U.S. Department of the Treasury

FY 2021 Budget in Brief

Summary of FY 2021 President’s Budget

Executive Summary.........................................................................................................................1

Summary Tables and Charts

FY 2021 President’s Budget Discretionary Appropriations Request ...........................................1

Fiscal Year Comparison of Full-Time Equivalent (FTE) Staffing ...............................................4

FY 2021 President’s Budget by Strategic Goal ............................................................................5

Summary of FY 2021 Increases and Decreases............................................................................6

Appropriated Accounts – Bureau Program Detail

Departmental Offices Salaries and Expenses ..................................................................................7

Cybersecurity Enhancement Account............................................................................................15

Treasury Capital Investments and Modernization Fund................................................................21

Terrorism and Financial Intelligence .............................................................................................25

Committee on Foreign Investment in the US (CFIUS) .................................................................31

Office of Inspector General ...........................................................................................................35

Special Inspector General for TARP .............................................................................................41

Treasury Inspector General for Tax Administration......................................................................49

Community Development Financial Institutions Fund..................................................................53

Financial Crimes Enforcement Network .......................................................................................57

Alcohol and Tobacco Tax and Trade Bureau ................................................................................63

Bureau of the Fiscal Service ..........................................................................................................71

United States Secret Service ..........................................................................................................79

Internal Revenue Service ...............................................................................................................83

Non-Appropriated Accounts – Bureau Program Detail

Office of Financial Stability...........................................................................................................93

Office of Financial Research... .....................................................................................................97

Financial Stability Oversight Council.........................................................................................101

Treasury Forfeiture Fund .............................................................................................................105

Bureau of Engraving and Printing ...............................................................................................109

United States Mint .......................................................................................................................115

Office of the Comptroller of the Currency ..................................................................................121

Treasury Franchise Fund .............................................................................................................125

Treasury International Programs

International Programs.................................................................................................................131

Supplemental Information

Summary of FY 2021 Appropriations Language.........................................................................135

Mandatory Funding Levels for the FY 2021 President’s Budget – Treasury Chapter................149

Total Treasury Department Mandatory Funding .........................................................................150

The information presented in the FY 2021 Budget in Brief is accurate and complete as of 

February 10, 2020. Any updates will be reflected in the budget available on the Department of 

the Treasury website, www.Treasury.gov.

FY 2021 EXECUTIVE SUMMARY

FY 2021 President’s Budget Discretionary Appropriation Request

Dollars in Thousands

FY 2019 Enacted 

(post IRS 

transfer)

FY 2020 

Enacted

FY 2020 Enacted 

(post IRS 

transfer)

FY 2021 

President's 

Budget

Management & Financial $1,458,758 $1,538,377 $1,538,377 $1,300,909 

Departmental Offices Salaries and Expenses $214,576 $228,373 $228,373 $241,473 

Post-transfer Oversight of USSS (non-add) $0 $0 $0 $1,500 

Committee on Foreign Investment in the United States (CFIUS) Fund $0 $20,000 $20,000 $20,000 

CFIUS Fees $0 ($10,000) ($10,000) ($20,000)

Subtotal CFIUS Fund (non add)1 $0 $10,000 $10,000 $0 

Office of Terrorism and Financial Intelligence $159,000 $169,712 $169,712 $172,751 

Cybersecurity Enhancement Account $25,208 $18,000 $18,000 $18,000 

Treasury Capital Investments and Modernization Fund2 $4,000 $6,118 $6,118 $13,500 

Office of Inspector General $37,044 $41,044 $41,044 $39,335 

Treasury Inspector General for Tax Administration $170,250 $170,250 $170,250 $171,350 

Special Inspector General for TARP $23,000 $22,000 $22,000 $17,500 

Community Development Financial Institutions Fund $250,000 $262,000 $262,000 $14,000 

Financial Crimes Enforcement Network $117,800 $126,000 $126,000 $126,963 

Alcohol and Tobacco Tax and Trade Bureau $119,600 $119,600 $119,600 $125,837 

Bureau of the Fiscal Service $338,280 $340,280 $340,280 $350,200 

Digitization of Unredeemed Matured Savings Bonds Records $0 $25,000 $25,000 $10,000 

Tax Administration3

Taxpayer Services $2,491,554 $2,511,554 $2,535,554 $2,562,554 

Enforcement $4,665,600 $5,010,000 $4,909,500 $5,071,260 

Operations Support $3,918,400 $3,808,500 $3,885,000 $4,104,689 

Subtotal $11,075,554 $11,330,054 $11,330,054 $11,738,503 

Business Systems Modernization $150,000 $180,000 $180,000 $300,000 

Tax Reform Implementation $77,000 $0 $0 $0 

IRS Total Excluding Cap Adjustment $11,302,554 $11,510,054 $11,510,054 $12,038,503 

Cap Adjustment $0 $0 $0 $400,000 

IRS Total, Including Cap Adjustment $11,302,554 $11,510,054 $11,510,054 $12,438,503 

Subtotal, Treasury Appropriations excluding U.S. Secret Service and Cap 

Adjustment4 $12,761,312 $13,048,431 $13,048,431 $13,339,412 

United States Secret Service 5 $2,248,159 $2,415,845 $2,415,845 $2,360,538 

Operations and Support $2,148,528 $2,336,401 $2,336,401 $2,310,296 

Procurement, Construction & Improvements $97,131 $66,989 $66,989 $38,305 

Research and Development $2,500 $12,455 $12,455 $11,937 

Subtotal, Treasury including U.S. Secret Service and excluding Cap 

Adjustment6 $15,009,471 $15,464,276 $15,464,276 $15,699,950 

Treasury International Programs $1,547,697 $1,736,780 $1,736,780 $1,592,244 

Multilateral Development Banks $1,348,122 $1,522,205 $1,522,205 $1,481,244 

Food Security $30,000 $30,000 $30,000 $0 

Environmental Trust Funds $139,575 $139,575 $139,575 $0 

Office of Technical Assistance $30,000 $30,000 $30,000 $33,000 

Debt Restructuring - Tropical Forest Conservation Act $0 $15,000 $15,000 $0 

Somalia - Bilateral Debt Relief $0 $0 $0 $78,000 

Total, Treasury excluding Cap Adjustment $16,557,168 $17,201,056 $17,201,056 $17,292,194 

Total, Treasury $16,557,168 $17,201,056 $17,201,056 $17,692,194 

6/ U.S. Secret Service appropriations are included in the subtotals for FY 2019 and FY 2020 for comparison purposes, but were not included in Treasury’s enacted 

appropriations in those years.

5/ The FY 2021 President's Budget assumes the transfer of U.S. Secret Service to Treasury in FY 2021. FY 2019 and FY 2020 enacted amounts exclude 

rescissions and administrative adjustments ($5.7M in FY 2019/$.7M in FY 2020).

4/ Treasury’s enacted appropriation in FY 2019 was $12,561 million, after a $200 million rescission from the Treasury Forfeiture Fund.

1/ The overall request for Treasury's CFIUS costs is $35 million, which includes $15 million from the CFIUS Fund and $20 million from Departmental Offices Salaries 

and Expenses.

3/ FY 2020 Enacted (post IRS transfer) includes a proposed transfer of $100.5 million from Enforcement to Taxpayer Services ($24 million) and Operations Support 

($76.5 million). FY 2019 Enacted (post IRS transfer) includes a transfer of $194 million from Enforcement to Operations Support. $77 million for implementation of 

the Tax Cuts and Jobs Act was allocated to Taxpayer Services ($65 million) and Enforcement ($12 million).

2/ Previously known as the Department-wide Systems and Capital Investments Program.

Department of the Treasury - Budget in Brief 1
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; strengthen national security by 

combating threats and protecting the integrity of the financial system; and manage the U.S. 

Government’s finances and resources effectively.

OVERVIEW OF REQUEST

The Budget requests $15.7 billion in base discretionary resources for the Department of the 

Treasury’s domestic programs, a $236 million or 1.5 percent increase from the FY 2020 enacted 

level. Excluding the United States Secret Service, Treasury requests $13.3 billion in base 

discretionary resources, a $291 million or 2.2 percent increase from FY 2020 enacted levels. It 

also requests $1.6 billion for Treasury’s international programs, a $145 million or 8.3 percent 

decrease from the FY 2020 enacted level. The Budget:

 Proposes to transfer of the United States Secret Service (USSS) from the Department of

Homeland Security to Treasury as a standalone bureau. The request provides USSS with

$2.36 billion in base discretionary resources to support the 2020 Presidential election through

inauguration, continue growth in staff to meet mission expansion, and advanced

countermeasures to address established and evolving threats.

 Provides the IRS with $12.0 billion from base discretionary appropriations to collect $3.6

trillion in revenue, process more than 255 million tax returns, and continue to transform

systems to improve taxpayer service and experience and tax administration over the longterm.

o The request provides $300 million for multi-year modernization efforts to deliver longterm, systemic transformation of service and compliance for millions of taxpayers,

small businesses, and corporations, as well as put IT operations and maintenance costs

on a sustainable path. The IRS will continue developing a case management solution to

replace 60 legacy systems, new digital service options including electronic notices and

live chat assistance, and new web applications to streamline taxpayer filing, payment,

and authentication.

o The request proposes $106 million for Taxpayer First Act implementation to revamp

IRS customer service, introduce new taxpayer protections, and deliver new online

service platforms to facilitate filing and payment.

o The request includes $5.1 billion in the enforcement account to continue building

compliance staffing and protect billions of dollars in revenue. The IRS is one of the

best investments in the federal government with an overall return on investment of $5

for every $1 invested, not including significant deterrence effects. Every dollar

invested in enforcement requires a funding increase in operations support for

technology and administrative costs.

o In addition to the amounts above, the request includes a program integrity initiative that

will generate approximately $79 billion in additional revenue and will cost

approximately $15 billion, yielding estimated net savings of $64 billion over ten years.

 Provides $241 million for Treasury Departmental Offices (including $20 million for the

Committee on Foreign Investment in the United States) growing workload with funding

increases to continue strengthening cybersecurity in the financial services sector, provide

Department of the Treasury - Budget in Brief 2
impact analysis for tax regulations, and enhance and broaden Treasury’s evidence-based 

decision making and program evaluation. Contingent on the transfer of USSS to Treasury, 

the request includes $1.5 million for departmental oversight. 

 Provides $173 million for Treasury’s Office of Terrorism and Financial Intelligence (TFI), a

$3 million increase over the FY 2020 enacted level; and $127 million for the Financial

Crimes Enforcement Network (FinCEN), a $1 million increase over the FY 2020 enacted

level. These increases will allow TFI and FinCEN to continue their critical work

safeguarding the financial system from abuse and combating other national security threats

using non-kinetic economic tools. These additional resources will be deployed to bolster data

analytic and cybercrime enforcement capabilities, fortify Bank Secrecy Act data, and counter

the financial networks that support terrorists, organized transnational crime, weapons of mass

destruction proliferators, and other threats.

 Proposes to transfer all alcohol and tobacco responsibilities from the Department of Justice’s

Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) to Treasury’s Alcohol and

Tobacco Tax and Trade Bureau (TTB). This transfer would leverage TTB’s resources and

expertise relating to the alcohol and tobacco industries and allow ATF to continue to focus

on its firearms and explosives mandates, enabling both agencies to more efficiently and

effectively carry out their core missions of protecting the public.

 Provides $1.6 billion for Treasury’s International Programs to support U.S. leadership in the

International Financial Institutions. The budget proposes to extend and increase the IMF

New Arrangements to Borrow, which preserves U.S. control over the activation of

emergency IMF resources and reflects progress on a variety of institutional reforms at the

IMF. In addition, it provides for critical investments to safeguard U.S. leadership in the

Multilateral Development Banks (MDBs) while continuing to press for necessary reforms.

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. The request seeks authorization and

funding for U.S. participation in an African Development Bank capital increase as well as

new pledges to the World Bank’s International Development Association and the African

Development Fund. It also includes authorization to vote in favor of a capital increase at the

International Finance Corporation, which will not require any U.S. funding. The budget

proposes $33 million for Treasury’s Office of Technical Assistance and $78 million for U.S.

debt relief as part of the Heavily Indebted Poor Countries (HIPC) debt relief process for

Somalia.

 Proposes to impose appropriate Congressional oversight of the Treasury Financial Stability

Oversight Council and Office of Financial Research (OFR) by subjecting their activities to

the normal appropriations process. The Budget continues the reduced level of OFR spending

commensurate with the renewed fiscal discipline being applied across the Federal

Government.

Department of the Treasury - Budget in Brief 3
Fiscal Year Comparison of Full-Time Equivalent (FTE) Staffing (Direct and Reimbursable)

Department of the Treasury - Budget in Brief 4
(Dollars in Thousands)

Treasury Goal/Objective Boost U.S. Economic 

Growth

Promote Financial 

Stability

Enhance National 

Security

Transform 

Government-wide 

Financial 

Stewardship

Achieve Operational 

Excellence Total

Management & Financial $392,778 $38,250 $348,652 $439,872 $81,358 $1,300,909 

Departmental Offices Salaries and Expenses $82,991 $38,250 $48,938 $21,437 $49,858 $241,473 

Committee on Foreign Investment in the United States Fund1 $20,000 $20,000 

CFIUS Fees ($20,000) ($20,000)

Office of Terrorism and Financial Intelligence $172,751 $172,751 

Cybersecurity Enhancement Account $18,000 $18,000 

Treasury Capital Investments and Modernization Fund2 $13,500 $13,500 

Office of Inspector General $39,335 $39,335 

Treasury Inspector General for Tax Administration $171,350 $171,350 

Special Inspector General for TARP $17,500 $17,500 

Community Development Financial Institutions Fund $12,600 $1,400 $14,000 

Financial Crimes Enforcement Network $126,963 $126,963 

Alcohol and Tobacco Tax and Trade Bureau $125,837 $125,837 

Bureau of the Fiscal Service3 $360,200 $360,200 

Tax Administration $12,038,503 $12,038,503 

IRS Taxpayer Services $2,562,554 $2,562,554 

IRS Enforcement $5,071,260 $5,071,260 

IRS Operations Support $4,104,689 $4,104,689 

Business Systems Modernization $300,000 $300,000 

IRS Cap Adjustment 4 $400,000 $400,000 

IRS Total, Including Cap Adjustment $12,438,503 $0 $0 $0 $0 $12,438,503 

Subtotal, Treasury Appropriations excluding U.S. Secret Service and Cap Adjustment $12,431,281 $38,250 $348,652 $439,872 $81,358 $13,339,412 

United States Secret Service 5 $688,943 $0 $1,126,932 $0 $544,663 $2,360,538 

Operations and Support $688,943 $1,114,995 $506,358 $2,310,296 

Procurement, Construction & Improvements $38,305 $38,305 

Research and Development $11,937 $11,937 

Subtotal, Treasury including U.S. Secret Service and excluding Cap Adjustment $13,120,224 $38,250 $1,475,584 $439,872 $626,021 $15,699,950 

Treasury International Programs $33,000 $1,559,244 $1,592,244 

Total, Treasury excluding Cap Adjustment $13,120,224 $71,250 $1,475,584 $1,999,116 $626,021 $17,292,194 

Non-Appropriated Accounts

Office of Financial Stability (Administrative Account) $42,154 $42,154 

Terrorism Risk Insurance (Administrative) $3,000 $3,000 

Financial Stability Oversight Council $5,220 $5,220 $10,439 

Office of Financial Research $37,636 $37,636 $75,271 

Bureau of Engraving and Printing $888,700 $888,700 

United States Mint $2,547,197 $2,547,197 

Office of the Comptroller of the Currency $882,721 $220,680 $1,103,401 

Federal Reserve Bank $645,520 $645,520 

Reimbursable to the Federal Reserve Banks $176,799 $176,799 

Financial Agent Services $865,400 $865,400 

Total, Non-Appropriated Level $4,361,473 $263,535 $3,000 $1,729,873 $0 $6,357,881 

Grand Total $17,481,696 $334,785 $1,478,584 $3,728,989 $626,021 $23,650,075 

5/ The FY 2021 President's Budget assumes the transfer of U.S. Secret Service to Treasury in FY 2021.

4/ The FY 2021 budget includes a program integrity cap adjustment of $400 million (Enforcement $280 million, Operations Support $120 million).

1/ The overall request for Treasury's CFIUS costs is $35 million, which includes $15 million from the CFIUS Fund and $20 million from Departmental Offices Salaries and Expenses.

2/ Previously known as the Department-wide Systems and Capital Investments Program.

3/ The FY 2020 Enacted levels include $25M , available until expended, for Matured Unredeemed Debt. 

FY 2021 President’s Budget by Strategic Goal

Department of the Treasury - Budget in Brief 5
DO

1 CFIUS

2 TFI Cyber TCIMF

3 OIG TIGTA SIGTARP CDFI FinCEN TTB FS

4 USSS

1

IRS Total

FY 2020 Enacted $228,373 $10,000 $169,712 $18,000 $6,118 $41,044 $170,250 $22,000 $262,000 $126,000 $119,600 $365,280 $2,415,845 $11,510,054 $15,464,276 

(MCLs)Maintaining Current Levels 

$5,472 $0 $3,983 $0 $0 $982 $4,354 $510 $641 $2,827 $2,748 $9,503 $74,701 $452,085 $557,806

Pay Annualization $1,023 $757 $237 $1,048 $117 $99 $380 $590 $1,666 $45,875 $67,757 $119,549

Pay Raise $998 $738 $231 $1,022 $115 $96 $390 $575 $1,625 $11,388 $66,080 $83,258

FERS Contribution Increase $1,100 $800 $304 $1,582 $141 $131 $524 $714 $1,901 $14,146 $100,000 $121,343 

Labor Adjustment $1,805 $162,904 $164,709 

Non-Pay $2,351 $1,688 $210 $702 $137 $315 $1,533 $869 $2,506 $3,292 $55,344 $68,947 

Non-Recurring Costs ($2,539) ($18,000) ($6,118) ($1,300) ($32,796) ($101,718) ($162,471)Efficiency Savings/Reinvestment ($1,246) ($2,716) ($9,876) ($143,795) ($157,633)

Annualization

Other Adjustment/Initiative 

$10,000 $900 ($55,660) ($44,760)

Adjustments to Base $4,226 $10,000 ($1,272) ($18,000) ($6,118) $982 $4,354 $510 $641 $1,527 $3,648 ($23,293) ($92,553) $308,290 $192,942FY 2021 Base $232,599 $20,000 $168,440 $0 $0 $42,026 $174,604 $22,510 $262,641 $127,527 $123,248 $341,987 $2,323,292 $11,818,344 $15,657,218 

Program Decreases ($2,691) ($3,254) ($5,010) ($248,641) ($2,864) ($1,500) ($115,990) ($379,950)CFIUS User Fees ($20,000) ($20,000)Increases/ReinvestmentsProgram 

$8,874 $4,311 $18,000 $13,500 $2,300 $4,089 $18,213 $153,236 $220,159 $442,682 

Subtotal, Program Changes $8,874 ($20,000) $4,311 $18,000 $13,500 ($2,691) ($3,254) ($5,010) ($248,641) ($564) $2,589 $18,213 $37,246 $220,159 $42,732 

resourcesfunded from discretionary 

FY 2021 President's Budget 

$241,473 $0 $172,751 $18,000 $13,500 $39,335 $171,350 $17,500 $14,000 $126,963 $125,837 $360,200 $2,360,538 $12,038,503 $15,699,950 

Program Integrity Cap Adjustment $400,000 $400,000adjustmentincluding program integrity cap FY 2021 President's Budget 

$241,473 $0 $172,751 $18,000 $13,500 $39,335 $171,350 $17,500 $14,000 $126,963 $125,837 $360,200 $2,360,538 $12,438,503 $16,099,950 

4/ FY 2020 non-recurring costs includes MUD adjustment; program increases include $10M for MUD .3/ Treasury Capital Investments and Modernization Fund (TCIMF) is formerly Department-wide Capital Systems Investment Programs (DSCIP).2/ CFIUS Fund enacted levels are net appropriations including user fees.1/ The FY 2021 President's Budget assumes the transfer of U.S. Secret Service to Treasury in FY 2021. $1.5 million of the Treasury-wide Management and Programs request in 2021 is contingent on legislation enacting the transfer.

(Dollars in Thousands)

Summary of FY 2021 Increases and Decreases

Department of the Treasury - Budget in Brief 6
Departmental Offices Salaries and Expenses

Program Summary by Budget Activity 

Dollars in Thousands

FY 2019 FY 2020 FY 2021 FY 2020 to FY 2021

Budget Activity Operatin

g Plan Enacted Request $ Change % Change

Executive Direction $35,407 $36,775 $37,714 $939 2.6%

International Affairs and Economic Policy $52,428 $52,825 $54,367 $1,542 2.9%

Domestic Finance and Tax Policy $72,570 $78,153 $84,506 $6,353 8.1%

Treasury-wide Management and Programs $39,171 $38,279 $40,740 $2,461 6.4%

Committee on Foreign Investment in the United States $15,000 $22,341 $24,146 $1,805 8.1%

Subtotal, DO SE $214,576 $228,373 $241,473 $13,100 5.7%

Offsetting Collections - Reimbursable $12,432 $9,071 $9,242 $171 1.9%

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

Total Program Operating Level $227,008 $252,444 $265,715 $13,271 5.3%

Direct FTE 596 703 765 62 8.8%

Reimbursable FTE 46 40 40 0 0.0%

Total Full-time Equivalents (FTE) 642 743 805 62 8.3%

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.

Summary

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 of the their 

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 of the Committee on Foreign Investment in the United States (CFIUS) Fund, 

discussed separately. 

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). 

Department of the Treasury - Budget in Brief 7
Budget Highlights

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 Analysis 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 U.S. Secret Service 7 $1,500 

FY 2021 President's Budget Request 765 $241,473 

Budget Adjustments 

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. 

Department of the Treasury - Budget in Brief 8
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 continue 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. The 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 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 request 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 

Department of the Treasury - Budget in Brief 9
proactively assess new and emerging technologies in the financial sector to identify 

vulnerabilities and mitigate any associated risks associated.

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. Develop risk 

reduction advice for the sector and improve OCCIP’s knowledge of emerging technologies. 

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 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 the Treasury and OMB in 

April 2018, Treasury agreed to create a new framework to accommodate the Executive Order 

(EO) 12866. 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 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. 

Department of the Treasury - Budget in Brief 10
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 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 

Department of the Treasury - Budget in Brief 11
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 reorganize the Department of Homeland 

Security and transfer some of its functions 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 

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. 

Department of the Treasury - Budget in Brief 12
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. 

Performance Highlights 

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Budget Activity Performance Measure Actual Actual Actual Target Target

Domestic Finance and Tax Policy

Variance Between Estimated and 

Actual Receipts (Annual Forecast) 

(%)

 

4.00 

 

2.33 

 

3.14 

 

4.25 4.25 

International Affairs and Economic 

Policy OTA - Program Engagement 4.0 3.8 3.8 3.6 3.6

Treasury-wide Management and 

Programs

Treasury-wide Leaders Lead Index 

of the Federal Employee 

Viewpoint Survey (FEVS)

56 56 58 59 60

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, the Office of Fiscal 

Projections (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 

macro-economic 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 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 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 

Department of the Treasury - Budget in Brief 13
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. 

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. 

Department of the Treasury - Budget in Brief 14
Cybersecurity Enhancement Account

Program Summary by Budget Activity 

Dollars in Thousands

 FY 2019 FY 2020 FY 2021 FY 2020 to FY 2021

Budget Activity Operating Plan Enacted Request $ Change % Change

Cybersecurity Enhancement Account $25,208 $18,000 $18,000 $0 0.00%

Total Program Operating Level $25,208 $18,000 $18,000 $0 0.00%

Direct FTE 12 11 6 (5) -45.45%

Total Full-time Equivalents (FTE) 12 11 6 (5) -45.45%

Summary

The Department’s strategic plan guides program and budget decisions for the Cybersecurity 

Enhancement Account (CEA). The FY 2021 Budget Request supports Treasury’s FY 2018-2022 

Strategic Goal: Achieve Operational Excellence.

To more proactively and strategically protect Treasury systems against cybersecurity threats, the 

FY 2021 budget requests $18.0 million for the CEA. Trillions of dollars are accounted for and 

processed by the Department of the Treasury's information technology (IT) systems, and 

therefore, they are a constant target for sophisticated threat actors. The CEA account identifies 

and supports Department-wide investments for critical IT improvements, including the systems 

identified as High Value Assets (HVAs). Furthermore, the centralization of funds allows 

Treasury to more nimbly respond in the event of a cybersecurity incident as well as leverage 

enterprise-wide services and capabilities across the Department.

By managing CEA centrally, Treasury elevates the importance of such initiatives and provides 

Treasury leadership, OMB, and Congress with better transparency into cybersecurity activities 

across the Department. Enhanced transparency also improves Department-wide coordination of 

cybersecurity efforts and improves the Department’s response and recovery capabilities. With 

high-level support, the program provides a platform to enhance efficiency, communication, 

transparency, and accountability around the mission. 

Over the past year, Treasury has recognized the utility of the National Institute of Standards and 

Technology’s (NIST) Cybersecurity Framework. In order to better align the CEA account with 

NIST’s push for a Government-wide Cybersecurity risk framework, the FY 2021 President’s 

Budget reflects initiatives organized around the NIST Framework Core. While in previous 

budget submissions CEA included initiatives organized around specific investments (e.g., High 

Value Assets), the FY 2021 President’s Budget is instead organized around common 

cybersecurity activities and outcomes that are gaining use industry-wide: Identify, Protect, 

Detect, Respond, and Recover. Treasury’s goal in making this methodology shift is to provide 

better clarity into the strategic focus of the Department’s cybersecurity investments, align with 

accepted industry standards, guidelines and practices, and allow Treasury to track more 

effectively against government-wide reporting requirements.

Department of the Treasury - Budget in Brief 15
Budget Highlights

Dollars in Thousands

FTE Amount

FY 2020 Enacted 11 $18,000 

Changes to Base:

Non-Recurring Costs (11) ($18,000)

Subtotal Changes to Base (11) ($18,000)

FY 2021 Current Services 0 $0 

Program Changes:

Program Increases: 6 $18,000 

Identify the Business Context, Resources & Cybersecurity 

Risk 1 $5,083 

Protect the Delivery of Critical Infrastructure Services 3 $8,008 

Detect Cybersecurity Events 1 $550 

Respond to Detected Cybersecurity Incidents 1 $3,359 

Recover by Maintaining Resilience and Restoration Plans 0 $1,000 

FY 2021 President's Budget Request 6 $18,000 

Budget Adjustments 

Program Increases............................................................+$18,000,000 / +6 FTE 

Identify the Business Context, Resources & Cybersecurity Risk +$5,083,000 / +1 FTE 

Goal: Develop an organizational understanding to manage cybersecurity risk to 

systems, people, assets, data, and capabilities.

Cybersecurity Risk Model, +$1,291,000 

The Cybersecurity Risk Model initiative will define and implement a risk model for assessing 

and quantifying risk. This includes defining risk criteria and developing a risk quantification 

tool. This initiative will identify, quantify, access, prioritize, and report on Enterprise Cyber 

Risks found across the Treasury Department. This project aligns with the Improving HVA 

Cybersecurity initiative from the FY 2020 Budget.

Risk Management Dashboard, +$1,291,000 

The end-state of the initiative will provide access to risk data and the ability to analyze such data 

from multiple sources. Without this central dashboard, data from the System Detection Analysis 

& Risk Reporting (S-DARR) tool, Treasury FISMA Inventory Management System (TFIMS), 

HVA data, and the CDM dashboard cannot be easily digested, making assessing risks more time 

consuming and inaccurate. The Risk Management Dashboard will deliver an enterprise risk 

analysis and scoring capability allowing personnel to manage risks through clear, centralized 

rankings. This project aligns with the Proactive Cyber Risk and Threat Identification initiative 

from the FY 2020 Budget.

Risk Management Framework (RMF) Automation Tool, +$2,501,000 

The Risk Management Framework Automation Tool automates a broad range of services for 

comprehensive integrated risk management practices and replaces the outdated Treasury FISMA 

Information Management System (TFIMS). Automation would include controls scorecard 

measurement, dashboard reporting, and the generation of Risk Management Framework (RMF) 

System Assessment and Accreditation (SA&A) artifacts. This project aligns with the Proactive 

Cyber Risk and Threat Identification initiative from the FY 2020 Budget.

Department of the Treasury - Budget in Brief 16
Protect the Delivery of Critical Infrastructure Services +$8,008,000 / +3 FTE

Goal: Develop and implement appropriate safeguards to ensure delivery of critical services. 

HVA Security Enhancements, +$3,205,000 

This request supports additional investment for HVA management per the Department of 

Homeland Security’s (DHS) Binding Operational Directive (BOD) 18-02, which coordinates 

DHS’s approach to securing the federal government’s High Value Assets (HVAs) from 

cybersecurity threats. The HVA Program establishes a governance framework for Departmental 

HVAs in accordance with federal mandates. DHS performs a select few Risk and Vulnerability 

(RVA) Assessments for Treasury. However, Treasury HVAs face constraints that impede a full 

inventory: DHS is not available to support additional assessments, and multiple Treasury sites 

cannot conduct off-hours assessments as required due to system sensitivity and criticality. 

Treasury has elected to perform discretionary RVAs and Security Architecture Reviews (SAR) 

where DHS HVA RVAs are not feasible. This initiative provides support for these additional 

assessments. These assessments will be compliant with OMB, DHS, and National Institute of 

Standards and Technology requirements and standards. This project aligns with the Improving 

HVA Cybersecurity initiative from the FY 2020 Budget. 

Data Centric Security and Encryption, +$281,000 

Over the past several years, technological advancements have made many emergent technologies 

a reality. This has changed the landscape of cybersecurity. Likewise, advancements in artificial 

intelligence, social engineering, and quantum computing over the next several years could 

require upgrades to traditional defenses and methods. This initiative would provide resources to 

develop strategies and take steps to address emerging threats that are not imminent today in order 

to push protections closer to the data, consistent with the concept of Zero Trust that was 

recommended by the House Committee on Oversight and Reform following the Office of 

Personnel Management breach. This project aligns with the Enhancements to Cybersecurity 

Infrastructure initiative from the FY 2020 Budget.

Treasury Identity Enterprise Services (TIES), +$1,074,000 

TIES is an identity management system that provides enterprise-class services for centrally 

managing employee and contractor identities/user accounts, credentials, and access to systems at 

the Department level. Centralizing these functions allows Treasury to consolidate duplicative 

identity management processes, provides the potential for increased usage of automation tools 

across the Department, and improves Treasury’s ability to audit and report on cybersecurity 

posture. The tools and services provided by Continuous Diagnostics and Mitigation (CDM) 

Phase 2 provide Treasury with an opportunity to implement TIES. This further aligns Treasury 

identity management with OMB M-19-17. This project aligns with the Enhancements to 

Cybersecurity Infrastructure initiative from the FY 2020 Budget.

Centralized Key Management Services (CKMS), +$865,000 

This initiative will design, procure, and implement a centralized Treasury-wide key management 

service. The Department shares sensitive data across networks and multiple bureaus and is using 

encryption to mitigate risk to data at rest and in transit. In order to be truly effective at 

mitigating risk, encryption must be paired with strong cryptographic key management. Utilizing 

a centralized key management service will allow Treasury to bring all facets of crypto key 

management, including hardware, software, and processes, into one location. 

Department of the Treasury - Budget in Brief 17
This is increasingly important as the number of encryption keys continue to grow based on 

updated encryption requirements, as outlined in Cybersecurity Information Sharing Act of 2015. 

This project aligns with the Enhancements to Cybersecurity Infrastructure initiative from the 

FY 2020 Budget.

Cloud Access Security Broker (CASB), +$2,583,000 

The Treasury Department, in accordance with various government-wide initiatives and industry 

practices, is migrating many of its internal systems to cloud-based systems using Platform as a 

Service (PaaS) and Software as a Service (SaaS). Treasury utilizes dozens of cloud 

environments. Every new cloud solution creates an aperture between our on premise solutions 

and these dozen cloud services through which a bad actor can enter and disrupt Treasury’s 

mission. A Cloud Access Security Broker (CASB) will sit between Treasury Bureaus and cloud 

service providers to enforce security, compliance, and governance policies for and between the 

dozens of cloud applications used by Treasury. This project aligns with the Enhancements to 

Cybersecurity Infrastructure initiative from the FY 2020 Budget.

Detect Cybersecurity Events +$550,000 / +1 FTE 

Goal: Develop and implement appropriate activities to identify the occurrence of a cybersecurity 

event.

Cybersecurity Threat Hunting Analysis, +$550,000 

The Government Security Operations Center (GSOC) collects a rich set of Treasury data from 

which to perform cyber threat identification. These datasets, however, provide only a subjective, 

narrow view from which to fully understand specific cyber threat activities and nation state cyber 

threat actors. This investment provides Treasury with access to commercial sources to supply 

the indicators and toolsets Treasury needs to identify malicious behavior within its datasets. 

Providing GSOC analysts with additional tools and a larger set of data via intelligence feeds 

would significantly enhance insight and understanding of cyber threat actors’ command and 

control, infrastructure, and capabilities. This project aligns with the Enhanced Incident Response 

and Recovery Capabilities initiative from the FY 2020 Budget.

Respond to Detected Cybersecurity Incidents +$3,359,000 / +1 FTE 

Goal: Develop and implement appropriate activities to take action regarding a detected 

cybersecurity incident.

Enhanced Treasury Cyber/Fraud Management Capabilities, +$3,359,000 

While the Department has robust incident management protocols in place on a per information 

system basis, Treasury’s cross-system and inter-Bureau incident management needs to be better 

equipped to handle the interconnectivity and interdependence of the modern IT environment. 

This initiative drives the Department’s ability to manage incidents related to cybersecurity and 

fraud by creating a cross-functional incident response team housed at the GSOC to improve 

inter-Bureau communication and systems integration to enable the team to quickly and 

efficiently respond to incidents. The Cyber/Fraud Fusion Incident Response will provide the 

ability to support analysis and triage of cybersecurity and fraud incidents with the goals of 

increasing detection, reducing potential dwell time between the detection and containment, and 

reducing the overall impact of an incident to the Treasury. This project aligns with the Enhanced 

Incident Response and Recovery Capabilities initiative from the FY 2020 Budget.

Department of the Treasury - Budget in Brief 18
Recover by Maintaining Resilience and Restoration Plans +$1,000,000 / +0 FTE 

Goal: Develop and implement appropriate activities to maintain plans for resilience and to 

restore any capabilities or services that were impaired due to a cybersecurity incident. 

HVA Security Enhancements, +$1,000,000 

As noted in the HVA Security Enhancements initiative, the next phase of capabilities includes 

the remediation of assessment findings where the risks involved pose vulnerabilities to the 

enterprise. This will allow for the mitigation of enterprise level cyber risk discovered through 

the RVA/SAR assessments and/or other Enterprise Risk Management Activities and provide 

better visibility of Treasury’s current cyber posture. This project aligns with the Improving HVA 

Cybersecurity initiative from the FY 2020 Budget.

Legislative Proposals 

The Cybersecurity Enhancement Account has no legislative proposals. 

Performance Highlights 

 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Budget Activity Performance Measure Actual Actual Actual Target Target

CEA Number of Major Incidents N/A 0 0 2 0 

CEA Number of Reported Incidents N/A 225 152 280 150

CEA

Percentage of High and/or Critical Findings 

from RVAs or SARs on Tier I HVAs that are 

closed by the end of the FY

N/A N/A 57% 65% 75% 

CEA

% of Cross-Agency Priority (CAP) 

Cybersecurity Key Performance Indicators 

(KPIs) that Treasury meets/exceeds OMB 

performance targets

N/A 60% 60% B 80%

Description of Performance 

Number of Major Incidents: The number of major incidents, as defined in OMB M-19-02, 

reported by Treasury to Congress in a given fiscal year. This is a measure of how effective 

Treasury’s collective defenses are at mitigating the most damaging security threats. The 

FY 2020 performance target of two major incidents reported will be met through increased 

training, implementation of technology, interagency collaboration, and customer feedback. 

Number of Reported Incidents: Each fiscal year, Treasury tracks the number of cybersecurity 

incidents reported to the United States Computer Emergency Readiness Team (US-CERT). This 

measures the effectiveness of Treasury’s defenses at mitigating security threats and indicates

how often Treasury is being targeted by malicious actors. In FY 2019, Treasury had a greater 

ability to do more thorough analysis prior to declaring an incident. This drove some of the 

decreases in reported incidents. Natural variation in actual results also played a role in the 

variation from FY 2018 to FY 2019. As such, the FY 2021 target has been decreased to be in 

line with FY 2019 actuals. 

Percentage of High and/or Critical Findings from Risk and Vulnerability Assessment (RVAs) or 

Security Architecture Review (SARs) on Tier I High Value Assets (HVAs) that are closed by the 

end of the Fiscal Year (FY). This is a measure of how Treasury addresses the vulnerabilities and 

Department of the Treasury - Budget in Brief 19
potentially exploitable weaknesses of its most important systems, based on its recurring HVA 

review and assessment process. 

Cross-Agency Priority (CAP) Cybersecurity Key Performance Indicator (KPI) Targets Met: The 

President’s Management Agenda identifies CAP Goals to target those areas where multiple 

agencies must collaborate to effect change. In December 2018, OMB revised the CAP KPIs, 

eliminating several component measures that had been factored into the performance goals in 

FY 2018. The FY 2021 target of 80 percent will be met through mitigation of known 

vulnerabilities and deployment of additional cyber capabilities.

Department of the Treasury - Budget in Brief 20
Treasury Capital Investments and Modernization Fund

Program Summary by Budget Activity 

Summary

In this Budget, Treasury is proposing two structural changes to the account currently established 

as the Department-wide Systems and Capital Investments Program (DSCIP): change the name of 

the account to Treasury Capital Investments and Modernization Fund (TCIMF) from DSCIP, and 

include new transfer authority to leverage existing funding and introduce further flexibility that 

will help Treasury to continuously modernize information technology infrastructure across the 

Department. These changes will allow for Treasury bureaus to invest in IT projects that advance 

their mission and align to Departmental Chief Information Office priorities. 

Treasury owns and operates two historic office buildings in downtown Washington, D.C. – the 

Main Treasury Building (MT) and the Freedman’s Bank Building (FBB). In FY 2016, Treasury 

conducted an internal assessment of both buildings and found a range of needs that include 

immediate safety/health risks, capital renewal to address systematic and mechanical failure, and 

building modernization. In FY 2017, an external architectural and engineering firm validated an 

estimated $98.7 million in remaining costs from that report. In addition to validating the 

identified repair needs, the report identified additional repairs and cyclic needs over the next 20 

years. The Department plans to continue to work through these accumulated needs over time. 

The bulk of the FY 2021 request of $13.5 million addresses MT and FBB repair and restoration. 

The TCIMF investments support the Treasury strategic goal/objective 5.2 “Achieve Operational 

Excellence/Treasury Infrastructure: Better enable mission delivery by improving the reliability, 

security, and resiliency of Treasury’s infrastructure.”

