Department of the Treasury

Office of Financial Stability

Congressional Budget

Justification and Annual 

Performance Plan and Report

FY 2024
Table of Contents

Section I – Budget Request........................................................................................................... 2

A – Mission Statement................................................................................................................ 2

1.1 - Program Account Summary ............................................................................................... 2

1.2 – Financing Account Summary (1.2 Credit)......................................................................... 3

1.3 – Program Disbursement, Repayments, and Cost/Savings................................................... 3

B – Vision, Priorities and Context.............................................................................................. 3

C – Credit Reform Account Description .................................................................................... 4

1.4 – Budget Adjustments Table................................................................................................. 5

D – Budget Increases and Decreases Description....................................................................... 5

1.5 – Object Classification (Schedule O) Obligations................................................................ 6

E – Appropriations Language and Explanation of Changes....................................................... 6

Section II – Annual Performance Plan and Report................................................................... 7

A – Strategic Alignment ............................................................................................................. 7

B – Budget and Performance by Budget Activity ...................................................................... 8

C – Operational Goals................................................................................................................. 8

Section III – Additional Information ........................................................................................ 10

A – Summary of Capital Investments....................................................................................... 10
OFS - 2

Section I – Budget Request

A – Mission Statement

A central part of the response to the 2008 financial crisis was the implementation of the Troubled 

Asset Relief Program (TARP), which was established in the fall of 2008 under the Emergency 

Economic Stabilization Act of 2008 (EESA) (P.L. 110-343) within the Office of Domestic 

Finance at the U.S. Department of the Treasury (Treasury). TARP was created to restore the 

liquidity and stability of the financial system, and it is administered by the Office of Financial 

Stability (OFS).

Since late 2010, OFS has made significant progress in winding down TARP investment 

programs and in recovering OFS’s outstanding investments. OFS continues to operate a housing 

program under TARP to help struggling families avoid foreclosure, but in fiscal year (FY) 2016 

began to wind-down the largest TARP housing program. As of November 30, 2021, OFS has 

recovered more than 96 percent of the $443.1 billion in total program funds disbursed under 

TARP, as well as an additional $17.6 billion from Treasury’s equity in American International 

Group, Inc. (AIG). 

1.1 - Program Account Summary

Dollars in Thousands

FY 2022 FY 2023 FY 2024 FY 2023 to FY 2024

Actual Estimated Estimated Change % Change

AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT

Obligations

Equity Program Account 12,334 0 0 0 0

Housing Account 0 0 0 0 0

TARP Direct Program Account 0 0 0 0 0

TARP Administrative Account 35,614 34,412 9,916 (24,496) -71%

TARP Negative Downward Reestimate 

Receipt Account (3,568) 0 0 0 0

Total Obligations $44,380 $34,412 $9,916 ($24,496) -71%

Budget Authority 

Equity Program Account 12,334 0 0 0 0

Housing Account 0 0 0 0 0

TARP Direct Program Account 0 0 0 0 0

TARP Administrative Account 37,639 34,412 9,916 (24,496) -71%

TARP Negative Downward Reestimate 

Receipt Account (3,568) 0 0 0 0

Total Budget Authority $46,405 $34,412 $9,916 ($24,496) -71%

Outlays

Equity Program Account 12,334 0 0 0 0

Housing Account 209,544 132,000 0 (132,000) -100%

TARP Direct Program Account 0 0 0 0 0

TARP Administrative Account 33,634 34,412 9,916 (24,496) -71%

TARP Negative Downward Reestimate 

Receipt Account (3,568) 0 0 0 0

Total Outlays $251,944 $166,412 $9,916 ($156,496) -94%

Total Full-time Equivalents (FTE) 7 5 1 -4 -80%
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1.2 – Financing Account Summary (1.2 Credit)

Dollars in Thousands

FY 2022 FY 2023 FY 2024 FY 2023 to FY 2024

Actual Estimated Estimated $ Change % Change

AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT

TARP Direct Loans

Obligations 2,822 0 0 0 0

Collections 0 0 0 0 0

Financing Authority (net) 0 0 0 0 0

Financing Disbursements (net) (2,822) 0 0 0 0

Equity Purchases

Obligations 424 0 0 0 0

Collections 13,169 4,000 0 0 0

Financing Authority (net) (12,228) 0 0 0 0

Financing Disbursements (net) (12,745) (4,000) 0 0 0

Housing

Obligations 639,358 0 0 0 0

Collections 34,568 0 0 0 0

Financing Authority (net) 0 0 0 0 0

Financing Disbursements (net) (604,790) 0 0 0 0

1.3 – Program Disbursement, Repayments, and Cost/Savings

Dollars in Billions

Cumulative 

Obligated 

(as of 

11/30/2022)

