made to introduce “Unconscious Bias” training in the workforce and 

at all management levels to help make leaders aware of biases and to learn to put aside such 

biases when making employment decisions. 

In FY 2019, OCRD developed and distributed sexual harassment prevention training to the 

workforce in DO, and shared the training with bureaus. Additionally, this office continued to 

work with the Treasury Executive Institute to develop programming for executives and senior 

level staff in the areas of diversity and inclusion. OCRD also offered Civility Training to 

increase the number of trainers in Treasury bureaus. This was the catalyst to establish the 

Department’s Training Cadre with the goal of offering additional training classes in FY 2020 and 

FY 2021. EEO complaints were adjudicated effectively with the Department improving in 

meeting EEOC regulatory timeframes both in issuance of decisions and days to investigate 

complaint. Both benchmarks exceeded Treasury’s prior years timeliness rate. To better manage 

case processing, OCRD plans on upgrading Treasury’s EEO case management system in 

FY 2021, and will start the acquisition process in FY 2020. In FY 2019, disability hiring met 

three out of four benchmark targets, and emphasis was placed on improving veterans hiring, with 

the acquisition in FY 2019 of a resume data base for use in hiring veterans. The Department 

started to pilot this program in FY 2019 and if successful, intends to explore expanding it to the 

larger disability community in FY 2020. In FY 2019, OCRD procured a Reasonable 

Accommodation Management System, to better manage reasonable accommodation requests, 

which is an identified risk. The goal is to have the system fully operational and accessible to 

bureaus in FY 2020. 

In FY 2019 considerable progress was made in improving OCRD’s external civil rights program 

policies and guidance and efforts will continue in FY 2020. OCRD will continue to lead the 

efforts of the DO financial assistance programs to implement the compliance requirements in the 

recently issued Treasury civil rights regulations. The effort will include a review of grant 

making procedures with the goal of introducing compliance measures into existing processes. 
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Office of the Deputy Chief Financial Officer 

For FY 2019, the Department received its twentieth consecutive unmodified audit opinion on its 

Treasury-wide financial statements. Treasury anticipates unmodified audit opinions for the 

consolidated audits to be conducted for FY 2020 and FY 2021. Overall, the Department has 

made strong progress in enhancing its internal control environment and remains committed to 

ensuring high standards of integrity and transparency in reporting its financial performance. 

Office of Small and Disadvantaged Business Utilization (OSDBU) 

Based on preliminary data for FY 2019, Treasury is on track to meet and exceed all small 

business prime contracting goals. The consistent “A” score is a testament to the hard work and 

professionalism of the procurement and acquisition teams across Treasury’s bureaus and the 

serious commitment to utilizing small businesses that emanates from Treasury’s leadership. To 

comply with Section 15 (k), Small Business Act, the Department focused on small business 

prime and subcontracting goal achievements and monitoring small business pre-award and postaward functions. 

In FY 2019, per FAR Part 19.201, OSDBU successfully executed Small Business Programs 

Compliance and Surveillance Reviews on six Bureaus, which have procurement authority and 

make awards to small businesses. The results of the surveillance reviews will provide for a 

comprehensive small business acquisition transformation strategy that will include acquisition 

workforce teaching and training across the Department. Overall, the Department has made 

progress in enhancing its small business programs and remains committed to ensuring high 

standards of small business program compliance. Central to the surveillance review strategy is 

early acquisition planning and broad stakeholder participation. 

In FY 2019, Treasury OSDBU reviewed 350 acquisition actions valued at over $250,000 not setaside for small business and rejected 23 of these actions due to inadequate market research. 

After the rejections, small business opportunities were found for all 23 actions. Of the 327 

actions, 101 required subcontracting plan review (over $700,000) and monitoring of the 

subcontracting goals addressed in the plan. Together with the Small Business Administration 

Procurement Center Representative, the OSDBU approved the subcontracting plans and these 

became part of the resultant contract. 

In FY 2020, OSDBU will conduct their annual Small Business Program Compliance and 

Surveillance Reviews on each Bureaus that has procurement authority in conjunction with the 

Office of the Procurement Executive. The purpose of the review is to ascertain whether Bureaus 

are implementing their corrective action plans from previous years, and to ensure they are 

following small business procurement laws, regulations, and policies as they pertain to small 

business set-asides, bundling and consolidation, and 8(a) Business Development contract awards. 

A small business program health summary will be submitted to the Deputy Secretary by October 

2020. 

Office of the Senior Procurement Executive (OPE) 

In FY 2019, Treasury continued a comprehensive acquisition transformation strategy designed to 

facilitate innovation, strategic management, efficiency, and effective mission outcomes in 

compliance with the President’s Management Agenda. Central to the strategy is early planning 
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and broad stakeholder participation as well as accelerated transition to strategic acquisition 

vehicles. In FY 2020 and FY 2021, Treasury will continue to focus on exploring the use of 

automated solutions to improve the acquisition process. 