Dollars in Thousands

FY 2019 FY 2020 FY 2021

Budget Activity Operating Plan Enacted Request $ Change % Change

Treasury Capital Investments and 

Modernization Fund (TCIMF) $4,000 $6,118 $13,500 $7,382 121%

Subtotal, New Appropriated Resources $4,000 $6,118 $13,500 $7,382 121%

IT Modernization (Transferred Resources) $0 $0 TBD NA NA

Total Budgetary Resources $4,000 $6,118 $13,500 $7,382 121%

Total Full-time Equivalents (FTE) 0 0 0 0 N/A

FY 2020 to FY 2021

Department of the Treasury - Budget in Brief 21
Budget Highlights

Dollars in Thousands

FTE Amount

FY 2020 Enacted 0 $6,118 

Change to Base:

Non-Recurring Costs 0 ($6,118)

FBB Domestic Water Line Repair 0 ($1,500)

FBB Repair and Restoration 0 ($1,500)

MT Repair and Restoration 0 ($3,118)

Subtotal Changes to Base 0 ($6,118)

FY 2021 Current Services 0 $0 

Program Changes:

Program Increases: 0 $13,500 

Treasury Technology Business Management Tool 0 $1,534 

FBB Restroom Renovation Phase 2 0 $1,500 

FBB/MT Lifecycle Replacement of Building Interior 0 $4,278 

MT Masonry, Windows, and Restroom Renovations 0 $6,188 

FY 2021 President's Budget Request 0 $13,500 

Budget Adjustments 

Treasury Technology Business Management (TBM) Tool +$1,534,000 / +0 FTE 

This proposal provides resources for a Treasury-wide centralized cloud-based TBM tool to 

include automated data extraction from the individual bureau financial systems, the modeling 

and allocation of cost elements to IT services and consumption by business units, and reporting 

through data visualization and benchmarking capabilities. This will enable Treasury to migrate 

to the TBM reporting structure across the agency and replace the legacy Capital Planning and 

Investment Control reporting tool and processes. It will also serve as a foundation for future IT 

budget formulation and execution processes and management of Treasury enterprise services. 

FBB Restroom Renovation Phase 2 +$1,500,000 / +0 FTE

Phase 1 funding is being used to make the restrooms on the second through fourth floors code 

compliant. The requested Phase 2 funding will address the basement level restrooms along with 

the first and sixth floors. Additional future funding will be needed to address the fifth floor and 

complete all of the FBB restrooms. At the completion of this effort, all restrooms will be code 

compliant and meet the requirements of the Americans with Disabilities Act. 

FBB/MT Lifecycle Replacement of Building Interior $4,278,000 / +0 FTE

The MT is past due for cyclic carpeting, painting, and plaster repair in public corridors and 

interior office space, and the FBB is past due for cyclic carpeting and painting in public corridors 

and interior office space. Sections of the MT will be repainted, re-carpeted, and plaster repaired 

starting with the oldest, most damaged sections and/or concurrent with planned renovations. 

Sections of the FBB will be repainted and re-carpeted on an ongoing basis or concurrent with 

planned renovations. The last comprehensive refresh for the buildings’ interiors was completed 

between 2001 and 2006, which outpaces a typical refresh cycle of three to seven years for paint 

and seven to ten years for carpet. Plaster damage occurs as a result of natural settling and 

vibrations, water intrusion from rain or damaged piping. These funds will allow Treasury to 

begin a scheduled, reoccurring cycle of renewal and repair. 

Department of the Treasury - Budget in Brief 22
MT Masonry, Windows, and Restroom Renovations +$6,188,000 / +0 FTE

The funding will provide for the second phase of the MT exterior renovation. Work items 

include: 1) repairing failed masonry joints to protect from moisture penetration, cleaning the 

stone surfaces, and repairing damaged stone; and 2) repairing or replacing window frames 

suffering varying degrees of damages after years of weather exposure. Failure to complete this 

work will result in the current staining becoming more difficult to remove, requiring a higher 

level of cleaning, and an increase in joint failures and window frames that will expose more of 

the interior to moisture infiltration. Each of these is continuation from earlier work. Phase one 

of the masonry repair is in the FY 2020 President’s Budget ($3.118 million) and phase one of the 

windows was funded in FY 2015 ($1.225 million).

Legislative Proposals 

The budget includes a request for transfer authority for this account (see section 125 in the 

Treasury administrative provisions). 

Description of Performance 

TCIMF enables the Department to make investments in capital improvements that support the 

missions of Treasury bureaus and programs. 

Treasury Building - Repairs and Renovations 

MT and the FBB are owned by the Department and are Departmental Offices’ capital 

investments. MT is the oldest departmental building and the third oldest federally occupied 

building in Washington, preceded only by the Capitol and the White House. The age and 

historical significance of the buildings, considered by some to be national treasures, create 

special conditions that do not exist in many other Federal office facilities. Continual upkeep, 

with close attention to historic preservation, is necessary in order to continue occupying these 

buildings. The FY 2021 request addresses MT and FBB repair and restoration. 

Over the past decade, Treasury has made a concerted effort to improve the MT and FBB building 

envelope, including its moisture, air and thermal control functions. These are the features that 

provide for an energy efficient, comfortable, and sustainable building. A lack of these controls 

can result in a myriad of issues that include progressive degradation of the indoor air quality 

environment, extensive interior damage, waste associated with costly repairs, decreased energy 

efficiency, unhappy customers, and decreased worker productivity. Treasury Operations has 

strategically focused on restoring the health of the building envelope (shell), in an effort to 

correct the deteriorating building structure and infrastructure through the TCIMF 

fund. Components of the Main Treasury building that have been repaired, replaced, or 

funded/planned include new roofs (FY 2019/2021), repair and cleaning of exterior masonry 

(FY 2020/2022), and repairs to 40% of the windows (FY 2015/2017). The Freedman’s Bank 

Building components that have been repaired, replaced or funded/planned include new roofs 

(FY 2017/2019), repair and cleaning of exterior masonry (FY 2019/2021 & FY 2020/2022), and 

replacement of all windows (FY 2009/2011). Funding and completion of these items represent 

significant progress towards the preservation of the two buildings, maintaining a safe and healthy 

workplace, and reducing the need for making interior repairs. The funding requested in the 

Department of the Treasury - Budget in Brief 23
FY 2021 TCIMF account would have a substantial beneficial impact on the continuing effort to 

harden Treasury’s outer shell by finishing the repair and cleaning of the exterior masonry of the 

two buildings. 

Treasury IT Infrastructure Modernization 

In addition to the building and repairs, the proposed TCIMF fund transfer authority provides a 

backstop for Treasury to continue to modernize its IT Infrastructure while making the most 

efficient use of limited resources available to Treasury (see Treasury administrative provisions 

section 125 for the proposed transfer authority). The fund would help unify bureaus, including 

IRS, around a centralized Department vision, with each individual bureau aligning its 

modernization plan to the Department-wide plan. The added flexibility of the TCIMF transfer 

authority allows Treasury to pursue long-term, proactive investments that optimize efficiency 

and benefits to taxpayers. In addition to persistent major focus areas such as mandatory software 

and hardware upgrades, Treasury plans to use the TCIMF to become compliant with other 

important recent pieces of legislation. One Department-wide example would be centered around 

modernization efforts associated with the 21st Century IDEA Act (Public Law 115-336) passed 

in 2018. Treasury has developed an inventory of 77 websites, services and forms that require 

modernization in order to comply with Act requirements which included several bureau home 

pages in addition to a variety of important bureau websites. Treasury plans to utilize the TCIMF 

authority to prioritize key investments across the enterprise associated with the 21st Century 

IDEA Act, allowing the Department to take a unified approach to modernizing its digital service 

footprint and improving the public’s digital experience. This plan aligns with Treasury’s 

Strategic Objectives to enable mission delivery by improving the reliability, security, and 

resiliency of Treasury’s infrastructure (Objective 5.2) as well as enhance the experience of 

interacting with Treasury by delivering high quality products and services (Objective 5.3). 

Department of the Treasury - Budget in Brief 24
Terrorism and Financial Intelligence

Program Summary by Budget Activity 

Dollars in Thousands

 FY 2019 FY 2020 FY 2021 FY 2020 to FY 2021

Budget Activity Operating Plan Enacted Request $ Change % Change

Terrorism and Financial Intelligence $159,000 $169,712 $172,751 $3,039 1.79%

Subtotal, TFI $159,000 $169,712 $172,751 $3,039 1.79% 

Offsetting Collections - Reimbursable $8,000 $8,000 $8,000 $0 0.00%

Total Program Operating Level $167,000 $177,712 $180,751 $3,039 1.71%

Direct FTE 440 526 575 49 9.32%

Reimbursable FTE 40 41 41 0 0.00%

Total Full-time Equivalents (FTE) 480 567 616 49 8.64%

Summary

The Department of the Treasury’s (Treasury) strategic plan guides program and budget decisions 

for the Office of Terrorism and Financial Intelligence (TFI). The FY 2021 Budget Request 

supports two of Treasury’s FY 2018-2022 Strategic Goals: Enhance National Security and 

Achieve Operational Excellence.

TFI requests $172.751 million, which is a $3.039 million increase from the FY 2020 Enacted 

level. TFI requests these additional resources to continue to invest in its people as well as 

infrastructure, systems, and automated tools, thereby ensuring that TFI remains agile, innovative, 

and strategic in responding to the most pressing U.S. national security concerns. The budget 

prioritizes funding for Treasury’s targeted financial tools that protect the U.S. and international 

financial system from abuse, as well as countering the financial networks that support terrorists, 

weapons proliferators, organized transnational crime, rogue regimes, and other threats. 

TFI’s economic authorities continue to play an increasingly central role in countering some of 

the nation’s most critical security threats. This Administration and Congress rely upon TFI to 

deploy non-kinetic tools at a rapid pace to proactively implement U.S. policy towards North 

Korea, Iran, Russia, Islamic State of Iraq and Syria (ISIS) and other terrorist organizations, 

Venezuela, human rights abusers and corrupt actors, narcotics traffickers, and other malign and 

destabilizing actors. As reliance upon TFI’s authorities has grown, the corresponding growth in 

personnel across TFI and increased demand placed upon secure systems requires additional 

investment in mission support areas. TFI’s infrastructure investments have been developed with 

careful consideration of the personnel increase request with the intent of developing and 

maintaining a collaboration network that facilitates our operational and policy goals. 

 

Department of the Treasury - Budget in Brief 25
Budget Highlights

Dollars in Thousands

FTE Amount

FY 2020 Enacted 526 $169,712 

Changes to Base: 

Maintaining Current Levels (MCLs): - $ 3,983 

Pay Annualization (2020 3.1% average pay raise) - $757 

Pay Raise (1.0% average pay raise) - $738 

FERS Contribution Increase - $800 

Non-Pay - $1,688 

Non-Recurring Costs - ($2,539)

Efficiency Savings - ($2,716)

Other Adjustments: 30 $0 

FTE Adjustment 30 $0 

Subtotal Changes to Base 30 ($1,272)

FY 2021 Current Services 556 $168,440 

Program Changes: 

Program Increases 19 $4,311 

TFI-Wide Centralized Data Platform Infrastructure Support - $602 

Western Hemisphere/Human Rights Sanctions 3 $657 

Cyber Analysts and Data Scientists 9 $1,583 

Virtual Currency Investigators 4 $812 

Foreign Asset Control Staffing 3 $657 

FY 2021 President's Budget Request 575 $172,751

Budget Adjustments 

Maintaining Current Levels (MCLs) ....................................................... +$3,983,000 / +0 FTE

Pay Annualization (3.1%) +$757,000 / +0 FTE 

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

Pay Raise (1.0% in 2021) +$738,000 / +0 FTE 

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

FERS Contribution Increase +$800,000 / +0 FTE 

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

effective FY 2021. 

Non-Pay +$1,688,000 / +0 FTE 

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

equipment. 

Non-Recurring Costs ................................................................................... -$2,539,000 / -0 FTE

Non-Recur of IT Infrastructure Investments -$2,539,000 / -0 FTE 

One-time costs of the FY 2020 IT Infrastructure Investment initiative will non-recur.

Department of the Treasury - Budget in Brief 26
Efficiency Savings ........................................................................................ -$2,716,000 / -0 FTE

TFI Contractual Support -$2,716,000 / +0 FTE

TFI will achieve cost savings and efficiencies in contract services through improved oversight of 

all TFI contracts, consolidating contracts where appropriate, and partnering with other agencies 

and Treasury Departmental Offices (DO) components to leverage common technology or 

administrative support needs. 

Other Adjustments................................................................................................. +$0 / +30 FTE 

FTE Adjustment +$0 / +30 FTE 

The FY 2021 Budget reflects a +30 FTE technical adjustment from the FY 2020 Enacted Budget. 

This technical adjustment reflects increased efforts at TFI to hire and on-board new staff as 

provided for in prior year budget requests. 

Program Increases .................................................................................. +$4,311,000 / +19 FTE

TFI-Wide Centralized Data Platform Infrastructure Support +$602,000 / +0 FTE 

To best utilize the volumes of data currently available to TFI staff and positively leverage 

technology to expand the efficiency of TFI’s limited personnel resources, TFI is establishing a 

data analytics program and staff, an overarching governing body (in close coordination with 

CIO), and an operational enterprise tool capable of fusing TFI’s disparate data streams for TFIN 

desktop analysis by TFI staff. 

Western Hemisphere/Human Rights Sanctions +$657,000 / +3 FTE 

Administration and Congressional actions during the past 18 months in the Western Hemisphere 

require significant sanctions implementation efforts by the Licensing, Policy, and Regulatory 

Affairs teams, including: designing sanctions implementation architecture proposals for Treasury 

and interagency leadership, implementing new regulatory frameworks through general licenses 

(over 30 issued in the Venezuela program alone), publishing regulations, and public guidance 

such as frequently asked questions, and processing an onslaught of new licensing requests to 

authorize activity that may be otherwise prohibited but is in U.S. foreign policy interests.

Cyber Analysts and Data Scientists +$1,583,000 / +9 FTE

The Office of Intelligence Analysis (OIA) requests five cyber intelligence research specialists 

and one visual analyst to meet the increased demand from Treasury senior policymakers and 

Domestic Finance/Office of Cybersecurity and Critical Infrastructure Protection for intelligence 

support and analysis to counter the intensification of cyber-enabled threats to the U.S. financial 

services sector (FSS) and US national security interests more broadly. The analysts would focus 

on support to improve the sharing of cyber threat intelligence to the FSS, provide the Office of 

Foreign Assets Control (OFAC) with intelligence support on targeting financial networks of 

malicious cyber actors, and provide tactical intelligence support to TFI cryptocurrency

initiatives. OIA also requests three data scientists to analyze large tranches of data and to build 

assessments from that analysis. Data scientists are skilled in statistical analysis and trained 

specially to perform this type of work, which is critical to using Treasury's own data to answer 

analytic questions and inform policymakers. 

Virtual Currency Investigators +$812,000 / +4 FTE 

Among the new and emerging threats to the use of sanctions as a tool for national security is the 

rapid development of virtual currencies as a mechanism to move value across borders while

Department of the Treasury - Budget in Brief 27
skirting the formal financial system that OFAC relies on as the implementing mechanism for its

authorities. Presently, OFAC has a single investigator focused on the illicit use of virtual 

currency, and this investigator is often pulled away from purely investigative duties in order to 

share virtual currency expertise across TFI, since this area is of high concern but also an 

uncommon area of technical competency. Meanwhile, investigators across most sanctions 

programs are reporting increasing exposure to the use of virtual currencies by the targets of their 

investigations. Additional virtual currency investigators will allow investigations involving 

cryptocurrency across all of OFAC’s sanctions programs to be able to exploit this investigative

arena.

Foreign Asset Control Staffing +$657,000 / +3 FTE 

The requested Senior Enforcement Officers will provide essential investigative and legal 

knowledge to OFAC’s enforcement process, deliberative memoranda, and final agency charging

documents. These personnel will be responsible for working closely with Enforcement’s 

investigators to coordinate the final phase of public enforcement actions through the OFAC Front 

Office (Director and Deputy Director) and handle all negotiations, meetings, and interactions 

with subject persons thereafter. These personnel will handle such matters for all U.S. economic 

and trade sanctions programs, and will reduce the workload and burden placed on other offices 

(e.g., the Office of Chief Counsel, OFAC).

Legislative Proposals 

The Office of Terrorism and Financial Intelligence has no legislative proposals.

Performance Highlights 

 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Performance Measure Actual Actual Actual Target Target

New or Modifications to Existing 

Sanctions Programs 5 5 7 I DISC

Number of Designation Actions 867 1431 1120 I DISC

Analytic Intelligence Support 385 523 637 I DISC

Review and Support of Foreign 

AML/CFT Laws and Regulations 49 64 81 I DISC

DISC: Discontinued; I: Indicator

Description of Performance 

New or Modifications to Existing Sanctions Programs: This indicator measures new actions or 

expansion of existing sanction programs, and the data is collected by OFAC. The measure 

reflects an increase in workload requirements as any new country programs or expansion in 

scope of existing programs are by and large in addition to current workload and not in lieu of 

already existing work, and therefore, cumulative. Conversely, ongoing program requirements 

are much less frequently removed. The creation or modification of sanctions programs requires 

a significant upfront dedication of policy, program, legal, and regulatory resources to ensure 

proper coordination and documentation of the changes. This measure is being discontinued 

because it has been split into two indicators for FY 2021. One indicator is to monitor the number 

of sanctions programs modified by EO or Congressional mandate, and the second is to monitor 

the number of new sanctions programs modified by EO or Congressional mandate. 

Department of the Treasury - Budget in Brief 28
Number of Designation Actions: This indicator measures number of actions taken to impose 

sanctions, and is collected by OFAC. It is important to note that for “Program-Specific 

Designations” may not always represent a true reflection of TFI’s extensive efforts across 

programs or toward a particular program. From FY 2017 to FY 2018, TFI activity increased 

across a number of high priority programs. However, the FY 2018 numbers do not reflect the 

approximately 700 Iran sanctions that were implemented on November 5, 2018, in conjunction 

with the full snapback of sanctions following the President’s withdrawal of the United States 

from the JCPOA. Though these sanctions technically occurred in FY 2019, the preparation for 

the tranche was exceedingly complex and required several lines of effort over the last several 

months of FY 2018. 

Analytical Intelligence Support: TFI includes both formal analytical intelligence briefings as 

well as final analytical intelligence products that were published. The significant increase from 

FY 2017 to FY 2018 represents increased demand as well as a higher prioritization on 

production. In FY 2021 this indicator will be replaced with an expanded indicator that includes 

the vast array of OIA products, including number of IIRs published and the number of finished 

intelligence pieces published.

Review of Foreign AML/CFT Law and Regulations: This measure tracks/includes participation 

in Financial Action Task Force (FATF) mutual evaluations (ME), which are peer evaluations of 

countries’ levels of effectiveness and implementation of the FATF anti-money laundering and 

countering the financing of terrorism (AML/CFT) Standards. The data is collected from the 

Office of Terrorist Financing and Financial Crimes (TFFC). Participation in MEs usually 

requires several extended on-site visits in country, extensive analysis of a country’s AML/CFT 

system, and follow-up meetings to provide in-depth analyses and ratings. Additionally, the 

metric includes reviews and comments on reports produced by the nine FATF-style Regional 

Bodies; and, work assessing and reviewing countries as part of the International Cooperation 

Review Group, which oversees the FATF process that identifies and reviews jurisdictions with 

strategic AML/CFT deficiencies that may pose a risk to the international financial system and 

closely monitors their progress. Finally, this metric includes strategic support to certain high 

priority bilateral partners in an effort to enhance their AML/CFT laws, regulations, and 

structures. This effort may include, but is not limited to, bi-lateral and multi-lateral meetings, 

foreign travel, and reviewing draft legislation. 

New Measures: TFI has also proposed creation of a number of new indicators and measures for 

FY 2021 which will be reflected in the FY 2022 Budget. Among these are regulatory documents 

published in the Federal Register within four months of publication of an Executive order or 

Congressional mandate during the fiscal year; the number of roundtables with private sector on 

Money Laundering/Terrorist Finance threats, vulnerabilities, and risk; the number of 

overseas/domestic engagements with foreign officials by TFFC officials; the timeliness of 

response to de-confliction requests received from law enforcement; the number of security 

clearances processed by OIA’s Office of Security Programs (OSP); and the percent of customer 

satisfaction with OIA products. Please refer to Section C of the TFI Congressional Justification 

for further explanation on new and discontinued measures. 

Department of the Treasury - Budget in Brief 29
Department of the Treasury - Budget in Brief 30
Committee on Foreign Investment in the United States

Program Summary by Budget Activity 

Dollars in Thousands

FY 2019 FY 2020 FY 2021 FY 2020 to FY 2021

Budget Activity Operating Plan Enacted Request $ Change % Change

Treasury CFIUS Activities (Fund) $0 $15,000 $15,000 $0 0.0%

Other Member CFIUS Activities (Fund) $0 $5,000 $5,000 $0 0.0%

Treasury Departmental Offices (DO SE) $15,000 $22,341 $24,146 $1,805 8.1%

Subtotal, CFIUS $15,000 $42,341 $44,146 $1,805 4.3%

Anticipated User Fees - CFIUS Fund $0 ($10,000) ($20,000) ($10,000) 100.0%

Total Program Operating Level $15,000 $32,341 $24,146 ($8,195) -25.3%

Direct FTE 32 81 120 39 48.1%

Total Full-time Equivalents (FTE) 32 81 120 39 48.1%

Summary

The Committee on Foreign Investment in the United States (CFIUS) was established in 1975 

under Executive Order 11858 to monitor the impact of foreign investment in the United States, 

and to coordinate and implement federal policy on such investment. CFIUS is composed of nine 

voting member agencies, some of which have multiple subcomponents. CFIUS’ unique design 

leverages the skills, subject matter expertise, and integrated analysis of Committee members and 

other relevant agencies. CFIUS voting members include: 

• Department of the Treasury

• Department of Commerce

• Department of Defense

• Department of Energy

• Department of Homeland Security

• Department of Justice

• Department of State

• Office of Science Technology and Policy

• Office of the United States Trade Representative

As both Chair and member of CFIUS, Treasury is responsible for leading CFIUS in establishing 

policies, issuing regulations implementing statutory authority, implementing processes and 

functions, and managing its daily operations. Treasury participates in every aspect of CFIUS, 

including reviews and investigations, policy and international relations, mitigation monitoring 

and enforcement, non-notified transaction analysis, legal support, and national security threat 

assessments. The Office of International Affairs (IA) is responsible for case management and 

coordination and representing the Committee to parties that file notices. The Office of General 

Counsel (OGC) provides legal support to IA and is responsible for certain analyses conducted on 

each notice filed with CFIUS. 

The Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA) strengthens CFIUS 

to better address national security concerns arising from some types of investments and 

transactions that were previously outside of its jurisdiction. Additionally, FIRRMA modernized 

CFIUS’ processes to better enable timely and effective reviews of covered transactions. 

Department of the Treasury - Budget in Brief 31
FIRRMA also established the CFIUS Fund (the Fund), to be administered by the chairperson 

(the Secretary of the Treasury), to accept appropriated funds for these expanded responsibilities 

and functions, and to collect filing fees. 

In recent years, CFIUS’ caseload has increased in volume and complexity. CFIUS reviewed 229 

cases in calendar year (CY) 2018 compared to 93 in CY 2010. Transactions generally have also 

become more complex, which had contributed to an increasing investigation rate. CFIUS 

generally investigates cases that require more resource-intensive analysis and/or corrective 

action. In CY 2018, CFIUS investigated approximately 69 percent of cases compared to 38 

percent in CY 2010. The FY 2021 budget requests resources necessary to implement FIRRMA 

and handle an anticipated workload of 1,000 cases per year. 

The Administration requests $20 million for the Fund in upfront appropriations that will be offset 

by up to $20 million in offsetting collections from filing fees, which will be established in 

forthcoming regulations. $15 million is proposed for transfer to Treasury to fund capital 

investments and staff to support Committee activities. The remaining $5 million will be available 

for transfer to other CFIUS agencies to facilitate, for example, interagency connectivity with 

Treasury’s information technology (IT) and case management systems, and to address emerging 

needs.

Budget Highlights

Dollars in Thousands

FTE Amount

FY 2020 Enacted 81 $22,341 

Transfer in from CFIUS Fund $15,000 

Subtotal, FY 2020 CFIUS funding 81 $37,341 

Changes to Base:

Maintaining Current Levels (MCLs): 0 $263 

Pay Annualization (2020 3.1% average pay raise) 0 $73 

Pay Raise (1.0% average pay raise) 0 $70 

FERS Contribution Increase 0 $120 

Non-Recurring Costs 0 ($4,867)

Subtotal Changes to Base 0 ($4,604)

FY 2021 Current Services 81 $32,737 

Program Changes:

Program Increases: 39 $6,409 

Staffing to Support CFIUS Caseload Growth 39 $6,409 

FY 2021 President's Budget Request 120 $39,146 

Note: The table reflects Departmental Offices anticipated CFIUS funding; it does not reflect additional $5 million in funding for other agencies 

for a total of $44.146 million indicated previously in 1.1 table in the Department of the Treasury CFIUS Activities chapter of the Congressional 

Budget Justification. 

Budget Adjustments 

Offsetting User Fees -$20,000,000 / -0 FTE

Treasury and IA anticipate collection of filing fees that will be credited to the Fund as offsetting 

collections. 

Department of the Treasury - Budget in Brief 32
Transfer in from CFIUS Fund +$15,000,000 / +0 FTE 

The CFIUS Fund anticipates to transfer $15.0 million dollars to the DO Salaries and Expenses 

account to provide for Treasury DO CFIUS activities. 

Maintaining Current Levels (MCLs).......................................................... +$263,000 / +0 FTE

Pay Annualization (3.1%) +$73,000 / +0 FTE 

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

Pay Raise (1.0% in 2021) +$70,000 / +0 FTE 

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

FERS Contribution Increase +$120,000 / +0 FTE 

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

effective FY 2021. 

Non-Recurring Costs................................................................................... -$4,867,000 / -0 FTE

Case Management System -$3,189,000 / -0 FTE

IA expects to complete the final phase of development for the CFIUS Case Management System 

in FY 2021. This non-recur encompasses a portion of this funding. 

Secure Spaces -$1,678,000 / -0 FTE

CFIUS anticipates having completed the majority of anticipated facility buildout by FY 2021. 

Program Increases.................................................................................... +$6,409,000 / +39 FTE

Staffing to Support Caseload Growth +$6,409,000 / +39 FTE 

Increase in CFIUS staffing to continue in light of anticipated program growth.

Legislative Proposals 

CFIUS has no legislative proposals. 

Performance Highlights

 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Budget Activity Performance Measure Actual Actual Actual Target Target

Committee on Foreign Investment in the 

United States (CFIUS)

Timely Review of 

CFIUS Cases 100 100 100 100 100

Description of Performance 

In FY 2019 CFIUS took significant steps toward full implementation of the Foreign Investment 

Risk Review Modernization Act of 2018 (FIRRMA). In FY 2019, the Committee administered 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 

Department of the Treasury - Budget in Brief 33
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. 

Department of the Treasury - Budget in Brief 34
Office of Inspector General

Program Summary by Budget Activity

Dollars in Thousands

FY 2019 FY 2020 FY 2021 FY 2020 TO FY 2021 

Budget Activity Operating Plan Enacted Request $ Change % Change

Audit $28,524 $30,524 $29,524 ($1,000) 0.01%

Investigations $8,520 $10,520 $9,811 ($709) 0.01% 

Subtotal, OIG $37,044 $41,044 $39,335 ($1,709) -11.00%

Offsetting Collections - Reimbursables $6,000 $9,000 $9,000 $0 0.00%

Total Program Operating Level $6,000 $9,000 $9,000 $0 -0.00%

Direct FTE 154 167 180 13 7.70%

Total FTE 154 167 180 0 0.00%

FY 2019 Other Resources and Full-time Equivalents (FTE) reflect actuals. This column reflects levels appropriated in P.L 116-93, the 

Appropriations Act of 2019. For further details on the execution of these resources see the 2021 Budget Appendix chapter for the Department 

of the Treasury.

Summary

The FY 2021 request for $39,335,000 for the OIG will be used to fund critical audit, 

investigative, and mission-support activities to meet the requirements of the Inspector General 

Act of 1978, as amended, and other statutes including, but not limited to: the Cybersecurity Act 

of 2015; Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank); Federal 

Information Security Modernization Act of 2014 (FISMA); Federal Information Technology 

Acquisition Reform Act; Government Management Reform Act; Improper Payments 

Elimination and Recovery Act of 2010; Digital Accountability and Transparency Act of 2014 

(DATA Act); Federal Deposit Insurance Act; Small Business Jobs Act of 2010; the Government 

Charge Card Abuse Protection Act of 2012; and Resources and Ecosystems Sustainability, 

Tourist Opportunities, and Revived Economies of the Gulf Coast States Act of 2012 (RESTORE 

Act). Specific mandates include (1) audits of the Department’s financial statements, (2) audits 

and/or evaluations of the Department’s information systems security program and practices as 

required by FISMA, (3) assessments of the Department’s cyber security information sharing, (4) 

audits of improper payments and recoveries under IPERA, (5) risk assessments and audits of 

charge card programs, (6) material loss reviews of failed insured depositary institutions regulated 

by the Office of the Comptroller of the Currency (OCC), and (7) data quality audits of spending 

data submitted by the Department to USASpending.gov. 

The OIG will also conduct audits of the Department’s highest risk programs and operations and 

respond to stakeholder requests for specific work, including: (1) operating in an uncertain 

environment; (2) cyber threats; (3) Bank Secrecy Act, anti-money laundering, and and-terrorist 

financing enforcement; (4) efforts to promote spending transparency and to prevent and detect 

improper payments; and (5) information technology acquisition and project management. 

Within its jurisdictional boundaries, the OIG also conducts audit of the highest risk programs and 

operations of the Gulf Coast Ecosystem Restoration Council (Council) established under the 

RESTORE Act. The highest risk programs and operations identified as the Council’s 

management and performance challenges include: (1) Federal Statutory and Regulatory 

Compliance and (2) Grant and Interagency Agreement Compliance Monitoring. 

Department of the Treasury - Budget in Brief 35
The OIG will continue its investigative work to prevent, detect, and investigate complaints of 

fraud, waste, and abuse impacting Treasury programs and operations. This includes the 

detection and prevention or deterrence of employee misconduct and fraud. 

Through the audit and investigative functions, the OIG supports the Department of the 

Treasury’s FY 2018 – 2022 Strategic Plan. The goals are: Goal 1: Boost U.S. Economic Growth; 

Goal 2: Promote Financial Stability; Goal 3: Enhance National Security; Goal 4: Transform 

Government-wide Financial Stewardship; and Goal 5: Achieve Operational Excellence. In 

support of Treasury’s Strategic Plan, the OIG established the following strategic goals: 

• Promote the integrity, efficiency, and effectiveness of programs and operations across 

Treasury OIG’s jurisdictional boundaries through audits and investigations 

• Proactively support and strengthen the ability of programs across Treasury OIG’s 

jurisdictional boundaries to identify challenges and manage risks 

• Fully and currently inform stakeholders of Treasury OIG findings, recommendations, 

investigative results, and priorities

• Enhance, support, and sustain a workforce and strengthen internal operations to achieve the 

Treasury OIG mission, vision, and strategic goals. 

The Budget includes language that would allow, contingent upon enactment of authorizing 

legislation to transfer the United States Secret Service to Treasury, the Secretary of Homeland 

Security to transfer amounts from the Department of Homeland Security Office of Inspector 

General to support the Treasury OIG’s oversight of the Secret Service.

FY 2021 Budget Highlights

Dollars in Thousands

 FTE Amount

FY 2020 Enacted 167 $41,044 

Changes to Base:

Maintaining Current Levels (MCLs): 0 $982 

Pay Annualization (2020 3.1% average pay raise) 0 $237 

Pay-Raise (1% average pay raise) 0 $231 

FERS Contribution Increase 0 $304 

Non-Pay 0 $210 

Other Adjustments: 13 $0 

Workforce FTE Adjustment 13 $0 

Subtotal Changes to Base 13 $982 

FY 2021 Current Services 180 $42,026 

Program Changes:

Program Decreases - ($2,691)

Reduction in Contracts and Absorption of Rent 

Increases - ($2,691)

FY 2021 President's Budget Request 180 $39,335 

Department of the Treasury - Budget in Brief 36
FY 2021 Budget Adjustments 

Adjustments to Request

Maintaining Current Levels (MCLs)............................................+$982,000 / +0 FTE 

Pay Annualization (3.1%) +$237,000 /+0 FTE 

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

Pay-Raise (1.0% in FY 2021) +$231,000 / +0 FTE

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

FERS Contribution Increase +$304,000 / +0 FTE 

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

effective FY 2021. 

Non-Pay +$210,000 / +0 FTE 

Funds are requested for inflation adjustments in non-labor expenses such as GSA rent 

adjustments, postage, supplies and equipment.

Other Adjustments..........................................................................+$0 / +13 FTE 

Workforce FTE Adjustment +$0 / +13 FTE 

This adjustment is required to right-size the workforce to the funded FTE level. 

Program Decreases................................................................-$2,691,000 / -0 FTE 

Reduction in Contracts and Absorption of Rent Increase -$2,691,000 /-0 FTE 

Program decrease in contracts and to accommodate increased administrative costs, including 

rent.

Explanation of Budget Activities

Audit $29,524,000 from direct appropriations, $9,000,000 from reimbursable 

The Office of Audit conducts audits to ensure the accountability of resources, protect 

information, and provide recommendations for improving the economy, efficiency, 

effectiveness, and integrity of programs and operations across its jurisdictional boundaries, 

which include those of Treasury and the Gulf Coast Ecosystem Restoration Council (Council). 

The requested funding for FY 2021 is necessary to perform mandated work and maintain an 

appropriate level of oversight of these programs and operations consistent with its 

responsibilities under the Inspector General Act, as amended. The OIG also responds to requests 

by Treasury and Council officials and the Congress for specific work. In FY 2021, the OIG will 

also continue to provide oversight of Treasury’s government-wide role and responsibilities under 

the DATA Act. Reimbursable funding supports agreements for contracted financial statement 

audits as well as oversight of the Small Business Lending Fund program. 

Investigations $9,811,000 from direct appropriations 

The Office of Investigations (OI) prevents, detects, and investigates complaints of fraud, waste, 

and abuse. This includes the detection and prevention or deterrence of employee misconduct and 

fraud, or related financial crimes within or directed against Treasury. OI refers its cases to the 

Department of Justice, State, or local prosecutors for criminal prosecution or civil litigation, or to 

agency officials for corrective administrative action.

Department of the Treasury - Budget in Brief 37
With almost $4 billion in U.S. Treasury related contracts, there is an increased risk of contract 

fraud across all U.S. Treasury bureaus and programs. OI initiated a program of providing 

integrity briefs to contract personnel notifying them of the responsibilities to report fraud, waste, 

and abuse within U.S. Treasury contracts and programs. OI works with the U.S. Department of 

Justice to prosecute False Claims Acts in federal court to recover funds through civil penalties. 

Additionally, OI conducts criminal investigations to prosecute contractors engaging in fraudulent 

activity, such as kickbacks, product substitution, bid manipulation, and many other types of 

contract fraud. OI continues to work allegations directly impacting the American Reinvestment 

and Recovery Act and the Gulf Coast Restoration Trust Fund. 

OI directs investigative efforts toward those that subvert bank examination processes and/or 

perpetrate fraud affecting the Bank Secrecy Act oversight responsibilities of Treasury bureaus, 

subsequently defrauding the nation’s financial infrastructure and eroding the public’s trust. 

In addition to the grant programs listed above, OI has seen a noted increase in fraud impacting 

other significant Treasury programs and operations, including leaks of Treasury information, as 

well as fraud impacting the Treasury payment processing service operated by the Bureau of the 

Fiscal Service. OI remains committed to investigating benefit, improper payment and other 

monetary fraud associated with the programs and operations of the Treasury Department. 

Legislative Proposals 

OIG has no legislative proposals. 

Performance Highlights

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Budget Activity Performance Measure Actual Actual Actual Target Target

Audit Number of Completed Audit Products 90 91 79 82 74

Audit Percent of Statutory Audits Completed by 

the Required Date 100 100 100 100 100

Investigations

Percentage of All Cases Closed During the 

Fiscal Year That Were Referred for 

Criminal/Civil Prosecution or Treasury 

Administrative Action

84 98 80 80 80

Description of Performance

The Office of Audit completed 79 audit products in FY 2019 and expects to complete 82 in 

FY 2020 due to the increased funding. In FY 2019, OA met its mandated audit requirements and 

identified $18.2 million of questioned costs. 

In keeping with the OIG’s strategy to maintain a highly skilled and motivated workforce, the 

OIG plans and executes a meaningful body of work designed to help ensure the integrity, 

efficiency, and effectiveness of programs and operations across OIG’s jurisdiction while looking 

for opportunities to improve them. 

Department of the Treasury - Budget in Brief 38
In FY 2019 the OIG exceeded the Investigative Performance Measure target, opened 63 new 

investigations, and closed 119 investigations. The OIG also referred 10 investigations that 

substantiated administrative violations against a Treasury employee to the appropriate regulated 

bureau for action. In addition, the OIG referred 81 investigations for criminal prosecution and 3 

investigations involving 13 entities for civil prosecution. The Office of Investigations charged 

and/or indicted 19 subjects. Ongoing investigations resulted in 32 subjects sentenced which 

resulted in fines, seizures, restitution, penalties and settlements of more than $29.5 million. The 

OIG received investigative referrals regarding potential criminal misconduct that occurred prior 

to or during bank failures, and has worked on criminal investigations with the Federal Deposit 

Insurance Corporation Office of Inspector General, the National Credit Union Administration 

Office of Inspector General regarding potential prosecution of acts which may have contributed 

to the bank failures. Additionally, the OIG continues to receive investigative referrals from 

Treasury bureaus, law enforcement agencies, and other sources regarding fraud impacting 

Treasury programs and operations and routinely conducts independent and joint investigations 

into these matters.

The Office of Investigations continues to support frequent congressional inquiries, sensitive 

investigative requests from the Council of the Inspectors General on Integrity and Efficiency, 

and annual peer reviews of other Offices of Inspector General, thus ensuring a high level of 

professionalism within the Inspector General community. 

Department of the Treasury - Budget in Brief 39
Department of the Treasury - Budget in Brief 40
Special Inspector General for TARP 

Program Summary by Budget Activity 

Dollars in Thousands FY 2019 FY 2020 FY 2021 FY 2020 to FY 2021 

Budget Activity Operating Plan Enacted Request $ Change % Change 

Investigations $19,550 $18,920 $15,050 ($3,870) -20.45% 

Audit $3,450 $3,080 $2,450 ($630) -20.45% 

Subtotal, Organization Title $23,000 $22,000 $17,500 ($4,500) -20.50% 

Unobligated Balances Brought Forward $16,912 $14,642 $14,000 ($642) -4.40% 

Total Program Operating Level $39,912 $36,642 $31,500 ($4,500) -14.00% 

Direct FTE 96 85 80 (5) -5.88% 

Total Full-time Equivalents (FTE) 96 85 80 (5) -5.88% 

Summary 

The FY 2021 Budget proposes $17,500,000, a 20 percent reduction from the FY 2020 level. 

The proposed Budget is intended to fund the Congressionally mandated independent oversight of 

TARP through SIGTARP criminal investigations and audits. TARP spending continues because 

TARP foreclosure prevention programs, the Making Home Affordable (MHA) and the Hardest 

Hit Fund (HHF) programs continue. Banks, mortgage servicers, state agencies, thousands of 

contractors and other recipients have already received over $30 billion via these programs. 