Cumulative 

Disbursed

(as of 

11/30/2022)

Cumulative 

Outstanding 

(as of 

11/30/2022)

Total 

Cumulative 

Income 

(as of 

11/30/2022)

Total Cash 

Back (as of 

11/30/2022)

Total 

Estimated 

Life Costs 

(as of 

11/30/2022)

Bank Support Programs 250.5 245.1 0.0 35.7 275.6 (24.2)

Credit Market Programs 19.1 19.1 0.0 4.5 23.6 (3.3)

AIG Investment Program (AIG) 67.8 67.8 0.0 1.0 55.3 15.2 

Automotive Industry Financing Program 79.7 79.7 0.0 7.5 70.6 12.1 

Treasury Housing Programs 32.6 31.7 0.0 0.0 0.0 32.4 

Total 449.6 443.4 0.0 48.7 425.1 32.1 

Additional AIG Common Shares Held by 

Treasury 0.0 0.0 0.0 17.6 17.6 (17.6)

Total for Programs and Shares 449.6 443.4 0.0 66.3 442.7 14.5 

*Includes Realized Losses

B – Vision, Priorities and Context

TARP was created by EESA in October 2008 as part of a broad-based federal response to the 

financial crisis. The purposes of EESA were —

(1) to immediately provide authority and facilities that the Secretary of the Treasury could use to 

restore liquidity and stability to the financial system of the United States; and

(2) to ensure that such authority and facilities were provided in a manner that would —

(A) protect home values, college funds, retirement accounts, and life savings;

(B) preserve homeownership and promote jobs and economic growth;

(C) maximize overall returns to the taxpayers of the United States; and

(D) provide public accountability for the exercise of such authority.

EESA vested authority in the Secretary of the Treasury to “purchase, and to make and fund 

commitments to purchase, troubled assets from any financial institution, on such terms and 
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conditions as are determined by the Secretary.” This program supports Treasury’s goal of 

financial stewardship.

As a result of improved financial conditions and careful stewardship of the program, the ultimate 

cost to taxpayers of TARP investments is estimated to be significantly lower than initially 

expected. In FY 2009, the program was projected to cost $341 billion, but as of 

November 30, 2022, it is estimated to cost only $32.1 billion (of which $-0.3 billion relates to 

investments and $32.4 billion relates to housing programs that do not require repayments by 

recipients). Lifetime costs are projected to be $14.5 billion with the inclusion of receipts from 

Treasury’s sale of additional AIG common stock.

During FY 2023, OFS’s priority is to continue the responsible wind-down of all TARP 

programs. OFS is expected to complete its wind-down in FY 2024.

OFS Administrative Expenses

The authority for OFS’s administrative funding is provided in section 118 of EESA. In 

FY 2023, OFS plans to obligate just over $34 million and use no more than 5 Full-Time 

Equivalent (FTE) employees. In FY 2024, OFS plans to obligate $10 million and use no more 

than 1 FTE employee, a reduction of over 68% and 80%, respectively, from the current FY 2023 

estimates, to fund the management, maintenance and continued wind-down of the TARP housing 

programs and the disposition of OFS’s remaining investments. 

C – Credit Reform Account Description

Section 123 of EESA requires the cost of TARP programs to be calculated using the methods 

required by the Federal Credit Reform Act of 1990 (“credit reform”). In addition to the OFS 

Administrative Account, the organization manages six accounts to comply with the credit reform 

accounting requirements: (1) the TARP Equity Purchase Program Account; (2) the TARP Equity 

Purchase Financing Account (EPFA); (3) the TARP Housing Programs Account; (4) the TARP 

Housing Programs, Letter of Credit (LOC) Financing Account; (5) the TARP Program Account; 

and (6) the TARP Direct Loan Financing Account (DLFA).

Account Descriptions

TARP Equity Purchase Program Account: The TARP Equity Purchase Program Account 

records the subsidy costs (cost to the government) associated with federal equity injections into 

qualifying financial institutions. Subsidy costs are calculated on a net present value basis.

TARP Equity Purchase Financing Account: The TARP Equity Purchase Financing Account is a 

non-budgetary account that records all financial transactions to and from the government 

resulting from equity purchases. The EPFA primarily tracks each cohort year’s purchase activity 

(dividend payments, the exercise of warrants, Treasury borrowings, interest paid to or received 

from Treasury, etc.) and is not included in the budget totals when calculating total government 

spending.