In FY 2019, Treasury continued successful execution of its Major Acquisition Program (MAP) 

reviews in which primary and senior stakeholders (to include procurement, customer, program 

management, and legal representatives) jointly and periodically review procurement strategy and 

progress for critical acquisitions. These reviews provided a forum for development of effective 

acquisition strategies; early identification and resolution of problems; and sharing of experience 

and expertise among various stakeholder personnel. FY 2019 reviews mainly focused on preaward actions and were designed to facilitate successful award of critical contracts. In FY 2019, 

Treasury reviewed 30 acquisitions, valued at $7.5 billion. Reviews included 15 IT acquisitions 

valued at $3.2 billion. OPE, in collaboration with Office of Strategic Planning and Performance 

Improvement (OSPPI), also performed non-IT major acquisition portfolio reviews with the 

Bureau of Engraving and Printing (BEP) and the United States Mint in support of the 

Department’s Program Management Improvement and Accountability Act (PMIAA) 

implementation efforts. Through these portfolio reviews, OPE was able to develop a better 

understanding of which non-IT major acquisitions supported the Department’s strategic 

objectives. In FY 2020, the Department will transition from pre-award MAP reviews to more 

robust Acquisition Management Reviews (AMR). An expected outcome of the AMR is to help 

ensure successful contract performance strategically aligns with mission outcomes by expanding 

emphasis on the acquisition lifecycle from the time a contracting office receives a complete 

acquisition package through contract performance, closeout and final payment. 

From FY 2016 to FY 2019, Treasury increased the percentage of Spend Under Management 

(SUM) from 47.3 percent to 62.7 percent and increased the percentage of Best In Class (BIC) 

spend from 12.8 percent to 41.3 percent. Treasury has achieved both savings and efficiencies 

through aggregating requirements and leveraging its purchasing power via enterprise-level 

management of common spend categories. By fully utilizing category management, Treasury 

seeks to save the Federal Government money through smarter purchasing and greater 

collaboration across stakeholder organizations and to achieve greater efficiency with fewer 

resources. The Treasury strategy for FY 2019 and FY 2020 continues the Department’s 

transition to the Office of Management and Budget’s preferred contract vehicles, reducing the 

need to establish department level contracts and freeing associated resources for focus on other 

acquisition priorities. Treasury continues to make significant progress by widely adopting 

category management principles and actively pursuing opportunities to manage spend more 

effectively across the Department. 
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2.1.5 – Committee on Foreign Investment in the United States Resources and Measures 

Dollars in Thousands 

 FY 2015 FY 2016 FY 2017 FY 

2018 FY 2019 FY 2020 FY 2021 

 Resource Level Actual Actual Actual Actual Actual Enacted Request 

Appropriated Resources $2,310 $2,589 $3,736 $6,000 $15,000 $22,341 $24,146 

CFIUS Fund Transfers 0 0 0 0 0 $15,000 $15,000 

Budget Activity Total $2,310 $2,589 $3,736 $6,000 $15,000 $37,341 $39,146 

Full-time Equivalents (FTE) 14 15 23 26 32 81 120 

Note: FY 2015 - FY 2019 Other Resources dollars are actuals. FY 2015 - FY 2019 FTE are actuals. 

Note: CFIUS Budget activity was established in FY 2020 PB. Prior year enacted levels are based on an approximation of funding and have been 

subtracted from IA/EP & ED budget activities. 

Key: I – Indicator 

Committee on Foreign Investment in the United States Budget and Performance 

($24,146,000 from direct appropriations, and $15,000,000 from fund transfers): 

The Committee on Foreign Investment in the United States is an interagency committee 

authorized to review certain transactions involving foreign investment in the United States to 

determine the effect of such transactions on the national security of the United States. In 

FY 2019 CFIUS took significant steps toward full implementation of the Foreign Investment 

Risk Review Modernization Act of 2018 (FIRRMA). At the beginning of FY 2019, the 

Committee established a pilot program to cover certain investments in critical technologies 

related to specific industries. At the end of FY 2019, Treasury published draft FIRRMA 

regulations to implement the remainder of the statute, for public notice and comment. In January 

2020, Treasury issued final regulations to implement FIRRMA, which become effective on 

February 13, 2020. Treasury has also made substantial progress on various administrative 

aspects of implementation, including with regard to staffing, information technology systems and 

infrastructure, and facility build-out. In recognition of the strategic importance of FIRRMA 

implementation to national security Treasury is including this as an Agency Priority Goal. 