SIGTARP’s investigations and audits stop fraud, waste, and abuse of the $30 billion spent, and 

recover lost dollars for the Government and other victims. The more than $3.5 billion in future 

TARP spending will add to SIGTARP’s existing and planned investigations and audits. 

SIGTARP’s activities and goals of justice, impact, innovation, and stewardship support and 

complement Treasury’s FY 2018 – 2022 Strategic Plan goals: (1) boost U.S. economic growth 

by investigating anti-competitive practices; (2) promote financial stability; (3) enhance national 

security by investigating money laundering; (4) transform government-wide financial 

stewardship; and (5) achieve operational excellence. All of SIGTARP’s work aligns with 

Treasury’s strategic goal to promote financial stability given that Treasury designed all TARP 

programs with the goal of promoting financial stability. Fraud, waste, and abuse erodes that 

goal. All of SIGTARP’s planned work for FY 2021 aligns with Treasury’s Strategic Plan goal 

(4) “Transform Government-wide Financial Stewardship” by winding down sun setting 

programs responsibility and funding the government at the least cost over time. Fraud, waste, 

and abuse are costly for taxpayers. SIGTARP’s efficiency and high return on investment also 

aligns with Treasury’s strategic goal to achieve operational excellence. 

Special Inspector General’s Comments 

Pursuant to section 6(f)(3)(E) of the Inspector General Act of 1978, as amended, as applied 

through the Emergency Economic Stabilization Act of 2008, I have concluded that the President’s 

FY 2021 Budget request of $17.5 million would substantially inhibit the Special Inspector 

General from performing the duties of the office. I independently proposed an appropriation of 

$19 million (an additional $1.5 million) for FY 2021, as the level needed to support SIGTARP’s 

Congressionally mandated mission to conduct oversight of TARP, while also reflecting an 

orderly and responsible step down towards TARP’s sunset of March 2024. I respectfully request 

Department of the Treasury - Budget in Brief 41
that Congress consider this level, which is a 14 percent reduction from the FY 2020 enacted 

level; a 17 percent reduction from the FY 2019 enacted level; a 44 percent reduction from the 

FY 2018 enacted level; and a 54 percent reduction from the FY 2017 enacted level. 

The President’s Budget request would substantially inhibit our oversight because it will require a 

larger reduction in staffing and mission support levels than I have determined is necessary to 

fulfill the mission. The President’s Budget request is a 49 percent reduction from the FY 2018 

enacted level even though the same TARP programs are open as in FY 2018 with significant 

activity, spending more than $1 billion each year – spending that should be accompanied by 

SIGTARP’s oversight. 

In FY 2019 alone, TARP programs had significant operations and spent more than $1.7 billion. 

Of this amount, Treasury paid $1.12 billion in TARP dollars to 74 financial institutions in MHA, 

including, for example, $290 million to Ocwen Financial, $155 million to SPS, $132 million to 

Wells Fargo, $101 million to JP Morgan Chase, $59 million to Bank of America, $129 million to 

Nationstar, $19 million to Citigroup, and $5 million to CIT Bank. 

As more TARP dollars are spent in MHA and HHF, SIGTARP’s investigations and audits over 

that spending increases. Every TARP dollar spent is another dollar potentially subject to fraud, 

waste and abuse, increasing the need for investigations and audits. Treasury has already paid 

more than $20 billion in MHA. Additionally, through FY 2024, Treasury is obligated or 

committed to pay $2.8 billion to banks and non-bank mortgage servicers in MHA to modify 

these residential mortgages. For example, Treasury is obligated or committed to pay in the future 

$675 million to Ocwen Financial, $359 million to Wells Fargo, $218 million to JP Morgan 

Chase, $152 million to Bank of America, $338 million to Select Portfolio Servicing, $340 

million to Nationstar, $69 million to CitiMortgage, and $22 million to CIT Bank/One West 

Bank. In the Hardest Hit Fund, 19 state agencies have received more than $9 billion in TARP 

funds from Treasury, and have another nearly $800 million in state agency bank accounts ready 

to be spent through December 2021. 

When left unchecked, fraud, waste, and abuse in these programs can have a devastating impact 

on those the program are intended to help. HAMP continues today with nearly 800,000 people 

in all 50 states receiving mortgage modifications to make their payments affordable and 

sustainable. The billions of TARP dollars that Treasury will pay financial institutions in the 

future are not automatic, but instead require the banks and other servicers to comply with the law 

and rules of the program for those homeowners – decisions and actions that require oversight and 

law enforcement. 

There are 40 HHF programs still open to applicants, plus open programs that continue to spend 

TARP dollars related to existing homeowners, many of which are unemployed or 

underemployed, and other participants. This year, there were more TARP-funded demolitions of 

blighted houses than any other year, and 58 percent of all new first-time homebuyers receiving 

HHF down payment assistance occurred in the last year. Just this past year, more than 29,000 

new borrowers came into the program. State agencies told SIGTARP that they expect an 

additional 8,000 demolitions in the future. After those discussions, Treasury approved an 

Department of the Treasury - Budget in Brief 42
additional 450 demolitions in Ohio. These programs have important goals for communities, 

goals that would be hurt by fraud, waste, and abuse. 

SIGTARP has demonstrated that it is a solid investment for taxpayers, as SIGTARP’s work has 

led to cumulative recoveries for the government and other victims of $11 billion – a 31 time 

cumulative return on investment (ROI) from our annual budgets. 

This ranks SIGTARP as having the third highest ROI out of 18 OIGs reviewed by the Brookings 

Institution Center for Effective Public Management in its analysis of how cutting the budget of 

positive-revenue OIGs costs the government money and contributes to the federal deficit.1

 

We appreciate Congress’s strong Congressional support for our budget each year. In FY 2019: 

 $900 million was recovered as a result of SIGTARP’s law enforcement work, 

representing a 39 times annual return on investment from our $23 million budget. 

 SIGTARP investigations resulted in criminal charges against 13 defendants, four arrests, 

criminal convictions of 18 defendants, courts sentencing 28 defendants to prison, federal 

enforcement activity against three corporations/organizations, and 26 referrals to prosecutors. 

 SIGTARP auditors questioned more than $848,000 in costs, including more than $411,000 

that state agencies in HHF spent on travel and conference costs that violated Federal cost 

regulations, some of which also constituted waste. For example: 

 The North Carolina agency spent $130,000 on annual housing counselor conferences 

including paying $2,500 to a guest speaker who lectured on “Motivation by Chocolate.” 

Also, before homeowners received a single dollar from HHF, housing counselors were 

treated to an evening reception featuring a carved beef station staffed by a uniform chef, 

cake bites and strawberry shortcake martinis. 

 After the Ohio agency decided to close the HHF program to new homeowner 

applications, it deviated from past practices to hold housing counselor conferences at 

zoos. 

 Two top Florida officials charged TARP more than a dozen conferences each, often at 

luxury hotels, beaches and other resort destinations, despite the fact that the state agency 

was one of the most underperforming state agencies in HHF, providing assistance to only 

20 percent of applicants, the lowest of any state. 

 Officials from some state agencies attending an annual meeting with Treasury in 

Washington, D.C. charged TARP for luxury hotels, while other state agencies attending 

the same meeting stayed at hotels at or near the GSA rate. Two senior Ohio agency 

officials stayed at the W hotel paying $315-$423 per night, while a junior Ohio official 

on the same trip stayed at a hotel with the rate of $170 per night. 

 SIGTARP has open investigations into financial institutions participating in MHA and 

receiving TARP dollars. SIGTARP has referred some of these investigations to the 

Department of Justice, and SIGTARP continues to work these cases with the U.S. 

Department of Justice (DOJ). 

 SIGTARP continued to obtain convictions and sentencings of defendants who defrauded 

nearly 30,000 homeowners with false promises of entry into HAMP, including some who 

claimed affiliation with the government, and preyed on the elderly, and other vulnerable 

 

1

 Hudak, J. Wallack, G. (2015). Brookings Institution Center for Effective Public Management, Website: 

https://www.brookings.edu/wp-content/uploads/2016/06/CEPMHudakWallackOIG.pdf. 

Department of the Treasury - Budget in Brief 43
Americans. Already, 93 of these scammers were sentenced to prison as a result of 

SIGTARP’s investigations. 

 SIGTARP’s investigations resulted in the conviction and prison sentencing of the Detroit city 

official in charge of contracts for HHF’s blight demolition program, the conviction for 

bribery of an official from one of the largest demolition contractors in the HHF program in 

Detroit, and the indictment of a land bank official in the HHF program in Ohio on one count 

of conspiracy to commit bribery and honest services fraud, three counts of honest services 

wire fraud and one count of bribery. 

 SIGTARP’s investigations resulted in DOJ resolving a false claim act action against the sole 

contractor in HHF blight demolition in Fort Wayne, Indiana for filling the demolition sites 

with construction debris rather than clean fill dirt, and falsely billing the HHF program as if it 

had used clean fill dirt. 

 SIGTARP’s investigations have also resulted in criminal charges and arrests this year for 

homeowners defrauding HHF. 

 SIGTARP’s audits have focused on the costly and harmful risks of asbestos and lead 

exposure, illegal dumping, and contaminated dirt. 

 SIGTARP’s recent audit warned Treasury about a lack of fraud controls that led to more than 

$437,000 in payments to California homeowners who lost eligibility but continued receiving 

TARP payments for years. 

 

SIGTARP is grateful for the support of Congress. We will continue to deliver investigative and 

audit results, and a high return on investment. In every year since FY 2016, recoveries from 

SIGTARP’s work have far exceeded our annual appropriations. Investing in SIGTARP is one of 

the most effective and efficient ways to protect the government. The Government will receive 

far more than our budget in recovered dollars lost to fraud, in addition to cost savings. Our work 

ensures that TARP dollars are used as Congress intended, and that the Government does not pay 

more for TARP than is necessary. 

Department of the Treasury - Budget in Brief 44
Budget Highlights 

Dollars in Thousands 

 FTE Amount 

FY 2020 Enacted 85 $22,000 

Changes to Base: 

Maintaining Current Levels (MCLs): 0 $510 

Pay Annualization (2020 3.1% average pay raise) 0 $117 

Pay Raise (1.0% average pay raise) 0 $115 

FERS Contribution Increase 0 $141 

Non-Pay 0 $137 

Subtotal Changes to Base 0 $510 

FY 2021 Current Services 85 $22,510 

Program Changes: 

Program Decreases (5) ($5,010) 

Staff Reduction (5) ($344) 

Efficiency Savings 0 ($946) 

Realignment from Annual to No-Year 0 ($3,720) 

FY 2021 President's Budget Request 80 $17,500 

Budget Adjustments 

Budget Increases and Decreases Description 

Maintaining Current Levels (MCLs).............................................+$510,000 / +0 FTE 

Pay Annualization (2020 3.1% average pay raise) +$117,000 / +0 FTE 

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

Pay Raise (1.0% average pay raise) +$115,000 / +0 FTE 

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

FERS Contribution Increase +$141,000 / +0 FTE 

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

effective FY 2021. 

Non-Pay +$137,000 / +0 FTE 

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

and equipment. 

Program Decreases..................................................................-$5,010,000 / -5 FTE 

Staff Reduction -$344,000 / -5 FTE 

Reduction in SIGTARP staff levels to 80 FTE. 

Efficiency Savings -$946,000/ -0 FTE 

SIGTARP will seek to reduce non-personnel costs. 

Realignment from Annual to No-Year -$3,720,000/ -0 FTE 

Department of the Treasury - Budget in Brief 45
SIGTARP will fund a portion of its operations from its no-year account. 

SIGTARP actively reduces costs and its footprint, while creating an appropriately sized, skilled 

and structured workforce. 

 In the last two years, SIGTARP cut its footprint by 47 percent in cost and square footage. In 

FY 2018, SIGTARP eliminated 50 percent of its headquarters annual rent expenses. In 

FY 2019, SIGTARP eliminated 100 percent of its San Francisco annual rent expense. 

 Beginning in FY 2020, SIGTARP is reducing its New York annual rent expense by 43 

percent. 

 SIGTARP reduced fleet-related expenses by 40 percent since FY 2014. 

 In FY 2021, over $3 million of the proposed budget (23 percent) will be spent on goods and 

services from the government, more that 95 percent of which will be paid to Treasury. 

 SIGTARP has eliminated management layers and is structuring the workforce in such a way 

to create maximum flexibility as the agency’s sunset approaches. 

 SIGTARP drives efficiencies through innovative processes and the use of technology, 

including through data mining. 

 SIGTARP coordinates with other law enforcement agencies and Inspectors General, 

leveraging its unique position and expertise by forming law enforcement and other 

partnerships to create operational efficiencies and realize cost savings. 

Department of the Treasury - Budget in Brief 46
Legislative Proposals 

PPIP Funds 

The Public-Private Investment Program (PPIP) Improvement and Oversight Act of 2009 

(12 U.S.C. § 5231a) provided $15 million in no-year appropriations to SIGTARP for the purpose 

of providing oversight to PPIP and the Term Asset-Backed Securities Loan Facility. SIGTARP 

does not plan PPIP or TALF activity in FY 2020 and FY 2021. SIGTARP is requesting that 

these PPIP funds be made available to also support SIGTARP’s oversight of ongoing TARP 

programs. This proposed language is identical to that included in the FY 2018 enacted 

appropriation. 

Performance Highlights FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 

Budget Activity Performance Measure Actual Actual Actual Target Target 

Investigations 

Percentage of Cases Accepted for Consideration 

by Civil or Criminal Authorities Resulting in a 

Positive Final Outcome 

81 79 77 60 35 

Investigations 

Percentage of Cases Presented to Civil or 

Criminal Authorities within Eight Months of 

Being Opened 

80 85 75 50 25 

Investigations Percentage of Cases that are Joint Agency/Task 

Force Investigations 75 78 76 70 70 

Audit 

Number of Completed Audit Products Identifying 

Waist, Abuse, Mismanagement, Inefficiencies, or 

Referrals to Investigations Division (units) 

N/A 6 4 2 2 

Description of Performance 

In FY 2019, SIGTARP exceeded all of its targets. As a law enforcement office with 85 percent 

of its resources focused on criminal investigations, SIGTARP strives to bring justice, 

accountability, and deterrence in the fight against TARP-related crimes, including major 

financial crimes and money laundering. This past year SIGTARP continued to support 

prosecutions of defendants that SIGTARP investigated. SIGTARP’s cumulative law 

enforcement record includes 430 defendants charged with crimes, 300 of which courts have 

sentenced to prison. SIGTARP’s investigation also have led to law enforcement actions against 

24 corporations/organizations. SIGTARP achieved justice when, in FY 2019, 4 defendants were 

arrested, 13 defendants were indicted or criminally charged by information, 18 defendants were 

convicted, and courts sentenced to prison 28 defendants. SIGTARP’s rate of conviction for cases 

prosecuted by the Department of Justice is 97 percent, one of the highest in federal law 

enforcement. This is a strong indicator of investigative quality. Other measures recognize that 

as SIGTARP reduces spending and staffing, it must act with efficiency, in its investigative 

timeline, and in leveraging other law enforcement partnerships for resources. 

SIGTARP also stands as the independent watchdog for Americans, ensuring that TARP 

programs operate and spend responsibly. In FY 2019, SIGTARP auditors uncovered that state 

agencies in the Hardest Hit Fund had spent more than $411,000 on travel and conference costs 

that violated federal cost regulations. SIGTARP also uncovered more than $437,000 in HHF 

mortgage assistance to California homeowners who had lost eligibility for the program. In 

another evaluation, SIGTARP made recommendations to mitigate the risk of asbestos and lead 

exposure in the HHF blight program. SIGTARP auditors also made a referral to SIGTARP’s 

Investigations Division. 

Department of the Treasury - Budget in Brief 47
Department of the Treasury - Budget in Brief 48
Treasury Inspector General for Tax Administration

Program Summary by Budget Activity

Dollars in Thousands

FY 2019 FY 2020 FY 2021 FY 2020 to FY 2021

Budget Activity Operating Plan Enacted Request $ Change % Change

Audit $66,260 $66,260 $66,667 $407 0.61%

Investigations $103,990 $103,990 $104,683 $693 0.67%

Subtotal, TIGTA $170,250 $170,250 $171,350 $1,100 0.65%

Offsetting Collections - Reimbursable $798 $500 $500 $0 0.00%

Recovery from Prior Years $2,141 $0 $0 $0 NA

Unobligated Balances Brought Forward $5,000 $5,000 $5,000 $0 0.00%

Total Program Operating Level $7,939 $5,500 $5,500 $0 0.00%

Direct FTE 736 800 800 0 0.00%

Reimbursable FTE 2 2 2 0 0.00%

Total Full-time Equivalents (FTE) 738 802 802 0 0.00%

Note: FY 2019 FTE & Other Resources are Actual

Summary

The Treasury Inspector General for Tax Administration’s (TIGTA) Fiscal Year (FY) 2021

budget request of $171,350,000 represents an increase of one percent above its FY 2020 enacted

budget. These resources will fund critical audit, investigative, and inspection and evaluation 

services to protect the integrity of the Nation’s system of tax administration. 

TIGTA’s vision is to “maintain a highly skilled, proactive, and diverse Inspector General 

organization dedicated to working in a collaborative environment with key stakeholders to foster 

and promote fair tax administration.” Although there are a number of critical areas in which 

TIGTA will provide oversight, its FY 2021 priorities include: 

 Identifying opportunities to improve the administration of the Nation’s tax laws, improve tax 

compliance, and achieve program efficiencies and cost savings; 

 Overseeing the Internal Revenue Service’s (IRS) efforts to implement tax law changes; 

 Assessing the IRS’s efforts to address tax-related identity theft; 

 Mitigating security risks affecting taxpayer data, tax systems, and IRS employees; 

 Protecting the integrity of the IRS by effectively investigating the international IRS 

impersonation scam that has impacted more than 2.5 million Americans; 

 Conducting criminal investigations of individuals and groups who impersonate the IRS in 

order to victimize senior citizens and other vulnerable Americans; 

 Conducting advanced analytics and innovative approaches to help prevent and detect the 

flow of dollars fraudulently obtained by criminals and dishonest IRS employees; 

 Enhancing taxpayer confidence in electronic Federal tax administration through vigorous 

investigation and prosecution of cyber criminals engaged in attacks against, and manipulation 

of, IRS taxpayer service portals as well as the IRS network; 

 Improving the integrity of IRS operations by detecting and deterring waste, fraud, abuse, and 

misconduct, including the unauthorized disclosure of confidential taxpayer information by 

IRS employees; and 

Department of the Treasury - Budget in Brief 49
 Conducting comprehensive audits, inspections and evaluations that provide 

recommendations for achieving monetary benefits, addressing erroneous and improper 

payments, and enhancing the service the IRS provides to taxpayers.

TIGTA conducts audits that advise the public, Congress, the Secretary of the Treasury, and IRS 

management of high-risk issues, problems, and deficiencies related to the administration of IRS 

programs and operations. TIGTA’s administrative and criminal investigations ensure the 

integrity of IRS employees, protect the IRS and its employees, and help the IRS protect and 

secure taxpayer data. TIGTA’s Office of Inspections and Evaluations provides responsive, 

timely, and cost-effective inspections and evaluations of challenging areas in IRS programs. 

TIGTA’s oversight is essential to the efficiency and fairness of the IRS’s tax administration 

system. TIGTA ensures that taxpayers can have confidence that the IRS collects more than $3.5 

trillion in tax revenue in an effective and efficient manner. 

TIGTA’s primary functions of audit, investigations, inspections, and evaluations align with the 

following Department of the Treasury FY 2018 – FY 2022 Strategic Plan goals: 

Goal 1: Boost U.S. Economic Growth; 

Goal 4: Transform Government-wide Financial Stewardship; and 

Goal 5: Achieve Operational Excellence. 

Budget Highlights

Dollars in Thousands

Treasury Inspector General for Tax Administration FTE Amount

FY 2020 Enacted 800 $170,250 

Changes to Base:

Maintaining Current Levels (MCLs): 0 $4,354 

Pay Annualization (2020 3.1% average pay raise) 0 $1,048

Pay Raise (1.0% average pay raise) 0 $1,022

FERS Contribution Increase 0 $1,582 

Non-Pay 0 $702 

Subtotal Changes to Base 0 $4,354 

FY 2021 Current Services 800 $174,604 

Program Decreases:

Operating Cost Reduction 0 ($3,254)

FY 2021 President's Budget Request 800 $171,350 

Budget Adjustments

Maintaining Current Levels.....................................................+$4,354,000 / +0 FTE

Pay Annualization (3.1%) +$1,048,000 / +0 FTE 

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

Pay Raise (1.0% in FY 2021) +$1,022,000 / +0 FTE

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

FERS Contribution Increase +$1,582,000 / +0 FTE 

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

effective FY 2021.

Department of the Treasury - Budget in Brief 50
Non-Pay +$702,000 / +0 FTE

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

and equipment.

Program Decreases...................................................................-$3,254,000 / -0 FTE

Operating Cost Reduction -$3,254,000 / -0 FTE

TIGTA will reduce program levels in order to meet its FY 2021 budget request. Reaching this 

target without impacting the quality of TIGTA’s programs will require balancing mission 

requirements and workload.

Legislative Proposals 

TIGTA has no legislative proposals.

Performance Highlights 

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Budget Activity Performance Measure Actual Actual Actual Target Target

Audit Percentage of Audit Products Delivered 

When Promised to Stakeholders 79 81 84 70 70

Audit Percentage of Recommendations Made 

That Have Been Implemented 92 85 83 85 85

Investigations

Percentage of Closed Investigations 

Resulting in a Criminal, Administrative, 

or Law Enforcement Action

90 89 91 81 85

Description of Performance

 For FY 2019, the Office of Audit (OA) issued 97 audit reports and other products 

identifying approximately $28.1 billion in potential financial benefits.

 For FY 2019, the actual Percentage of Audit Products Delivered When Promised to 

Stakeholders was 84 percent. TIGTA exceeded the full-year target by 16 percentage points.

 For FY 2019, the actual Percentage of Recommendations Made That Have Been 

Implemented was 83 percent. TIGTA did not meet the 85 percent target due in part to the 

IRS having to put recommendations on hold or delay implementation due to funding 

issues. TIGTA is working with the IRS to prioritize these unimplemented 

recommendations.

 For FY 2021, OA’s performance targets are 70 percent of Audit Products Delivered When 

Promised to Stakeholders and 85 percent of Recommendations Made That Have Been 

Implemented. 

 During FY 2019, TIGTA initiated 25 proactive investigative initiatives to detect systemic 

weaknesses or potential IRS program vulnerabilities. TIGTA processed 8,320 complaints, 

opened 2,356 investigations, and closed 2,237 investigations in FY 2019. During this period, 

TIGTA referred for IRS action 1,079 cases of employee misconduct and 119 cases of all 

types of investigations were accepted for criminal prosecution. 

 For FY 2019, the Percentage of Closed Investigations Resulting in a Criminal, 

Administrative, or Law Enforcement Action was 91 percent, which exceeded the full-year 

target of 79 percent by 12 percentage points. The Office of Investigations (OI) exceeded the 

Department of the Treasury - Budget in Brief 51
FY 2019 performance measure as a result of the hard work of experienced executives, 

managers, and special agents. 

 For FY 2021, OI’s performance target will increase to 85 percent. OI will continue to 

provide the IRS with the investigative coverage and information necessary to improve the 

integrity of IRS operations and mitigate threats against its employees, facilities, and data 

systems. In addition, OI will maintain the availability of highly trained personnel to address 

the significant vulnerabilities of taxpayer and IRS data and effectively combat the 

compromising of IRS computer systems in the expanding digital environment of Federal tax 

administration, which will contribute to maintaining the public’s confidence in the safe, fair, 

and effective administration of the Nation’s Federal tax system. 

Department of the Treasury - Budget in Brief 52
Community Development Financial Institutions Fund

Program Summary by Budget Activity 

Dollars in Thousands

FY 2019 FY 2020 FY 2021 FY 2020 to FY 2021

Budget Activity Operating Plan Enacted Request $ Change % Change

Community Development Financial 

 Institutions Program $160,000 $165,500 $0 ($165,500) -100.00%

Bank Enterprise Award Program $25,000 $25,000 $0 ($25,000) -100.00%

Native American CDFI Assistance

 Program $16,000 $16,000 $0 ($16,000) -100.00%

Administrative $27,000 $28,500 $14,000 ($14,500) -50.88%

Healthy Food Financing Initiative $22,000 $22,000 $0 ($22,000) -100.00%

Small Dollar Loan Program $0 $5,000 $0 ($5,000) -100.00%

Subtotal, Organization Title $250,000 $262,000 $14,000 ($248,000) -94.66% 

User Fees $880 $1,000 $1,200 $200 20.00%

Recovery from Prior Years $364 $500 $500 $0 0.00%

Unobligated Balances Brought Forward $32,542 $194,145 $8,000 ($186,145) -95.88% 

Total Program Operating Level $283,786 $457,645 $23,700 ($433,945) -94.82%

Direct FTE 67 76 39 (37) -48.68%

Total Full-time Equivalents (FTE) 67 76 39 (37) -48.68%

FY 2019 Other Resources and Full-time Equivalents (FTE) reflect actuals.

Summary

The FY 2021 Budget requests an appropriation of $14,000,000 for the Community Development 

Financial Institutions Fund (CDFI Fund) to oversee the existing portfolio of loans and grants and 

to administer the CDFI Fund’s other programs. The CDFI Fund supports Treasury’s strategic 

goals of Boosting U.S. Economic Growth and Transforming Government-wide Financial 

Stewardship. 

The CDFI Bond Guarantee Program (BG Program) was originally authorized in the Small 

Business Jobs Act of 2010 (P.L. 111–240) for a period of four years to provide a source of longterm capital in low-income and underserved communities. The BG Program is implementing 

significant administrative reforms in FY 2020, including new collateral and cash requirements to 

increase taxpayer protections. The CDFI Fund will also pursue additional risk mitigation 

strategies and streamlining of administrative processes such as new liquidity premiums, escrow 

procedures and a designated bonding authority. The Administration requests an extension of the 

BG Program through December 31, 2021, and legislative changes to eliminate the relending 

account, as it is currently not utilized and redundant. The Administration encourages Congress to 

adopt these and other necessary reforms to promote further private sector participation in BG 

Program financing and support the growth of a self-sustaining CDFI industry. 

The Budget eliminates funding for the CDFI Fund’s five discretionary grant and direct loan 

programs: the Community Development Financial Institutions Program (CDFI Program), the 

Bank Enterprise Award Program (BEA Program), the Native American CDFI Assistance 

Program (NACA Program), Healthy Food Financing Initiative (HFFI), and the Small Dollar 

Loan Program (SDL Program). The CDFI industry has matured, and these institutions should 

have access to private capital needed to build capacity, extend credit, and provide financial 

services to the communities they serve.

Department of the Treasury - Budget in Brief 53
Legislative Proposals 

The CDFI Fund's BG Program supports CDFI lending and investment activity by providing a 

source of long-term capital in low-income and underserved communities. The Budget proposes 

to extend the program's authorization with an annual guarantee level not to exceed $300 million. 

The Administration also requests an extension of the BG Program through December 31, 2021, 

and legislative change to eliminate the relending account, as it is currently not utilized and 

redundant. 

The Budget also proposes to eliminate new allocations into the Capital Magnet Fund (CMF) 

effective in FY 2021. This would eliminate recurrent funding of the CMF through allocations 

from the Government-Sponsored Enterprises, Fannie Mae and Freddie Mac. 

Fund Performance Highlights 

 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Budget Activity Performance Measure Actual Actual Actual Target Target

Community Development 

Financial

Institutions Program

CDFI - Percentage of Loans &

Investments Originated in

Eligible Distressed or

Underserved Communities by

Dollar Amount of Loans

(Annual %)

81.2 73.7 75.6 60 N/A

Administration All Award Cycle Time

(Months) 6.3 5.8 6.4 6.5 6.5

Administration

ALL- Number of Affordable

Housing Units Developed or

Produced

 

27,433 

 

34,083 

 

61,000 

 

21,500 

 

21,500 

New Markets Tax Credit Program

NMTC - Percentage of Loans

and Investments That Went

Into Severely Distressed

Communities

77.5 73.6 80 75 N/A

Description of Performance 

For the FY 2019 CDFI Program round, the CDFI Fund awarded $132 million in Financial 

Assistance to 261 organizations. The CDFI Fund also awarded $18.2 million in Persistent 

Poverty Counties-Financial Assistance (PPC-FA) to 125 CDFIs specifically to serve Persistent 

Poverty Counties nationwide. In addition, the CDFI Fund awarded $22 million in HFFIFinancial Assistance to 14 CDFIs, as well as $3 million in Disability Funds-Financial Assistance 

awards to 16 CDFIs to help finance projects and services to assist individuals with disabilities. A 

total of 60 organization were also awarded more than $7.2 million in Technical Assistance.

Through the FY 2019 round of the NACA Program, the CDFI Fund awarded $12 million in 

Financial Assistance to 23 organizations in 11 states. In addition, 11 organizations received $1.5 

million in PPC-FA awards. More than $1.9 million in Technical Assistance was also awarded to 

13 organizations. 

In FY 2019, the CDFI Fund awarded $3.5 billion in calendar year 2018 New Markets Tax Credit 

Program (NMTC Program) allocation authority to 73 organizations out of a pool of 214 

applicants that requested $14.8 billion in NMTC allocations. Due to the expiration of the 

Department of the Treasury - Budget in Brief 54
extension of the allocation authority at the end of calendar year 2020, no target has been set for 

FY 2021. 

In FY 2019, the CDFI Program surpassed the 60.0 percent threshold for the percentage of both 

the dollar amount (75.6 percent) and the number of CDFI loans (78.5 percent) made to eligible

distressed communities and underserved populations. No target is set for the FY 2021 measures

because no appropriation is proposed for the CDFI Program for this fiscal year.

The primary HFFI performance measure is the number of healthy food retail stores created and

maintained in low-income areas that have been identified through detailed census tract analysis 

as having limited access to healthy food options. In FY 2019, the number of HFFI Retail outlets

created was 23, thereby exceeding the target of 20 new retail outlets for that year. No target is set 

for the FY 2021 measures because no appropriation is proposed for the HFFI Program for this 

fiscal year.

The All Award Cycle Time metric is an efficiency measure of the average time from the date 

when applications are received to the date of award announcement (calculated in months as an 

average across all programs). The Award Cycle Time in FY 2019 was 6.4 months, surpassing the 

target of seven months. This achievement reflects improved efficiency in making awards, which 

is largely a function of the implementation of the Awards Management Information System 

(AMIS).

CDFI Program, NMTC Program, and CMF award and allocation recipients reported over 61,000 

affordable housing units developed or produced as a result of CDFI Fund program awards, 

thereby exceeding the FY 2019 target for affordable housing units. The target reflects projected 

outcomes for program investments from prior-year award recipients’ reported eligible affordable 

housing projects. The FY 2021 target is set to 21,500 units to reflect reduced projected outcomes 

for program investments from prior-year award recipients due to fewer resources for affordable 

housing projects. 

 

Department of the Treasury - Budget in Brief 55
Department of the Treasury - Budget in Brief 56
Financial Crimes Enforcement Network

Program Summary by Budget Activity 

Dollars in Thousands

 FY 2019 FY 2020 FY 2021 FY 2020 to FY 2021

Budget Activity Operating Plan Enacted Request $ Change % Change

BSA Administration and Analysis $117,800 $126,000 $126,963 $963 0.76%

Subtotal, Organization Title $117,800 $126,000 $126,963 $963 0.76%

Offsetting Collections - Reimbursable $1,771 $3,000 $3,000 $0 0.00%

Recovery from Prior Years $34 $500 $500 $0 0.00%

Unobligated Balances Brought Forward $37,967 $27,000 $28,000 $1,000 3.70%

Total Program Operating Level $157,572 $156,500 $158,463 $1,963 1.25%

Direct FTE 271 300 345 45 15.00%

Reimbursable FTE 2 1 1 0 0.00%

Total Full-time Equivalents (FTE) 273 301 346 45 14.95%

Summary

The mission of FinCEN is to safeguard the financial system from illicit use, combat money 

laundering, and promote national security through the strategic use of financial authorities and 

the collection, analysis, and dissemination of financial intelligence. The FY 2021 President’s 

Budget requests additional resources totaling $963,000 and provides $2,300,000 for two critical 

program areas and program decreases totaling $2,864,000. Specifically, FinCEN will enhance 

its national security capacity, which includes continuous expansion of its efforts to combat 

cybercrime and cryptocurrency threats and strengthening the inspection and training efforts to 

ensure the proper stewardship and on-going protection of sensitive national security information.

Budget Highlights

Dollars in Thousands

FTE Amount

FY 2020 Enacted 300 $126,000 

Changes to Base:

Maintaining Current Levels (MCLs): 0 $2,827 

Pay Annualization (2020 3.1% average pay raise) 0 $380 

Pay Raise (1.0% average pay raise) 0 $390 

FERS Contribution Increase 0 $524 

Non-Pay 0 $1,533 

Non-Recurring Costs 0 ($1,300)

TBML Risk Assessment 0 ($1,300)

Other Adjustments: 37 $0 

Technical FTE Adjustment 37 $0 

Subtotal Changes to Base 37 $1,527 

FY 2021 Current Services 337 $127,527 

Program Changes:

Program Decreases 0 ($2,864)

Programmatic Contract and Equipment Reductions 0 ($2,864)

Program Increases: 8 $2,300 

Bolstering BSA Data Protection 5 $1,481 

Building Out FinCEN's Virtual Currency and Cyber 

Threat Mitigation Program 3 $819 

FY 2021 President's Budget Request 345 $126,963 

Department of the Treasury - Budget in Brief 57
Budget Adjustments 

Maintaining Current Levels (MCLs).......................................... +$2,827,000 / +0 FTE 

Pay Annualization (3.1%) +$380,000 / +0 FTE 

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

Pay Raise (1.0% in 2021) +$390,000 / +0 FTE 

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

FERS Contribution Increase +$524,000 / +0 FTE 

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

effective FY 2021. 

Non-Pay +$1,533,000 / +0 FTE 

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

equipment. 

Non-Recurring Costs............................................................... -$1,300,000 / -0 FTE

TBML Risk Assessment -$1,300,000 / -0 FTE

Completion of Trade-Based Money Laundering (TBML) risk assessment.

Other Adjustments....................................................................... +$0 / +37 FTE 

Technical FTE Adjustment +$0 / +37 FTE

This adjustment reflects FTEs in FinCEN’s multi-year hiring plan, which is beginning 

implementation in FY 2020. 

Program Decreases............................................................... -$2,864,000 / -0 FTE

Programmatic Contract and Equipment Reductions -$2,864,000 / -0 FTE

This reduction will be taken through evaluation of increases or changes in proposed acquisitions 

of contractual services and equipment. FinCEN will evaluate contracts during the renewal 

process to absorb this reduction. 

Program Increases............................................................... +2,300,000 / +8 FTE 

Bolstering BSA Data Protection +$1,481,000 / +5 FTE

This funding will allow FinCEN to support an enhancement in Bank Secrecy Act (BSA) data 

inspections and training efforts. In order to bolster the ability to protect BSA data collected, 

FinCEN will strengthen its inspections program to include internal, external, and bulk data 

usage; enhance its proactive engagement for preventative measures; and increase education and 

training efforts for the over 460 federal, state, and local agencies across the country with whom 

FinCEN maintains data access Memoranda of Understanding (MOUs) and their over 12,700 

authorized users. 

Safeguarding the BSA database from misuse is a critical obligation, and with additional funding, 

FinCEN will move to a primarily on-site inspection posture to enhance our visibility into 

individual agencies’ compliance with the obligations set forth in their MOUs. 

Department of the Treasury - Budget in Brief 58
In addition to expanding FinCEN’s capabilities to inspect data access activities, there is also a 

need to increase the training and outreach initiatives. FinCEN expects BSA data access MOUs

to steadily increase annually. Furthermore, FinCEN receives on average 120 access requests per 

year. As we anticipate an increase in MOUs in the future commensurate with historical growth 

patterns, there is a need for more training resources to cover BSA data security and proper use of 

BSA data for the corresponding increase in users. In order for FinCEN to keep up with the 

increasing needs of our stakeholders, we must be readily available to conduct substantive 

outreach and provide comprehensive financial analysis training. Additional funding will also 

increase FinCEN’s ability to provide on-going, substantive training and outreach to our law 

enforcement partners on myriad issues of national security importance in an effort to increase 

their awareness and enhance their traditional methods of utilizing the BSA to investigate illicit 

finance. As investigators become more adept at manipulating BSA data, more sophisticated 

cases of criminal wrongdoing will be brought to justice. Additionally, more meaningful 

feedback provided to regulated institutions that are subject to BSA reporting requirements 

ultimately lends to better reporting by the institutions themselves . 

Lastly, increased access to BSA data creates increased risk of improper use of the data, including 

unauthorized disclosures. Training addresses this knowledge gap for stakeholders and assists 

them in effectively manipulating the BSA data to properly support their investigations. These 

additional resources will allow FinCEN to ensure all of its users are fulfilling their responsibility 

to properly use and protect BSA data. 

Building Out FinCEN’s Virtual Currency and Cyber Threat Mitigation Program +$819,000 / +3 

FTE 

These funds will allow for international capacity building to ensure that accessibility of critical 

information exists for investigations that include an international component. The utilization of 

software tools will allow FinCEN to double the number of virtual currencies analyses, 

corroborate findings, and increase big data analytics capability, allowing for automated analytics 

and visualization of financial and cyber data. The program enhancement strengthens direct 

support for law enforcement cases to 130 cases per year, the development of 37 strategic 

intelligence products, and the provision of 50 training sessions per year. 

The FY 2021 funds will also allow FinCEN to respond to an increasing number of law 

enforcement requests for operational support regarding domestic and global cyber-enabled 

financial crimes, including efforts into the use of virtual currency to facilitate such crimes. This 

will enable FinCEN to conduct intelligence and law-enforcement driven responses to 

international and domestic financial threat incidents. The enhancement will also assist FinCEN’s 

ongoing efforts to recover funds stolen by cyber means in fraud and virtual currency exchange 

thefts. Based on metrics developed by law enforcement partners, FinCEN estimates that it will 

be able to recover approximately 60 percent of funds stolen domestically and maintain its current 

international recovery rate at 50 percent. 

Lastly, the funding will directly support FinCEN’s coordination with other international 

jurisdictions as they advance their efforts to establish their own capabilities to address virtual 

currency and cyber threats through training and capacity building, analytical development, and 

information sharing initiatives. 

Department of the Treasury - Budget in Brief 59
Legislative Proposals 

FinCen has no legislative proposals. 

Performance Highlights

 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Budget Activity Performance Measure Actual Actual Actual Target Target

BSA Administration and Analysis

Percentage of Domestic 

Law Enforcement and 

Regulators Who Assert 

Queried BSA Data Led to 

Detection and Deterrence 

of Illicit Activity

86% 85% 92% 88% 89%

BSA Administration and Analysis

Percentage of Users 

Satisfied with FinCEN 

Information Sharing 

Systems

87% 86% 89% 84% 85%

Description of Performance 

The continued increase in valuable BSA data demands the continued expansion of analysis 

capability and supporting technology to utilize this data to its full capacity. The increases in 

BSA data and the demand for this data informed the requested program changes. 

