Detail of Other Treasury Accounts 

Total Treasury Department Budget

The Treasury Chapter of the FY 2010 

President’s Budget covers the following 

areas: 

Annual Operating Appropriations (Most 

Treasury Bureaus) – $13.4 billion 

These are funds for Treasury operations 

which require annual appropriation action 

by the Congress. Bureau operating budget 

details are provided in the “Analysis of FY 

2010 President’s Budget” section. 

Interest Payments and other interest – 

$477.5 billion 

These are permanent, indefinite funds for 

interest payments needed: to finance the 

public debt; by the IRS on refunds of taxes 

to taxpayers; and on special accounts 

handled through the Treasury. 

Permanent Authority Appropriations and 

other Offsets – $89.8 billion 

These are special accounts for which the 

Congress has given the Department of 

Treasury permanent authority to expend 

funds as appropriations, such as: payments 

made when the earned income credit, child 

credit, and health care credit exceeds the 

taxpayer's tax liability; payments to the 

Resolution Funding Corporation; 

reimbursements to Federal Reserve Banks; 

special claims and damage payments 

required as a result of judgments against the 

U.S. government; payments to Presidential 

candidates and their parties in accordance 

with Federal Election Commission 

certification; and other accounts. 

Offsetting Collections – $11.0 billion 

Treasury receipts from other government 

agencies and private sources are subtracted 

from the total Treasury budget as an offset. 

Interest Payments

Interest on the Public Debt 

The Federal Government's outstanding debt 

requirements are financed through 

borrowing (e.g., auctions of Treasury Bills, 

Notes, and Bonds). Funds paid to lenders 

for the use of their money is paid from the 

Interest on the Public Debt appropriation. 

Interest on the Public Debt includes all 

interest paid on Treasury securities sold to 

the public (e.g., foreign and domestic 

financial institutions, individuals, insurance 

companies, state and local governments, 

etc.) and to Federal Government trust funds, 

revolving funds and deposit funds. 

Interest on IRS Refunds 

Under certain conditions in the tax law, the 

IRS must pay interest on Internal Revenue 

collections that must be refunded -- 

amended returns, delayed refunds of more 

than 45 days from the due date of the return, 

corporation losses covering prior year 

returns, results of tax audits, etc. The rate of 

interest changes every three months to 

reflect the prime interest rate then in effect. 

Interest on Uninvested Funds 

Under conditions of the law creating each 

trust account, interest accruing and payable 

from the general fund of the Treasury is 

appropriated to this account for payment to 

the proper fund receipt accounts. 

Interest Paid to Credit Financing 

Accounts 

Loan guarantee financing accounts receive 

various payments and fees and make 

payment on defaults. When cash balances 

result from an excess of receipts over 

outlays, these balances are deposited with 

Treasury and earn interest. This account 

pays such interest to credit loan guarantee 

financing accounts from the general fund of 

the Treasury in accordance with Section 

505(c) of the Federal Credit Reform Act of 

1990. 

Federal Interest Liabilities to the States 

As provided in U.S.C. 3335, U.S.C. 6503, 

and 31 C.F.R. 205, interest is paid to states 

when federal funds are not transferred 

timely. 

Department of the Treasury - Budget in Brief FY 2010 Page 115
Payment to Resolution Funding 

Corporation 

The Financial Institutions Reform, 

Recovery, and Enforcement Act of 1989 

authorized the Secretary of the Treasury 

such sums as may be necessary to cover 

interest payments on obligations issued by 

the Resolution Funding Corporation 

(REFCORP). REFCORP was established 

under the Act to raise $31.2 billion for the 

Resolution Trust Corporation (RTC) in 

order to resolve savings institution 

insolvencies. 

Permanent Authority Appropriations

Terrorism Risk Insurance Program 

The Terrorism Risk Insurance Extension Act 

of 2007 (P.L. 110-160) reauthorized and 

revised the program established by the 

Terrorism Risk Insurance Act (TRIA) of 

2002 (P.L. 107-297). The 2007 Act 

extended the Terrorism Insurance Program 

for seven years, through December 31, 

2014. This extension of TRIA added a 

requirement for commercial property and 

casualty insurers to make available coverage 

for losses from domestic as well as foreign 

acts of terrorism and extends TRIA coverage 

for those losses. 

GSE Preferred Stock Purchase

Agreement Program (PSPA)

Section 1117 of the Housing and Economic 

Recovery Act of 2008 (P.L. 110-289) 

provides temporary authority for the 

Secretary of the Treasury to purchase 

obligations and other securities issued by 

three housing related Government 

Sponsored Enterprises (GSEs): Fannie Mae, 

Freddie Mac and the Federal Home Loan 

Banks (FHLBs). Under this authority, 

Treasury established the PSPAs, to instill 

confidence in investors that Fannie Mae and 

Freddie Mac will remain viable entities 

critical to the functioning of the housing and 

mortgage markets. 

