Department of the Treasury 

Financial Stability Oversight 

Council 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2023 
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Table of Contents

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

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

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

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

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

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

1.3 – Object Classification (Schedule O) Obligations ........................................................... 5

D – Appropriations Language and Explanation of Changes ...................................................... 5

E – Legislative Proposals ............................................................................................................ 5

Section II – Annual Performance Plan and Report ................................................................... 6

A – Strategic Alignment ............................................................................................................. 6

B – Budget and Performance by Budget Activity ...................................................................... 6

2.1.1 – Financial Stability Oversight Council Resources and Measures .................................... 6

2.1.2 – FDIC Reimbursement Resources and Measures............................................................. 7

Section III – Additional Information .......................................................................................... 7

A – Summary of Capital Investments ......................................................................................... 7
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Section I – Budget Request 

A – Mission Statement 

To identify risks to the financial stability of the United States, to promote market discipline, and 

to respond to emerging threats to the stability of the U.S. financial system. 

B – Summary of the Request 

The Financial Stability Oversight Council (FSOC or Council) anticipates a fiscal year (FY) 2023 

funding level of $12.433 million, including $7.933 million for the FSOC Secretariat and the 

Office of the Independent Member with Insurance Expertise, and $4.500 million to reimburse the 

Federal Deposit Insurance Corporation (FDIC) for certain expenses as required by law. Of the 

$1.612 million overall increase from the FY 2022 estimated funding level, the increase to the 

FDIC reimbursement represents $1.246 million or 77 percent of this total. The FSOC is financed 

through assessments on certain bank holding companies and nonbank financial companies. 

See 31 CFR Part 150 and Treasury’s final rule and interim final rule governing the Assessments 

process: https://www.govinfo.gov/content/pkg/FR-2012-05-21/pdf/FR-2012-05-21.pdf. The 

funding for the first six months of operating expenses and 12 months of capital expenses are 

reflected in Unobligated Balances from Prior Years. This is because the first assessment covering 

the fiscal year beginning October 1 is collected on September 15 of the prior fiscal year. 

 

The increase reflects the need for the FSOC Secretariat to rebuild capacity and acquire resources 

to fulfill ongoing responsibilities and advance the Council’s priorities. These focus areas include: 

1) nonbank financial intermediation; 2) Treasury market resilience; 3) climate-related financial 

risk; and 4) digital assets. 

1.1 – Appropriations Detail Table 

Dollars in Thousands FY 2021 FY 2022 FY 2023 FY 2022 to FY 2023 

Appropriated Resources Actuals Estimate Estimate % Change 

Revenue/Offsetting Collections FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT 

Assessments 0 $8,228 0 $11,143 0 $11,329 NA 1.7% 

Interest 0 $4 0 $6 0 $12 NA 100.0% 

Recoveries 0 $76 0 $480 0 $480 NA 0.0% 

Restoration of Sequestration Rescission 0 $525 0 $469 0 $636 NA 35.4% 

Unobligated Balances from Prior Years 0 $7,463 0 $6,380 0 $7,022 NA 10.1% 

Subtotal New Appropriated Resources 0 $16,296 0 $18,478 0 $19,479 NA 5.4% 

Expenses/Obligations 

FSOC 14 $4,996 23 $7,567 27 $7,933 17.4% 4.8% 

FDIC 0 $4,451 0 $3,254 0 $4,500 NA 38.3% 

Subtotal Other Resources 14 $9,447 23 $10,821 27 $12,433 17.4% 14.9% 

Sequestration Reduction ($469) ($636) ($646) 

Total Budgetary Resources 14 6,380 23 7,022 27 6,400 17.4% -8.9% 

 
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1.2 – Budget Adjustments Table 

Dollars in Thousands 

 FTE Amount 

FY 2022 Estimate 23 $10,821 

Changes to Base: 

Maintaining Current Levels (MCLs): 0 $306 

Pay Annualization (2.7% average pay raise) 0 $28 

Pay Raise (4.6% average pay raise) 0 $144 

Non-Pay 0 $133 

Subtotal Changes to Base 0 $306 

FY 2023 Current Services 23 $11,127 

Program Changes: 

Program Increases: 4 $1,306 

FSOC Priority Workstream Hiring 4 1,220 

Strengthen DO Equity, Cybersecurity, IT, and facilities infrastructure 0 86 

FY 2023 Estimate 27 $12,433 

C – Budget Increases and Decreases Description 

Maintaining Current Levels (MCLs) ..........................................................+$306,000 / +0 FTE 

Pay Annualization (2.7%) +$28,000 / +0 FTE 

Funds are required for annualization of the January 2022 2.7% average pay raise. 