TARP Housing Programs Account: The TARP Housing Programs Account records the subsidy 

costs and cash outlays associated with Treasury’s housing programs under TARP. The Making 

Home Affordable (MHA) and Hardest Hit Fund (HHF) housing programs are recorded on a cash 
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basis, and the Federal Housing Administration (FHA) Short-Refinance Program is subject to 

credit reform accounting requirements, whereby its subsidy cost is calculated on a net present 

value basis.

TARP Housing Programs, LOC Financing Account: The TARP Housing Programs, LOC 

Financing Account is a non-budgetary account that records all financial transactions to and from 

the government resulting from OFS’s FHA Short-Refinance Program. Like other financing 

accounts, its primary purpose is the financial tracking of each cohort year’s loan activity. It is 

not included in the budget totals.

TARP Program Account: The TARP Program Account records the subsidy costs associated with 

direct loans obligated to qualifying institutions. Subsidy costs are calculated on a net present 

value basis.

TARP Direct Loan Financing Account: The TARP Direct Loan Financing Account is a nonbudgetary account that records all financial transactions to and from the government resulting 

from direct loans. Like EPFA, its primary purpose is the financial tracking of each cohort year’s 

loan activity. It is not included in the budget totals.

OFS Administrative Account: This account provides for the administrative costs of OFS.

1.4 – Budget Adjustments Table

Dollars in Thousands

FTE Amount

FY 2023 Estimated 5 $34,412 

Changes to Base:

Maintaining Current Levels (MCLs): - $794 

Pay Annualization (4.6% average pay 

raise) - $22 

Pay Raise (4.0% average pay raise) - $58 

Non-Pay - $714 

Subtotal Changes to Base 0 $794 

FY 2024 Current Services 5 $35,206 

Program Changes:

Program Decreases: (4) ($25,290)

Housing Program Support 0 ($18,000)

OFS Salaries and Benefits (4) ($4,296)

Organizational Support 0 ($2,994)

FY 2024 Estimated 1 $9,916 

D – Budget Increases and Decreases Description

Maintaining Current Levels (MCLs) ..........................................................+$794,000 / +0 FTE

Pay Annualization (4.6%) +$22,000 / +0 FTE

Funds are required for annualization of the January 2023 pay raise.

Pay-Raise (5.2% in 2024) +$58,000 / +0 FTE 

Funds are required for a 5.2 percent average pay raise in January 2024.
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Non-Pay +$714,000 / +0 FTE

Funds are required for non-labor costs such as travel, contracts, rent, supplies, and equipment.

Program Decreases ....................................................................................-$22,900,000 / -4 FTE

Housing Program Support -$18,000,000 / -0 FTE 

Administrative and compliance functions will continue to wind-down during FY 2023 and over 

time as programs close and no new assistance actions are provided and commitments are paid. 

The accelerated wind-down of the MHA program will result in significant cost savings as 

Financial Agency Agreements with the custodial bank, program administrator, and compliance 

agent terminate. 

OFS Salaries and Benefits -$1,296,000 / -4 FTE 

Savings resulted from natural attrition and expiration of term appointments due to the winddown of various TARP programs.

Organizational Support -$2,994,000/ -0 FTE 

Administrative costs associated with managing OFS’s portfolio will decline over time as TARP 

winds down. However, many duties and responsibilities will remain and are not directly 

correlated to the volume of assets held by OFS. Many of these organizational support functions 

will be run in-house and relate to legislative and oversight-mandated reporting functions, as well 

as the management and maintenance of TARP’s housing programs.

1.5 – Object Classification (Schedule O) Obligations

Dollars in Thousands

FY 2022 FY 2023 FY 2024

Object Classification Actual Obligations

Estimated 

Obligations

Estimated 

Obligations

11.1 - Full-time permanent 990 1,250 225 

11.5 - Other personnel compensation 26 35 6 

11.9 - Personnel Compensation (Total) 1,016 1,285 231 

12.0 - Personnel benefits 330 310 68 

Total Personnel and Compensation Benefits $1,346 $1,595 $299 

21.0 - Travel and transportation of persons 0 5 5 

23.3 - Communication, utilities, and misc charges 0 1 1 

25.1 - Advisory and assistance services 4,827 2,800 1,600 

25.2 - Other services 24,594 24,000 0 

25.3 - Other purchases of goods & serv frm Govt accounts 4,847 6,000 8,000 

26.0 - Supplies and materials 0 3 3 

31.0 - Equipment 0 8 8 

Total Non-Personnel $34,268 $32,817 $9,617 

Total Obligations $35,614 $34,412 $9,916 

Full-time Equivalents (FTE) 7 5 1 

*Amounts include all budgetary resources

E – Appropriations Language and Explanation of Changes

OFS does not receive discretionary appropriations from Congress. Therefore, no appropriations 

language is proposed.
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Section II – Annual Performance Plan and Report

A – Strategic Alignment

OFS’s efforts align with Treasury’s Strategic Goal 1: Promote Equitable Economic Growth and 

Recovery.