Successful implementation of FIRRMA will ensure that identified national security risks arising 

from certain foreign investments—including from some types of investments and transactions 

that previously fell outside of CFIUS’ jurisdiction—are addressed in an effective manner. 

Timely Review of CFIUS Cases: This measure tracks compliance with statutory deadlines for 

completing national security reviews of transactions notified to the CFIUS to ensure that the 

CFIUS process is timely and efficient. The target (100 percent) was met in CY 2019. IA’s 

target for this measure in CY 2020 and CY 2021 is 100 percent. 
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C – Changes in Performance Measures 

Performance Measure or Indicator Proposed Change and Justification 

1. Number of notices that are reviewed 

by the Committee on Foreign 

Investment in the United States per 

calendar year (indicator). 

This indicator measures the number of 

notices reviewed by CFIUS as a result of 

updated regulations under FIRRMA. 

2. Number of notices that proceed 

beyond the initial review to a 

subsequent investigation. CFIUS 

generally investigates cases that 

require more resource-intensive 

analysis and/or corrective action 

(indicator). 

This indicator measures the number of 

investigations conducted by CFIUS as a 

result of updated regulations under 

FIRRMA. 

D – Evidence-Building Activity 

International Affairs 

International Affairs’ policy analysis and recommendations to senior government leaders 

leverage economic, financial, and market data in addition to other social, political, and 

intelligence information available publically and through U.S. Government sources. Similar 

sources of evidence and data are used in the production of congressionally mandated reports, 

such as the semi-annual foreign exchange report to Congress. 

The Office of Technical Assistance is leading Treasury’s Monitoring and Evaluation (M&E) 

efforts under the Foreign Aid Transparency and Accountability Act of 2016. In 2019, OTA took 

steps towards full implementation of FATAA including: development of M&E instructions, the 

hiring of two new M&E specialists, development of a LogFrame template and associated 

instructions, initiation of the procurement process for contracting independent evaluation 

services, and socialization of M&E efforts with programmatic teams, including identifying the 

benefits of increased opportunities for program learning. Further support for these efforts is 

requested in Treasury’s International Programs Congressional Justification for Appropriations. 

Throughout FY 2019, Treasury’s Office of Investment Security drafted regulations to implement 

the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA). The Office relied 

on evidence from a range of sources to shape and effectively scope the final regulations, which 

were published in January 2020. This includes aggregated data on transactions covered under a 

“pilot program” that expanded the scope of transactions subject to review by CFIUS to certain 

non-controlling investments involving foreign persons and certain critical technologies. 

Treasury also benefited from hundreds of individual comments it received on proposed versions 

of the regulations that it published in September 2019. The final regulations update multiple 

provisions in response to a considered analysis of pilot program data and the public comments. 

Once the final FIRRMA regulations become effective on February 13, 2020, Treasury will 

collect and regularly analyze data on covered transactions that are reviewed by CFIUS and 
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monitor the broader national security and investment landscapes to ensure that the final 

regulations are effectively addressing national security concerns. As a result of these activities, 

Treasury may, if necessary, periodically amend the regulations or provide additional information 

to assist the public with compliance. 

In FY 2020, Treasury will begin use of a new, electronic case management system that will 

support this effort and better enable future evidence-building and program evaluation-related 

activities. 

Economic Policy 

Economic Policy serves as a data-driven policy office within the DO with a specific focus on 

supporting decision making processes. Over the past year, EP has reinforced Treasury initiatives 

by providing economic analysis on a wide variety of public policy. Through the office’s use of 

research-based studies, both explorative and focused, the economic team delivered micro and 

macro level recommendations to Treasury offices. Those recommendations included issues 

related to cryptocurrency, pension reform, tax policy, Social Security and Medicare, long term 

care insurance, financial innovation, industry concentration, monetary policy, and financial 

analysis, among others. 

Domestic Finance 

Financial Sector Cybersecurity and Critical Infrastructure Protection 

At the beginning of FY 2020, OCCIP successfully participated in the Treasury Department’s 

“health check-up” pilot of selected programs and projects critical to the success of Treasury’s 

FY 2019 strategic objectives. The pilot allowed Treasury to assess the management health of its 

selected programs and projects. The pilot is also pursuant to the Program Management 

Improvement Accountability Act (PMIAA) (P.L. 114-264). OCCIP received an initial evaluation 

of its program effectiveness, and received high-range scores in its ability to plan for 

risks/contingencies and for its resource needs. In FY 2020 and FY 2021, OCCIP will continue to 

inform and strengthen its program goals by developing and implementing a pilot analysis of 

critical third parties in the financial services sector. The pilot will allow Treasury to identify 

risks associated with critical third parties and enable Treasury to prioritize information sharing 

and risk management initiatives to mitigate third party risks to critical financial services 

infrastructure. Additionally, in FY 2021, OCCIP will study and analyze vulnerabilities in key 

financial institutions to identify and mitigate cybersecurity and operational risks, and to further 

inform and strengthen Treasury’s ability to improve the security and resiliency of the financial 

services sector. 