FinCEN conducts annual surveys of the BSA database and information sharing systems’ users on 

the utility and value of FinCEN’s information, analysis, and systems. The results provide 

valuable feedback on FinCEN’s performance safeguarding the financial system from illicit use, 

combatting money laundering, and promoting national security. 

FinCEN monitors the percentage of domestic law enforcement and regulators who assert queried 

BSA data led to detection and deterrence of illicit activity. The survey looks at the value of 

FinCEN data, such as whether the data provided unknown information; supplemented or 

expanded known information; verified information, helped identify new leads; opened a new 

investigation or examination; supported an existing investigation or examination; or, provided 

information for an investigative or examination report. In FY 2019, FinCEN surpassed its target 

of 86 percent with 92 percent asserting that the queried BSA data led to the detection and 

deterrence of illicit activity. FinCEN achieved this performance by increasing its FinCEN Portal 

and Query training efforts. FinCEN will continue to increase its training efforts to provide the 

FinCEN Portal and FinCEN Query user community with the information they need to 

successfully enhance their investigative efforts. In FY 2020, the target is set at 88 percent and in 

FY 2021 at 89 percent. 

FinCEN also tracks the percentage of users satisfied with FinCEN information sharing systems. 

This measure is based on survey responses and represents user satisfaction with the BSA EFiling System, FinCEN Query, and the Egmont Secure Web. FinCEN collects and maintains 

BSA reports filed by financial institutions and other filers. In turn, FinCEN provides authorized 

users (including Treasury and the Under Secretary for Terrorism and Financial Intelligence) 

access to a query system containing 14 years of BSA data. FinCEN also provides foreign 

Financial Intelligence Units (FIUs) in the Egmont Group with a secure system for exchanging 

financial intelligence to combat money laundering and terrorist financing. This measure is 

Department of the Treasury - Budget in Brief 60
meaningful because the information sharing system allows authorized persons to more readily 

access BSA information and better enable them to conduct investigations more efficiently and 

effectively. In FY 2019, FinCEN exceeded its target of 84 percent with 89 percent of the users 

satisfied with the information sharing systems. FinCEN attributes this performance to the 

increased satisfaction with the value of BSA information in FinCEN Query, as well as improved 

system stability. FinCEN is currently undergoing a technical refresh of the FinCEN Portal and 

FinCEN Query applications, which will be implemented in mid FY 2020. As such, FinCEN will 

keep the target at 84 percent due to the learning curve associated with these changes. FinCEN 

expects the target to slightly increase to 85 percent in FY 2021. 

Department of the Treasury - Budget in Brief 61
Department of the Treasury - Budget in Brief 62
Alcohol and Tobacco Tax and Trade Bureau 

Program Summary by Budget Activity 

Dollars in Thousands

FY 2019 FY 2020 FY 2021 FY 2020 to FY 2021

Budget Activity Operating 

Plan 1/ Enacted Request $ Change % Change

Collect the Revenue $58,856 $57,513 $62,086 $4,573 7.95%

Protect the Public $60,744 $62,087 $63,751 $1,664 2.68%

Subtotal, TTB $119,600 $119,600 $125,837 $6,237 5%

Unobligated Balances Brought Forward 2/ $5,079 $4,601 $3,908 ($693) -15.05%

Transfers In/Out 3/ $597 $0 $0 $0 NA

Offsetting Collections - Reimbursable 4/ $6,239 $7,437 $7,437 $0 0.00%

Total Program Operating Level $131,515 $131,638 $137,182 $5,544 4%

Direct FTE 485 502 508 6 1.20%

Reimbursable FTE 10 10 10 0 0.00%

Total Full-time Equivalents (FTE) 495 512 518 6 1.17%

1/ FY 2019 Resources by Budget Activity reflect levels appropriated in P.L. 116-6, the Consolidated Appropriations Act of 2019. FY 

2019 FTE and Other Resources are actual obligations. For further details on the execution of these resources see the 2021 Budget 

Appendix chapter for the Department of the Treasury.

2/ Includes carryover of prior two-year set aside funding for trade practice enforcement and recoveries of 50 percent in unobligated 

balances from prior one-year funding.

3/ Transfer from TEOAF Secretary's Enforcement Fund.

4/ Includes reimbursements from the Treasury Executive Office of Asset Forfeiture (TEOAF) Mandatory Fund and Community 

Development Financial Institutions Fund (CDFI), and offsetting collections from Puerto Rico Cover-Over Program.

Summary

The Alcohol and Tobacco Tax and Trade Bureau (TTB) serves as the nation’s primary Federal 

authority in the taxation and regulation of the alcohol and tobacco industries. TTB is responsible 

for the administration and enforcement of the Internal Revenue Code provisions for excise taxes 

on alcohol, tobacco, firearms, and ammunition, and the Federal Alcohol Administration Act, 

which provides for the regulation of the alcohol beverage industry to protect U.S. consumers and 

ensures a fair and competitive marketplace for U.S. businesses. 

In FY 2021, TTB will continue to focus on enforcing compliance with alcohol, tobacco, 

firearms, and ammunition laws and regulations in the interest of collecting all appropriate excise 

taxes and promoting a marketplace for alcohol beverages that complies with Federal production, 

labeling, advertising, and marketing standards. The FY 2021 President’s Budget request enables 

TTB to improve service levels for permitting and alcohol beverage labeling as well as tax 

administration and enforcement outcomes through investments in information technology (IT) 

modernization. Leveraging technology, a key tenet of the President’s Management Agenda, TTB 

will prioritize plans to simplify and streamline the filing and processing of TTB tax returns and 

required reports to improve voluntary compliance and support enhanced analytics to detect 

underreporting and fraud. These modernization efforts are critical to protect Federal revenue and 

preserve a level playing field for industry as TTB continues to prioritize its enforcement of the 

Craft Beverage Modernization and Tax Reform provisions of P.L. 115-97, recently extended 

through December 31, 2020. In the first two years, Federal revenues have declined, with the full 

impact not yet known. Enforcement will continue to pose significant challenges and, with 

regards to imported products, will require TTB to continue its extensive coordination with U.S. 

Customs and Border Protection. 

Department of the Treasury - Budget in Brief 63
Further, to improve tax enforcement outcomes and promote a more efficient Federal government, 

the Administration is proposing the consolidation of Federal alcohol and tobacco tax 

enforcement authorities within the Department of the Treasury, including transferring 

jurisdiction for the Contraband Cigarette Trafficking Act (CCTA) from the Department of 

Justice’s (DOJ) Bureau of Alcohol, Tobacco, Firearms, and Explosives to TTB. The FY 2021 

request supports an initial investment of $1.5 million in start-up costs for TTB to initiate the 

transfer and begin to implement this enforcement program. Upon transfer of CCTA authority, 

and once fully resourced, TTB expects that its enforcement model will provide positive returns 

in terms of increased revenues and reduced criminal activity. This investment will require 

tradeoffs across TTB’s enforcement programs. At the FY 2021 funding level, TTB will 

rebalance enforcement priorities to sustain an enforcement presence to deter prohibited trade 

practice activities while establishing a CCTA enforcement program. 

Budget Highlights

Dollars in Thousands

FTE Amount

FY 2020 Enacted 502 $119,600

Changes to Base:

Maintaining Current Levels (MCLs): 0 $2,748

Pay Annualization (2020 3.1% average pay raise) 0 $590

Pay-Raise (1.0% average pay raise) 0 $575

FERS Contribution Increase 0 $714

Non-Pay 0 $869

Other Adjustments: 6 $900

Annualization of FY 2020 Hiring 6 $900

Subtotal Changes to Base 6 $3,648

FY 2021 Current Services 508 $123,248

Program Changes:

Program Decreases (6) ($1,500)

 Enforcement to Maintain a Level Playing Field (6) ($1,500)

Program Increases 6 $4,089

 MyTTB IT System Modernization 0 $2,589

 Consolidation of Federal Alcohol & Tobacco Tax 

Jurisdiction 6 $1,500 

FY 2021 President’s Budget Request 508 $125,837

Budget Adjustments 

Adjustments to Request

Maintaining Current Level (MCLs)............................................+$2,748,000 / +0 FTE 

Pay Annualization (3.1%) +$590,000 / +0 FTE 

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

Pay Raise (1.0% in 2021) +$575,000 / +0 FTE 

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

FERS Contribution Increase +$714,000 / +0 FTE 

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

effective FY 2021. 

Department of the Treasury - Budget in Brief 64
Non-Pay +$869,000 / +0 FTE 

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

and equipment. 

Other Adjustments..................................................................+$900,000 / +6 FTE 

Annualization of FY 2020 Hiring +900,000 / +6 FTE 

This adjustment reflects the annualization of new hires brought onboard during the second half 

of FY 2020. 

Program Decreases..................................................................-$1,500,000 / -6 FTE

Enforcement to Maintain a Level Playing Field -$1,500,000 / -6 FTE

TTB will reduce its investigators and support staff dedicated to the Trade Practice Enforcement 

program. TTB enforcement addresses unlawful trade practices in the marketplace and ensures a 

level playing field for U.S. alcohol manufacturers and distributors. With two-year set aside 

funding provided in fiscal years 2017-2020, TTB added staffing to increase its capacity for trade 

practice investigations from approximately one each year to approximately 50 active cases 

annually. At the FY 2021 funding level, TTB will maintain fewer active cases and continue its 

process of evaluating and prioritizing the highest risk revenue and trade practice cases as part of 

its annual enforcement planning process. 

Program Increases..................................................................+$4,089,000 / +6 FTE 

MyTTB IT System Modernization +$2,589,000 / +0 FTE 

TTB will continue to invest in IT system modernization to transform the online experience for 

TTB industry members. The desired end-state, known as MyTTB, will provide an integrated and 

personalized online system to help industry members navigate the process of doing business with 

TTB. This initiative would transform the industry member experience with TTB incrementally, 

developing and delivering functional modules in phases to provide a seamless and consistent 

experience across all permitting, tax, and labeling interactions with TTB. MyTTB would also 

facilitate improved data integration across TTB programs and systems, enabling TTB to better 

detect noncompliance and fraud, validate submission data, automate workflows, and increase 

data-driven decision making. 

 

Consolidation of Federal Alcohol & Tobacco Tax Jurisdiction +$1,500,000 / +6 FTE 

TTB requests start-up funding to support the Administration’s proposal to consolidate Federal 

alcohol and tobacco tax jurisdiction within the Department of the Treasury and TTB. This initial 

investment will enable TTB to begin hiring the necessary additional enforcement personnel to 

conduct the complex, multi-state investigations associated with contraband cigarette smuggling. 

The requested funding level supports 6 FTE, which will allow TTB to begin hiring auditors, 

investigators, and other program staff. Further, TTB will hire criminal enforcement agents under 

an expansion of its existing interagency agreement with the IRS. This initial investment would 

also enable TTB to initiate any needed rulemaking and guidance, as well as support initial 

research into system requirements and data analytics to improve enforcement targeting. During 

this transition period, and at the proposed staffing level, TTB will also expand its outreach to 

state law enforcement partners and work closely with DOJ on the transfer and continuation of 

existing cases.

Department of the Treasury - Budget in Brief 65
Legislative Proposals 

The Administration proposes to transfer primary jurisdiction over Federal tobacco and alcohol 

anti-smuggling laws from the Department of Justice and the Bureau of Alcohol, Tobacco, 

Firearms and Explosives to the Department of the Treasury and TTB. Under the proposal, TTB 

would be responsible for the administration and enforcement of the Jenkins Act of 1949 (as 

amended by the Prevent All Cigarette Trafficking Act of 2009), 15 U.S.C. Chapter 10A, the 

Contraband Cigarette Trafficking Act of 1978, 18 U.S.C. Chapter 114, and the criminal statutes 

involving Liquor Trafficking, 18 U.S.C. Chapter 59. Specific statutory language to effect the 

transfer and facilitate Federal enforcement against tobacco smuggling has been developed in 

consultation with the Secretary of the Treasury and with the Attorney General. 

Performance Highlights 

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Budget Activity Performance Measure Actual Actual Actual Target Target

Collect the 

Revenue

Amount of Revenue Collected Per Program 

Dollar 406 369 339 N/A N/A

Collect the 

Revenue

Percent of Voluntary Compliance from Large 

Taxpayers in Filing Tax Returns/Payments 

Timely (by filing) 1/

85 85 DISC DISC DISC

Collect the 

Revenue

Percent of Voluntary Compliance from Large 

Taxpayers in Filing Tax Returns/Payments 

Timely (by taxpayer) 1/

60 69 69 95 95

Collect the 

Revenue

Percent of Voluntary Compliance from Large 

Taxpayers in Filing Operational Reports Timely 

(by taxpayer) 1/

66 74 76 95 95

Collect the 

Revenue

Percent of Electronically Filed Tax Returns -

Pay.gov 2/ 35 37 41 50 60 

Collect the 

Revenue

Percent of Electronically Filed Operational 

Reports - Pay.gov 40 42 46 50 60 

Protect the Public Percentage of Permit Applications Processed 

within Service Standards (75 days) 48 71 58 85 85

Protect the Public Initial Error Rate for Permit Applications 3/ 83 80 71 25 25

Protect the Public Percent of Electronically Filed Permit 

Applications 4/ 85 87 89 90 90

Protect the Public Customer Satisfaction Rate with eGov Systems 

- Permits Online 68 77 68 80 80

Protect the Public

Percentage of Alcohol Beverage Label and 

Formula Applications Processed within Service 

Standards (15 days) 5/

62 84 48 85 85

Protect the Public Initial Error Rate for Label and Formula 

Applications 43 40 37 25 25

Protect the Public Percent of Electronically Filed Label and 

Formula Applications 98 98 99 95 95

Protect the Public Customer Satisfaction Rate with eGov Systems 

- COLAs Online 82 81 77 80 80

Protect the Public Customer Satisfaction Rate with eGov Systems 

- Formulas Online 6/ 70 79 70 80 80

Key: DISC - Discontinued

1/ TTB developed new measures to evaluate and monitor taxpayer compliance for FY 2019, which will calculate compliance rates on a taxpayer 

basis, rather than a per filing basis; TTB also formally added a measure of the compliance rate for operational reports.

2/ Minor adjustments to prior year data based on data quality review.

3/ Result for FY 2019 likely lower than reported due to a data quality issue in Q4 based on the incorrect application of “'corrections'” status on 

certain permit applications.

4/ Revised actuals for prior years due to data quality review and cleanup of data source.

5/ Service standards are set annually based on TTB analysis of submission volume, error rates, and resource levels. For FY 2018, TTB established 

new service standards of 15 days for both labels and formulas based on a significant spike in submissions. In FY 2017, the service standard was 10 

days for both labels and formulas. Between FY 2014 - 2016, the service standard was 30 days for labels and 45 days for formulas. 

6/ Revised actual for FY 2018 due to error in calculation; results represent beverage alcohol formula filers only (nonbeverage alcohol formula filers 

are excluded).

Department of the Treasury - Budget in Brief 66
Description of Performance 

During FY 2019, TTB met or exceeded the performance targets for 1 of its 13 performance 

measures, which includes two new measures of timely tax filing compliance to support datadriven decision making in support of TTB's mission. The bureau will continue to monitor its 

annual business plan and use performance information to improve the effectiveness of its 

programs. TTB’s strategies to achieve its performance targets in the years ahead include a 

combination of improving internal processes, modernizing IT systems, simplifying and 

streamlining application requirements, and enhancing guidance to industry members. 

TTB’s Collect the Revenue budget activity includes all tax processing, verification, enforcement, 

and outreach efforts related to administering the Federal excise tax on alcohol, tobacco, firearms, 

and ammunition products. In ensuring a level playing field for those engaged in the trade of these 

regulated commodities, TTB also takes appropriate enforcement action to detect and address 

diversion activity and ensure all products sold in the marketplace are properly taxpaid. In 

FY 2019, TTB collected excise taxes totaling nearly $20 billion, comprised of $11 billion for 

tobacco products, $8 billion for alcohol beverage products, and $567 million for firearms and 

ammunition. This budget activity supports Treasury’s Strategic Goal 1 (Boost U.S. Economic 

Growth) and Strategic Objective 1.1 (Tax Law Implementation) to administer tax laws to better 

enable all taxpayers to meet their obligations while protecting the integrity of the tax system.

The investments in the Collect the Revenue activity resulted in the following performance 

highlights and accomplishments during FY 2019: 

• TTB collected nearly $20 billion in excise taxes and other revenues from a tax base of nearly 

32,000 taxpayers in the alcohol, tobacco, firearms, and ammunitions industries. In FY 2019, 

TTB returned $339 for every dollar invested in its tax collection activity.

• TTB’s two measures of electronically filed tax returns and operational reports indicate that less 

than half of TTB tax submissions are submitted to TTB via Pay.gov, the current online system 

for electronic submissions. High rates of paper filings make compliance monitoring and fraud 

detection more difficult and costly. The IT system investment requested for FY 2021 will drive 

increased electronic tax filing rates, which will support more accurate, timely, and complete 

submissions as well as improved access to data for TTB tax verification and analysis.

• In FY 2019, under two new measures of compliance rates in timely filing tax returns and 

operational reports, TTB achieved a compliance rate of 69 percent for returns and 76 percent 

for reports from its large taxpayers (i.e., those that pay more than $50,000 in annual taxes), 

which fell below the performance target of 95 percent. Increasing voluntary compliance by 

taxpayers in recent years has been a challenge, as existing technology, processes, and 

requirements have not kept pace with continued industry growth and expansion. In the last five 

years, the number of TTB taxpayers has increased 60 percent, and increasingly includes more 

recent permittees who may be less familiar with TTB’s statutory and regulatory requirements. 

Non-compliance undermines the level playing field, which is especially critical for small 

producers who comprise the majority of TTB taxpayers. The FY 2021 request supports the IT 

system and analytics enhancements that would enable TTB to more efficiently detect and 

address these issues.

TTB’s Protect the Public budget activity funds the programs that ensure the integrity of the 

products and industry members in the marketplace; promote compliance with Federal laws and 

Department of the Treasury - Budget in Brief 67
regulations by nearly 100,000 businesses that TTB regulates; facilitate fair and lawful domestic 

and international trade in the alcohol and tobacco commodities; and provide full and accurate 

alcohol beverage product information to the public as a means to prevent consumer deception. 

These activities support Treasury’s Strategic Goal 1 (Boost U.S. Economic Growth) and 

Strategic Objective 1.3 (Trusted Currency and Services) to deliver trusted currency and services 

that enable citizens and businesses to participate in the economy as well as Strategic Objective 

1.4 (Free and Fair Trade) to advance a free and fair trade environment for U.S. businesses. 

The investments in the Protect the Public activity resulted in the following performance 

highlights and accomplishments during FY 2019: 

• TTB received approximately 199,000 label applications and 20,000 formula applications, 

which reflects the ongoing expansion of the alcohol beverage industry. Federal law prohibits 

the import or domestic bottling of an alcohol beverage without an approved label, making this 

service integral to U.S. businesses. TTB continues to face performance challenges due to 

increased submission volume, which increased approximately 20 percent for label applications 

and 40 percent for formula applications in the last two years. Despite concerted recovery 

efforts following the partial government shutdown, TTB fell short of its FY 2019 performance 

target to process 85 percent of label and formula applications within its 15-day service 

standard, although TTB nearly achieved the target for formula applications at 84 percent. TTB 

also achieved a 99 percent electronic filing rate for alcohol beverage label and formula 

applications. 

• TTB received approximately 7,800 applications for a Federal permit or registration, and 

qualified approximately 6,500 new businesses, predominantly small businesses. A TTB permit 

or registration is required before a business can lawfully operate in the alcohol and tobacco 

industries, and TTB ensures a fair and lawful marketplace by screening permit applicants to 

ensure only qualified persons engage in operations. TTB and Treasury established a two-year 

Agency Priority Goal (APG) for FY 2018-2019 to improve the timeliness and consistency of 

service levels by reducing average processing times for new permit applications by 20 percent 

and achieving its service standard for 85 percent of applicants. TTB met one of its two APG 

targets by the end of FY 2019, reducing average approval times by 20 percent from 96 days in 

FY 2017 to 75 days in FY 2019, although TTB fell short of its second target to achieve the 75-

day service standard for 85 percent of permit applicants. During the partial government 

shutdown, with industry continuing to file for Federal permit approval, the application backlog 

continued to increase and age. As a result, for FY 2019, TTB issued 58 percent of permit 

applications within its 75-day service standard. Through focused recovery efforts, TTB made 

progress in the second half of the fiscal year and is positioned to achieve this priority goal 

target in FY 2020. TTB also achieved an 89 percent electronic filing rate for permit 

applications. 

• TTB made significant progress in reducing the error rate on initial permit, label, and formula 

applications, a critical strategy to maintaining timely service, although performance remains 

well above the targeted rate of 25 percent, at 71 percent for permit applications and 37 percent 

for label and formula applications. Improvements in FY 2019 were driven by system 

enhancements and online guidance. Performance in permitting is expected to continue to 

improve following planned enhancements to the Permits Online system and completion of 

planned rulemaking to implement broader changes to TTB permit applications. TTB will also 

continue to pursue system-based validations and user guidance to reduce label and formula 

Department of the Treasury - Budget in Brief 68
application errors. System enhancements to date have resulted in high rates of customer 

satisfaction with TTB's eGov systems, although service delays following the partial 

government shutdown contributed to system satisfaction rates trending away from the 80 

percent target in FY 2019. 

Department of the Treasury - Budget in Brief 69
Department of the Treasury - Budget in Brief 70
Bureau of the Fiscal Service

Program Summary by Budget Activity 

Dollars in Thousands

FY 2019 FY 2020 FY 2021 FY 2020 to FY 2021

Budget Activity Operating 

Plan Enacted Request $ Change % Change

Accounting and Reporting $95,175 $98,937 $102,877 $3,940 3.98%

Collections $42,166 $37,948 $41,077 $3,129 8.25%

Payments $117,581 $123,015 $121,519 ($1,496) -1.22%

Retail Securities Services $59,381 $58,403 $61,231 $2,828 4.84%

Wholesale Securities Services $23,977 $21,977 $23,496 $1,519 6.91%

Matured Unredeemed Debt 1/ $0 $25,000 $10,000 ($15,000) -60.00%

Subtotal, Bureau of Fiscal Service $338,280 $365,280 $360,200 ($5,080) -1.39%

Reimbursable $384,771 $400,000 $402,000 $2,000 0.50%

Unobligated Balances Brought Forward $71,815 $91,922 $99,922 $8,000 8.70%

Total Program Operating Level $794,866 $857,202 $862,122 $4,920 0.57%

Direct FTE 

1,495 

 

1,557 

 

1,582 25 1.61%

Reimbursable FTE 377 412 412 0 0.00%

Total Full-time Equivalents (FTE) 1,872 1,969 1,994 25 1.27%

Note: 1/ FY 2020 Enacted includes $25 million, available until expended, appropriated by P.L. 116-93, Consolidated Appropriations Act, 

2020. FY 2019 Other Resources and Full-time Equivalents (FTE) reflect actuals. 

Summary

The FY 2021 request for the Bureau of the Fiscal Service (Fiscal Service) is $360.2 million. 

The budget ensures the viability of the government’s National Financial Critical Infrastructure 

(NFCI) that finances Federal operations, collects revenue, disburses payments, and reports on the 

government’s financial position; supports Treasury’s leadership in transforming Federal financial 

management to become more efficient, more accurate and deliver better service to citizens; and 

aligns closely with Treasury’s strategic goal to transform government-wide financial stewardship 

by improving the accuracy and availability of financial information and implementing new, 

innovative financial practices. Included in the budget are the Fiscal Service’s efforts to 

streamline the government’s audit processes and reduce intra-governmental accounting 

differences that stand in the way of a clean audit opinion on the Financial Report of the U.S. 

Government; ambitious goals for all-electronic transactions between the bureau, Federal 

agencies and the public to improve efficiency, security and enable the application of higher 

levels of automation, such as robotics and artificial intelligence. Supporting the President’s 

Management Agenda, Fiscal Service is working within the Federal community to gain the longterm designation for the Sharing Quality Services CAP Goal’s core financial management 

Quality Service Management Office. This office would be ultimately responsible for operating 

the Federal marketplace for quality core financial service offerings available to Federal agencies. 

Treasury’s strategic goal to achieve operational excellence by strengthening the resiliency of our 

infrastructure and enhancing the customer value and experience is also supported by this budget. 

Included is an initiative to strengthen the bureau’s cybersecurity posture by enhancing our ability 

to identify threats to the national critical infrastructure, counter them, and quickly reconstitute 

operations if necessary; and our initiative to help Americans identify and recover their savings 

bonds that have matured, but remain unredeemed. Additionally, Fiscal Service leads Treasury’s 

Department of the Treasury - Budget in Brief 71
Agency Priority Goal to improve the public’s experience by increasing electronic payments and 

reducing paper checks. 

Budget Highlights

Dollars in Thousands

FTE Amount

FY 2020 Enacted 1/ 1,557 $365,280 

Changes to Base:

Maintaining Current Levels (MCLs): 0 $7,698 

Pay Annualization (2020 3.1% average pay raise) 0 $1,666 

Pay Raise (1.0% average pay raise) 0 $1,625 

FERS Contribution Increase 0 $1,901 

Non-Pay 0 $2,506 

Non-Recurring Costs 0 ($32,796)

Reduce Contractual Services 0 ($7,796)

Matured Unredeemed Debt /1 0 ($25,000)

Other Adjustments: 13 $1,805 

Annualization of Hires 13 $1,805 

Subtotal Changes to Base 13 ($23,293)

FY 2021 Current Services 1,570 $341,987 

Program Changes:

Program Increases: 12 $18,213 

Quality Service Management Office 7 $5,000 

Cybersecurity 0 $3,213 

Matured Unredeemed Debt 5 $10,000 

FY 2021 President's Budget Request 1,582 $360,200 

Note: 1/ FY 2020 Enacted includes $25 million, available until expended, appropriated by P.L. 116-

93, Consolidated Appropriations Act, 2020

Budget Adjustments 

Maintaining Current Levels (MCLs)........................................................ +$7,698,000 / +0 FTE 

Pay Annualization (3.1 percent) +$1,666,000 / +0 FTE 

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

Pay Raise (1.0 percent in 2021) +$1,625,000 / +0 FTE 

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

FERS Contribution Increase +$1,901,000 / +0 FTE 

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

effective FY 2021. 

Non-Pay +$2,506,000 / +0 FTE 

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

and equipment. 

Department of the Treasury - Budget in Brief 72
Non-Recurring Costs.......................................................................... -$32,796,000 / -0 FTE

Reduce Contractual Services -$7,796,000 / -0 FTE

Reductions or realignments of Fiscal Service operations due to efficiencies identified in 

contracting support and to support the bureau’s hiring plans. 

Matured Unredeemed Debt -$25,000,000 / -0 FTE 

United States Savings Bonds that have reached final maturity and stopped earning interest are 

considered Matured Unredeemed Debt (MUD). As of the end of FY 2019, the MUD balance 

had reached $25.7 billion. The Consolidated Appropriations Act, 2020, (P.L. 116-93) provided 

$25 million, available until expended, for the digitization of records of matured savings bonds 

that have not been redeemed. This adjustment removes the FY 2020 appropriation from the FY 

2021 base. Continued MUD efforts in FY 2021 are included in the Program Increases section.

Other Adjustments............................................................................ +$1,805,000 / +13 FTE 

Annualization of Hires +$1,805,000 / +13 FTE 

Funds are requested for annualization of salary and benefits for hires that occur during FY 2020. 

These hires support the bureau’s hiring priorities to reach targeted staffing levels. 

Program Increases................................................................................. +$18,213,000 / +12 FTE 

Quality Service Management Office (QSMO) +$5,000,000 / +7 FTE 

This funding supports the President’s Management Agenda (PMA), and the Sharing Quality 

Services Cross-Agency Priority (CAP) Goal 5. The PMA, Sharing Quality Services CAP Goal 5 

strives to achieve operational and performance cost savings across administrative services. In 

FY 2019, OMB pre-designated Department of the Treasury as the QSMO for Financial 

Management (FM). Fiscal Service is leveraging existing Treasury authorities and in-house 

expertise to create and implement a readiness assessment process for agencies and legacy 

financial management shared service providers. As guiding principles, Fiscal Service will 

operate with a focus on customer experience, promote the strategic value of data and deliver 

progress using agile processes.

Cybersecurity +$3,213,000 / +0 FTE 

This request provides continued support of a phased approach to transition National Financial 

Critical Infrastructure (NFCI) systems currently hosted and developed with outdated technology 

to new, more modern solutions that will support the security, resiliency, and agility efforts. 

Specifically, additional funding is requested to expedite the transition of the Trusted Internet 

Connection to co-located data centers, which provides secure connectivity for data and 

information. Additional funding will also support enhanced data encryption and other 

remediation efforts identified through the bureau’s on-going Cyber Clean initiative. These 

efforts are critical to allowing Fiscal Service to accelerate cloud adoption, which will provide for 

enhanced security as well as improved availability, reliability, and resiliency of information 

services.

Matured Unredeemed Debt +$10,000,000 / +5 FTE 

Funds are requested to continue efforts to encourage bond owners to cash their matured, 

unredeemed savings bonds. Encouraging bond holders to cash their savings bonds does present 

Department of the Treasury - Budget in Brief 73
challenges. In December 2019, Fiscal Service implemented its Treasury Hunt® search tool, 

which is an online tool that makes searching the status of Treasury bonds simpler by allowing 

individuals to discover if they have savings bonds issued in 1974 or later that have matured and are 

no longer earning interest. While 85 percent of the MUD balance is from bonds issued in 1974 

and later, the quality of many of the paper records make it difficult to determine bond holder 

information. These documents are not machine-readable, thus making it difficult to index and 

search. In December 2019, Fiscal Service hosted a series of industry days to learn more about 

the options to digitize and index these records and where to prioritize efforts. Funding is 

requested to continue to help bond owners redeem their bonds and improve Treasury’s ability to 

provide more searchable records through: 

• Process improvements for cashing savings bonds, including digital options, with a focus on 

Matured Unredeemed Debt

• Improved ease of use and accessibility of new online search tools, ultimately resulting in 

expanded customer awareness of Matured Unredeemed Debt 

• Expanded outreach to states and bondholders about Matured Unredeemed Debt 

• Continuing efforts to digitize and index savings bond records 

Legislative Proposals 

1. Give the Do Not Pay (DNP) Business Center the direct authority to acquire (designate) 

publicly available data sources to include in DNP for the prevention, identification, and 

recovery of improper payments. Total increase in improper payments identified by Treasury: 

$35 million over 10 years. 

This proposal gives the Secretary of the Treasury (Secretary) the authority to acquire or 

designate publicly available data sources for DNP to aid in the analysis of agency business 

practices affecting the issuance of improper payments as well as the ability for agencies to verify 

information regarding potentially ineligible payees. 

2. Allow Treasury to access the Death Master File for improper payment purposes. Total 

increase in improper payments identified by Treasury: $25.3 million over 10 years. 

This proposal authorizes the Secretary to access the full (restricted) file of death information that 

the Social Security Administration (SSA) maintains, which includes State-reported death data, 

for purposes of administering the Do Not Pay (DNP) Business Center and preventing, 

identifying, and recovering improper payments for Federal agencies. Treasury and SSA would 

collaborate to determine the most efficient means of exercising this authority. 

3. Give the Do Not Pay Business Center (DNP) increased authority to expand its user base 

to include other Federally funded government entities, such as Federally funded state 

administered programs. Total increase in improper payments identified by Treasury: $21 

billion over 10 years. 

This proposal gives the Secretary of the Treasury (Secretary), in coordination with OMB, the 

authority to work with other federally funded government entities to identify, prevent, and 

recover their improper payments. 

Department of the Treasury - Budget in Brief 74
4. Expand Treasury's authority to access the National Directory of New Hires (NDNH) to 

include prevention, identification, and recovery of improper payments. Total increase in 

improper payments identified by Treasury: $3.24 billion over 10 years. 

The Social Security Act specifies which agencies may receive information from the database and 

the limited purposes for which disclosures are permitted. Under the current law, the Secretary of 

the Treasury has access to information in the NDNH for debt collection purposes. This proposal 

expands the Secretary's access to information in the NDNH to include the purposes of 

preventing, identifying, and recovering improper payments for Federal agencies. Treasury and 

the Department of Health and Human Services will continue to work together to determine Do 

Not Pay’s appropriate role in carrying out this authority.

5. Expand the Treasury Offset Program to increase debt collections. Estimated Recoveries: 

Tax debt collections: Between $960 million and $1.24 billion over 10 years. 

The State Reciprocal Program (SRP), a component of the Treasury Offset Program (TOP), 

permits states to collect their debts through the offset of federal non-tax payments in exchange 

for permitting TOP to collect federal non-tax debts through the offset of state payments. This 

joint Internal Revenue Service-Bureau of the Fiscal Service proposal expands the SRP by 

authorizing the continuous levy of state payments to collect Federal tax debts.

6. Fund the Federal Payment Levy Program via collections. Estimated costs: $220 million in 

Fiscal Service costs to operate the Tax Levy Program in TOP over 10 years. Fiscal Service is 

currently being reimbursed for this cost from IRS appropriated funding. 

This proposal improves the way the Fiscal Service collects its reimbursement from IRS to cover 

Fiscal Service’s costs in developing and operating the Federal Payment Levy Program (FPLP), 

which utilizes the Treasury Offset Program (TOP) to process levies of Federal payments to 

collect delinquent tax debts. 

7. Increase collections of delinquent state income tax debt. Estimated recoveries: $2.3 billion 

in state taxes over 10 years. These funds would go to the states. This proposal is revenue 

neutral for Federal scoring purposes. 

This proposal amends section 6402(e) of the Internal Revenue Code to allow the Fiscal Service 

to offset Federal income tax refunds to collect delinquent state tax obligations regardless of 

where the debtor resides. 

8. Reduce costs for states collecting delinquent income tax obligations. Estimated savings: 

$140.8 million for states over 10 years. This proposal is revenue neutral for Federal scoring 

purposes. 

This proposal amends Internal Revenue Code section 6402(e) to allow the Fiscal Service to 

amend its regulations to permit states to send notices for state income tax obligations by first 

class mail, saving states certified mail costs and standardizing notice procedures across debt 

types.

Department of the Treasury - Budget in Brief 75
9. Increase and streamline recovery of unclaimed assets owed to the United States by 

authorizing Treasury to locate and recover assets of the United States and to retain a 

portion of amounts collected to pay for the costs of recovery. Estimated recoveries: $62 

million over 10 years. 

This proposal amends 31 U.S.C. § 3711 to authorize Treasury to use its resources to recover 

unclaimed assets of the United States. While unclaimed Federal assets are generally not 

considered to be delinquent debts, Treasury’s debt collection operations personnel have the skills 

and training to recover these assets. 

Performance Highlights 

Description of Performance 

Accounting and Reporting: Fiscal Service collects, analyzes, and publishes government-wide 

financial information, made available to both the public and private sectors, to provide 

transparency on the government’s financial status. In FY 2019, Fiscal Service timely issued 

government-wide accounting reports 99.6 percent of the time. Fiscal Service will meet its 

FY 2020 and FY 2021 performance measure targets by transforming the quality, effectiveness, 

and transparency of Federal financial management data; delivering value-added business process 

and system improvements; and expanding/enhancing relationships with stakeholders and 

customers. 

Collections: In FY 2019, Fiscal Service exceeded its target by electronically settling 

98.4 percent of all Federal Government receipts on the strength of the current architecture, 

process flows, and settlement mechanisms. Fiscal Service expects to electronically settle 98 

percent of revenue collected in FY 2020 by continuing to promote the use of electronic systems 

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Accounting and Reporting Percentage of Government-wide Accounting 

Reports Issued Timely (%)

100 100 99.6 99.5 99.5

Collections Percentage of Total Federal Government 

Receipts Settled Electronically (%)

98.3 98 98.4 98 98

Payments Percentage of Treasury Payments Made 

Electronically (%)

95.1 95.4 95.6 95.8 96.1

Payments Count of Improper Payments Identified or 

Stopped (# in Thousands)

21.394 20.336 22.415 20.5 21.5

Payments Dollar Amount of Improper Payments 

Identified or Stopped ($ Millions) 36.58 35.53 41.1 35.3 37

Retail Securities Services Percentage of Retail Customer Service 

Transactions That Are Unassisted (%)

N/A N/A 69 70 71

Wholesale Securities Services Percentage of Auction Results Released 

Accurately (%)

98.9 98.9 98.8 100 100

Wholesale Securities Services Percent of Auctions Successfully Completed by 

the Scheduled Close Date (%)

N/A N/A 100 100 100

Debt Collection Amount of Delinquent Debt Collected Through 

All Available Tools ($ Billions) 7.61 7.44 9.65 8.88 8.81

Debt Collection All Delinquent Debt Collected as a Percentage 

of all Delinquent Debt Referred (%)

N/A N/A 14.3 14.9 14.9

Debt Collection Percentage of the Active Delinquent Debt 

Portfolio Collected (%)

N/A N/A 6.8 7 7

Budget Activity Performance Measure Actual Actual Actual Target Target

Department of the Treasury - Budget in Brief 76
in the collections process and assisting agencies in converting collections from paper to 

electronic media. 

Payments: Fiscal Service continues to increase the electronic payment rate each year. In 

FY 2019, the electronic payment rate rose to 95.6 percent, with the number of electronic 

payments increasing by 21 million, and paper check volume decreasing by 1.9 million. Tax 

refund payments continue to total more than half of the Treasury-disbursed check volume. The 

processing of electronic invoices also realized a large increase of more than 37,000 over the 

FY 2018 volume of 487,898. 

For FY 2020 and FY 2021 and in support of the Agency Priority Goal, Fiscal Service established 

targets to increase the electronic payments percentage to 95.8 percent and 96.1 percent, 

respectively. To achieve our targets, Fiscal Service plans to promote and increase EFT payments 

with emphasis on tax refunds, vendor payments, and benefit payments; and exploring, 

developing, and deploying innovative, customer-driven electronic payment solutions. 

Retail Securities Services: To measure our success with improving customer self-sufficiency, in 

FY 2019 RSS began monitoring Percentage of Retail Securities Transactions that are 

Unassisted. For FY 2020 and FY 2021, Fiscal Service established targets of 70 percent and 71 

percent, respectively. This performance measure aligns with Fiscal Service goals and objectives 

to improve customer value by increasing the quality and self-sufficiency. Fiscal Service will 

meet the FY 2020 and FY 2021 targets through its modernization efforts.

Wholesale Securities Services: Fiscal Service conducted 325 auctions and awarded $11.7 

trillion in Treasury marketable securities to institutions and individual investors in FY 2019. 

This was an increase of 55 auctions over FY 2018, due mainly to the issuance of the new 8-week 

bill.

In FY 2019, Fiscal Service held 100 percent of auctions by the scheduled close date. In addition, 

auction results were released accurately 98.8 percent of the time, which was slightly below the 

target of 100 percent due to technical issues that have been resolved. The target will continue to 

be 100 percent in FY 2020 and FY 2021. 

Debt Collection: FY 2019 marked the highest delinquent debt collections ever for Fiscal 

Service. This was due to a change in the referral process for the Department of Education, 

including a large backlog and new, more regular, referrals. While Fiscal Service anticipates 

collections will remain high, diminishing total collections for the next several years is expected 

as the Department of Education backlog of debt is collected. 