Pay Raise (4.6 % in FY 2023) +$144,000 / +0 FTE 

Funds are required for a 4.6% average pay raise in January 2023. 

Non-Pay +$133,000 / +0 FTE 

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

and equipment. 

Program Increases ......................................................................................+$1,306,000/ +4 FTE 

FSOC Priority Workstream Hiring +$1,220,000 / +4 FTE 

To fulfill the priorities set forth by the Secretary, acting in her capacity as the Chair of the 

Council, the FSOC Secretariat intends to increase its long-term staffing plan to 27 by four staff 

members. 

In estimating the resources needed to advance the Council’s new priorities and to realize 

improvements needed for ongoing responsibilities, the FSOC Secretariat predicts an ongoing 

headcount deficiency starting in the near-term. Preliminary work has already begun on the 

Council’s new initiatives, including work on measuring and mitigating climate-related financial 

risk and on understanding the potential financial stability risks posed by nonbank financial 

intermediaries. Together with staff at FSOC member agencies and other members, the FSOC 

Secretariat staff established the Council’s Hedge Fund Working Group (HFWG) and the OpenEnd Funds Working Group (OEFWG) and also published the Council’s Report on ClimateRelated Financial Risk in 2021. The Council also announced plans to establish two new 

committees to support the Council’s climate-related efforts, which the FSOC Secretariat will 

support along with the Council’s other existing committees. As these efforts mature, additional 

staff will be needed to ensure these groups and committees function as intended and make 
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progress in these important areas. These priorities reflect the effort required in addition to core 

responsibilities such as publishing the annual report and advancing financial stability monitoring 

work. 

Strengthen Departmental Offices (DO) Equity, Cybersecurity, IT, and facilities infrastructure 

+$86,000 / +0 FTE 

This funding also includes FSOC’s costs associated with Treasury’s internal equity programs, 

including growing recruitment pipelines to diverse talent and improving support and analysis of 

equity programs geared at the existing workforce. 

This effort supports Equal Employment Opportunity (EEO) efforts as required in Executive 

Orders 13985, 13988, and 14035. 

This request also provides for FSOC’s portion of funding for a Treasury funding for non-capital 

investments. These ensures costs avoid diverting DO resources away from programmatic needs. 

The funding will also support Treasury’s strengthening of cybersecurity, consistent with 

heightened risks. 

1.3 – Object Classification (Schedule O) Obligations 

Dollars in Thousands 

 FY 2021 FY 2022 FY 2023 

Object Classification 

Actual 

Obligations 

Estimated 

Obligations 

Estimated 

Obligations 

11.1 - Full-time permanent 2,029 3,353 4,117 

11.3 - Other than full-time permanent 168 0 0 

11.5 - Other personnel compensation 18 228 280 

11.9 - Personnel Compensation (Total) 2,215 3,581 4,397 

12.0 - Personnel benefits 755 1,031 1,266 

Total Personnel and Compensation Benefits $2,971 $4,612 $5,663 

21.0 - Travel and transportation of persons 2 40 40 

25.1 - Advisory and assistance services 213 700 708 

25.2 - Other services from non-Federal sources 4 17 17 

25.3 - Other goods and services from Federal sources 6,011 4,830 5,375 

26.0 - Supplies and materials 246 617 624 

31.0 - Equipment 0 5 5 

Total Non-Personnel $6,476 $6,209 $6,770 

Total Obligations $9,447 $10,821 $12,433 

 

Full-time Equivalents (FTE) 14 23 27 

D – Appropriations Language and Explanation of Changes 

The FSOC receives no appropriations from Congress. 