Bank Support Programs

CPP: OFS created CPP, its largest program, in October 2008. OFS provided a total of $204.9 

billion in capital to 707 institutions in 48 states. During FY 2023, OFS sold the last CPP 

investment. As of November 30, 2022, CPP has generated $226.4 billion in recoveries for 

taxpayers.

CDCI: OFS created CDCI on February 3, 2010, to provide investments of capital to certified 

Community Development Financial Institutions (CDFI) banks, thrifts, and credit unions. OFS 

invested $570 million in 84 CDFIs, of which 28 institutions converted $363 million (including 

warrants) from CPP to CDCI. As of November 30, 2022, CDCI has generated $592 million in 

recoveries for taxpayers with two institutions remaining in the program, for a total of $1 million 

in investments outstanding. OFS plans to exit the last two CDCI institutions in FY 2023.

Housing Programs

OFS established several TARP housing programs, assisting millions of homeowners and 

introducing reforms for the mortgage servicing industry to facilitate mortgage modifications.

MHA: In 2009, OFS launched MHA to help homeowners prevent avoidable foreclosures and 

strengthen the housing market. The cornerstone of MHA is the Home Affordable Modification 

Program (HAMP), which provides eligible homeowners the opportunity to reduce their monthly 

mortgage payments. In accordance with provisions of the Consolidated Appropriations Act, 

2016 (the Act), MHA terminated on December 31, 2016, except with respect to certain 

applications made before such date. MHA servicers were required to design policies and 

procedures to reasonably ensure that all MHA transactions were completed by December 1, 

2017. As of November 30, 2022, OFS had disbursed $22.2 billion out of a possible $22.9 billion 

under MHA. The MHA program end date was accelerated from December 29, 2023 to April 28, 

2023, with a final disbursement date of March 27, 2023. 

HHF: Established in 2010 to provide aid to homeowners in states hit hardest by the economic 

and housing market downturn. The $7.6 billion initiative encompassed 18 states and the District 

of Columbia (DC). In December 2015, the Act granted Treasury authority to make an additional 

$2.0 billion in commitments through the HHF. OFS disbursed $9.5 billion out of a possible $9.6 

billion under HHF. As of March 31, 2022, the HHF program has ended.

FHA Short-Refinance Program: OFS continues to support the FHA Short-Refinance Program, 

which was intended to assist borrowers with negative equity. The program has seen limited 

participation. As such, OFS has incrementally reduced the LOC Facility supporting this program 

from an initial $8.0 billion to $27 million in FY 2017, which matches OFS’s maximum liability 

for loans covered by the program as of December 31, 2016, when the program ended for new 

refinances. As of November 30, 2022, the revised lifetime cost estimate for the program was 
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$13 million for outstanding refinanced loans. The FHA program will end on December 31, 

2022.

Other Programs

Automotive Industry Financing Program (AIFP): OFS fully wound down AIFP during FY 2015. 

OFS disbursed $79.7 billion in loans and equity investments to the automotive industry through 

the AIFP. As of November 30, 2021, OFS had collected $70.6 billion through sales, repayments, 

dividends, interest, recoveries, and other income. Recoveries from the bankruptcy liquidation of 

Old Chrysler and Old GM remain possible, but are not anticipated. 

All other TARP programs closed prior to FY 2016, including the Targeted Investment Program, 

Asset Guarantee Program, Public-Private Investment Program, Term Asset-Backed Securities 

Loan Facility, Small Business Administration 7(a) Securities Purchase Program, and AIG

Investment Program.