FY 2020 and FY 2021 delinquent debt collection projections of $8.88 billion and $8.81 billion 

respectively, although reduced from FY 2019, remain higher that prior year actuals. Collection

targets will be achieved through initiatives to optimize collections, including lowering our costto-collect, engaging the debtor experience through self-service and online debt management, 

segmenting the debt portfolio, and growing the offset program with new agencies, payments, and 

technologies. 

Department of the Treasury - Budget in Brief 77
Department of the Treasury - Budget in Brief 78
United States Secret Service

Program Summary

Dollars in Thousands

2019 Enacted 2020 Enacted 2021 President's 

Budget

2020 - 2021 Total 

Changes

FTE $000 FTE $000 FTE $000 FTE $000

Operations and Support 7,359 $2,148,528 7,647 $2,336,401 7,796 $2,310,296 149 ($26,105)

Procurement, Construction, and 

Improvements - $97,131 - $66,989 - $38,305 - ($28,684)

Research and Development - $2,500 - $12,455 - $11,937 - ($518)

Net Discretionary 7,359 $2,248,159 7,647 $2,415,845 7,796 $2,360,538 149 ($55,307)

Gross Discretionary 7,359 $2,248,159 7,647 $2,415,845 7,796 $2,360,538 149 ($55,307)

Contribution for Annuity Accounts - $265,000 - $265,000 - $265,000 - - 

Total Mandatory/Fees - $265,000 - $265,000 - $265,000 - -

Total Budget Authority 7,359 $2,513,159 7,647 $2,680,845 7,796 $2,625,538 149 ($55,307)

Less: Rescissions to Prior Year Balances - $5,166 - $695 - - - 

Total 7,359 $2,507,993 7,647 $2,680,150 7,796 $2,625,538 149 ($55,307)

Summary

The U.S. Secret Service carries out a unique, integrated mission of protection and investigations. 

Secret Service’s mission is to ensure the safety of the President, the Vice President, their 

families, the White House, the Vice President’s Residence, national and visiting world leaders, 

former United States Presidents and their spouses, and events of national significance. Secret 

Service also protects the integrity of our currency and investigates crimes against our national 

financial system committed by criminals around the world and in cyberspace. 

The Budget proposes to return the Secret Service to Treasury to create new efficiencies in the 

investigation of these crimes and prepare the Nation to face the threats of tomorrow. 

Senior Leadership: James M. Murray

Established: 1865 

Major Divisions: Office of Protective Operations; Office of Investigations; Office of Technical 

Development and Mission Support;; Office of Training; Office of the Chief Information Officer; 

Office of the Chief Counsel; and Office of the Director

New Budget Authority: $2,625,538,000 

Discretionary Request: $2,360,538,000 

Mandatory Request: $265,000,000 

Employees (FTE): 7,796 

Responsibilities

As one of the Nation’s oldest federal law enforcement agencies, Secret Service performs a oneof-a-kind role in the United States Government. Secret Service: (1) protects the President, the 

Vice President, their immediate families, visiting heads of state and government, and other 

Department of the Treasury - Budget in Brief 79
designated individuals; (2) coordinates the security at designated National Special Security 

Events (NSSE); (3) investigates threats against the President, the Vice President, and other 

designated individuals; (4) enforces laws related to counterfeiting of obligations and securities of 

the United States, and financial crimes, including identity theft and computer fraud; and (5) 

protects the White House Complex, the Vice-President’s Residence, foreign diplomatic missions,

and other designated buildings. To accomplish this mission, Secret Service undertakes operations 

in the areas of protection, protective intelligence, and criminal investigations.

To achieve its mission, Secret Service relies on the recruitment, specialized training, and 

retention of highly capable individuals to serve as Special Agents (SAs), Uniformed Division 

(UD) Officers, and administrative, professional, and technical (APT) support personnel. 

The mission is enhanced through the deployment of state-of-the-art protective countermeasures, 

joint training with mission partners, and relationships with State and local law enforcement to 

successfully execute protective security operations that prevent, deter, mitigate, and decisively 

respond to a myriad of threats. 

Service to the Public

Secret Service investigations continue to safeguard the financial systems of the United States, 

which include enforcing counterfeiting laws and protecting communities across the country from 

the damages inflicted by financial crimes and cybercrimes. Similar to the agency’s approach to 

protection, Secret Service’s investigative methodology is proactive and integrates advanced 

technologies with partners across the public and private sectors in specialized task forces 

throughout the country and around the world. Computer experts, forensic specialists, and 

intelligence analysts provide rapid responses and critical information to support infrastructure 

protection and criminal investigations. Through the National Computer Forensics Institute 

(NCFI), Secret Service provided training, equipment, and software to State and local law 

enforcement. In Fiscal Year (FY) 2019, this training enabled partners to conduct over 68,000 

computer forensics exams, including over 13,000 exams related to missing or exploited children, 

4,400 exams in murder cases, more than 8,300 exams involving drug related offenses, and over 

2,000 exams in fraud/embezzlement/computer crime investigations.

FY 2019 Accomplishments 

• Coordinated comprehensive security plans for three NSSEs: the State of the Union address, 

the United Nations General Assembly, and the State Funeral of Former President George 

H.W. Bush. 

• Conducted protective advances for over 6,495 visits and traveled overseas with protectees 

during 395 foreign visits. 

• Screened more than 2.5M people at 605 protective venues – a 39 percent increase in 

screenings over FY 2018. 

• Conducted 288 Critical Systems Protection (CSP) advances at protectee venues ensuring 

failsafe security controls on networks, information systems, and critical infrastructure.

• Seized $368.0M in counterfeit U.S. currency domestically and overseas prior to entering 

circulation as a result of investigations with domestic and international partners, an 81 percent

increase from FY 2018 ($203.3M).

Department of the Treasury - Budget in Brief 80
• Closed 1,718 Cyber Financial Crime cases, an increase of 160 percent from FY 2018. Also 

realized an increase of 18 percent in Cyber Financial Crime cases opened. Cyber Financial 

Potential Losses Prevented increased by 36 percent ($5.2B to $7.1B) compared to the previous 

fiscal year. 

• Trained 1,948 local law enforcement investigators, prosecutors, and judges in cybercrime 

investigations, data recovery techniques, and legal standards regarding digital evidence for 

courtroom proceedings through over 125,000 hours of training conducted at NCFI.

• Reached 20,265 peers (225 percent increase from FY 2018) with 111 National Threat 

Assessment Center (NTAC) briefs (76 percent increase from FY 2018). NTAC trained 844 

agency personnel in 56 sessions. 

Budget Adjustments

Staffing Growth +$20.5M / + 61 FTE

The FY 2021 President’s Budget includes an additional $20.5 million to provide for the 

continued growth of SA, UD Officer, and APT levels, ensuring employees receive necessary 

training and achieve work-life balance. This funding keeps pace with growing mission 

requirements. 

2020 Presidential Campaign +$64.7M / +0 FTE

The FY 2021 President’s Budget funds the 2020 Presidential Campaign through the 

Inauguration, including the protection of major candidates, nominees, and their spouses, which 

are designated NSSEs.National Special Security Events. 

Operational Mission Support (OMS) +$100.3M / +160 FTE

The Secret Service utilizes the OMS funds to protect the President and Vice President at the 

White House Complex, the Vice President’s Residence, and temporary sites from emerging 

explosive, chemical, biological, radiological, and cyber threats. These capabilities include 

advanced protective countermeasures designed to address both established and evolving threats, 

and which must continually be refreshed. 

Fully Armored Vehicle (FAV) Research & DevelopmentDevelpment +9.4M / +0 FTE

Funding invests $9.4 million for Research and Development for a new base platform for Secret 

Service’s primary protection vehicle, Generation 2 (Gen2) FAV. 

Department of the Treasury - Budget in Brief 81
Department of the Treasury - Budget in Brief 82
Internal Revenue Service

Program Summary by Budget Activity 

Dollars in Thousands

FY 2019 FY 2020 FY 2021 FY 2020 to FY 2021

Budget Activity Operating 

Plan1 Enacted2 Request $ Change % Change 

Taxpayer Services $2,556,554 $2,535,554 $2,562,554 $27,000 1.06%

Pre-filing Taxpayer Assistance and Education 621,907 656,829 667,018 10,189 1.55%

Filing and Account Services 1,934,647 1,878,725 1,895,536 16,811 0.89%

Enforcement $4,677,600 $4,909,500 $5,071,260 $161,760 3.29%

Investigations 595,686 654,285 675,533 21,248 3.25%

Exam and Collections 3,907,290 4,091,953 4,225,886 133,933 3.27%

Regulatory 174,624 163,262 169,841 6,579 4.03%

Operations Support $3,918,400 $3,885,000 $4,104,689 $219,689 5.65%

Infrastructure 891,140 881,654 895,071 13,417 1.52%

Shared Services and Support 900,287 1,012,155 1,063,984 51,829 5.12%

Information Services 2,126,973 1,991,191 2,145,634 154,443 7.76%

Business Systems Modernization $150,000 $180,000 $300,000 $120,000 66.67%

Subtotal Internal Revenue Service $11,302,554 $11,510,054 $12,038,503 $528,449 4.59%

Reimbursables 124,559 170,726 179,262 8,536 5.00%

Offsetting Collections – Non-Reimbursables 9,749 31,781 33,370 1,589 5.00%

User Fees 319,023 530,230 549,930 19,700 3.72%

Recovery from Prior Years 7,515 11,386 11,339 (47) -0.41%

Recoveries from Paid Obligations 3,681 3,681

Unobligated Balances from Prior Years 356,057 168,743 116,142 (52,601) -31.17%

Transfers In/Out 111 

Total Program Operating Level $12,119,568 $12,426,601 $12,932,227 $505,626 4.07% 

Direct FTE 72,731 74,544 73,361 (1,183) -1.59%

Reimbursable FTE 642 978 1,027 49 5.01%

User Fee FTE 96 75 1,520 1,445 1926.67%

Unobligated Balances from Prior Years 727 15 15 

Total FTE 74,196 75,612 75,923 311 0.39%

1

FY 2019 Operating Plan amount includes a $194.4 million interappropriation transfer from Enforcement to Operations Support to cover 

anticipated operations and maintenance requirements in FY 2019. FY 2019 amount also includes $77 million for the Section 112 

Administrative Provision to implement requirements under the Tax Cuts and Jobs Act (Public Law 115-97). FY 2019 Other Resources and 

Full-time Equivalents (FTE) reflect actuals. 2

FY 2020 Enacted Amount includes a proposed $76.5 million interappropriation transfer from Enforcement to Operations Support to cover 

anticipated operations and maintenance requirements in FY 2020. FY 2020 Enacted Amount also includes $24 million transfer from 

Enforcement to Taxpayer Services. FY 2021 Request does not include the $400 million Program Integrity Cap Adjustment.

Summary

The IRS FY 2021 budget request is $12.039 billion, $528.449 million (4.6 percent) more than 

the FY 2020 enacted level of $11.510 billion. 

The budget includes a program increase of $220 million for the modernization plan and 

implementation of the Taxpayer First Act. The modernization request includes $300 million 

total for the Integrated Modernization Business Plan to continue developing new web 

applications, payment features, electronic notices, secure online customer service assistance, and 

replacements for legacy systems. The Taxpayer First Act request includes $106 million to 

implement several new requirements which will enhance customer service, taxpayer information 

protections, and online service platforms. The budget funds costs associated with two pay raises 

Department of the Treasury - Budget in Brief 83
and an increase in employee retirement contributions. The budget proposes several important 

legislative changes, including a program integrity cap adjustment of $400 million in FY 2021, 

that when combined with future investments, will generate $64 billion in net savings over 10 

years and provide the Department of the Treasury with additional authority to improve tax 

administration. 

The IRS Strategic Plan FY 2018 – FY 2022 guides resource decisions, programs, and operations. 

The plan aligns with the goals and objectives in Treasury’s strategic plan by administering tax 

laws to help taxpayers meet their obligations, while protecting the integrity of the tax system and 

achieving operational excellence. 

In FY 2019, the IRS delivered a successful filing season that opened on January 28, 2019. 

During the 2019 filing season, the IRS: 

• Received about 155 million individual tax returns and issued more than 109 million refunds 

totaling $300 billion with an average individual refund of $2,800. Almost 91 percent of 

these individual returns were filed electronically; 

• Achieved a 66.9 percent filing season level of service (LOS), the relative success rate of 

taxpayers calling the toll-free line for assistance, an increase of 1.9 percent over the target of 

65 percent; 

• Answered more than 21.5 million calls; 

• Served 1.3 million taxpayers, more than 798,000 face-to-face assistor contacts, and more 

than 483,000 taxpayers, who had issues resolved over the phone when calling for an 

appointment; 

• Received 422 million visitors to the IRS.gov website with 317 million taxpayers checking the 

Where’s My Refund? tool for the status of their refund. This represents a 9 percent increase 

in the use of IRS.gov and a 20 percent increase in Where’s My Refund? compared to last 

filing season; and

• Received about 32 million business returns, and approximately 29 million were filed 

electronically, an increase of 5.8 percent from 2018. 

Department of the Treasury - Budget in Brief 84
IRS Budget Highlights

Dollars in Thousands

Budget Adjustments 

Base Adjustment...........................................................................+$0 / +370 FTE

The FY 2020 enacted level of $11.510 billion assumes a $100.5 million interappropriation 

transfer from Enforcement to Taxpayer Services ($24.0 million) and Operations Support 

($76.5 million) that will be included in the IRS FY 2020 Operating Plan. A total of 370 FTE 

will be added to Taxpayer Services to support delivery of a 60 percent LOS and an estimated 

65 percent LOS for the filing season (January through April) on the Accounts Management 

phone lines in FY 2020. 

 

Maintaining Current Levels (MCLs)...................................... +$452,085,000 / +0 FTE 

Pay Annualization (3.1%) +$67,757,000 / +0 FTE 

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

Pay Raise (1.0%) +$66,080,000 / +0 FTE 

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

Bureau: Internal Revenue Service 

Summary of FY 2021 Request $000 FTE $000 FTE $000 FTE $000 FTE $000 FTE

FY 2020 Enacted (Pre-IAT) $2,511,554 26,390 $5,010,000 35,388 $3,808,500 11,970 $180,000 426 $11,510,054 74,174

Planned Interappropriation Transfer 24,000 370 (100,500) 76,500 370

FY 2020 Enacted $2,535,554 26,760 $4,909,500 35,388 $3,885,000 11,970 $180,000 426 $11,510,054 74,544

Changes to Base:

Maintaining Current Levels (MCLs) $107,929 $207,089 $130,866 $6,201 $452,085

Pay Annualization (3.1% average pay raise) 18,078 35,236 13,896 547 67,757

Pay Raise (1.0% average pay raise) 17,631 34,364 13,552 533 66,080

FERS Contribution Increase 26,523 52,345 20,143 989 100,000

Non-Pay 4,058 7,258 41,840 2,188 55,344

Additional Required Labor Costs 41,639 77,886 41,435 1,944 162,904

Efficiencies/Savings ($80,929) (1,082) ($56,589) (454) ($6,277) ($143,795) (1,536)

Increase e-File Savings (4,607) (85) (77) (4,684) (85)

Space Optimization (6,200) (6,200)

Personnel Savings (76,322) (997) (56,589) (454) (132,911) (1,451)

Subtotal FY 2021 Changes to Base $27,000 (1,082) $150,500 (454) $124,589 $6,201 $308,290 (1,536)

FY 2021 Current Services $2,562,554 25,678 $5,060,000 34,934 $4,009,589 11,970 $186,201 426 $11,818,344 73,008

Program Increases:

Integrated Modernization Business Plan 113,799 91 113,799 91

Implementing the Taxpayer First Act 11,260 92 95,100 170 106,360 262

Subtotal FY 2021 Program Increases $11,260 92 $95,100 170 $113,799 91 $220,159 353

Total FY 2021 Request (Before Cap) $2,562,554 25,678 $5,071,260 35,026 $4,104,689 12,140 $300,000 517 $12,038,503 73,361

Dollar/FTE Change FY 2021 Request over FY 2020 Enacted $27,000 (1,082) $161,760 (362) $219,689 170 $120,000 91 $528,449 (1,183)

Percent Change FY 2021 Request over FY 2020 Enacted 1.06% -4.04% 3.29% -1.02% 5.65% 1.42% 66.67% 21.36% 4.59% -1.59%

Cap Adjustment Program Increases

Increase Audit Coverage 123,440 1,325 49,740 8 173,180 1,333

Increase Collection Coverage 119,737 1,334 50,769 8 170,506 1,342

Expand Coverage in the Tax-Exempt Sector 12,102 109 3,664 15,766 109

Expand Cyber and Virtual Currency Compliance Efforts 24,704 101 15,844 40,548 101

Subtotal FY 2021 Cap Adjustment Investments $279,983 2,869 $120,017 16 $400,000 2,885

Total FY 2021 Request Including Cap Adjustment $2,562,554 25,678 $5,351,243 37,895 $4,224,706 12,156 $300,000 517 $12,438,503 76,246

Dollar/FTE Change FY 2021 Request Including cap over FY 2020 Enacted $27,000 (1,082) $441,743 2,507 $339,706 186 $120,000 91 $928,449 1,702

Percent Change FY 2021 Request Including cap over FY 2020 Enacted 1.06% -4.04% 9.00% 7.08% 8.74% 1.55% 66.67% 21.36% 8.07% 2.28%

TAXPAYER SERVICES ENFORCEMENT OPERATIONS 

SUPPORT BSM TOTAL

Department of the Treasury - Budget in Brief 85
FERS Contribution Increase +$100,000,000 / +0 FTE 

Funds are requested for the 1.3 percent increase to the Federal Employee Retirement System 

(FERS) contribution rates effective FY 2021, for a total employer contribution of 17.3 percent of 

base salaries. This amount is in addition to the 2.4 percent increase absorbed in FY 2020. 

Non-Pay +$55,344,000 / +0 FTE 

Funds are requested for inflationary increases in non-labor expenses such as travel, contracts, 

rent, supplies, and equipment. This amount is based on an Office of Management and Budget 

(OMB) Circular A-11 inflation factor of 2 percent. 

Additional Required Labor Costs +$162,904,000 / +0 FTE 

Funds are requested to pay for increases in labor resulting from employees moving through 

career ladders, above journey level promotions, manager payband increases, and within-grade 

increases ($117.9 million). These funds will also pay for an increase in employee performance 

awards spending per OMB Circular A-11. 

Efficiencies/Savings....................................................... -$143,795,000 / -1,536 FTE 

Increase e-File Savings -$4,684,000 / -85 FTE 

The IRS projects a total of 1,300,100 fewer returns filed on paper (623,000 individual and 

676,500 business returns). As a result, the IRS will need 85 fewer FTE in submission 

processing, generating a savings of $4.7 million. 

Space Optimization -$6,200,000 / -0 FTE 

The IRS will reduce expenditures on rent and improve usage of office space across the country. 

Since 2013, the IRS released 3.7 million square feet, closing 115 buildings and reducing total 

rent costs by about 11 percent. For FY 2020, the IRS anticipates the release of 500,000 square 

feet with an estimated $10 million in annualized rent savings. The IRS will continue to 

consolidate space in FY 2021, projecting a release of 243,000 square feet for an estimated $6.2 

million in annualized rent savings. 

Personnel Savings -$132,911,000 / -1,451 FTE

Although the budget request increases staffing resources to support strategic priorities, the IRS 

must manage its personnel costs through limited attrition replacement and seasonal workforce 

adjustments across many operational areas. These adjustments are necessary to fund the $452 

million in inflationary and labor cost increases for existing personnel, including annualization of 

the 2020 pay raise, the proposed 2021 pay raise, employee promotions, and employee retirement 

contributions. To achieve these savings, the IRS plans to: 

• Fill critical vacancies only; 

• Streamline the workforce by reducing administrative, analyst, and other support positions; 

and

• Realign mission critical occupations by hiring employees who have the background and 

skills to support the IRS in meeting its strategic goals, objectives, and priorities. 

 

Department of the Treasury - Budget in Brief 86
Program Increases............................................................ +$220,159,000 / +353 FTE 

IRS Integrated Modernization Business Plan +$113,799,000 / +91 FTE 

Modernization is an IRS priority and a key driver of the President’s Management Agenda. The 

plan will enable the IRS to provide consistently superior service to taxpayers and deliver longterm budget efficiencies as the IRS modernizes capabilities currently provided via legacy 

applications. Highlights of the investment include: 

• $25 million for web applications to provide taxpayers and tax professionals a digital service 

channel to establish and manage taxpayer/tax professional authority relationships; 

• $10 million for digital notices available through a secure online account for taxpayers who 

prefer that channel over mailed correspondence; 

• $15 million for the live assistance program to expand customer callback capabilities on IRS 

phone lines; 

• $100 million for the Customer Account Data Engine 2 project to continue replacing legacy 

code established almost 60 years ago; 

• $64 million for Enterprise Case Management to establish a common cloud infrastructure, 

automate business functions, and enable seamless case transfers; and 

• $46 million to modernize IRS cybersecurity defenses. 

Implementing the Taxpayer First Act +$106,360,000 / +262 FTE 

The Taxpayer First Act will usher in dramatic changes in how the IRS engages with taxpayers. 

The Taxpayer First Act’s provisions will improve the experience of taxpayers as they interact 

with the IRS and increase the IRS’s ability to secure taxpayer information, protect taxpayer 

identities, develop additional online capabilities for taxpayers, and develop comprehensive 

training for IRS employees. The IRS needs additional resources to implement the Taxpayer First 

Act’s provisions. Highlights of the investment include:

• $30 million to create a new website that allows taxpayers to prepare, file, and distribute Form 

1099 information returns; 

• $14 million to facilitate electronic filing of statements and returns in the Form 990 series or 

Form 8872 (Political Organization Report of Contributions and Expenditures); and 

• $9 million to provide increased staffing for the office of appeals to share case files with 

taxpayers prior to conference and for the IRS whistleblower office to provide periodic 

updates on referral status. 

Legislative Proposals 

The FY 2021 budget request includes tax administration legislative proposals. 

Provide the IRS with greater flexibility to address correctable errors: The budget would 

expand the IRS authority to correct errors on taxpayer returns. Current statute only allows the 

IRS to correct errors on returns in certain limited instances, such as basic math errors or the 

failure to include the appropriate social security number or taxpayer identification number. This 

proposal would expand the instances in which the IRS could correct a taxpayer’s return including 

cases where: (1) the information provided by the taxpayer does not match the information 

contained in Government databases or Form W-2, or from other third party databases as the 

Secretary determines by regulation; (2) the taxpayer exceeded the lifetime limit for claiming a 

deduction or credit; or (3) the taxpayer failed to include with his or her return certain 

documentation that is required to be included on or attached to the return. This proposal would 

Department of the Treasury - Budget in Brief 87
make it easier for IRS to correct clear taxpayer errors, directly improving tax compliance, 

reducing EITC and other improper payments, and freeing IRS resources for other enforcement 

activities. 

Increase Oversight of Paid Tax Return Preparers: Paid tax return preparers have an 

important role in tax administration because they assist taxpayers in complying with their 

obligations under the tax laws. Incompetent and dishonest tax return preparers increase 

collection costs, reduce revenues, disadvantage taxpayers by potentially subjecting them to 

penalties and interest because of incorrect returns, and undermine confidence in the tax system. 

To promote high quality services from paid tax return preparers, the proposal would explicitly 

provide that the Secretary of the Treasury has the authority to regulate all paid tax return 

preparers.

Improve clarity in worker classification and information reporting requirements: The 

budget proposes to: (1) establish a new safe harbor that allows a service recipient to classify a 

service provider as an independent contractor and requires withholding of individual income 

taxes to this independent contractor at a rate of five percent on the first $20,000 of payments; and 

(2) raises the reporting threshold for payments to all independent contractors from $600 to 

$1,000 and reduces the reporting threshold for third-party settlement organizations from $20,000 

and 200 transactions per payee to $1,000 without regard to the number of transactions. In 

addition, Form 1099-K would be required to be filed with the IRS by January 31 of the year 

following the year for which the information is being reported. The proposal increases clarity in 

the tax code, reduces costly litigation, and improves tax compliance. 

Fund the Federal Payment Levy Program via Collections: This proposal would allow the 

Fiscal Service to retain a portion of the funds collected under the Bureau’s Federal Payment 

Levy Program (FPLP) which processes and collects delinquent tax debts through the Treasury 

Offset Program (TOP). TOP currently recoups its costs from retained amounts from collected 

amounts for all its programs except for the FPLP, but under current law, the IRS must pay these 

costs through annual reimbursement agreements under the Economy Act. This proposal would 

make the FPLP consistent with other TOP programs. Delinquent taxpayers will not be impacted 

by the proposal because they will receive credit for the full amount collected. This proposal 

creates efficiencies because it allows the Fiscal Service to recover its FPLP costs from the IRS in 

the same manner as other TOP programs. 

Require a social security number (SSN) that is valid for work to claim child tax credit 

(CTC), earned income tax credit (EITC), and credit for other dependents (ODTC): The 

Administration proposes requiring an SSN that is valid for work to claim the EITC, CTC (both 

the refundable and non-refundable portion), and/or the ODTC for the taxable year. For all 

credits, this requirement would apply to taxpayers (including both the primary and secondary 

filer on a joint return) and all qualifying children or dependents. Under current law, taxpayers 

who do not have an SSN that is valid for work may claim the CTC if the qualifying child for 

whom the credit is claimed has a valid SSN. Furthermore, the ODTC, created by the Tax Cuts 

and Jobs Act, allows taxpayers whose dependents do not meet the requirements of the CTC, 

including the SSN requirement, to claim this non-refundable credit. This proposal would ensure 

that only individuals who are authorized to work in the United States could claim these credits by 

extending the SSN requirement for qualifying children to parents on the tax form for the CTC 

Department of the Treasury - Budget in Brief 88
and instituting an SSN requirement for the ODTC. While this SSN requirement is already 

current law for the EITC, this proposal also would close an administrative gap to strengthen 

enforcement of the provision.

Program Integrity Cap Adjustment: In addition to the base appropriations request of $12 

billion request, the budget proposes a $400 million discretionary program integrity cap 

adjustment in FY 2021 to fund new and continuing investments in expanding and improving the 

effectiveness and efficiency of the IRS’s overall tax enforcement program. The Budget proposes 

$280 million for the Enforcement account and $120 million for the Operations Support account. 

Additional adjustments are provided in future years to fund new initiatives and inflation. These 

investments will generate $79 billion in new revenue over 10 years and will cost $15 billion, for 

net revenue of $64 billion over 10 years. This return on investment (ROI) is likely understated 

because it does not reflect the effect that enhanced enforcement has on deterring noncompliance. More information on the cap adjustment is available in Section 4.1 of the Appendix 

and in the Budget Process Chapter of the Analytical Perspective volume of the FY 2021 

President’s Budget. 

Performance Highlights

Budget Activity Performance Measures FY 2017 

Actual

FY 2018 

Actual

FY 2019 

Actual

FY 2019 

Target

FY 2020 

Target

FY 2021 

Target

Filing and Account 

Services

Customer Service 

Representative Level of 

Service (LOS)

77.1% 75.9% 65.4% 63.0% 60.0% 60.0%

Exam and Collections Examination Coverage - 

Individual 0.6% 0.6% 0.45% 0.50% 0.48% 0.55%

Investigations Criminal Investigations 

Completed 3,089 3,051 2,797 2,800 2,700 2,700

Investigations Conviction Rate 91.5% 91.7% 91.2% 92.0% 92.0% 92.0%

Information Services Percentage of Aged 

Hardware1 52.3% 45.5% 31.0% 43.8% 30.0% 30.0%

1

This is a new budget level metric; the measure definition changed in FY 2018; and, prior-year numbers are reported consistent with the new 

definition.

Description of Performance 

In FY 2019, the IRS continued to provide quality service to taxpayers and to enforce the laws with 

integrity and fairness. The IRS continued to deliver improvements in key areas, including 

international, tax exempt, refund fraud, and identity theft. 

Taxpayer Services

The IRS strives to deliver high quality and timely service to taxpayers and stakeholders and help 

them understand and meet their tax obligations. The IRS:

• Achieved an 88.8 percent individual e-file rate and a 57.8 percent business e-file rate; 

• Delivered a fiscal year telephone LOS of 65.4 percent; 

• Answered more than 21.5 million calls; and

• Answered 94.3 percent of account questions over the telephone correctly. 

Department of the Treasury - Budget in Brief 89
The IRS continues to improve and expand its outreach and educational services through 

partnerships with state taxing authorities, volunteer groups, and other organizations. Volunteer 

Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) sites provide free tax 

assistance for the elderly, disabled, and limited English proficient individuals and families. 

The Customer Service Representative (CSR) Level of Service (LOS) measures the relative 

success rate of taxpayers wanting to speak with a CSR on telephone lines answered by Accounts 

Management (78 percent of all telephone traffic). In FY 2019, the CSR LOS exceeded the target 

of 63 percent, reaching 65.4 percent. While the target was met, the LOS dropped 10.5 

percentage points from FY 2018 due, in part, to the lapse in appropriations. The LOS target is 

set at 60 percent for FY 2020 with filing season LOS projected to reach 65 percent. The 

FY 2021 target is 60 percent with filing season projected to be 65 percent. 

Enforcement

In FY 2019, the IRS collected $57.5 billion through enforcement programs, a return on 

investment (ROI) of about $5 to $1. This number is likely understated, since the ROI estimate 

does not include the revenue effect of the indirect deterrence value of IRS enforcement 

programs. 

The IRS Criminal Investigation (CI) organization program investigates potential criminal 

violations of the Internal Revenue Code and related financial crimes, such as money laundering, 

currency violations, tax-related identity theft fraud, and terrorist financing that adversely affect 

tax administration. In FY 2019, CI completed 2,797 criminal investigations, achieved 

1,735 convictions with a rate of 91.2 percent, and achieved a Department of Justice case 

acceptance rate of 93.0 percent and a U.S. Attorney case acceptance rate of 88.5 percent, which 

compares favorably with other federal law enforcement agencies. 

The Examination program provides taxpayers top quality service by helping them understand 

and meet their tax responsibilities and by applying the tax law with integrity and fairness. In 

FY 2019, Individual Exam Coverage was 0.45 percent, below the target of 0.50 percent. This 

measure tracks the number of individual audits closed in a given fiscal year but does not reflect 

in real time ongoing open audit activities or exam effectiveness. There were about 212,000 

fewer individual audits completed in FY 2019, a 24 percent decrease compared to FY 2018. In

FY 2019, Business Examination Coverage was 1.6 percent, below the target of 2.2 percent. 

Results for these measures were influenced by attrition, the lapse in appropriations, and training 

requirements for new employees. 

Operations Support 

The Percentage of Aged Hardware measure shows the quantity of IT hardware in operation past 

its useful life as a percentage of total hardware in use. The IRS made considerable progress 

reducing the percentage of aged hardware from 45.5 percent at the end of FY 2018 to 31 percent 

at the end of FY 2019. For FY 2020 and FY 2021, the IRS will set the target of 30 percent. 

Department of the Treasury - Budget in Brief 90
Business Systems Modernization 

IRS modernization efforts continued in FY 2019. Some key accomplishments were: 

• WebApps - ID Verify Tool: This tool provides an online option for taxpayers whose return 

has been selected as a potential identity theft return by the IRS’s Taxpayer Protection 

Program. With the ID Verify Tool, taxpayers can provide additional identity verification 

information online rather than on the phone or in person. From February through August 29, 

2019, over 131,000 taxpayers successfully logged in and more than 111,000 (85 percent) of 

unique users were able to resolve their account online. 

• Live Assistance – Callback - External Application - Balance Due: This feature gives 

taxpayers on the IRS Toll-Free Balance Due line a callback option when calling to discuss or 

pay a balance due rather than having to wait on the phone for an IRS CSR. When offered, 

approximately 77 percent of taxpayers chose to receive a call back and over 90 percent of 

callbacks successfully reconnected the taxpayer with an IRS CSR.

• Live Assistance - Callback - Internal Application - IRS IT Help Desk: This new feature saves 

staff time by providing a callback option for IRS employees calling the internal help desk for 

IT assistance with their workplace technology.

Department of the Treasury - Budget in Brief 91
Department of the Treasury - Budget in Brief 92
Office of Financial Stability

Program Summary

Dollars in Billions

 

Cumulative 

Obligated 

(as of 

11/30/2019)

Cumulative 

Disbursed 

(as of 

11/30/2019)

Cumulative 

Outstanding 

(as of 

11/30/2019)

Total 

Cumulative 

Income (as of 

11/30/2019)

Total Cash 

Back (as of 

11/30/2019) 

Total 

Estimated Life 

Costs (as of 

11/30/2019)

Bank Support Programs 250.5 245.1 0.0 35.7 275.6 (24.3)

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 7.4 70.6 12.1 

Treasury Housing Programs 33.1 30.3 0.0 32.2

Total 450.2 442.0 0.1 48.6 425.1 31.9

Additional AIG Common Shares 

Held by Treasury 0.0 0.0 0.0 17.6 17.6 * (17.6)

Total for Programs and Shares 450.2 442.0 0.1 66.2 442.7 14.3

*If all Treasury AIG Investments are combined, Treasury currently estimates a net gain of nearly $2.4 billion on those shares.

Administrative Account Summary

Dollars in thousands

 FY 2019 FY 2020 FY 2021 FY 2020 to FY 2021 

Actual Estimated Estimated Change % Change

AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT

Obligations

Tarp Administrative Account 57,743 47,240 42,154 (5,086) -10.77%

Total Obligations $57,743 $47,240 $42,154 ($5,086) -10.77% 

FTE 22 16 14 -2 -12.50%

Summary and Explanation of Programs 

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’s continued winddown efforts align with Treasury’s Strategic Goal to transform government-wide financial 

stewardship. 

OFS continues to operate a housing program to help homeowners prevent avoidable 

foreclosures. However, in 2016, OFS began the wind-down of the largest TARP housing 

program, the Marking Home Affordable Program, pursuant to the Consolidated Appropriations 

Act, 2016. As of November 30, 2019, OFS has recovered more than 96 percent of the 

$442.0 billion in total program funds disbursed under TARP, as well as an additional 

$17.6 billion from Treasury’s equity in AIG. When all of Treasury’s AIG investments are 

included, the amount recovered is greater than the funds disbursed by nearly $0.7 billion. 

Department of the Treasury - Budget in Brief 93
In FY 2021, OFS plans to obligate just over $42 million and use no more than 14 Full-Time 

Equivalent (FTE) employees, a reduction of over 10 percent and 12 percent respectively, from 

the current FY 2020 estimates, to fund the management of the TARP housing programs and the 

continuing disposition of OFS’s remaining investments. 

 

Legislative Proposals

Treasury is seeking certain legislative changes related to OFS and TARP to reduce the frequency 

and necessity of several statutory reporting requirements that were established when TARP was 

created. OFS continues to wind-down operations and is focused on reducing costs by 

eliminating duplicative internal operations and increasing its reliance on shared services 

provided by Departmental Offices (DO) and Fiscal Services. As OFS continues to wind-down, it 

will become increasingly more efficient to be audited as part of the Treasury-wide financial 

statement audit under Treasury’s Office of the Inspector General (OIG). OFS, like several other 

Treasury Offices, is substantially cross-serviced by other organizations within Treasury, 

including the Bureau of the Fiscal Service, the Departmental Offices (DO) Office of Budget and 

Travel, and the Office of the Deputy Chief Financial Officer. All of these offices are under the 

purview of the Treasury–wide financial statement audit. As an example, GAO spends a 

significant amount of resources and time testing OFS’s administrative contracts with DO that are 

audited by Treasury’s OIG. Additionally, GAO spends significant time testing the OFS financial 

reporting process, which is also under scope of the Treasury-wide financial statement audit. OFS 

estimates that enacting the following legislative proposals would result in $2-4 million in annual 

savings in contracting costs and GAO reimbursements, and would reduce OFS’s workload by 

two FTEs. The remaining statutory requirements will continue to provide sufficient transparency 

during the wind-down of TARP. 

Replace OFS’s stand-alone financial statements audit performed by GAO: Repeal OFS’s 

stand-alone financial statements and the stand-alone financial statements audit performed by 

GAO (12 USC 5226(b) and (c) (2). Treasury’s OIG will audit the financial operations and 

internal controls of OFS as part of the Treasury-wide audit. Therefore, OFS would be subject to 

the same audit rigor as DO. This update would be a more efficient use of taxpayer funds and 

more accurately reflect current materiality and activity of OFS. Additionally, move the 

following authorities in EESA related to OFS oversight (5226, 5227, and 5233) under the 

purview of Treasury’s OIG.

Sunset the Financial Stability Oversight Board (FinSOB): This interagency group meets 

monthly and reports quarterly. The group reviews OFS’s program formulation and monitors 

program performance. The need for the board’s oversight and reporting has diminished as no 

new OFS programs are being implemented, all major investments have been disposed, and the 

housing programs are in wind-down. 

Change frequency of the Section 105(a) report (“Congressional Monthly”): This 

performance report remains generally static from month to month. With most programs having 

closed, less frequent (quarterly) reporting is warranted. 

Eliminate the Administrative Activity Report (“Obligation Report”): This quarterly report 

provides data on administrative obligations object type and is required under the annual Treasury 

Department of the Treasury - Budget in Brief 94
appropriations bill. OFS has been prudent in the use of administrative funds and has been 

reducing obligations by approximately 20 percent per year over the last five years. 

Description of Performance 

Bank Support Programs 

Capital Purchase Program (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 2019, OFS continued to wind down 

remaining CPP investments. As of November 30, 2019, CPP has generated $226.8 billion in 

recoveries for taxpayers, with two institutions remaining in the program, for a total of $17 

million in investments outstanding. 

Community Development Capital Initiative (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, 2019, CDCI has generated $587 million in 

recoveries for taxpayers with four institutions remaining in the program, for a total of 

$22 million in investments outstanding. 

Housing Programs 

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

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

Making Home Affordable Program (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 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, 2019, OFS had disbursed $20.8 billion 

out of a possible $23.5 billion under MHA. 

Housing Finance Agency (HFA) Hardest Hit (HHF) Fund

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 (D.C.). In December 2015, the Act granted Treasury authority to make an additional 

$2.0 billion in commitments through the HHF. As of November 30, 2019, OFS had disbursed 

$9.4 billion out of a possible $9.6 billion under HHF. 

Department of the Treasury - Budget in Brief 95
Federal Housing Administration (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, 2018, the revised lifetime cost estimate for the program was $14 million for 

outstanding refinanced loans. 

Other Programs

Automotive Industry Financing Program (AIFP) 

OFS fully wound down AIFP during FY 2015, selling its remaining stake in Ally Financial. 

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

the AIFP. As of November 30, 2019, OFS has 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. 

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 American 

International Group, Inc. Investment Program. 

Department of the Treasury - Budget in Brief 96
Office of Financial Research 

Program Summary by Budget Activity 

Dollars in Thousands 

 FY 2019 FY 2020 FY 2021 FY 2020 to 

FY 2021 

Budget Activity Actual Estimate Estimate % Change 

Data Center $5,849 $3,499 $3,575 2.17% 

Technology Center $28,278 $34,450 $35,986 4.46% 

Research and Analysis Center $8,238 $14,111 $14,290 1.27% 

Operations and Support Services $17,496 $23,211 $21,420 -7.72% 

Total Cost of Operations $59,861 $75,271 $75,271 0.00% 

Full-time Equivalents (FTE) 105 128 145 13.28% 

Summary 

The OFR was established by the Dodd-Frank Wall Street Reform and Consumer Protection Act 

of 2010 to assist the Financial Stability Oversight Council (FSOC) and Congress through 

research, analytic tools, and data-related support on issues related to financial stability. The 

OFR’s efforts, focused through consultation with the FSOC, the Department of the Treasury, and 

other important stakeholders, drives towards a vision of a transparent, accountable, and resilient 

financial system. 