Tax Policy 

The Office of Tax Policy’s Office of Tax Analysis (OTA) is a division consisting of 55 PhD 

economists and statisticians who are dedicated to developing models of taxpayer behavior based 

upon the IRS’ Compliance Data Warehouse (CDW). OTA economists develop and manage 

hundreds of models annually. The analytics inform policy for the administration and OTA is the 

premier organization for tax analysis. 
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Under Section 6103 of the Internal Revenue Code, OTA economists have permission to access 

IRS data that are only available to certain IRS and Treasury employees. This database is the 

most comprehensive relevant data available regarding tax policy research. 

Treasury-wide Management 

The Office of Strategic Planning and Performance Improvement (OSPPI), through its internal 

consulting program, conducts program evaluations and other analysis to help leadership make 

informed decisions about program goals and operations. OSPPI’s works with Treasury bureaus 

to use process and performance data to identify and implement operational improvements. 

OSPPI, in partnership with Management and Budget, also leads the Department’s quarterly 

performance reviews, which use data and other evidence to identify strategic issues, problemsolve, and decide on actions to take to achieve goals. 

OSPPI also leads implementation of Title I of the Evidence Act, which concerns setting research 

priorities and coordinating the Department’s evidence-building activities. Immediately after the 

law was enacted, Treasury leveraged the department-wide Strategic Objective Annual Review 

(SOAR) that OSPPI leads to collaboratively identify a preliminary set of research questions. 

Treasury also began working with Treasury’s Federally Funded Research Development Center 

(MITRE Corporation) to identify existing research efforts that align to this nascent learning 

agenda, both from their paid work and independent research efforts. Early in FY 2020, Treasury 

and MITRE formalized a strategic research team to better align MITRE’s independent research 

efforts with Treasury’s research priorities. This team will include representatives from Treasury 

offices and bureaus who have key research equities to better coordinate research efforts across 

Treasury, including IRS, Fiscal Service, the Office of Economic Policy, and the Office of 

Performance Budgeting. OSPPI also organized an inaugural research event to socialize 

Evidence Act requirements, outline Treasury’s implementation approach, and raise awareness of 

existing Treasury research capabilities. 

Treasury is taking the following approach to implementing the evidence-building requirements 

in Title I of the Evidence Act: 

 Treasury will use the SOAR as a primary means of gathering relevant policy questions to 

create an “enterprise learning agenda.” In the 2019 SOAR, Treasury leaders cleared 1-3 

policy questions for each of the Department’s 17 strategic objectives. 

 Treasury will engage with MITRE as the agency’s Federally Funded Research Development 

Center to align MITRE’s annual research budget more closely with Treasury’s research 

priorities. 

OSPPI’s next steps for 2020, in partnership with key stakeholders, include: 

 Lead the Treasury/MITRE strategic research coordination team to identify shared research 

priorities and the means to pursue them. 

 Work closely with IRS to integrate their research activities into Treasury’s overall plans. 

 Leverage the 2020 SOAR to create Treasury’s initial learning agenda and evaluation plan. 

 Identify low-cost ways to build evidence to address the research questions (e.g., developing 

and sharing literature reviews for each question). 

 Conduct an evidence-building capacity assessment and determine a public comment process 

for Treasury’s learning agenda as required by OMB. 
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Treasury also began developing a data governance framework approximately a year prior to the 

enactment of the Evidence Act, pursuant to Title II requirements. At that time the Treasury 

Deputy Chief Financial Officer began a Data Governance and Analytics project designed to 

identify a data governance structure, develop standards, and increase the department’s analytic 

capabilities through infrastructure and visualization improvements. After enactment of the 

Evidence Act, the Executive Steering Committee, which already included the Deputy Chief 

Financial Officer, the Chief Information Officer, and OSPPI, was expanded to include 

Treasury’s designated Statistical Official and the Deputy Assistant Secretary for Privacy, 

Transparency, and Records. Currently, this group is developing recommendations for the 

mission and goals of the Data Governance Body, along with recommendations for initial broader 

membership of the Data Governance Body. 

Section III – Additional Information 

A – Summary of Capital Investments 

A summary of capital investment resources, including major information technology and nontechnology investments can be found at: 

https://www.treasury.gov/about/budget-performance/Pages/summary-of-capitalinvestments.aspx