E – Legislative Proposals 

The FSOC has no legislative proposals. 
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Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

The Council is chaired by the Secretary of the Treasury and consists of ten 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: 

1) identify risks to the financial stability of the United States that could arise from the material 

financial distress or failure, or ongoing activities, of large, interconnected bank holding 

companies or nonbank financial companies, or that could arise outside the financial services 

marketplace; 

2) promote market discipline, by eliminating expectations on the part of shareholders, creditors, 

and counterparties of such companies that the Government will shield them from losses in 

the event of failure; and 

3) respond to emerging threats to the stability of the U.S. financial system. 

Among other statutory duties, the Council has a duty to facilitate information sharing and 

coordination among the member agencies regarding domestic financial services policy 

development, rulemaking, examinations, reporting requirements, and enforcement actions. 

This office supports the following strategic objectives for Strategic Goal 3, to Protect Financial 

Stability and Resiliency: 

 Objective 3.1: Financial System Vulnerabilities. 

 Objective 3.2: Resilient Treasury and Municipal Securities Markets. 

 Objective 3.3: Financial Innovation. 

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

Change: 

 Objective 4.3: Climate-related Financial Risks. 

B – Budget and Performance by Budget Activity 

2.1.1 – Financial Stability Oversight Council Resources and Measures 

Dollars in Thousands 

 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 

 Resource Level Actual Actual Actual Actual Actual Estimate Estimate 

Expenses/Obligations $5,655 $4,966 $5,246 $5,190 $4,996 $7,567 $7,933 

Budget Activity Total $5,655 $4,966 $5,246 $5,190 $4,996 $7,567 $7,933 

Full-time Equivalents (FTE) 17 13 14 15 14 23 27 

Note: The amounts of actuals in FSOC expenses/obligations for 2020 in the table above differ from the amounts in the 2022 President’s Budget 

by $325K. The accurate $5.190M is reflected in the above table. 

 
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Financial Stability Oversight Council 

($7,933,000 from Assessment): 

There are no measures specified for managing Council performance. The FSOC’s annual reports 

and other public documents provide information to the public relevant to the Council’s 

performance. Information on the Council is provided on www.treasury.gov, www.fsoc.gov. 

Performance documents for FSOC member agencies can also be found on their respective 

websites to provide transparency and accountability. 

On December 17, 2021, the Council published its annual report. The report describes activities of 

the Council over the past year, as the U.S. economy has continued to rebound from the 

disruptions caused by the COVID-19 pandemic. Additionally, the Council’s annual report 

describes significant financial market and regulatory developments, potential emerging threats to 

U.S. financial stability, and recommendations to promote U.S. financial stability. The report was 

developed collaboratively by members of the Council and their agencies and staffs. 

2.1.2 – FDIC Reimbursement Resources and Measures 

Dollars in Thousands FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 

 Resource Level Actual Actual Actual Actual Actual Estimate Estimate 

Expenses/Obligations $5,126 $4,162 $4,301 $2,993 $4,451 $3,254 $4,500 

Budget Activity Total $5,126 $4,162 $4,301 $2,993 $4,451 $3,254 $4,500 

Full-time Equivalents (FTE) 0 0 0 0 0 0 0 

FDIC Reimbursement

($4,500,000 from Assessments):

Certain FDIC expenses are treated as expenses of the Council. By law, the Council’s expenses 

include reimbursement of reasonable implementation expenses incurred by the FDIC in 

implementing Orderly Liquidation Authority. The FDIC must periodically submit requests for 

reimbursement of these expenses to the Chairperson of the Council, who shall arrange for 

prompt reimbursement to the FDIC. FDIC expenses are for rule writing and resolution planning. 

Section III – Additional Information 

A – Summary of Capital Investments 

The FSOC has no capital investments. Capital investments that support the FSOC are included in 

the Treasury Franchise Fund Plan. 

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

investments, can be viewed and downloaded at: 

https://www.treasury.gov/about/budget-performance/Pages/summary-of-capitalinvestments.aspx.