The Office of Financial Research (OFR or Office) is estimating a fiscal year (FY) 2021 funding 

level of $75.271 million, which is flat with its FY 2020 estimated funding level. The request 

supports OFR priorities without the need for increased funding. The shifts in the FY 2021 

Budget from Operations and Support towards Technology Center, Data Center, and Research 

and Analysis Center (RAC) will allow the OFR to focus on its legislative mandate under the 

Dodd-Frank Act. The budget reflects an FTE level of 145, which aligns with the workforce plan 

that formed the basis for OFR’s recent Reduction in Force (RIF) and seeks to ensure appropriate 

structure for maximum efficiency. 

Budget Highlights 

Dollars in Thousands 

 FTE Amount 

FY 2020 Estimate 128 $75,271 

Changes to Base: 

Program Increases: 17 $2,155 

Increased Staffing 17 $2,155 

Non-Recurring Costs 0 ($2,155) 

Subtotal Changes to Base 17 $0 

FY 2021 Current Services 145 $75,271 

Program Changes: 

Subtotal Changes to Base 0 $0 

FY 2021 Estimate 145 $75,271 

Department of the Treasury - Budget in Brief 97
Budget Adjustments 

Program Increases ....................................................................................+$2,155,000 / +17 FTE 

Increased Staffing +$2,155,000 / +17 FTE 

In the wake of higher than anticipated attrition rates after the RIF conducted in FY 2019, 17 

FTEs are returned in the FY 2021 request relative to FY 2020. OFR will continue to fill positions 

that OFR identified pre-RIF as critical to the OFR’s future state and will fill critical vacancies 

created by attrition. 

Non-Recurring Costs .................................................................................... -$2,155,000 / -0 FTE 

Non-Recurring Costs -$2,155,000 / -0 FTE 

One-time costs related to post-RIF contractor staffing and space reconfiguration, as well as 

certain technology support costs, will non-recur. 

Legislative Proposals 

The Budget proposes to impose appropriate Congressional oversight of OFR functions by 

subjecting its activities to the annual appropriations process beginning in FY 2022. 

Performance Highlights FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 

Budget Activity Performance Measure Actual Actual Actual Target Target 

Data Center 

Number of LEIs Issued 

Cumulatively in the United States 

and Internationally 

 587,941 1,300,832 1,487,695 I I 

Data Center 

Number of Times That Financial 

Data Standards are Incorporated in 

Rules and Regulations 

4 1 1 I I 

Key: I – Indicator 

Description of Performance 

During FY 2019, the number of Legal Entity Identifiers (LEIs) issued continued its upward 

trend, increasing by approximately 14 percent from the prior year. The Data Center will 

continue its strategy of engagement with financial data standards-setting organizations. In 

addition, for FY 2019, the OFR was directly responsible for incorporating a financial data 

standard into a rule or regulation: the OFR passed a final rule to collect repurchase agreements 

(repo) data that includes the reporting of LEIs. 

In addition to its LEI work, the OFR is continuing its work on a phased-in collection of data 

pursuant to a final rule regarding U.S. centrally-cleared repos, which represents the OFR’s first 

daily data collection. The Technology Center will continue to operationalize the daily 

collection processes, including validation and transformation of the collected data to support 

business uses. This budget request provides for the needed capacity and capabilities to support 

this critical daily collection. 

The OFR is also focusing on engaging with FSOC and others to drive its research agenda and to 

help identify the tools needed for risk monitoring. The Research and Analysis Center will also 

work on enhancing its existing monitoring tools. Throughout FY 2020 and FY 2021, the 

Research and Analysis Center will continue its direct work for the FSOC Secretariat, providing 

support for its annual report to Congress in the form of research, analysis, and other resources. 

Department of the Treasury - Budget in Brief 98
The Center will contribute to the FSOC’s transition to an activities-based approach for the nonbank designation process and will continue to respond to specific requests for research and 

analysis as needed. In 2020, the OFR has introduced two new measures which reflect its focus 

on meeting the FSOC’s research and analysis needs and its priority around risk monitoring tools: 

1) the percent of monitors updated or expanded during the reporting period and 2) timeliness of 

responses to FSOC research and analysis requests. 

Department of the Treasury - Budget in Brief 99
Department of the Treasury - Budget in Brief 100
Financial Stability Oversight Council

Program Summary by Budget Activity 

Dollars in Thousands

 FY 2019 FY 2020 FY 2021 FY 2020 to 

FY 2021

Budget Activity Actual Estimate Estimate % Change

FSOC $5,246 $6,036 $6,138 1.69%

FDIC $4,301 $2,993 $4,301 43.70%

Total Cost of Operations $9,547 $9,029 $10,439 15.62%

Full-time Equivalents (FTE) 14 18 18 0.00%

Summary

The Financial Stability Oversight Council (FSOC or Council) is chaired by the Secretary of the 

Treasury and consists of 10 voting members and five nonvoting members who serve in an 

advisory capacity. The Council brings together the expertise of the federal financial regulators, 

an insurance expert appointed by the President, and state regulators. The Council’s three 

statutory purposes are to identify risks to the financial stability of the United States, promote 

market discipline, and to respond to emerging threats to the stability of the U.S. financial system. 

The Council has a statutory duty to facilitate information sharing and coordination among the 

member agencies regarding domestic financial services policy development, rulemaking, 

examinations, reporting requirements, and enforcement actions. 

The FSOC is estimating a fiscal year (FY) 2021 funding level of $10.439 million, which is an 

increase of $1.410 million from the FY 2020 estimated funding level. This request includes 

$6.138 million for the FSOC Secretariat and the Office of the Independent Member with 

Insurance Expertise, and $4.301 million to reimburse the Federal Deposit Insurance Corporation 

(FDIC) for certain expenses as required by law. This is a projected increase of $1.308 million in 

FDIC reimbursable activity when compared to FY 2019. On December 4, 2019, the Council 

approved new interpretive guidance regarding FSOC’s nonbank financial company 

determinations. The guidance implements an activities-based approach for identifying and 

addressing potential risks to financial stability and enhances the analytical rigor and transparency 

of the Council’s process for designating nonbank financial companies. 

Department of the Treasury - Budget in Brief 101
Budget Highlights

Dollars in Thousands

FTE Amount 

FY 2020 Estimate 18 $9,029 

Changes to Base:

Maintaining Current Levels (MCLs): 0 $102 

Pay Annualization (2020 3.1% average pay raise) 0 $18 

Pay-Raise (1.0% average pay raise) 0 $35 

FERS Contribution Increase $17 

Non-Pay 0 $32 

Subtotal Changes to Base 0 $102 

FY 2021 Current Services 18 $9,131 

Program Changes:

Program Increases: 0 $1,308 

FDIC Cost Adjustment 0 $1,308 

Subtotal Changes to Base 0 $1,308 

FY 2021 Estimate 18 $10,439 

Budget Adjustments

Maintaining Current Levels (MCLs) ..........................................................+$102,000 / +0 FTE 

Pay Annualization (3.1%) +$18,000 / +0 FTE 

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

Pay Raise (1.0% in 2021) +$35,000 / +0 FTE 

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

FERS Contribution Increase +$17,000 / +0 FTE 

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

effective FY 2021. 

Non-Pay +$32,000 / +0 FTE 

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

and equipment. 

Program Increases ......................................................................................+$1,308,000 / +0 FTE 

FDIC Cost Adjustment +$1,308,000 / +0 FTE 

Cost increase for FDIC reimbursable expenses based on indications from FDIC that reimbursable 

activities will increase during fiscal year 2020.

Legislative Proposals 

The FY 2021 Budget proposes to impose appropriate Congressional oversight of Council 

functions by subjecting its activities to the annual appropriations process beginning in FY 2022. 

Department of the Treasury - Budget in Brief 102
Description of Performance 

While there are no measures specified for managing Council performance, over the last year, the 

Council continued to identify and monitor potential risks to U.S. financial stability; fulfilled its 

statutory requirements, including transmission of its ninth annual report to Congress; and served 

as a forum for coordination among member agencies. On December 4, 2019, the Council issued 

final guidance regarding nonbank financial company designations. The guidance implements an 

activities-based approach for identifying and addressing potential risks to financial stability, and 

enhances the analytical rigor and transparency of the Council’s process for designating nonbank 

financial companies.

The Council has a statutory duty to facilitate information sharing and coordination among the 

member agencies regarding domestic financial services policy development, rulemaking, 

examinations, reporting requirements, and enforcement actions. 

Over the next year, the Council will continue to: monitor the financial system for emerging risks; 

facilitate interagency cooperation to identify and analyze emerging threats; and facilitate 

information sharing and interagency coordination with respect to various regulatory initiatives. 

By law, the Council is required to convene no less than quarterly, but the Council has convened 

on a more frequent basis to share information on key financial developments, coordinate 

regulatory implementation, and monitor progress on recommendations from the Council’s annual 

reports. In FY 2019, the Council convened five times. The Council will continue to remain 

focused on identifying near-term threats and addressing structural vulnerabilities in the financial 

system. Transparency into Council work has routinely been provided through an annual report to 

Congress, periodic Congressional testimony on Council activities and emerging threats to 

financial stability, and regular communications with the public about Council activities and 

decisions. 

Department of the Treasury - Budget in Brief 103
Department of the Treasury - Budget in Brief 104
Treasury Forfeiture Fund

Program Summary by Budget Activity

Dollars in Thousands 

Treasury Forfeiture Fund FY 2019 FY 2020 FY 2021 FY 2020 to FY 2021

Budgetary Resources Actual Estimate Estimate % Change

Revenue/Offsetting Collections FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

Interest 0 $70,395 0 $50,000 0 $50,000 0.00% 0.00%

Restored Prior Year Sequestration 

Reduction 0 $84,405 0 $54,340 0 $35,229 0.00% -35.00% 

Restored Prior Year Sequestration of 

Restored Rescission 0 $65,208 0 $0 0 $0 0.00% 0.00%

Forfeited Revenue 0 $806,049 0 $547,096 0 $547,096 0.00% 0.00%

Recovery from Prior Years Obligation 0 $35,427 0 $15,000 0 $15,000 0.00% 0.00% 

Unobligated Balances from Prior Years 0 $825,172 0 $609,632 0 $769,239 0.00% 26.00% 

Total Revenue/Offsetting Collections $1,886,656 $1,276,068 $1,416,564 0.00% 11.00% 

Expenses/Obligations 

Mandatory Obligations 1 27 $394,628 27 $436,600 27 $445,332 0.00% 2.00%

Secretary's Enforcement 0 $24,614 0 $35,000 0 $35,700 0.00% 2.00%

Strategic Support 2 0 $603,442 0 TBD 0 TBD 0.00% 0.00%

Total Expenses/Obligations 27 $1,022,684 27 $471,600 27 $481,032 0.00% 2.00% 

Rescissions/Cancellations

Sequestration Reduction 3 ($54,340) ($35,229) TBD 0.00% 0.00%

Permanent Cancellation ($200,000) $0 $0 0.00% 0.00%

Total Rescission/Cancellations ($254,340) ($35,229) $0 0.00% -100%

Net Results $609,632 $769,239 $935,532 0.00% 22.00%

Contingent Liabilities $473,316 $385,000 $385,000 NA 0.00% 

1/ The Treasury Forfeiture Fund is staffed by Departmental Offices employees and positions are funded via reimbursable agreement. 

The FTE are shown here for clarity, but are also reflected in the Departmental Offices chapter in the reimbursable FTE total.

2/ For FY 2020 and FY 2021, Treasury will revise Strategic Support based on enacted appropriations and may submit a plan to Congress if 

funding is available, once more is known about collections and expenses.

3/ Treasury will compute the FY 2021 sequestration reduction once the OMB Report to Congress on the Joint Committee Sequestration for 

Fiscal Year 2021 is released.

Summary

The Treasury Executive Office for Asset Forfeiture (TEOAF) administers the Treasury 

Forfeiture Fund (the Fund), which is the receipt account for deposit of non-tax forfeitures made 

pursuant to laws enforced or administered by participating Treasury and Department of 

Homeland Security agencies. The Fund was established in 1992 as the successor to what was 

then the Customs Forfeiture Fund. The enabling legislation for the Fund (Title 31 U.S.C. 9705) 

defines the purposes for which Treasury forfeiture revenue may be used.

Explanation of TEOAF Spending Categories 

Mandatory Obligations ($445,332,000 from revenue/offsetting collections) 

Mandatory Obligations are incurred to meet the operating costs of the Fund, including expenses 

of storing and maintaining seized and forfeited assets, valid liens and mortgages, investigative 

expenses incurred in pursuing a seizure, information and inventory systems, remissions, victim 

restoration, and certain costs of local police agencies incurred in joint law enforcement 

Department of the Treasury - Budget in Brief 105
operations. Following seizure, equitable shares may be paid to state and local law enforcement 

agencies that contributed to the seizure activity at a level proportionate to their involvement. 

Secretary's Enforcement Fund ($35,700,000 from revenue/offsetting collections)

Secretary's Enforcement Fund (SEF) represents revenue from equitable shares received from 

Department of Justice (DOJ) or U.S. Postal Service (USPS) forfeitures. These shares are 

proportional to Treasury’s participation in the overall investigative effort that led to a DOJ or 

USPS forfeiture. SEF revenue is available for federal law enforcement related purposes of any 

law enforcement organization participating in the Fund. 

Strategic Support (TBD from revenue/offsetting collections)

Strategic Support authority, established by Congress in 31 U.S.C. 9705(g)(4)(B), allows TEOAF 

to fund priority federal law enforcement initiatives with remaining unobligated balances at the 

close of the fiscal year, after an amount is reserved for the next fiscal year’s operations. 

Contingent Liabilities ($385,000,000 revenue/offsetting collections)

Contingent liabilities represent the known future equitable sharing, remission, refund, and 

mitigation payments. TEOAF tracks future remission payments to third parties as contingent 

liabilities. However, these amounts are not recorded as obligations from the Fund until the 

Department of Justice grants the petition for remission. The third parties are predominantly 

victims of crimes that triggered the forfeiture (e.g., Ponzi scheme or kleptocracy victims). 

Amounts recorded are significant because remission payments from multiple years are recorded 

and carried forward. The amounts change constantly as payments are made and amounts for new 

remission cases are added. TEOAF considers the amounts recorded as contingent liabilities as 

unavailable and believes that consideration of contingent liabilities provides a more accurate 

representation of the financial position of the Fund. 

Legislative Proposals 

TEOAF has no legislative proposal. 

Performance Highlights 

Budget Activity Performance Measure FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Actual Actual Actual Target Target

Asset Forfeiture Fund Percent of Forfeited Cash Proceeds 

Resulting from High-Impact Cases 80 94.19 90.8 80 80

Description of Performance 

The TEOAF continues to measure the performance of the participating law enforcement bureaus 

through the percent of forfeited cash proceeds resulting from high impact cases, which are cases 

resulting in a cash forfeiture deposit equal to or greater than $100,000. 

The high-impact cases are the ones that pursue major criminal targets and their financial networks, 

and therefore are central to the mission of disrupting and dismantling criminal enterprises. At the 

same time, these cases are heavily dependent on TEOAF’s funding due to their high operational 

costs and reliance on sophisticated technologies and analytical tools that are not adequately 

Department of the Treasury - Budget in Brief 106
covered by the funds appropriated for operations. The dominant share of high-impact forfeitures 

reflects TEOAF’s effectiveness in supporting such major investigations. 

While the specific numbers shown in the chart fluctuate due to the unusually big forfeitures, the 

consistently dominant (80 percent or more) share of major forfeiture year after year demonstrates 

TEOAF’s consistent commitment to supporting high-impact cases. Member law enforcement 

bureaus participating in the Fund have met or exceeded the performance target since FY 2014. 

For FY 2020 and FY 2021, the target will remain at 80 percent. The Fund maintains a target of 80 

percent as an appropriate measure of the effectiveness of the Fund support of the participating law 

enforcement agencies efforts to meet TEOAF’s mission to disrupt and dismantle criminal 

enterprises.

Department of the Treasury - Budget in Brief 107
Department of the Treasury - Budget in Brief 108
Bureau of Engraving and Printing

Program Summary by Budget Activity

Dollars in Thousands

 FY 2019 FY 2020 FY 2021 FY 2020 to FY 2021 

Budget Activity Actual Estimate Estimate % Change

Manufacturing $955,212 $819,701 $887,400 8.26%

Total Cost of Operations $955,212 $819,701 $887,400 8.26%

FTE 1,727 1,804 1,863 3.27%

Summary

The mission of the Bureau of Engraving and Printing (BEP) is to develop and produce United 

States currency notes trusted worldwide. BEP supports Treasury’s Strategic Goal 1 (Boost U.S. 

Economic Growth) and Strategic Goal 5 (Achieve Operational Excellence).

BEP’s FY 2021 budget funds the following projects: 

Replacement Production Facility: In FY 2019, BEP received legislative authority to acquire 

land and fund construction of a more efficient production facility to replace BEP’s current aging 

Washington, D.C. facility. In addition, a provision of the 2019 Farm Bill authorizes the transfer 

of a US Department of Agriculture (USDA) land parcel in Beltsville, Maryland to the 

Department of the Treasury to be the site for BEP’s replacement production facility. BEP has 

been conducting suitability assessment of the site with the support from the U.S. Army Corps of 

Engineers. The formal transfer from USDA to Treasury is anticipated in early 2020. A 

replacement facility will save an estimated $579 million over 10 years, as compared to the cost 

of the renovation of the existing facility. In addition, BEP will be able to reduce its annual 

operating costs by at least $38 million. In FY 2020, the budget includes about $5 million for 

remaining site evaluation tasks and relocation of several onsite USDA facilities that must be 

removed prior to the initiation of onsite BEP construction activities. Also anticipated in FY 2021 

is the initiation of early site development construction activities estimated at $30 million to 

include site grading, roadway improvements and utility system relocation to support the BEP 

development. 

Western Currency Facility Expansion: Producing the next family of updated notes requires 

that BEP purchase and install new production equipment to support the new designs. The 

expansion will provide the space and infrastructure necessary to successfully meet the production 

requirements of the next family of U.S. currency banknotes that focus on the integration of 

strong, new security features. Unforeseen weather-related delays caused the project to fall 4 to 6 

months behind schedule. The expansion work is expected to be completed in FY 2021 with 

contract close out occurring in FY 2022. The FY 2021 projected cost for the WCF is $5 million.

Banknote Design and Development: In FY 2021, BEP will continue working with the Federal 

Government’s Advanced Counterfeit Deterrent (ACD) Steering Committee to research and 

develop improved security features for the next family of updated notes. The ACD Committee is 

an inter-agency group established to monitor and explore existing and emerging technologies to 

deter the counterfeiting of U.S. currency. It includes representatives from BEP, the Department 

of the Treasury, the U.S. Secret Service, and the Federal Reserve Board (FRB). The updated 

Department of the Treasury - Budget in Brief 109
notes will focus on innovative banknote security and anti-counterfeit technology that will 

enhance and ensure the security and integrity of U.S. currency. While many factors are taken into 

consideration when updating currency, the primary purpose for updating notes is to improve the 

security of U.S. banknotes and ensure they maintain their position as being trusted worldwide. 

Retooling: BEP is conducting a multi-year effort to retool its manufacturing processes with 

state-of-the-art intaglio printing presses, electronic inspection systems, and finishing equipment. 

To ensure that BEP will meet the annual currency order, the FRB and BEP developed and 

established short, medium, and long-term strategic equipment replacement plans for the U.S. 

Currency Program. Successful implementation of advanced technology improves productivity, 

reduces environmental impact, and enhances counterfeit deterrence of U.S. currency notes. 

Human Capital/Talent Management: BEP will continue its designated talent management 

initiatives, while filling personnel gaps in needed STEM and cybersecurity skill sets. Throughout 

FY 2021, BEP will continue to develop, execute, and communicate the results of Employee 

Engagement Plans and the annual Federal Employee Viewpoint Survey (FEVS) results. 

Budget Highlights

Dollars in Thousands

 FTE Materials Operating 

& Capital Total

FY 2020 Original Estimate 1,863 $244,051 $642,836 $886,887 

Program Changes

Program Decreases: (59) ($50,000) ($53,236) ($103,236)

Currency Program decrease (7.0B to 5.2B) 0 ($50,000) $0 ($50,000)

Washington D.C. Replacement Facility 0 $0 ($44,950) ($44,950)

Hiring Lag (59) $0 ($8,286) ($8,286)

Program Increases: 0 0 $36,050 $36,050 

R&D (New Note Features) 0 $0 $19,000 $19,000 

Support Services Contract 0 $0 $3,500 $3,500 

Pay Raise (3.1% average pay raise) 0 $0 $7,700 $7,700 

WCF Expansion 0 $0 $5,850 $5,850 

Subtotal Program Changes (59) (50,000) ($17,186) ($67,186)

FY 2020 Revised Estimate 1,804 $194,051 $625,650 $819,701 

Changes to Base

Maintaining Current Levels (MCLs) 0 $0 $14,686 $14,686 

Pay Annualization (2020 3.1% average pay raise) 0 $0 $1,998 $1,998 

Pay Raise (1.0% average pay raise) 0 $0 $1,948 $1,948 

FERS Contribution Increase 0 $0 $3,383 $3,383 

Non-Pay 0 $0 $7,357 $7,357 

Efficiency Savings 0 $0 ($5,000) ($5,000)

Overtime Reduction 0 $0 ($5,000) ($5,000)

Subtotal Changes to Base 0 $0 $9,686 $9,686

FY 2021 Current Services 1,804 $194,051 $635,336 $829,387 

Program Changes

Program Decreases: 0 $0 ($51,400) ($51,400)

 Retooling 0 $0 ($33,000) ($33,000)

 New Equipment Initiatives 0 $0 ($15,000) ($15,000)

 WCF Expansion 0 $0 ($3,400) ($3,400)

Program Increases: 59 $53,237 $56,176 $109,413 

Washington D.C. Replacement Facility 0 $0 $24,890 $24,890 

Hot Foil Equipment (WCF) 0 $0 $24,000 $24,000 

Estimated Currency Program increase (6.8B) 0 $53,237 $0 $53,237 

Complete Hiring Plan 59 $0 $7,286 $7,286 

Subtotal Program Changes 59 $53,237 $4,776 $58,013 

FY 2021 Estimate 1,863 $247,288 $640,112 $887,400 

Department of the Treasury - Budget in Brief 110
Budget Adjustments 

Adjustments to Estimates

Program Decreases............................................................. -$103,236,000 / -59 FTE 

Currency Note Program -$50,000,000 / -0 FTE

This decrease reflects the FY 2020 order of notes from the FRB. The order decreased from 7.0 

billion notes in FY 2019 to 5.2 billion notes in FY 2020. 

Washington D.C. Replacement Facility -$44,950,000 /-0 FTE 

In FY 2019, BEP received legislative authority to acquire land and build a more efficient facility 

in the Washington, D.C. area. As a result of the new authority, BEP will not undertake the 

previously planned renovation to the existing facility in D.C.

Hiring Lag -$8,286,000/ -59 FTE 

This adjustment is to reflect the impact of the hiring lag.

Program Increases............................................................... +$36,050,000 / +0 FTE 

Research and Development +$19,000,000/ +0 FTE 

To continue the research and development of the new security features for the new family of 

notes. 

Support Service Contracts +$3,500,000/ +0 FTE 

To mitigate the risks associated with the growing hiring backlog, the funding would be used to 

acquire support services to provide business continuity. 

Pay Raise (3.1% in 2020) +$7,700,000/ +0 FTE 

Funds are required for the 3.1% average pay raise in January 2020. 

WCF Expansion +$5,850,000/ +0 FTE 

The funding would be used for unforeseen construction issues. 

FY 2021 Maintaining Current Levels (MCLs)............................ +$14,686,000 / +0 FTE 

Pay Annualization (3.1%) +$1,998,000 / +0 FTE: 

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

Pay Raise (1.0% in 2021) +$1,948,000 / +0 FTE: 

Funds are required for the proposed 1.0% average pay raise in January 2021. 

FERS Contribution Increase +$3,383,000 / +0 FTE: 

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

effective FY 2021. 

Non-Pay +$7,357,000 / +0 FTE 

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

and equipment. 

Department of the Treasury - Budget in Brief 111
FY 2021 Efficiency Savings...................................................... -$5,000,000 / -0 FTE

Overtime Reduction -$5,000,000 / -0 FTE

The new production technologies would yield more efficiencies resulting in less overtime. 

Program Decreases............................................................... -$51,400,000 / -0 FTE

Retooling -$33,000,000 / -0 FTE

The FY 2020 estimate is $33 million higher than the FY 2021 anticipated requirements. 

New Equipment Initiatives -$15,000,000 / -0 FTE

Requested funding supports the acquisition of new technology/equipment to be used in the 

testing of new design features. 

WCF Expansion -$3,400,000/ -0 FTE

The FY 2020 estimate is $3.4 million higher than the FY 2021 anticipated requirements. 

Program Increases............................................................ +$109,413,000 / +59 FTE

Washington D.C. Replacement Facility +$24,890,000 / +0 FTE 

Funds are requested to reflect the increase from FY 2020 to FY 2021 to support the preconstruction activities. 

New Security Feature Equipment (WCF) +$24,000,000 / +0 FTE 

Currency Redesign efforts require investment in new application equipment which is to be 

installed in WCF in FY2021 and subsequently installed at the replacement DC Facility.

Currency Note Program +$53,237,000 / +0 FTE 

Early indications suggest that the yearly currency order placed by the Federal Reserve Board will 

return to average order levels in FY 2021. 

Complete Hiring Plan +$7,286,000 / +59 FTE 

BEP has been experiencing a hiring lag the last several years. BEP anticipates reducing the 

backlog of hiring actions in FY 2021 and plans are to execute and complete proposed hiring 

actions and on board FTEs.

Legislative Proposals 

As proposed previously, BEP requests the authority to print security documents such as birth, 

marriage, and death certificates for state governments. Many states are unable to find an 

American printing firm to produce the documents. These states are turning to foreign companies 

or lowering their security standards. 

Department of the Treasury - Budget in Brief 112
Performance Highlights 

Budget Activity Performance Measure FY 2017

Actual

FY 2018

Actual

FY 2019

Actual

FY 2020

Target

FY 2021

Target

Manufacturing Currency Notes Delivered Returned Due to 

Defects (Parts per Million) N/A 0.0031ppm 0.09ppm <1ppm <1ppm

Manufacturing Improved FEVS Satisfaction 68% 70% 68% 65% 65%

Manufacturing Lost Time Accident Rate per 100 Employees 1.6 0.9 1.05 1.8 1.8

Manufacturing Manufacturing Costs For Currency (Dollar 

Costs Per Thousand Notes Produced) $43.58 $47.41 $51.01 $56.00 $56.00

Manufacturing Yearly Currency Order (percent of order 

completed versus planned) N/A N/A 100% 100% 100%

Description of Performance 

($887,400,000 from reimbursable sources)

The BEP has one budget activity: Manufacturing. This budget activity supports all of BEP’s 

strategic goals as well as supporting Treasury’s Strategic Goals Boosting U.S. Economic Growth 

and Achieving Operational Excellence. 

Description of Performance: 

Currency Notes Returned Due to Defects (parts per million (ppm)) is an indicator of BEP’s 

ability to provide a quality product. The target for this performance metric is <1 ppm. BEP was 

able to exceed the established target in FY 2019 due to improved quality assurance processes 

with an actual result of 0.09 ppm notes returned due to a defect. BEP’s target for this 

performance metric will be held constant at <1 ppm for FY 2020 and FY 2021. 

The Federal Employees Viewpoint Survey (FEVS) allows employees to share their opinion on 

what matters most to them. Based on the results of the survey, BEP can target areas for 

improvement or additional employee engagement. The measure uses the Department’s standard 

FEVS Employee Engagement Index with a target of 65 percent. In FY 2020 and 2021, BEP will 

continue to strive for improvements in overall employee satisfaction.

The Lost Time Accident Rate per 100 employees measures the BEP’s ability to reduce injuries 

and illnesses in the workplace. BEP’s FY 2019 Lost Time Accident rate was at 1.05 cases per 

100 employees, 42 percent lower than the target of 1.80 cases per 100 employees. This 

performance resulted from increased focus on following safe work practices, avoiding hazards, 

and being a Director’s priority. For FY 2021, BEP remains committed to maintaining and 

improving the safety of its employees. BEP will continue to perform analysis to determine the 

root causes of any injury and to identify best practices in safety. BEP’s target will be held at 1.80 

cases per 100 employees for FY 2020 and FY 2021. 

Manufacturing Costs for Currency (dollar cost per 1,000 notes produced) is an indicator of 

manufacturing efficiency and effectiveness of program management. The measure is based on 

contracted price factors, productivity improvements, and the mix of denominations ordered. 

Actual performance against standard costs depends on BEP’s ability to meet spoilage, efficiency, 

and capacity utilization goals. In FY 2019, the cost of manufacturing was lower than anticipated 

due to operational efficiencies. The FY 2019 cost was $51.01 per 1,000 notes produced, 

compared to a target of $51.66. BEP’s target for this performance metric in FY 2020 and FY 

Department of the Treasury - Budget in Brief 113
2021 is set at $56.00 per 1,000 notes produced. Per unit cost for currency is projected to increase 

because of significant reduction to the currency order for 2020 and higher labor rates and 

material price increases.

The Yearly Currency Order measures BEP’s success in delivering the total number of currency 

notes ordered by the Federal Reserve Board annually. In FY 2019, BEP met its target of 

delivering 100 percent of the currency notes ordered. In FY 2020 and FY 2021, BEP will 

continue to target delivering 100 percent of the FRB’s currency order. 

Department of the Treasury - Budget in Brief 114
United States Mint

Program Summary by Budget Activity

Summary

In Fiscal Year (FY) 2021, the Mint’s total estimated budgetary requirements for operations, 

metal, and capital investments are $2.55 billion. This budget will support the production of 14 

billion circulating coins, as well as the production of bullion and other numismatic products 

sufficient to meet customer demand. The Mint has one budget activity: manufacturing, which 

encompasses the bureau’s two major programs, circulating coinage and numismatic products 

(including bullion coins, collector coins, and national medals). 

To maintain its reputation as one of the finest mints in the world, the Mint is committed to

operating according to the core values of service, quality, and integrity. The Mint has three 

strategic goals to help fulfill its mission and values: 1) Advancing our circulating mission 

through innovation and technology; 2) Fostering a safe, flexible, diverse and engaged workforce; 

3) Introducing diverse products to new customers and revitalizing the Mint customer base 

through the use of industry-proven marketing approaches. The Mint is currently updating their 

goals and expects to release a new plan in FY 2020. The goals in the plan align with Treasury 

Strategic Goal 1: Boost U.S. Economic Growth and Goal 5: Achieve Operational Excellence. 

Mint operations are funded through the Mint Public Enterprise Fund (PEF), 31 U.S.C. § 5136. 

The Mint generates revenue through the sale of circulating coins to the Federal Reserve Banks 

(FRB), numismatic products to the public, and bullion coins to authorized purchasers. All 

circulating and numismatic operating expenses, along with capital investments incurred for the 

Mint’s operations and programs, are paid out of the PEF. By law, all funds in the PEF are 

available without fiscal year limitation. Revenues determined to be in excess of the amount 

required by the PEF are transferred to the United States Treasury General Fund. The Mint’s key 

priorities for FY 2021 include:

 Circulating - Efficiently and effectively mint and issue approximately 14.0 billion circulating 

coins in FY 2021 to meet the needs of commerce.

 Numismatic Program Bullion Products - Mint and issue bullion coins to meet customer 

demand efficiently and effectively. 

 Other Numismatic Products - Produce and distribute numismatic products in sufficient 

quantities, through appropriate channels, to make them accessible, available, and affordable 

to people who choose to purchase them. Design, strike, and prepare for presentation 

Congressional Gold Medals. 

Dollars in Thousands

FY 2019 FY 2020 FY 2021 FY 2020 to 

FY 2021

Budget Activity Actual Estimate Estimate % Change

Manufacturing $1,555,462 $2,537,795 $2,547,197 0.37%

Total Cost of Operations $1,555,462 $2,537,795 $2,547,197 0.37%

Full-time Equivalents (FTE) 1,536 1,671 1,705 2.03%

Department of the Treasury - Budget in Brief 115
Budget Highlights

Dollars in Thousands

FTE Materials Operating & 

Capital Total

FY 2020 Original Estimate 1,705 $2,270,000 $458,168 $2,728,168 

Program Changes

Program Decreases: (34) ($190,000) ($7,669) ($197,669)

Metal Due to Forecasted Decrease in Circulating Coin Metal Prices 0 ($30,000) $0 ($30,000)

Metal Due to Forecasted Decrease in Bullion Production 0 ($160,000) $0 ($160,000)

FTE Reduction (34) $0 ($4,097) ($4,097)

Operating Efficiencies 0 $0 ($3,572) ($3,572)

Program Increases: 0 $0 $7,296 $7,296 

FedRAMP Remediation Activities 0 $0 $4,000 $4,000 

Pay Raise (3.1% average pay raise) 0 $0 $3,296 $3,296 

Subtotal Program Changes (34) ($190,000) ($373) ($190,373)

FY 2020 Revised Estimate 1,671 $2,080,000 $457,795 $2,537,795 

Changes to Base

Maintaining Current Levels (MCLs) 0 $0 $10,856 $10,856 

Pay Annualization (2020 3.1% average pay raise) 0 $0 $1,629 $1,629 

Pay Raise (1.0% average pay raise) 0 $0 $1,588 $1,588 

FERS Contribution Increase 0 $0 $2,686 $2,686 

Non-Pay 0 $0 $4,953 $4,953 

Workforce and Succession Planning 34 $0 $4,901 $4,901 

Efficiency Savings 0 $0 (6,355) ($6,355)

Cyber Security 0 $0 ($1,500) ($1,500)

Operating Efficiencies 0 $0 ($4,855) ($4,855)

Subtotal Changes to Base 34 $0 $9,402 $9,402 

FY 2021 Estimate 1,705 $2,080,000 $467,197 $2,547,197 

FY 2021 Budget Adjustments

Adjustment to Estimate

Program Decreases............................................................-$197,669,000 / -34 FTE

Metals Due to Forecasted Increase in Circulating Coin Metal Prices -$30,000,000 / -0 FTE

FY 2020 forecasted circulating coin production will remain constant at 14.0 billion coins for the 

year. However, metal prices are forecasted to decrease. The net result is an overall decrease to 

circulating coin program costs.

Metals Due to Forecasted Decrease in Bullion/Numismatic Production -$160,000,000 / -0 FTE 

FY 2020 forecasted demand for the bullion coin program decreased by 7 percent, causing a 

decrease of $200M in bullion coin program costs. Conversely, numismatic program sales are 

forecasted to increase by 6 percent, causing a nominal increase of $40M in metal costs. The net 

result of the numismatic and bullion program is an overall decrease in program costs.

FTE Reduction -$4,097,000 / -34 FTE

Salary savings will be realized through natural attrition across all directorates.

Department of the Treasury - Budget in Brief 116
Operating Efficiencies -$3,572,000 / -0 FTE

The Mint will reduce its operating budget by continuing to monitor costs and implement various 

savings strategies. 

Program Increases................................................................. +$7,296,000 / +0 FTE

FedRAMP Remediation Activities +$4,000,000 / +0 FTE

The Federal Risk Authorization Management Program (FedRAMP) certification is mandatory 

for cloud providers who wish to provide services to the Federal government. PFS (Priority 

Fulfillment Services), the service provider for the Mint’s OMS II system, has identified system 

gaps that are non-compliant with FedRAMP requirements. In an effort to address these gaps, 

funding is needed to provide remediation solutions to bring PFS and the Mint’s OMS II system 

into compliance.

Pay Raise (3.1% in 2020) +$3,296,000 / +0 FTE: 

Funds are required for a 3.1% average pay raise in January 2020.

Maintaining Current Levels (MCLs)..................................................... +$10,856,000 / +0 FTE

Pay Annualization (3.1%) +$1,629,000 / +0 FTE: 

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

Pay Raise (1.0% in 2021) +$1,588,000 / +0 FTE: 

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

FERS Contribution Increase +$2,686,000 / +0 FTE 

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

effective FY 2021.

Non-Pay +$4,953,000 / +0 FTE

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

equipment.

Workforce and Succession Planning......................................... +$4,901,000 / +34 FTE

Workforce and Succession Planning +$4,901,000 / +34 FTE

The Mint has implemented initiatives to increase its FTE level. These initiatives include using 

intern programs to transfer knowledge and reduce risks from retirement eligible workforce, fill 

key vacancies more timely, and using flexible hiring authorities to shorten the lengthy hiring 

process where appropriate. 

Efficiency Savings .................................................................................... -$6,355,000 / -0 FTE 

Cyber Security -$1,500,000 / -0 FTE

The cyber security program will reduce contract spending by insourcing some security 

assessment and authorization (SA&A) and audit management functions. Areas of focus include 

supporting FedRAMP activities in the OMS II program, and conducting risk assessments for 

industrial control systems.

Department of the Treasury - Budget in Brief 117
Operating Efficiencies -$4,855,000 / -0 FTE

The Mint will continue to fund the operating and capital budgets at levels comparable to prior 

years, and reduce costs through continuous monitoring and implementing cost savings strategies 

as appropriate. These strategies include prioritizing Mint activities to ensure that operating costs 

are maintained.

Legislative Proposals 

Capital Legislative Increase

The Mint’s investments in capital are a critical part of regular manufacturing operations. To 

continue effective coin production, equipment replacements and facility maintenance is 

mandatory. Over time, the legislative limit on the Mint’s capital budget has proven insufficient. 

Rather than upgrading and replacing worn and obsolete equipment as needed, under the current 

funding limit, capital projects must be prioritized and funded based on budget availability. This 

process has caused many needed projects to be postponed to out-years. Continuing to defer 

replacement of equipment presses, for example, creates the risk of additional downtime due to 

unexpected failures. This could substantially impact production schedules. Deferred replacement 

of presses also creates a cost risk associated with contracting the manufacturer to make 

emergency repairs. As such, the Mint’s need for capital investments becomes more critical each 

year. The current limitation of $30 million for circulating and protection capital is below the 

amount needed to meet capital investment requirements. 

The bureau has identified an urgent need to increase its legislative limit by $20 million. This 

will raise the current limit from $30 million to $50 million beginning in FY 2021. The increased 

capital limit will allow the Mint to execute a comprehensive capital investment strategy that 

focuses on safety, equipment replacements, protection, and facility improvements (see additional 

details in Section III).

Alternative Metal Composition 

This proposal would give the Secretary the authority to prescribe the compositions of the 5-cent, 

dime, and quarter-dollar coins, provided that the new metal compositions do not affect the 

Electromagnetic Signature (EMS), the color, and weight of the coins. By authorizing the 

Secretary the flexibility and agility to implement small changes to the copper-nickel circulating 

coin metal compositions, the Mint could realize incremental material savings with little or no 

impact to the vending industry and general public.