B – Budget and Performance by Budget Activity

FY 2018 FY 2019 FY 2020 FY 2021 FY 

2022

FY 2022 FY 2023 FY 2024

Performance Measure Actual Actual Actual Actual Actual Target Target Target

Clean Audit Opinion on TARP Financial 

Statements (ensure transparency of 

operations to the public)

1 1 1 1 1 1 1 1

Percentage of Congressional Constituent 

Correspondence Responses Completed 

within 10 Business Days of Receipt

100 93.8 100 100 100 100 100 100

Percentage of FOIA Assignments OnTime or Less Than 30-Days Overdue 

(ensure transparency within the 

government)

85 97.5 100 80 80 80 80 80

Percentage of SIGTARP and GAO 

Oversight Recommendations Responded 

to On-Time (ensure transparency of 

operations to the public)

100 99.5 100 100 100 100 100 100

Percentage of Statutorily Mandated 

Reports Submitted On-Time (ensure 

transparency of operations to the public)

100 100 100 100 100 100 100 100

The authority for OFS’s administrative funding is provided in section 118 of EESA. The 

administrative budget consists primarily of contracting and financial agent support costs 

associated with OFS’s ongoing implementation and management of the TARP housing programs 

and the management and disposition of OFS’s remaining investments. In addition, continuing 

organizational support, including information technology, facilities, legal, compliance, 

accounting, and human resources, will be needed to manage and wind-down these ongoing 

initiatives. OFS’s senior management is responsible for performance on its operational goals.

C – Operational Goals

OFS’s strategic goal is promoting equitable economic growth and recovery and the request will 

support the underlying operational goals to help OFS achieve this strategic goal. These 

operational goals include: 

Completing the wind-down of remaining TARP investment programs;

1. Continuing to help struggling homeowners avoid foreclosure;
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2. Minimizing the cost of the TARP programs to the taxpayer; and

3. Operating with the highest standards of transparency, accountability, and integrity.

Completing the wind-down of remaining TARP investment programs

The first Operational Goal is to complete the wind-down of the remaining TARP investment 

program (CDCI). OFS will exit CDCI by either: (i) allowing banks that are able to repurchase in 

full in the near future to do so; or (ii) restructuring and selling OFS’s investments in limited 

cases. OFS continues to work with the remaining CDCI institution to exit TARP. As of 

November 30, 2022, OFS had $1 million in outstanding CDCI investments.

Continuing to help struggling homeowners avoid foreclosure

OFS’s second Operational Goal is to continue helping struggling homeowners avoid foreclosure. 

The Act, signed into law on December 18, 2015, provided that the MHA program would 

terminate on December 31, 2016, except with respect to certain loan modification applications 

made before such date. As set forth in program guidelines, MHA servicers were required to 

evaluate applications submitted before the deadline and offer trial modifications to eligible 

applicants. All MHA transactions, including first and second lien permanent modifications, 

short sales or deeds-in-lieu of foreclosure, and unemployment forbearance plans, were required 

to be completed per program guidelines by December 1, 2017. Under this program, as of 

November 30, 2021, more than 1.7 million homeowners have secured permanent mortgage 

modifications. In addition, the HHF Program provided funding to 18 states and DC to assist 

struggling homeowners. The HHF program has disbursed approximately $9.5 billion in total 

program and administrative funds, and HFAs have drawn approximately $9.5 billion to prevent 

avoidable foreclosures and help stabilize neighborhoods. Based on information provided by the 

HFAs, all states were fully closed by the end of March 2022, including having completed final 

compliance reviews and returning any unused funds to Treasury. 

Minimizing the cost of the TARP programs to the taxpayer

The third Operational Goal of OFS is to minimize the cost of the TARP programs to the 

taxpayer. OFS pursues this goal by carefully managing the timely exit of these investments to 

reduce taxpayers’ exposure, returning TARP funds to reduce the federal debt, and continuing to 

replace government assistance with private capital in the financial system. OFS also takes steps 

to confirm that TARP recipients comply with any TARP-related statutory or contractual 

obligations such as executive compensation requirements and restrictions on dividend payments.

Operating with the highest standards of transparency, accountability, and integrity

OFS’s final Operational Goal is to continue to operate with the highest standards of 

transparency, accountability, and integrity. OFS posts a variety of reports online that provide 

taxpayers with regular and comprehensive information about how TARP funds are spent, who 

received them and on what terms, and how much has been recovered to date. OFS also publishes 

the annual audited Agency Financial Report and continues to maintain productive working 

relationships with the three oversight bodies charged with auditing and reviewing TARP 

activities.
OFS - 10

Section III – Additional Information

A – Summary of Capital Investments

OFS uses Departmental Offices (DO) systems and is part of DO’s capital investment strategy.

A summary of capital investments, including major information technology and non-technology 

investments, can be accessed at

https://home.treasury.gov/about/budget-financial-reporting-planning-and-performance/budgetrequestannual-performance-plan-and-reports/summary-of-capital-investments.