New Proposal: Circulating Commemorative Coin Redesign

Estimated revenue: Approximately $8 billion over the life of the program, depending on program 

specifics

Circulating commemorative coin programs are very popular and generate significant revenue for 

the United States Mint and ultimately the general fund of the Treasury. To better advance the 

hobby of collecting coins and medals, the Mint requires authority for circulating commemorative 

programs that are shorter term in nature; are based on subject matter that will drive the program 

through sustainable, recognizable, and relatable themes; and that can appeal to a broad range of 

Americans and attract new collectors, especially youth.

Department of the Treasury - Budget in Brief 118
The proposed Circulating Commemorative Coin Redesign Act (CCCRA) proposes new 

circulating and numismatic programs. In particular, the CCCRA would introduce a new quarter 

and half dollar program following the current America the Beautiful (AtB) Quarters Program, 

which will end in 2021. Because the AtB Quarters Program is scheduled to be discontinued in 

2021, authorizing new circulating commemorative coin programs will contribute to the longevity 

and long-term growth of the Mint, serve the public interest, and deliver increased revenue to the 

Mint and the Department of the Treasury General Fund that otherwise may not be realized.

The Mint is proposing a new series of themes for circulating coins as a compelling way to 

engage young collectors and grow the Mint’s circulating and numismatic revenue. The themes 

proposed are quarter dollars and half dollars that represent historical milestones. 

Performance Highlights 

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Budget Activity Performance Measure Actual Actual Actual Target Target 

Manufacturing Customer Satisfaction Index (%) 91.7 93.6 93.6 90.0 90.0

Manufacturing Numismatic Sales Units (Million 

Units) 3.9 3.3 4.3 3.8 3.0

Manufacturing Safety Incident Recordable Rate 1.96 1.90 1.45 2.32 2.25

Manufacturing Seigniorage per Dollar Issued ($) 0.45 0.37 0.40 0.36 0.36

Description of Performance

Customer Satisfaction Index (CSI)

The Mint conducts a quarterly survey of a random sample of active numismatic customers. The 

survey is intended to capture customer satisfaction with the Mint’s service performance as a coin 

products supplier and with the quality of specific products. The CSI metric is a quantitative 

score summarizing the survey’s results into one consolidated value. This metric gauges 

performance results in the effort to achieve the Mint’s internal strategic plan goal, “Improve 

mission critical activities and governance,” and the Mint’s internal strategic objective linked to 

this goal, “Drive a customer-centric organization.” This also aligns with the Treasury 

Department strategic objective linked to this goal, “5.3 Customer Value and Experience.”

In FY 2019, the CSI was 93.6 percent, exceeding its 90.0 percent target. The Mint was able to 

exceed its target by providing high-quality products, adding innovative features, and improving 

the Mint’s customer loyalty program. The Mint anticipates that the CSI will remain steady and,

thus, has set the target at 90.0 percent for FY 2020 and FY 2021.

Numismatic Sales Units

The numismatic sales unit metric measures public demand for coin products sold from 

numismatic operations. This metric also measures performance results achieving the Mint’s 

internal strategic plan goal, “Improve mission critical activities and governance” and the Mint’s 

internal strategic objective linked to this goal, “Drive a customer-centric organization.” This 

also aligns with the Treasury Department strategic objective linked to this goal, “5.3 Customer 

Value and Experience.”

Department of the Treasury - Budget in Brief 119
Numismatics product sales for FY 2019 totaled 4.3 million units, exceeding the 3.9 million 

target. The Mint’s numismatic unit sales grew substantially in FY 2019, driven by the popular 

Apollo 11 program, but the environment for numismatic sales overall remains challenging. The 

performance target for numismatic sales units is 3.8 million for FY 2020 and 3.0 million for FY 

2021. Targets are representative of the programs for that year. Therefore, targets vary year over 

year. To meet these targets, the Mint will continue to provide high-quality products and maintain 

outstanding customer service, and deepen engagement with coin collectors.

Safety Incident Recordable Rate

The safety incident recordable rate is the number of injuries and illnesses meeting the 

Occupational Safety and Health Administration recording criteria per 100 full-time workers. It 

measures the occurrence of work-related incidents involving death, lost-time and restricted work, 

loss of consciousness, or medical treatment. The safety incident recordable rate indicates 

performance results in the effort to achieve the Mint’s internal strategic plan goal, “Foster a safe, 

flexible, diverse, and engaged workforce,” and the corresponding Mint internal strategic 

objective linked to this goal, “Continue to cultivate a safe working environment.” These also 

align with the Treasury Strategic Goal “5.1 Workforce Management.”

In FY 2019, the total recordable case rate reached 1.45, well below the Mint’s 2.39 FY 2019

target, and significantly below the most recent industry average rate of 4.9 for comparable 

private sector manufacturing operations. During FY 2019, the Mint continued implementing and 

updating risk management guidelines to prioritize resources and mitigate risks in advance of 

injuries or catastrophic events at each plant. Mint facility leadership and employees continue to 

interact on a daily basis on the importance of safety. The performance targets for the safety 

incident recordable rate are 2.32 for FY 2020 and 2.25 for FY 2021.

Seigniorage per Dollar Issued 

Seigniorage per Dollar Issued is the financial return on circulating operations, calculated as 

seigniorage divided by the total face value of circulating coins shipped to the FRBs. Seigniorage 

is the difference between the face value and cost of producing circulating coinage. It measures 

the cost effectiveness of minting and issuing the United States’ circulating coinage. It also 

measures performance results in achieving the Mint’s internal strategic plan goal, “Improve 

mission critical activities and governance,” as well as the Mint’s internal strategic objective 

linked to the goal, “Improve mission critical activities and governance.” This also aligns with 

the Treasury Strategic Goal “1.3 Trusted Currency and Services.” At the end of FY 2019, 

Seigniorage per Dollar Issued was $0.40, above the FY 2019 performance target of $0.36. The 

FY 2019 increase is a result of lower metal costs for all denominations. The Seigniorage per 

Dollar Issued performance targets are set at $0.36 for both FY 2020 and FY 2021. 

Department of the Treasury - Budget in Brief 120
Office of the Comptroller of the Currency 

Program Summary by Budget Activity

Dollars in Thousands

 FY 2019 FY 2020 FY 2021 FY 2020 to 

FY 2021

Budget Activity Actual Estimate Estimate % Change

Supervise $939,193 $984,401 $984,401 0.00%

Regulate $93,323 $97,815 $97,815 0.00%

Charter $20,212 $21,185 $21,185 0.00%

Total Cost of Operations $1,052,728 $1,103,401 $1,103,401 0.00%

Full-time Equivalents (FTE) 3,687 3,589 3,589 0.00%

Summary

The Office of the Comptroller of the Currency (OCC) was created by Congress in 1863 to 

charter national banks; oversee a nationwide system of banking institutions; and ensure national 

banks are safe and sound, competitive and profitable, and capable of serving in the best possible 

manner the banking needs of their customers. 

As of September 30, 2019, the OCC supervised 840 national bank charters, 57 federal branches 

and agencies, and 303 federal savings associations. In total, the OCC supervises approximately 

$12.8 trillion in financial institution assets.

The OCC has established three goals to affirm its mission: 1) The OCC fosters a safe, sound, and 

fair federal banking system that is a source of economic strength and opportunity that meets the 

evolving needs of consumers, businesses, and communities; 2) OCC employees are engaged, 

prepared, and empowered to meet its mission; 3) The OCC operates efficiently and effectively. 

To achieve its goals and objectives, the OCC organizes its programs under three activities: 1) 

Supervise, 2) Regulate, and 3) Charter. Effective supervision and a comprehensive regulatory 

framework are the key tools that the OCC uses to ensure that national banks and federal savings 

associations operate in a safe and sound manner and that they provide fair access to financial 

services and fair treatment of their customers. A robust chartering program allows new entrants 

into the financial services sector while ensuring that they have the necessary capital, managerial, 

and risk management processes to conduct activities in a safe and sound manner. 

The OCC’s priorities focus on strengthening the resiliency of the institutions subject to its 

jurisdiction through its supervisory and regulatory programs and activities. A stronger and more 

resilient banking system directly supports four out of five Department of the Treasury’s 

FY 2018-2022 strategic goals: Boost U.S. Economic Growth; Promote Financial Stability; 

Enhance National Security; and Achieve Operational Excellence.

The OCC’s nationwide staff of bank examiners conducts on-site reviews of banks and provides 

sustained supervision of these institutions’ operations. Examiners analyze asset quality, capital 

adequacy, earnings, liquidity, and sensitivity to market risk for all banks, and assess compliance 

with federal consumer protection laws and regulations. Examiners also evaluate management’s 

ability to identify and control risk, and assess banks’ performance in meeting the credit needs of 

the communities in which they operate, pursuant to the Community Reinvestment Act (CRA). 

Department of the Treasury - Budget in Brief 121
In supervising banks, the OCC has power to: 

• Approve or deny applications for new charters, branches, capital, or other changes in 

corporate or banking structure; 

• Take supervisory and enforcement actions against banks that do not comply with laws and 

regulations or that otherwise engage in unsafe or unsound practices; 

• Remove and prohibit officers and directors, negotiate agreements—both formal (i.e., public) 

and informal (i.e., non-public)—to change banking practices, and issue cease-and-desist 

orders as well as Civil Money Penalties (CMP); and

• Issue rules and regulations, legal interpretations, supervisory guidance, and corporate 

decisions governing investments, lending, and other practices. 

Operations are funded primarily (approximately 97 percent) from semiannual assessments levied 

on national banks and federal savings associations. Revenue from investments in Treasury 

securities and other income comprise the remaining three percent of the OCC’s funding. 

The OCC does not receive congressional appropriations to fund any portion of its operations. 

Legislative Proposals 

OCC has no legislative proposals.

Performance Highlights

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Budget Activity Performance Measure Actual Actual Actual Target Target

Charter

Percentage of Licensing Applications and 

Notices Completed within Established 

Timeframes

96.0 97.0 99.0 95.0 95.0

Supervise

Rehabilitated National Banks And Federal 

Savings Associations As A Percentage Of 

Problem National Banks One Year Ago 

(CAMEL 3,4, or 5)

40.0 44.0 15.0 40.0 40.0

Supervise

Percentage of National Banks and Federal 

Savings Associations With Consumer 

Compliance Rating of 1 or 2

97.0 98.0 98.0 94.0 94.0

Supervise

Total OCC Costs Relative To Every $100,000 in 

Bank And Federal Savings Associations Assets 

Regulated ($)

9.49 9.12 8.07 8.10 8.10

Supervise

Percentage of National Banks and Federal 

Savings Associations That Are Categorized As 

Well Capitalized

97.0 95.0 98.0 95.0 95.0

Supervise

Percentage of National Banks and Federal 

Savings Associations with Composite CAMELS 

Rating 1 or 2

94.0 96.0 96.0 90.0 90.0

Description of Performance 

The OCC charters, regulates and supervises all national banks and federal savings associations, 

as well as supervises federal branches and agencies of foreign banks. The primary goal of the 

Department of the Treasury - Budget in Brief 122
OCC’s Supervise Program is to ensure that these institutions operate in a safe and sound manner 

and in compliance with laws requiring fair treatment of their customers and fair access to credit 

and financial products. The OCC also monitors risks and threats to the stability of the federal 

banking system through its regular examinations of the institutions it supervises and other 

monitoring. 

The overall objective of the OCC’s Supervise Program supports facilitating commerce through 

the goal of ensuring the safety and soundness of the federal banking system. Through its 

Supervise Program the OCC supports facilitating commerce through the goal of ensuring the 

safety and soundness of the federal banking system. The OCC has taken a number of steps to 

improve the cybersecurity of the nation’s financial sector critical infrastructure including 

organizing webinars for community bankers. The agency continues to update examiner 

handbooks, procedures, and training materials to ensure that, as threats evolve, all national banks 

and federal savings associations can identify cyber risks and strengthen their risk management 

and control systems. The OCC is an active member of the Financial Services Information 

Sharing and Analysis Center, which provides greater real-time insight into a broad range of 

potential threats to the industry and the ability to assist, when appropriate, in a coordinated 

response with other government agencies. Finally, the OCC supports protecting the integrity of 

the financial system through its examinations of compliance with Bank Secrecy Act/Anti-Money 

Laundering (BSA/AML), in accordance with Federal Financial Institutions Examination Council 

(FFIEC) procedures and through the initiation of enforcement actions for non-compliance with 

BSA/AML laws and regulations under OCC’s general bank supervisory authority and delegated 

authority from Treasury’s Financial Crimes Enforcement Network (FinCEN), which has 

regulatory authority for BSA/AML. 

The composite CAMELS (Capital adequacy, Asset quality, Management, Earnings, Liquidity, 

and Sensitivity to market risk) rating reflects the overall condition of a bank. Bank regulatory 

agencies use the Uniform Financial Institutions Rating System, CAMELS, to provide a general 

framework for evaluating all significant financial, operational, and compliance factors inherent 

in a bank. The rating scale is 1 through 5 of which 1 is the highest rating granted. CAMELS 

ratings are assigned at the completion of every supervisory cycle or when there is a significant 

event leading to a change in CAMELS. Through September 30, 2019, 98 percent of national 

banks and federal savings associations earned composite CAMELS rating of either 1 or 2. 

To ensure fair access to financial services and fair treatment of bank customers, the OCC 

evaluates a bank’s compliance with consumer laws and regulations. Bank regulatory agencies 

use the Uniform Financial Institutions Rating System, Interagency Consumer Compliance 

Rating, to provide a general framework for assimilating and evaluating significant consumer 

compliance factors inherent in a bank. Each financial institution is assigned a consumer 

compliance rating based on an evaluation of its present compliance with consumer protection 

and civil rights statutes and regulations and the adequacy of its operating systems designed to 

ensure continuing compliance. Ratings are on a scale of 1 through 5 in increasing order of 

supervisory concern. National banks and federal savings associations continue to show strong 

compliance with consumer protection regulations with 68 percent earning a consumer 

compliance rating of either 1 or 2 through September 30, 2019. 

Department of the Treasury - Budget in Brief 123
The OCC’s timely and effective approval of corporate applications contributes to the nation’s 

economy by enabling national banks and federal savings associations to complete various 

corporate transactions and introduce new financial products and services. Delays in providing 

prompt decisions on applications and notices can deprive a bank of a competitive or business 

opportunity, create business uncertainties, or diminish financial results. Time frames have been 

established for completing each type of application and notice. The OCC completed 99 percent 

of applications and notices within the time standard through September 30, 2019. 

The OCC’s early identification and intervention with problem financial institutions can lead to a 

successful rehabilitation. As of September 30, 2019, 15 percent of national banks and federal 

savings associations with composite CAMELS ratings of 3, 4, or 5 one year ago have improved 

their ratings to either 1 or 2 this year. The OCC continues to focus on the early identification and 

rehabilitation of problem institutions. The low percentage is an indicator of a shrinking 

population base of problem banks. Two years ago, there were about 80 problem banks, last year 

60 problem banks and currently less than 50 problem banks. 

The OCC continuously takes steps through its Supervise and Regulate programs to make 

national banks and federal savings associations more resilient to financial stresses and to identify 

and obtain corrective action at an earlier stage, when problems can be addressed most 

successfully. These efforts include heightened capital and liquidity standards and increased 

emphasis on the need for stress testing, designed to provide financial institutions with stronger 

capital buffers to withstand unforeseen events. These are multi-year efforts that will continue in 

FY 2020 and beyond. 

The OCC monitors the efficient use of its resources by measuring Total OCC Costs Relative to 

Every $100,000 in Bank Assets Regulated. This measure reflects the efficiency of its operations 

while meeting the increasing supervisory demands of a growing and more complex financial 

system. This measure supports the OCC’s strategic goal of efficient use of agency resources. 

The OCC’s ability to control its costs while ensuring the safety and soundness of national banks 

and federal savings associations benefits all national bank and federal savings association 

customers. The OCC will continue its efforts to ensure that resources are used prudently and that 

programs are carried out in a cost-effective manner ensuring that the OCC operates as efficiently 

and effectively as possible. 

Department of the Treasury - Budget in Brief 124
Treasury Franchise Fund

Program Summary by Budget Activity

Dollars in Thousands

 FY 2019 FY 2020 FY 2021 FY 2020 to FY 2021

Budget Activity Actuals Estimate Estimate $ Change % Change

Treasury Shared Services Programs $240,925 $274,017 $299,891 $25,874 9.44% 

Centralized Treasury Administrative 

Services $136,565 $166,591 $162,262 ($4,329) -2.60% 

Administrative Support Services $170,184 $176,521 $190,172 $13,651 7.73% 

Information Technology Services $179,631 $212,481 $216,996 $4,515 2.12% 

Subtotal, Treasury Franchise Fund $727,305 $829,610 $869,321 $39,711 4.79% 

Offsetting Collections - Reimbursable $732,879 $829,610 $869,321 $39,711 4.79% 

Recovery from Prior Years $8,002 $24,123 $24,016 ($107) -0.44% 

Unobligated Balances Brought Forward $196,219 $209,795 $233,918 $24,123 11.50% 

Total Program Operating Level $937,100 $1,063,528 $1,127,255 $63,727 5.99% 

Reimbursable FTE 1807 2042 2112 70 3.43% 

Total Full-time Equivalents (FTE) 1,807 2,042 2,112 70 3.43% 

Summary

The TFF providers include Departmental Offices’ Treasury Shared Services Programs (TSSP), 

Departmental Offices’ Centralized Treasury Administrative Services (CTAS), and the Bureau of 

the Fiscal Service’s Administrative Resource Center (ARC). TFF providers offer financial 

management, procurement, travel, human resources, information technology, and other 

administrative services to Federal customers on a fully cost recoverable, fee-for-service basis. 

The TFF FY 2021 Congressional Budget Justification reflects revised estimates for FY 2020 

along with funding requests for FY 2021. The revised estimates in FY 2020 include an increase 

operations and maintenance costs for ARC Administration (Admin) for administrative support 

services to support an expansion in the customer base. The FY 2020 revised estimates also 

include an increase for the expansion of ARC Information Technology (IT) services to the 

support technology modernization implementation of an on premise cloud environment, and 

increased investment in cybersecurity measures that will protect the National Critical Financial 

Infrastructure. 

The TFF FY 2021 Budget submission will support the efforts in cybersecurity with transferred 

operations and maintenance from the Cybersecurity Enhancement Account (CEA) program. FY 

2021 initiatives in TSSP will increase efforts to support a strategic path-forward for a Treasury 

Enterprise-wide cloud solution, key systems modernizations and program support aimed at 

reducing redundant efforts by the bureaus. 

The FY 2021 budget submission will also support an increase in ARC Admin for operations and 

maintenance costs to address expected customer growth. ARC Admin will continue to increase 

the efficiency and quality of services. 

Department of the Treasury - Budget in Brief 125
Budget Highlights

Treasury Franchise Fund FTE Amount

FY 2020 Original Estimate 2,023 $801,114 

 Adjustments to FY 2020 19 $28,496 

 Increased Customer Base (ARC Admin/IT) 19 $28,496 

FY 2020 Revised Estimate 2,042 $829,610 

Changes to Base:

 Adjustment to Base

Continuous Diagnostic and Mitigation (CDM) Licenses Phase I and II ($10,000)

Maintaining Current Levels (MCLs): $17,696 

 Pay Annualization (2020 3.1% average pay raise) $1,956 

 Pay Raise (1.0% average pay raise) $1,907 

FERS Contribution Increase $2,288 

Non-Pay $11,545 

Subtotal Changes to Base 0 $7,696 

Total FY 2021 Current Services 2,042 $837,306 

Program Changes:

Program Increases: 74 $39,810 

Cybersecurity Enhancement Account (CEA) Operations and Maintenance (TSSP) 0 1,222 

Treasury Enterprise-wide Cloud Infrastructure (TSSP) 3 3,153 

Systems Modernization and Program Support (TSSP) 2 $5,909 

Realignment of CTAS Programs to TSSP (TSSP) 4 $7,795 

Customer Growth (ARC Admin) 65 $9,631 

Continuous Diagnostic and Mitigation (CDM) Licenses Phase I and II 0 $12,100 

Program Decreases: (4) ($7,795)

Realignment of CTAS Programs to TSSP (CTAS) (4) ($7,795)

Subtotal Changes to Base 70 $32,015 

FY 2021 Estimate 2,112 $869,321 

Budget Adjustments 

FY 2020 Adjustments .......................................................... +$28,496,000/ +19 FTE

Increased Customer Base (ARC Admin/IT) +$28,496,000 / +19 FTE 

Increased customer base for ARC Administrative support with five agencies resulting in program 

increases of $5,986,000 for operations and maintenance costs, and provides cost sharing and 

avoidance opportunities for both new and current agencies. Additional increases of $22,510,000 

for ARC IT will support technology modernization, implementation of an on premise cloud 

environment, and increased investment in cybersecurity measures that will protect the National 

Critical Financial Infrastructure. 

FY 2021 Changes to Base........................................................-$10,000,000/ -0 FTE

Continuous Diagnostic and Mitigation (CDM) Licenses (TSSP) -$10,000,000 /-0 FTE

In accordance with Office of Management and Budget (OMB) Memorandum 20-04, this 

reduction from the base budget will enable the TFF to show a specific line item increase in FY 

2021 for the estimated costs for the Continuous Diagnostic and Mitigation (CDM) licenses. 

Department of the Treasury - Budget in Brief 126
Maintaining Current Levels (MCLs) ......................................................+$17,696,000 / +0 FTE 

Pay Annualization (2020 3.1% average pay raise) +$1,956,000 / +0 FTE 

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

Pay Raise (1.0% average pay raise) +$1,907,000 / +0 FTE 

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

FERS Contribution Increase +$2,288,000 / +0 FTE 

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

effective FY 2021. 

Non-Pay +$11,545,000 / +0 FTE

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

and equipment. 

Program Increases ..................................................................................+$39,810,000 / +74 FTE

Cybersecurity Enhancement Account (CEA) Operations and Maintenance (O&M) (TSSP) 

+$1,222,000 / +0 FTE

Treasury requires an increase to TSSP by $1,222,000 to transition additional operations and 

maintenance costs from CEA to TSSP. The FY 2021 increase will support the operations and 

maintenance costs for the Fiscal Service Trusted Internet Connection (TIC). 

Treasury Enterprise-wide Cloud Infrastructure (TSSP) +$3,153,000 / +3 FTE

Treasury requires an increase to TSSP by $3,153,000 to support the expansion of the Workplace 

Community Cloud (WC2) to consolidate Treasury-wide cloud services into an enterprise-wide 

solution. 

Systems Modernization and Program Support (TSSP) +$5,909,000 / +2 FTE

Treasury requires an additional $5,909,000 to fund capital expenditures for platform upgrades, 

technical refreshes and expanded support for new system capabilities such as the Freedom of 

Information Act (FOIA) system replacement, Single-Sign and robust dashboard reporting tools. 

The additional staff will provide support for the implementation of the Secretary’s strategic 

priorities and the President’s Management Agenda. 

Realignment of Centralized Treasury Administrative Services (CTAS) to Treasury Shared 

Services Programs (TSSP) +$7,795,000 / +4 FTE

The Treasury Secured Data Network (TSDN) and Communication Security (COMSEC) 

programs will be realigned from CTAS to TSSP. The shift has a net neutral effect on FTEs and 

budgetary resources for the TFF. 

Customer Growth (ARC Admin) +$9,631,000 / +65 FTE 

Increase reflects operations and maintenance costs, and provides cost sharing and avoidance 

opportunities for both the new and current agencies supported by ARC. 

Continuous Diagnostic and Mitigation (CDM) Licenses (TSSP) +$12,100,000 / +0 FTE

Department of the Treasury - Budget in Brief 127
The FY 2021 estimated costs for the Continuous Diagnostic and Mitigation (CDM) licenses is 

$12,100,000 for both Phase I ($5,700,000) and Phase II ($6,400,000). These licenses are 

provided by the Department of Homeland Security with the costs allocated to the Treasury 

bureaus through the TSSP. The CDM Program enhances the overall security posture of the 

Federal Government by providing Federal agencies with capabilities to monitor vulnerabilities 

and threats to their networks in near real-time. 

Program Decreases .............................................................................-$7,795,000 / -4 FTE 

Realignment of Centralized Treasury Administrative Services (CTAS) to Treasury Shared 

Services Programs (TSSP) -$7,795,000 / -4 FTE

The TFF will realign the Treasury Secured Data Network (TSDN) and Communication Security 

(COMSEC) programs from CTAS to TSSP. The shift has a net neutral effect on FTEs and 

budgetary resources for the TFF. 

Legislative Proposals 

The TFF does not have legislative proposals. 

Department of the Treasury - Budget in Brief 128
Performance Highlights 

Description of Performance 

The TSSP annual effective spend rate relates to the financial management and oversight of the 

program. It gives insight into the how much of the resources collected from customers are being 

obligated for service delivery in the fiscal year. In FY 2019, 97 percent of the funds collected 

from customers for the shared services was obligated which was above the 96 percent target rate 

set for the fiscal year. 

In FY 2019, the TSSP survey results yielded a 75 percent overall customer satisfaction rating for 

services provided through the TSSP. Planned efforts to achieve this higher rating for customer 

satisfaction going forward will focus on identifying more opportunities for customer engagement 

and improved customer feedback mechanisms. 

The CTAS FY 2019 annual effective spend rate was 98 percent, which was above the set target 

rate of 96 percent. The customer satisfaction rate was baselined in FY 2019. Results from a survey 

released in FY 2020 garnered a 75 percent satisfaction rating for the overall program. 

In FY 2019, ARC Admin met the unmodified audit opinion and customer satisfaction measures 

but fell short of the target for the percentage of service level agreement performance metrics met 

or exceeded. The shortfall was largely due to challenges managing workloads through periods of 

significant staff turnover. ARC continues to work with customer agencies to understand the 

changes thereby enabling them to align resources to support the demand 

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Treasury Shared Services Average Cost per FTE N/A N/A 1463.5 1460.0 1580.3

Treasury Shared Services Annual Effective Spend Rate N/A N/A 97.1 96 96

Treasury Shared Services Customer Satisfaction N/A N/A 75 80 80

Centralized Treasury 

Administrative Services Annual Effective Spend Rate N/A N/A 97.8 96 96

Centralized Treasury 

Administrative Services

Customer Satisfaction N/A N/A 75 80 80

Administrative Support Services Customer Unmodified Audit Opinions [%] NA 100 100 100 100

Administrative Support Services

Percentage of shared services service level 

agreement performance metrics met or 

exceeded [%]

NA NA 89 94 94

Administrative Support Services

Customer Satisfaction with ARC Admin 

Services [%] NA NA TBD 80 80

Information Technology Services

Fiscal IT Hosting – Percentage of Time 

Service is Operational (Uptime Excluding 

Planned Maintenance)

99.2 99.8 99.9 99.0 99.0

Information Technology Services

Number of engagements in strategic sourcing, 

to include new IT customers, new scope of 

work for existing customers, or new FITARA 

compliant contracts available beyond Fiscal 

Service [#]

2 1 1 2 2

Note: Results from customer sastisfation survey are expected to be completed by end of Q2 in FY2020.

Key: TBD- To Be Determined

Budget Activity Performance Measure Actual Actual Actual Target Target

Department of the Treasury - Budget in Brief 129
In FY 2019, ARC IT exceeded the hosting performance measure target but did not achieve the 

target for number of engagements in strategic sourcing and achieve increased service levels. The 

following bullets highlight the IT performance in FY 2019: 

• Fiscal IT Hosting – In FY 2019, IT Services consistently exceeded the 99.0 percent 

infrastructure uptime target with a rating of 99.9 percent. Service value is achieved through 

cost effective hosting services and responsive, value-added support and customer service. 

• Number of engagements for strategic sourcing – This metric is defined as new work 

(Hosting, Security Services, Software Engineering, etc.) outside of the current scope for 

existing customers or establishment of a contract vehicle for Treasury or Government wide 

use. IT did not on-board new work or sponsor a crosscutting contract in FY 2019 due to 

increased priority to other key initiatives including IT modernization planning. ARC IT is 

currently on track to meet this target in FY 2020. 

Department of the Treasury - Budget in Brief 130
International Programs

Program Summary by Budget Activity 

Dollars in Thousands

Summary

The Administration’s FY 2021 Budget requests $1.59 billion for Treasury Department

International Programs in FY 2021. In recognition of the Administration’s prioritization of 

national defense and security as well as a streamlined Federal Government that makes the best 

possible use of taxpayer dollars, the Budget supports critical investments in international 

financial institutions and debt relief, while ensuring that U.S. contributions are set at an 

appropriate level relative to our partner countries. These investments by Treasury’s International 

Programs strengthen U.S. national security, economic growth, and influence by advancing a 

more secure, economically prosperous, and democratic world. In recent years, Treasury has 

driven shareholder support for the implementation of key reforms at the multilateral development 

banks (MDBs) aimed at improving governance, development effectiveness, and financial 

discipline, and Treasury continues to pursue additional major reforms at several of the 

institutions. These include improving monitoring and evaluation, strengthening independent 

compliance functions, adopting mechanisms to improve financial sustainability, and increasing 

the allocation of lending to the world’s poorest countries. 

International Monetary Fund – New Arrangements to Borrow

The Administration requests authorization to extend U.S. participation in the International 

Monetary Fund’s (IMF) New Arrangements to Borrow (NAB) from December 16, 2022, the date 

when the current congressional authorization expires, until December 31, 2025 and to increase

U.S. participation in the NAB from $39 to $78 billion. The terms of the NAB require the IMF to 

approve an extension at least one year prior to its current expiration date of November 16, 2022. 

$ Change % Change

Multilateral Development Banks $1,348,122 $1,522,205 $1,481,244 ($40,961) -2.7%

Int'l Bank for Reconstruction and Development (IBRD) $0 $206,500 $206,500 $0 0.0%

Int'l Development Association (IDA) $1,097,010 $1,097,010 $1,001,400 ($95,610) -8.7%

African Development Fund (AfDF) $171,300 $171,300 $171,300 $0 0.0%

African Development Bank (AfDB) $32,417 $0 $54,649 $54,649 NA

Asian Development Fund (AsDF) $47,395 $47,395 $47,395 $0 0.0%

Food Security $30,000 $30,000 $0 ($30,000) -100.0%

Int'l Fund for Agricultural Development (IFAD) $30,000 $30,000 $0 ($30,000) -100.0%

Environmental Trust Funds $139,575 $139,575 $0 ($139,575) -100.0%

Global Environment Facility (GEF) $139,575 $139,575 $0 ($139,575) -100.0%

Subtotal, Treasury International Programs $1,517,697 $1,691,780 $1,481,244 ($210,536) -12.4%

Office of Technical Assistance (OTA) $30,000 $30,000 $33,000 $3,000 10.0%

Subtotal, Treasury International Programs Appropriations, 

Excluding Debt Restructuring $1,547,697 $1,721,780 $1,514,244 ($207,536) -12.1%

Debt Restructuring and Relief $0 $15,000 $78,000 $63,000 420.0%

Tropical Forest Conservation Act $0 $15,000 $0 ($15,000) -100.0%

Somalia Debt Relief through HIPC $0 $0 $78,000 $78,000 NA

Total, Treasury International Programs Appropriations $1,547,697 $1,736,780 $1,592,244 ($144,536) -8.3%

FY 2021 

President's 

Budget

Note: The 2021 Administration proposal to extend and increase U.S. participation in the IMF’s New Arrangements to Borrow acknowledges that U.S. participation in 

the NAB is an exchange of monetary assets and does not result in budgetary outlays. The request includes the necessary legislative language for this proposal in the 

General Provisions found in the Department of State and Other International Programs chapter of the FY 2021 President’s Budget Appendix.

FY 2020 Enacted to FY 2021 PB

Dollars in Thousands

FY 2019 Enacted FY 2020 Enacted

Department of the Treasury - Budget in Brief 131
U.S. participation in the NAB is an exchange of monetary assets and consequently does not 

result in any budgetary outlays. The request includes the necessary legislative language in the 

General Provisions found in the Department of State and Other International Programs chapter of 

the FY 2021 President’s Budget Appendix. 

Multilateral Development Banks

The FY 2021 Budget requests $1.48 billion for the MDBs. The MDBs play key roles in the 

effort to increase global economic growth and reduce poverty, which advances U.S. foreign 

policy objectives of sustaining peace and stability, promoting security, and combatting terrorism. 

International Bank for Reconstruction and Development (IBRD): $206.5 million towards the 

second of up to six installments for the IBRD general and selective capital increases. 

International Development Association (IDA): $1,001.4 million in support of IDA programs 

over the nineteenth replenishment (IDA-19; World Bank FY 2021 – FY 2023), including 

towards the first of three installments to IDA-19. 

International Finance Corporation (IFC): No funding is requested in FY 2021. The 

Administration requests authorization to vote in favor of resolutions to allow other shareholders 

to contribute additional capital, while preserving U.S. veto power over future capital increases. 

African Development Bank (AfDB): $54.6 million for the first of eight installments to subscribe 

to the United States’ share of the paid-in portion of the seventh general capital increase. 

African Development Fund (AfDF): $171.3 million in support of AfDF programs over the 

fifteenth replenishment period (AfDF-15; AfDB FY 2020 – FY 2022), including towards the first 

of three installments to AfDF-15. 

Asian Development Fund (AsDF): $47.4 million in support of AsDF programs over the eleventh 

replenishment (AsDF-12; FY 2018 – FY 2021), including towards the fourth of four installments 

to AsDF-12. 

North American Development Bank (NADB): The FY 2021 Budget requests “program limitation

language” to allow the Secretary of the Treasury to subscribe to the full amount of $1.275 billion 

in callable capital shares that Congress authorized under the United States-Mexico-Canada 

Agreement Implementation Act (USMCA Act). The Budget is not requesting new funding for 

NADB in FY 2021. 

Environmental Trust Funds

The FY 2021 Budget requests no funding for environmental trust funds in FY 2021. 

Global Environment Facility (GEF): While the GEF remains a priority, no funding is requested 

in FY 2021 since FY 2019 and FY 2020 appropriations place the United States on track to meet 

its pledge of $273.2 million to the GEF seventh replenishment (GEF-7; FY 2019 – FY 2022). 

Department of the Treasury - Budget in Brief 132
Technical Assistance – Office of Technical Assistance

The FY 2021 Budget requests $33 million for Treasury’s Office of Technical Assistance (OTA). 

This includes $3 million in additional resources to strengthen the program’s monitoring and 

evaluation system in accordance with the Foreign Aid Transparency and Accountability Act. 

Funding will help ensure that OTA is able to respond quickly and sustainably to growing 

demand for technical assistance in areas that are priorities for the United States. Such areas 

include: supporting our national security agenda by combating terrorist financing and financial 

crimes, reducing countries’ dependence on foreign financial aid through improved domestic 

resource mobilization, and creating the conditions for private sector-led economic growth. This 

consists of improving the climate for private sector investment in infrastructure projects in 

developing and transitional countries. 

Debt Restructuring – Heavily Indebted Poor Countries (HIPC) Initiative

The FY 2021 Budget requests $78 million for bilateral debt restructuring and relief in support of 

the HIPC Initiative.

Somalia Debt Relief through Heavily Indebted Poor Countries (HIPC) Initiative: $78 million to 

support U.S. bilateral debt restructuring and relief for Somalia as part of the HIPC Initiative. 

Department of the Treasury - Budget in Brief 133
Department of the Treasury - Budget in Brief 134
Summary of FY 2021 Appropriations Language 

Below is a summary of proposed Treasury appropriations language changes from the FY 2020 

enacted bill. Please note that brackets indicate which material will be deleted, and italics indicate 

which material will be inserted. 

DEPARTMENTAL OFFICES 

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. 

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. 

OFFICE OF TERRORISM AND FINANCIAL INTELLIGENCE 

SALARIES AND EXPENSES 

For the necessary expenses of the Office of Terrorism and Financial Intelligence to safeguard the 

financial system against illicit use and to combat rogue nations, terrorist facilitators, weapons of 

mass destruction proliferators, human rights abusers, money launderers, drug kingpins, and other 

national security threats, [$169,712,000] $172,751,000, of which not less than $3,000,000 shall 

be available for addressing human rights violations and corruption, including activities 

authorized by the Global Magnitsky Human Rights Accountability Act (22 U.S.C. 2656 note): 

Provided, That of the amounts appropriated under this heading, up to $10,000,000 shall remain 

available until September 30, [ 2021] 2022. 

CYBERSECURITY ENHANCEMENT ACCOUNT 

For salaries and expenses for enhanced cybersecurity for systems operated by the Department of 

the Treasury, $18,000,000, to remain available until September 30, [2022] 2023: Provided, That 

such funds shall supplement and not supplant any other amounts made available to the Treasury 

Department of the Treasury - Budget in Brief 135
offices and bureaus for cybersecurity: Provided further, That of the total amount made available 

under this heading $1,000,000 shall be available for administrative expenses for the Treasury 

Chief Information Officer to provide oversight of the investments made under this heading: 

Provided further, That such funds shall supplement and not supplant any other amounts made 

available to the Treasury Chief Information Officer. 

[DEPARTMENT-WIDE SYSTEMS AND] TREASURY CAPITAL INVESTMENTS 

[PROGRAMS] AND MODERNIZATION FUND 

For development and acquisition of [automatic data processing] information technology 

equipment, software, and services and for repairs and renovations to buildings owned by the 

Department of the Treasury, [$6,118,000] $13,500,000, to remain available until September 30, 

[2022] 2025: Provided, That [these funds shall] any funds available under this heading may be 

transferred to accounts and in amounts as necessary to satisfy the requirements of the 

Department's offices, bureaus, and other organizations: Provided further, That [this] all transfer 

authority under this heading shall be in addition to any other transfer authority provided in this 

Act [: Provided further, That none of the funds appropriated under this heading shall be used to 

support or supplement "Internal Revenue Service, Operations Support" or "Internal Revenue 

Service, Business Systems Modernization"].

OFFICE OF THE INSPECTOR GENERAL 

SALARIES AND EXPENSES 

For necessary expenses of the Office of Inspector General in carrying out the provisions of the 

Inspector General Act of 1978, [$41,044,000] $39,335,000, including hire of passenger motor 

vehicles; of which not to exceed $100,000 shall be available for unforeseen emergencies of a 

confidential nature, to be allocated and expended under the direction of the Inspector General of 

the Treasury; of which up to $2,800,000 to remain available until September 30, [2021] 2022, 

shall be for audits and investigations conducted pursuant to section 1608 of the Resources and 

Ecosystems Sustainability, Tourist Opportunities, and Revived Economies of the Gulf Coast 

States Act of 2012 (33 U.S.C. 1321 note); and of which not to exceed $1,000 shall be available 

for official reception and representation expenses. 

COMMITTEE ON FOREIGN INVESTMENT IN THE UNITED STATES 

For necessary expenses of the Committee on Foreign Investment in the United States, 

$20,000,000, to remain available until expended: Provided, That the chairperson of the 

Committee may transfer such amounts to any department or agency represented on the 

Committee (including the Department of the Treasury) subject to advance notification to the 

Committees on Appropriations of the House of Representatives and the Senate: Provided further, 

That amounts so transferred shall remain available until expended for expenses of implementing 

section 721 of the Defense Production Act of 1950, as amended (50 U.S.C. 4565), and shall be 

available in addition to any other funds available to any department or agency: Provided further, 

That fees authorized by section 721(p) of such Act shall be credited to this appropriation as 

offsetting collections: Provided further, That the total amount appropriated under this heading 

from the general fund shall be reduced as such offsetting collections are received during fiscal 

year [2020] 2021, so as to result in a total appropriation from the general fund estimated at not 

more than [$10,000,000] $0. 

Department of the Treasury - Budget in Brief 136
TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION 

SALARIES AND EXPENSES 

For necessary expenses of the Treasury Inspector General for Tax Administration in carrying out 

the Inspector General Act of 1978, as amended, including purchase and hire of passenger motor 

vehicles (31 U.S.C. 1343(b)); and services authorized by 5 U.S.C. 3109, at such rates as may be 

determined by the Inspector General for Tax Administration; [$170,250,000] $171,350,000, of 

which $5,000,000 shall remain available until September 30, [2021] 2022; of which not to 

exceed $6,000,000 shall be available for official travel expenses; of which not to exceed 

$500,000 shall be available for unforeseen emergencies of a confidential nature, to be allocated 

and expended under the direction of the Inspector General for Tax Administration; and of which 

not to exceed $1,500 shall be available for official reception and representation expenses. 

COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS FUND PROGRAM 

ACCOUNT 

To carry out the Riegle Community Development and Regulatory Improvement Act of 1994 

(subtitle A of title I of Public Law 103–325), including services authorized by section 3109 of 

title 5, United States Code, but at rates for individuals not to exceed the per diem rate equivalent 

to the rate for EX-III, [$262,000,000. Of the amount appropriated under this heading–] [(1) not 

less than $165,500,000, notwithstanding section 108(e) of Public Law 103–325 (12 U.S.C. 

4707(e)) with regard to Small and/or Emerging Community Development Financial Institutions 

Assistance awards, is available until September 30, 2021, for financial assistance and technical 

assistance under subparagraphs (A) and (B) of section 108(a)(1), respectively, of Public Law 

103–325 (12 U.S.C. 4707(a)(1)(A) and (B)), of which up to $1,600,000 may be available for 

training and outreach under section 109 of Public Law 103–325 (12 U.S.C. 4708), of which up to 

$2,397,500 may be used for the cost of direct loans, of which up to $4,000,000, notwithstanding 

subsection (d) of section 108 of Public Law 103–325 (12 U.S.C. 4707 (d)), may be available to 

provide financial assistance, technical assistance, training, and outreach to community 

development financial institutions to expand investments that benefit individuals with 

disabilities, and of which not less than $2,000,000 shall be for the Economic Mobility Corps to 

be operated in conjunction with the Corporation for National and Community Service, pursuant 

to 42 U.S.C. 12571: Provided, That the cost of direct and guaranteed loans, including the cost of 

modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 

1974: Provided further, That these funds are available to subsidize gross obligations for the 

principal amount of direct loans not to exceed $25,000,000: Provided further, That of the funds 

provided under this paragraph, excluding those made to community development financial 

institutions to expand investments that benefit individuals with disabilities and those made to 

community development financial institutions that serve populations living in persistent poverty 

counties, the CDFI Fund shall prioritize Financial Assistance awards to organizations that invest 

and lend in high-poverty areas: Provided further, That for purposes of this section, the term 

"high-poverty area" means any census tract with a poverty rate of at least 20 percent as measured 

by the 2011–2015 5-year data series available from the American Community Survey of the 

Bureau of the Census for all States and Puerto Rico or with a poverty rate of at least 20 percent 

as measured by the 2010 Island Areas Decennial Census data for any other territory or 

possession of the United States;] [(2) not less than $16,000,000, notwithstanding section 108(e) 

of Public Law 103–325 (12 U.S.C. 4707(e)), is available until September 30, 2021, for financial

assistance, technical assistance, training, and outreach programs designed to benefit Native 

Department of the Treasury - Budget in Brief 137
American, Native Hawaiian, and Alaska Native communities and provided primarily through 

qualified community development lender organizations with experience and expertise in 

community development banking and lending in Indian country, Native American organizations, 

tribes and tribal organizations, and other suitable providers;] [(3) not less than $25,000,000 is 

available until September 30, 2021, for the Bank Enterprise Award program;] [(4) not less than 

$22,000,000, notwithstanding subsections (d) and (e) of section 108 of Public Law 103–325 (12 

U.S.C. 4707(d) and (e)), is available until September 30, 2021, for a Healthy Food Financing 

Initiative to provide financial assistance, technical assistance, training, and outreach to 

community development financial institutions for the purpose of offering affordable financing 

and technical assistance to expand the availability of healthy food options in distressed 

communities;] [(5) not less than $5,000,000 is available until September 30, 2021, to provide 

grants for loan loss reserve funds and to provide technical assistance for small dollar loan 

programs under section 122 of Public Law 103–325 (12 U.S.C. 4719): Provided, That sections 

108(d) and 122(b)(2) of such Public Law shall not apply to the provision of such grants and 

technical assistance;] [(6) up to $28,500,000 is available until September 30, 2020,] $14,000,000,

for administrative expenses, including administration of CDFI Fund programs and the New 

Markets Tax Credit Program:[, of which not less than $1,000,000 is for development of tools to 

better assess and inform CDFI investment performance, and up to $300,000 is for administrative 

expenses to carry out the direct loan program; and] [(7) during fiscal year 2020] Provided, that 

during fiscal year 2021, none of the funds available under this heading are available for the cost, 

as defined in section 502 of the Congressional Budget Act of 1974, of commitments to guarantee 

bonds and notes under section 114A of the Riegle Community Development and Regulatory 

Improvement Act of 1994 (12 U.S.C. 4713a): Provided further, That commitments to guarantee 

bonds and notes under such section 114A shall not exceed [$500,000,000]$300,000,000: 

Provided further, That such section 114A shall remain in effect until December 31, [2020] 2021 

[: Provided further, That of the funds awarded under this heading, not less than 10 percent shall 

be used for awards that support investments that serve populations living in persistent poverty 

counties: Provided further, That for the purposes of this paragraph and paragraph (1) the term 

"persistent poverty counties" means any county, including county equivalent areas in Puerto 

Rico, that has had 20 percent or more of its population living in poverty over the past 30 years, 

as measured by the 1990 and 2000 decennial censuses and the 2011–2015 5-year data series 

available from the American Community Survey of the Bureau of the Census or any other 

territory or possession of the United States that has had 20 percent or more of its population 

living in poverty over the past 30 years, as measured by the 1990, 2000 and 2010 Island Areas 

Decennial Censuses, or equivalent data, of the Bureau of the Census]. 

SPECIAL INSPECTOR GENERAL FOR THE TROUBLED ASSET RELIEF 

PROGRAM 

SALARIES AND EXPENSES 

For necessary expenses of the Office of the Special Inspector General in carrying out the 

provisions of the Emergency Economic Stabilization Act of 2008 (Public Law 110–343), 

[$22,000,000] $17,500,000. 

 

Department of the Treasury - Budget in Brief 138
FINANCIAL CRIMES ENFORCEMENT NETWORK 

SALARIES AND EXPENSES 

For necessary expenses of the Financial Crimes Enforcement Network, including hire of 

passenger motor vehicles; travel and training expenses of non-Federal and foreign government 

personnel to attend meetings and training concerned with domestic and foreign financial 

intelligence activities, law enforcement, and financial regulation; services authorized by 5 U.S.C. 

3109; not to exceed $12,000 for official reception and representation expenses; and for assistance 

to Federal law enforcement agencies, with or without reimbursement, [$126,000,000] 

$126,963,000, of which not to exceed $34,335,000 shall remain available until September 30, [2022] 

2023.

BUREAU OF THE FISCAL SERVICE 

SALARIES AND EXPENSES 

For necessary expenses of operations of the Bureau of the Fiscal Service, [$340,280,000] 

$360,200,000; of which not less than $10,000,000, to remain available until September 30, 2023, 

is for expenses associated with the redemption of matured savings bonds that have not been 

redeemed; of which not to exceed $8,000,000, to remain available until September 30, [2022] 

2023, is for information systems modernization initiatives; and of which $5,000 shall be 

available for official reception and representation expenses. In addition, $165,000, to be derived 

from the Oil Spill Liability Trust Fund to reimburse administrative and personnel expenses for 

financial management of the Fund, as authorized by section 1012 of Public Law 101–380. 

ALCOHOL AND TOBACCO TAX AND TRADE BUREAU 

SALARIES AND EXPENSES 

For necessary expenses of carrying out section 1111 of the Homeland Security Act of 2002, 

including hire of passenger motor vehicles, [$119,600,000] $125,837,000; of which $5,000,000 

shall remain available until September 30, 2022; of which not to exceed $6,000 for official 

reception and representation expenses; and of which not to exceed $50,000 shall be available for 

cooperative research and development programs for laboratory services; and provision of 

laboratory assistance to State and local agencies with or without reimbursement [: Provided, That 

of the amount appropriated under this heading, $5,000,000 shall be for the costs of accelerating 

the processing of formula and label applications: Provided further, That of the amount 

appropriated under this heading, $5,000,000, to remain available until September 30, 2021, shall 

be for the costs associated with enforcement of the trade practice provisions of the Federal 

Alcohol Administration Act (27 U.S.C. 201 et seq.)].

UNITED STATES MINT PUBLIC ENTERPRISE FUND 

Pursuant to section 5136 of title 31, United States Code, the United States Mint is provided 

funding through the United States Mint Public Enterprise Fund for costs associated with the 

production of circulating coins, numismatic coins, and protective services, including both 

operating expenses and capital investments: Provided, That the aggregate amount of new 

liabilities and obligations incurred during fiscal year [2020] 2021 under such section 5136 for 

circulating coinage and protective service capital investments of the United States Mint shall not 

exceed [$30,000,000] $50,000,000. 

Department of the Treasury - Budget in Brief 139
INTERNAL REVENUE SERVICE 

TAXPAYER SERVICES 

For necessary expenses of the Internal Revenue Service to provide taxpayer services, including 

pre-filing assistance and education, filing and account services, taxpayer advocacy services, and 

other services as authorized by 5 U.S.C. 3109, at such rates as may be determined by the 

Commissioner, [$2,511,554,000] $2,562,554,000, of which not less than $11,000,000 shall be 

for the Tax Counseling for the Elderly Program, of which not less than $12,000,000 shall be 

available for low-income taxpayer clinic grants, of which not less than $25,000,000, to remain 

available until September 30, [2021] 2022, shall be available for the Community Volunteer 

Income Tax Assistance Matching Grants Program for tax return preparation assistance, and of 

which not less than $209,000,000 shall be available for operating expenses of the Taxpayer 

Advocate Service: Provided, That of the amounts made available for the Taxpayer Advocate 

Service, not less than $5,500,000 shall be for identity theft and refund fraud casework. 

ENFORCEMENT 

For necessary expenses for tax enforcement activities of the Internal Revenue Service to 

determine and collect owed taxes, to provide legal and litigation support, to conduct criminal 

investigations, to enforce criminal statutes related to violations of internal revenue laws and other 

financial crimes, to purchase and hire passenger motor vehicles (31 U.S.C. 1343(b)), and to 

provide other services as authorized by 5 U.S.C. 3109, at such rates as may be determined by the 

Commissioner, [$5,010,000,000] $5,071,260,000, of which not to exceed $250,000,000 shall 

remain available until September 30, [2021] 2022; of which not less than $60,257,000 shall be 

for the Interagency Crime and Drug Enforcement program; and of which not to exceed 

$15,000,000 shall be for investigative technology for the Criminal Investigation Division: 

Provided, That the amount made available for investigative technology for the Criminal 

Investigation Division shall be in addition to amounts made available for the Criminal 

Investigation Division under the "Operations Support" heading: Provided further, That of the 

funds provided under this paragraph, $5,071,260,000 is provided to meet the terms of section 

251(b)(2) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended. In 

addition, not less than $279,983,000 for tax activities under this heading, including tax 

compliance to address the Federal tax gap: Provided, That such amount is additional new 

budget authority for tax activities, including tax compliance to address the Federal tax gap, as 

specified for purposes of section 251(b)(2) of the Balanced Budget and Emergency Deficit 

Control Act of 1985, as amended.

OPERATIONS SUPPORT 

For necessary expenses of the Internal Revenue Service to support taxpayer services and 

enforcement programs, including rent payments; facilities services; printing; postage; physical 

security; headquarters and other IRS-wide administration activities; research and statistics of 

income; telecommunications; information technology development, enhancement, operations, 

maintenance, and security; the hire of passenger motor vehicles (31 U.S.C. 1343(b)); the 

operations of the Internal Revenue Service Oversight Board; and other services as authorized by 

5 U.S.C. 3109, at such rates as may be determined by the Commissioner; [$3,808,500,000] 

$4,104,689,000, of which not to exceed $250,000,000 shall remain available until September 30, 

[2021] 2022; of which not to exceed $10,000,000 shall remain available until expended for 

acquisition of equipment and construction, repair and renovation of facilities; of which not to 

Department of the Treasury - Budget in Brief 140
exceed $1,000,000 shall remain available until September 30, [2022] 2023, for research; [of 

which not less than $10,000,000, to remain available until expended, shall be available for 

establishment of an application through which entities registering and renewing registrations in 

the System for Award Management may request an authenticated electronic certification stating 

that the entity does or does not have a seriously delinquent tax debt; ]and of which not to exceed 

$20,000 shall be for official reception and representation expenses: Provided, That not later than 

30 days after the end of each quarter, the Internal Revenue Service shall submit a report to the 

Committees on Appropriations of the House of Representatives and the Senate and the 

Comptroller General of the United States detailing [the cost and schedule performance for its 

major information technology investments, including the purpose and life-cycle stages of the 

investments; the reasons for any cost and schedule variances; the risks of such investments and 

strategies the Internal Revenue Service is using to mitigate such risks; and the expected 

developmental milestones to be achieved and costs to be incurred in the next quarter] major 

information technology investments in the Internal Revenue Service Integrated Modernization 

Business Plan portfolio, including detailed, plain language summaries on the status of plans, 

costs, and results; prior results and actual expenditures of the prior quarter; upcoming 

deliverables and costs for the fiscal year; risks and mitigation strategies associated with ongoing 

work; reasons for any cost or schedule variances; and total expenditures by fiscal year: Provided 

further, That the Internal Revenue Service shall include, in its budget justification for fiscal year 

[2021] 2022, a summary of cost and schedule performance information for its major information 

technology systems: Provided further, That of the funds provided under this paragraph, 

$4,104,689,000 is provided to meet the terms of section 251(b)(2) of the Balanced Budget and 

Emergency Deficit Control Act of 1985, as amended. In addition, not less than $120,017,000 

shall be for tax activities under this heading, including tax compliance to address the Federal tax 

gap: Provided, That such amount is additional new budget authority for tax activities, including 

tax compliance to address the Federal tax gap, as specified for purposes of section 251(b)(2) of 

the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.

BUSINESS SYSTEMS MODERNIZATION 

For necessary expenses of the Internal Revenue Service's business systems modernization 

program, [$180,000,000] $300,000,000, to remain available until September 30, [2022] 2023, for 

the capital asset acquisition of information technology systems, including management and 

related contractual costs of said acquisitions, including related Internal Revenue Service labor 

costs, and contractual costs associated with operations authorized by 5 U.S.C. 3109: Provided, 

That not later than 30 days after the end of each quarter, the Internal Revenue Service shall 

submit a report to the Committees on Appropriations of the House of Representatives and the 

Senate and the Comptroller General of the United States detailing [the cost and schedule 

performance for major information technology investments, including the purposes and lifecycle stages of the investments; the reasons for any cost and schedule variances; the risks of such 

investments and the strategies the Internal Revenue Service is using to mitigate such risks; and 

the expected developmental milestones to be achieved and costs to be incurred in the next 

quarter] major information technology investments in the Internal Revenue Service Integrated 

Modernization Business Plan portfolio, including detailed, plain language summaries on the

status of plans, costs, and results; prior results and actual expenditures of the prior quarter; 

upcoming deliverables and costs for the fiscal year; risks and mitigation strategies associated 

Department of the Treasury - Budget in Brief 141
with ongoing work; reasons for any cost or schedule variances; and total expenditures by fiscal 

year. 

ADMINISTRATIVE PROVISIONS— INTERNAL REVENUE SERVICE 

SEC. 101. Not to exceed 4 percent of the appropriation made available in this Act to the Internal 

Revenue Service under the "Enforcement" heading, and not to exceed 5 percent of any other 

appropriation made available in this Act to the Internal Revenue Service, may be transferred to 

any other Internal Revenue Service appropriation upon the advance approval of the Committees 

on Appropriations of the House of Representatives and the Senate. 

SEC. 102. The Internal Revenue Service shall maintain an employee training program, which 

shall include the following topics: taxpayers' rights, dealing courteously with taxpayers, crosscultural relations, ethics, and the impartial application of tax law. 

SEC. 103. The Internal Revenue Service shall institute and enforce policies and procedures that 

will safeguard the confidentiality of taxpayer information and protect taxpayers against identity 

theft. 

SEC. 104. Funds made available by this or any other Act to the Internal Revenue Service shall 

be available for improved facilities and increased staffing to provide sufficient and effective 1–

800 help line service for taxpayers. The Commissioner shall continue to make improvements to 

the Internal Revenue Service 1–800 help line service a priority and allocate resources necessary 

to enhance the response time to taxpayer communications, particularly with regard to victims of 

tax-related crimes. 

SEC. 105. The Internal Revenue Service shall issue a notice of confirmation of any address 

change relating to an employer making employment tax payments, and such notice shall be sent 

to both the employer's former and new address and an officer or employee of the Internal 

Revenue Service shall give special consideration to an offer-in-compromise from a taxpayer who 

has been the victim of fraud by a third party payroll tax preparer. 

SEC. 106. None of the funds made available under this Act may be used by the Internal Revenue 

Service to target citizens of the United States for exercising any right guaranteed under the First 

Amendment to the Constitution of the United States. SEC. 107. None of the funds made 

available in this Act may be used by the Internal Revenue Service to target groups for regulatory 

scrutiny based on their ideological beliefs. 

SEC. 108. None of funds made available by this Act to the Internal Revenue Service shall be 

obligated or expended on conferences that do not adhere to the procedures, verification 

processes, documentation requirements, and policies issued by the Chief Financial Officer, 

Human Capital Office, and Agency-Wide Shared Services as a result of the recommendations in 

the report published on May 31, 2013, by the Treasury Inspector General for Tax Administration 

entitled "Review of the August 2010 Small Business/Self-Employed Division's Conference in 

Anaheim, California" (Reference Number 2013–10–037). 

SEC. 109. None of the funds made available in this Act to the Internal Revenue Service may be 

obligated or expended– (1) to make a payment to any employee under a bonus, award, or 

recognition program; or (2) under any hiring or personnel selection process with respect to rehiring a former employee; unless such program or process takes into account the conduct and 

Federal tax compliance of such employee or former employee. 

SEC. 110. None of the funds made available by this Act may be used in contravention of section 

6103 of the Internal Revenue Code of 1986 (relating to confidentiality and disclosure of returns 

and return information). 

Department of the Treasury - Budget in Brief 142
SEC. 111. Unobligated balances of expired discretionary funds appropriated from the General 

Fund of the Treasury to the Internal Revenue Service by this Act may be transferred (not later 

than the end of the fifth fiscal year after the last fiscal year for which such funds are available 

for the purposes for which appropriated) into the Operations Support heading: Provided, that 

any funds so transferred shall remain available for obligation for five fiscal years after the fiscal 

year of such transfer, and in addition to such other funds as may be available for such purposes, 

for facilities and information technology expenses: Provided further, That transfer authority 

under this section shall be in addition to any other transfer authority provided in this Act: 

Provided further, That amounts may be obligated only after the Committees on Appropriations of 

the House of Representatives and the Senate are notified at least 15 days in advance of the 

planned use of funds. 

SEC. 112. Nothwithstanding any Congressional notification requirements for a reprogramming 

of funds in this Act, funds provided in this Act for the Internal Revenue 

Service shall be available for obligation and expenditure through a reprogramming of funds that 

augments or reduces existing programs, projects, or activities by up to $10,000,000 without 

prior Congressional notification of such action. 

UNITED STATES SECRET SERVICE 

OPERATIONS AND SUPPORT 

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

to the Department of the Treasury, for necessary expenses of the United States Secret Service for 

operations and support, including purchase of not to exceed 652 vehicles for police-type use for 

replacement only; hire of passenger motor vehicles; purchase of motorcycles made in the United 

States; hire of aircraft; rental of buildings in the District of Columbia; fencing, lighting, guard 

booths, and other facilities on private or other property not in Government ownership or control, 

as may be necessary to perform protective functions; conduct of and participation in firearms 

matches; presentation of awards; conduct of behavioral research in support of protective 

intelligence and operations; payment in advance for commercial accommodations as may be 

necessary to perform protective functions; and payment, without regard to section 5702 of title 5, 

United States Code, of subsistence expenses of employees who are on protective missions, 

whether at or away from their duty stations; $2,360,538,000; of which $41,807,000 shall remain 

available until September 30, 2022; of which not to exceed $100,000 shall be to provide 

technical assistance and equipment to foreign law enforcement organizations in criminal 

investigations within the jurisdiction of the United States Secret Service; and of which 

$6,000,000 shall be for a grant for activities related to investigations of missing and exploited 

children: Provided, That not to exceed $19,125 shall be for official reception and representation 

expenses: Provided further, That funding may be used for calendar year 2020 premium pay in 

excess of the annual equivalent of the limitation on the rate of pay contained in section 5547(a) 

of title 5, United States Code, pursuant to section 2 of the Overtime Pay for Protective Services 

Act of 2016 (5 U.S.C. 5547 note), as amended by Public Law 115–383. 

PROCUREMENT, CONSTRUCTION, AND IMPROVEMENTS 

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

to the Department of the Treasury, for necessary expenses of the United States Secret Service for 

procurement, construction, and improvements, $38,305,000, to remain available until September 

30, 2023. 

Department of the Treasury - Budget in Brief 143
RESEARCH AND DEVELOPMENT 

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

to the Department of the Treasury, for necessary expenses of the United States Secret Service for 

research and development, $11,937,000, to remain available until September 30, 2022. 

ADMINISTRATIVE PROVISIONS—UNITED STATES SECRET SERVICE 

SEC. 201. The United States Secret Service is authorized to obligate funds in anticipation of 

reimbursements from executive agencies, as defined in section 105 of title 5, United States Code, 

for personnel receiving training sponsored by the James J. Rowley Training Center, except that 

total obligations at the end of the fiscal year shall not exceed total budgetary resources available 

under the heading "United States Secret Service-Operations and Support" at the end of the fiscal 

year. 

SEC. 202. None of the funds made available in this Act may be used to reimburse any Federal 

department or agency for its participation in a National Special Security Event. 

SEC. 203. None of the funds made available to the United States Secret Service by this Act or by 

previous appropriations Acts may be made available for the protection of the head of a Federal 

agency other than the Secretary of the Treasury: Provided, That the Director of the United States 

Secret Service may enter into agreements to provide such protection on a fully reimbursable 

basis. 

SEC. 204. Notwithstanding section 608 of this Act, up to $15,000,000 may be reprogrammed 

within "United States Secret Service Operations and Support". 

SEC. 205. Funding made available in this Act for "United States Secret Service-Operations and 

Support" is available for travel of United States Secret Service employees on protective missions 

without regard to the limitations on such expenditures in this or any other Act if the Director of 

the United States Secret Service or a designee notifies the Committees on Appropriations of the 

Senate and the House of Representatives 10 or more days in advance, or as early as practicable, 

prior to such expenditures. 

SEC. 206. None of the funds made available by this Act for "United States Secret ServiceOperations and Support" shall be available to compensate any employee for overtime in an 

annual amount in excess of $45,000, except that the Secretary of the Treasury, or the designee of 

the Secretary, may waive such amount as necessary for national security purposes. 

ADMINISTRATIVE PROVISIONS—DEPARTMENT OF THE TREASURY 

SEC. 111. Appropriations to the Department of the Treasury in this Act shall be available for 

uniforms or allowances therefor, as authorized by law (5 U.S.C. 5901), including maintenance, 

repairs, and cleaning; purchase of insurance for official motor vehicles operated in foreign 

countries; purchase of motor vehicles without regard to the general purchase price limitations for 

vehicles purchased and used overseas for the current fiscal year; entering into contracts with the 

Department of State for the furnishing of health and medical services to employees and their 

dependents serving in foreign countries; and services authorized by 5 U.S.C. 3109. 

SEC. 112. Not to exceed 2 percent of any appropriations in this title made available under the 

headings "Departmental Offices-Salaries and Expenses", "Office of Inspector General", "Special 

Inspector General for the Troubled Asset Relief Program"," Financial Crimes Enforcement 

Network", "Bureau of the Fiscal Service", and "Alcohol and Tobacco Tax and Trade Bureau" 

may be transferred between such appropriations upon the advance [approval] notification of the 

Department of the Treasury - Budget in Brief 144
Committees on Appropriations of the House of Representatives and the Senate: Provided, That 

no transfer under this section may increase or decrease any such appropriation by more than 2 

percent. 

SEC. 113. Not to exceed 2 percent of any appropriation made available in this Act to the Internal 

Revenue Service may be transferred to the Treasury Inspector General for Tax Administration's 

appropriation upon the advance [approval] notification of the Committees on Appropriations of 

the House of Representatives and the Senate: Provided, That no transfer may increase or 

decrease any such appropriation by more than 2 percent. 

SEC. 114. None of the funds appropriated in this Act or otherwise available to the Department of 

the Treasury or the Bureau of Engraving and Printing may be used to redesign the $1 Federal 

Reserve note. 

SEC. 115. The Secretary of the Treasury may transfer funds from the "Bureau of the Fiscal 

Service-Salaries and Expenses" to the Debt Collection Fund as necessary to cover the costs of 

debt collection: Provided, That such amounts shall be reimbursed to such salaries and expenses 

account from debt collections received in the Debt Collection Fund. 

SEC. 116. None of the funds appropriated or otherwise made available by this or any other Act 

may be used by the United States Mint to construct or operate any museum without the [explicit 

approval] prior notification of the Committees on Appropriations of the House of 

Representatives and the Senate, the House Committee on Financial Services, and the Senate 

Committee on Banking, Housing, and Urban Affairs. 

SEC. 117. None of the funds appropriated or otherwise made available by this or any other Act 

or source to the Department of the Treasury, the Bureau of Engraving and Printing, and the 

United States Mint, individually or collectively, may be used to consolidate any or all functions 

of the Bureau of Engraving and Printing and the United States Mint without the [explicit 

approval] prior notification of the House Committee on Financial Services; the Senate 

Committee on Banking, Housing, and Urban Affairs; and the Committees on Appropriations of 

the House of Representatives and the Senate. 

SEC. 118. Funds appropriated by this Act, or made available by the transfer of funds in this Act, 

for the Department of the Treasury's intelligence or intelligence related activities are deemed to 

be specifically authorized by the Congress for purposes of section 504 of the National Security 

Act of 1947 (50 U.S.C. 414) during fiscal year [2020] 2021 until the enactment of the 

Intelligence Authorization Act for Fiscal Year [2020] 2021. 

SEC. 119. Not to exceed $5,000 shall be made available from the Bureau of Engraving and 

Printing's Industrial Revolving Fund for necessary official reception and representation expenses. 

SEC. 120. The Secretary of the Treasury shall submit a Capital Investment Plan to the 

Committees on Appropriations of the Senate and the House of Representatives not later than 30 

days following the submission of the annual budget submitted by the President: Provided, That 

such Capital Investment Plan shall include capital investment spending from all accounts within 

the Department of the Treasury, including but not limited to the [Department-wide Systems and 

Capital Investment Programs] Treasury Capital Investments and Modernization Fund account, 

Treasury Franchise Fund account, and the Treasury Forfeiture Fund account: Provided further, 

That such Capital Investment Plan shall include expenditures occurring in previous fiscal years 

for each capital investment project that has not been fully completed. 

SEC. 121. Within 45 days after the date of enactment of this Act, the Secretary of the Treasury 

shall submit an itemized report to the Committees on Appropriations of the House of 

Representatives and the Senate on the amount of total funds charged to each office by the 

Department of the Treasury - Budget in Brief 145
Franchise Fund including the amount charged for each service provided by the Franchise Fund to 

each office, a detailed description of the services, a detailed explanation of how each charge for 

each service is calculated, and a description of the role customers have in governing in the 

Franchise Fund. 

SEC. 122. During fiscal year [2020] 2021– 

(1) none of the funds made available in this or any other Act may be used by the Department of 

the Treasury, including the Internal Revenue Service, to issue, revise, or finalize any regulation, 

revenue ruling, or other guidance not limited to a particular taxpayer relating to the standard 

which is used to determine whether an organization is operated exclusively for the promotion of 

social welfare for purposes of section 501(c)(4) of the Internal Revenue Code of 1986 (including 

the proposed regulations published at 78 Fed. Reg. 71535 (November 29, 2013)); and (2) the 

standard and definitions as in effect on January 1, 2010, which are used to make such 

determinations shall apply after the date of the enactment of this Act for purposes of determining 

status under section 501(c)(4) of such Code of organizations created on, before, or after such 

date. 

SEC. 123. (a) Not later than 60 days after the end of each quarter, the [Office of Financial 

Stability and the] Office of Financial Research shall submit reports on their activities to the 

Committees on Appropriations of the House of Representatives and the Senate, the Committee 

on Financial Services of the House of Representatives and the Senate Committee on Banking, 

Housing, and Urban Affairs. (b) The reports required under subsection (a) shall include– (1) the 

obligations made during the previous quarter by object class, office, and activity; (2) the 

estimated obligations for the remainder of the fiscal year by object class, office, and activity; (3) 

the number of full-time equivalents within each office during the previous quarter; (4) the 

estimated number of full-time equivalents within each office for the remainder of the fiscal year; 

and (5) actions taken to achieve the goals, objectives, and performance measures of each office. 

(c) At the request of any such Committees specified in subsection (a), [the Office of Financial 

Stability and] the Office of Financial Research shall make officials available to testify on the 

contents of the reports required under subsection (a).

[SEC. 124. In addition to the amounts otherwise made available to the Department of the 

Treasury, $25,000,000, to remain available until expended, shall be for expenses associated with 

digitization and distribution of the Department's records of matured savings bonds that have not 

been redeemed.]

SEC. 124. Notwithstanding paragraph (2) of section 402(c) of the Helping Families Save Their 

Homes Act of 2009, in utilizing funds made available by paragraph (1) of section 402(c) of such 

Act, the Special Inspector General for the Troubled Asset Relief Program shall prioritize the 

performance of audits or investigations of any program that is funded in whole or in part by 

funds appropriated under 

the Emergency Economic Stabilization Act of 2008, to the extent that such priority is consistent 

with other aspects of the mission of the Special Inspector General. 

SEC. 125. Not to exceed 5 percent of any appropriation made available for the current fiscal 

year for the Department of the Treasury by this Act and unobligated balances of expired 

discretionary funds appropriated from the General Fund to the Department of the Treasury by 

this Act may be transferred (not later than the end of the fifth fiscal year after the last fiscal year 

for which such funds are available for the purposes for which appropriated) to the Treasury 

Capital Investments and Modernization Fund: Provided, That any funds so transferred shall 

remain available for obligation for five fiscal years after the fiscal year of such transfers for 

Department of the Treasury - Budget in Brief 146
modernization of Treasury systems to increase cybersecurity and improve efficiency: Provided 

further, That funds so transferred shall not be available for obligation until the Secretary 

submits to the Committees on Appropriations of the House of Representatives and the Senate a 

spending plan for such funds. 

Department of the Treasury - Budget in Brief 147
Department of the Treasury - Budget in Brief 148
Mandatory Funding Levels for the FY 2021 President’s Budget – Treasury Chapter

(Dollars in Millions, Includes Legislative Proposals)

Appropriations (Dollars in Millions) FY 2019 FY 2020 FY 2021 FY 2021 FY 2021

Actual Estimated Estimated $ Change % Change

Payment to the Resolution Funding Corporation 2,628 2,445 1,367 (1,078) -44.1%

Interest on Uninvested Funds 39 48 48 0 0.0%

Restitution of Forgone Interest 2,371 0 0 0 0.0%

Federal Interest Liabilities to States 0 1 1 0 0.0%

Interest Paid to Credit Financing Accounts 7,122 11,948 12,098 150 1.3%

Refunding Internal Revenue Collections, Interest 2,042 1,321 1,464 143 10.8%

Interest on Public Debt 572,913 576,465 575,750 (715) -0.1%

Other Interest (46,572) (56,824) (56,759) 65 -0.1%

INTEREST PAYMENTS $540,543 $535,404 $533,969 ($1,435) -0.3%

MANDATORY ACCOUNTS

Build America Bond Payments 3,356 3,356 3,566 210 6.3%

Capital Magnet Fund, Community Development Financial Institutions 134 161 9 (152) -94.4%

Check Forgery Insurance Fund 4 5 5 0 0.0%

Cheyenne River Sioux Tribe Terrestrial Wildlife Habitat Restoration Trust Fund 1 1 1 0 0.0%

Claims, Judgments, and Relief Acts 1,706 1,702 1,699 (3) -0.2%

Community Development Financial Institutions Fund Program 7 9 1 (8) -88.9%

Comptroller of the Currency 1,171 1,075 1,075 0 0.0%

Continued Dumping and Subsidy Offset 17 53 17 (36) -67.9%

Contribution for Annuity Benefits, United States Secret Service 1 243 265 265 265 0.0%

Exchange Stabilization Fund 510 590 556 (34) -5.8%

Federal Financing Bank 2,571 2,395 2,237 (158) -6.6%

Federal Reserve Bank Reimbursement Fund 546 623 646 23 3.7%

Federal Tax Lien Revolving Fund 7 2 2 0 0.0%

Financial Agent Services 822 847 863 16 1.9%

Financial Research Fund 66 74 80 6 8.1%

Fiscal Service Debt Collection 223 201 227 26 12.9%

GSE Mortgage-backed Securities Purchase Program 1 1 1 0 0.0%

Gulf Coast Restoration Trust Fund 315 339 351 12 3.5%

Internal Revenue Collections for Puerto Rico 445 453 459 6 1.3%

IRS Informant Payments 88 118 125 7 5.9%

IRS Miscellaneous Retained Fees 392 392 387 (5) -1.3%

IRS Private Collection Agent Program 93 158 172 14 8.9%

Office of Financial Stability 62 51 42 (9) -17.6%

Payment of Government Losses in Shipment 1 2 2 0 0.0%

Payment to Issuer of New Clean Renewable Energy Bonds 48 48 51 3 6.3%

Payment to Issuer of Qualified Energy Conservation Bonds 40 40 43 3 7.5%

Payment to Issuer of Qualified School Construction Bonds 650 650 691 41 6.3%

Payment to Issuer of Qualified Zone Academy Bonds 43 43 46 3 7.0%

Payment to United States Virgin Islands and Puerto Rico for Disaster Tax Relief 200 0 0 0 0.0%

Payment Where American Opportunity Credit Exceeds Liability for Tax 2,881 3,855 3,718 (137) -3.6%

Payment Where Certain Tax Credits Exceed Liability for Corporate Tax 8,232 6,685 3,288 (3,397) -50.8%

Payment Where Child Tax Credit Exceeds Liability for Tax 28,898 29,615 29,342 (273) -0.9%

Payment Where Earned Income Credit Exceeds Liability for Tax 59,209 60,258 63,306 3,048 5.1%

Payment Where Health Coverage Tax Credit Exceeds Liability for Tax 24 29 7 (22) -75.9%

Payment Where Small Business Health Insurance Tax Credit Exceeds Liability for Tax 1 1 1 0 0.0%

Presidential Election Campaign Fund 25 25 25 0 0.0%

Refundable Premium Tax Credit 59,178 47,600 40,400 (7,200) -15.1%

Reimbursements to Federal Reserve Banks 147 171 177 6 3.5%

Small Business Lending Fund Program 5 7 3 (4) -57.1%

Terrorism Insurance Program 3 31 94 63 203.2%

Travel Promotion Fund 94 94 0 (94) -100.0%

Treasury Forfeiture Fund 772 616 632 16 2.6%

Troubled Asset Relief Program Equity Purchase Program 1 7 0 (7) -100.0%

Subtotal, MANDATORY ACCOUNTS $173,232 $162,648 $154,612 ($8,036) -4.9%

Offsets:

Treasury Mandatory Offsetting Receipts (21,689) (6,808) (10,038) (3,230) 47.4%

Treasury Offsetting Collections (4,264) (4,068) (3,875) 193 -4.7%

TOTAL, DEPARTMENT OF THE TREASURY $687,822 $687,176 $674,668 ($12,508) -1.8%

1

 The President’s Budget proposes moving the United States Secret Service to Treasury in 2021. For presentation, all years are shown for the Secret Service 

mandatory account for Contribution for Annuity Benefits.

Department of the Treasury - Budget in Brief 149
Total Treasury Department Mandatory Budget

The Treasury Department Mandatory Budget 

includes $675 billion dollars in interest 

payments, mandatory accounts, and offsetting 

receipts and collections (offsets). These 

accounts and the estimated budget authority are

summarized above. Account totals include the 

effects of FY 2021 policy proposals. For more 

detailed descriptions of each account, please 

see the Department of the Treasury chapter in 

the FY 2021 Appendix, Budget of the U.S. 

Government at: 

http://www.whitehouse.gov/omb/budget. 

Interest Payments - $534 billion

These are permanent, indefinite funds for 

interest payments. This includes Interest on the 

Public Debt, which consists of all interest paid 

on Treasury securities and sold to the public 

and to Federal Government trust Funds, 

revolving funds and deposit funds. Treasury 

interest payment accounts also consist of

Refunds on Internal Revenue Collections

interest, Interest on Uninvested Funds, Interest 

paid to Credit Financing Accounts, Federal 

Interest Liabilities to the States, and Payments 

to the Resolution Funding Corporation.

Mandatory Accounts - $155 billion

These are accounts for which the Congress has 

given the Department of Treasury permanent 

authority to expend funds as appropriations. 

These include appropriations that fund a 

number of programs under Treasury 

jurisdiction such as the Terrorism Risk 

Insurance Program and the Treasury Forfeiture 

Fund. Other accounts that fall under 

mandatory programs include all Internal 

Revenue Service refundable tax credit 

accounts, certain user fees, and informant 

payments. The Department is also a custodian 

for a number of government accounts and 

funds listed in this section and further detailed 

in the FY 2021 Appendix, Budget of the U.S. 

Government. 

Offsets - $14 billion

Offsets include payments to the Government 

that are not credited directly to expenditure 

accounts (offsetting receipts) and payments 

credited directly to accounts from which they 

will be spent (offsetting collections). The 

receipts offset gross budget authority and 

outlays at the agency or bureau level. The 

collections offset gross budget authority and 

outlays at the account level. 

Treasury’s mandatory offsetting receipts 

primarily include the non-budgetary accounts

that record all cash flows to and from the 

Government resulting from direct loans 

obligated in 2008 and beyond (including 

modifications of direct loans that resulted from 

obligations in any year). Treasury’s mandatory 

offsetting collections include the payments 

made to accounts such as the Office of 

Comptroller of the Currency, Federal 

Financing Bank, and the Exchange 

Stabilization Fund. 

Department of the Treasury - Budget in Brief 150