GSE Mortgage-Backed Securities 

Purchase Program 

Section 1117 of the Housing and Economic 

Recovery Act of 2008 (P.L. 110-289) 

provides temporary authority for the 

Secretary of the Treasury to purchase 

obligations and other securities issued by 

three housing related Government 

Sponsored Enterprises (GSEs): Fannie Mae, 

Freddie Mac and the Federal Home Loan 

Banks (FHLBs). Under this authority, 

Treasury established the GSE MBS 

Purchase Program to help improve the 

availability of mortgage credit to American 

homebuyers and mitigate pressures on 

mortgage rates. 

Office of Financial Stability 

The Emergency Economic Stabilization Act 

(EESA) of 2008 (PL 110-343) authorized 

the establishment of the Troubled Asset 

Relief Program (TARP) and the Office of 

Financial Stability (OFS) to purchase and 

insure certain types of troubled assets for the 

purpose of providing stability to and 

preventing disruption in the economy and 

financial systems and protecting taxpayers. 

The Act gives the Treasury Secretary broad 

and flexible authority to purchase and insure 

mortgage and other troubled assets, as well 

as inject capital by taking limited equity 

positions, as needed to stabilize the financial 

markets. This account provides for the 

administrative costs for the OFS. 

Troubled Asset Relief Program 

As authorized by Emergency Economic 

Stabilization Act of 2008 (PL 110-343) and 

required by the Federal Credit Reform Act 

of 1990, as amended, this account records 

the subsidy costs associated with the direct 

loans obligated and loan guarantees 

committed in 2008 and beyond. The direct 

loan programs serviced by this account 

include the Automotive Industry Financing 

Department of the Treasury - Budget in Brief FY 2010 Page 116
Program (AIFP) and other Section 101 

loans. The AIFP was developed to prevent a 

significant disruption of the American 

automotive industry, which would pose a 

systemic risk to financial market stability 

and have a negative effect on the economy 

of the United States. The guaranteed loan 

commitments serviced by this account 

include the Asset Guarantee Program 

(AGP). The AGP provides guarantees for 

assets held by systemically significant 

financial institutions that face a risk of 

losing market confidence due in large part to 

a portfolio of distressed or illiquid assets. 

Troubled Asset Relief Program Equity 

Purchase Program 

As authorized by Emergency Economic 

Stabilization Act of 2008 (PL 110-343) and 

required by the Federal Credit Reform Act 

of 1990, as amended, this account records 

the subsidy costs associated with the equity 

purchase obligations committed in 2008 and 

beyond. The equity purchase programs 

serviced by this account include the Capital 

Purchase Program (CAP), Systemically 

Significant Failing Institutions Program 

(SSFI), Targeted Investment Program (TIP), 

Automotive Industry Financing Program 

(AIFP), and the Capital Assistance Program 

(CAP). 

Troubled Asset Relief Program Home 

Affordable Modification Program 

As authorized by Sections 101 and 109 of 

the Emergency Economic Stabilization Act 

of 2008 (P.L. 110-343), the Housing 

Affordable Modification Program 

announced in March 2009 will offer 

assistance to as many as 4 million 

homeowners making a good-faith effort to 

stay current on their mortgage payments, 

while attempting to prevent the destructive 

impact of foreclosures on families and 

communities. 

Financial Stabilization Reserve 

As authorized by Emergency Economic 

Stabilization Act of 2008 (PL 110-343). 

The President's Budget includes a $250 billion 

contingent reserve for further efforts to 

stabilize the financial system. 

Special Inspector General for Troubled 

Asset Relief Program 

The Office of the Special Inspector General 

for the Troubled Assets Relief Program 

("SIGTARP") was created by the 

Emergency Economic Stabilization Act of 

2008 ("EESA") and is funded by a 

permanent appropriation. SIGTARP has the 

duty to conduct, supervise, and coordinate 

audits and investigations of funding 

provided under the Troubled Assets Relief 

Program ("TARP"). SIGTARP's mission is 

to advance the goal of economic stability 

through transparency, coordinated oversight, 

and robust enforcement of relief funding, 

thereby being a voice for, and protecting the 

interests of, those who fund the TARP 

programs --- the American taxpayers. 

Grants to States for Low-Income 

Housing Projects 

Section 1602 of the American Recovery and 

Reinvestment Act of 2009 (Recovery Act) 

authorizes and directs the Secretary of the 

Treasury to establish grants to states for 

low-income housing projects in lieu of lowincome housing tax credits (LIHTC). This 

account presents the estimated 

disbursements for this program. 

Grants for Specified Energy Property 

Section 1603 of the American Recovery and 

Reinvestment Act of 2009 authorizes and 

directs the Secretary of the Treasury to 

establish a grant in lieu of a tax credit for 

persons that place into service qualified 

renewable energy properties. This account 

presents the estimated disbursements for this 

program. 

Department of the Treasury - Budget in Brief FY 2010 Page 117
Exchange Stabilization Fund-Money 

Market Mutual Fund 

On September 19, 2008, the Treasury 

Department announced the establishment of 

the Temporary Guarantee Program for 

Money Market Funds. The Program is 

designed to enhance market and investor 

confidence and address temporary 

disruptions experienced in the U.S. money 

market mutual fund industry and 

dislocations in credit markets. The Program 

is supported through the use of funds from 

the ESF. The Emergency Economic 

Stabilization Act of 2008 requires that the 

ESF be reimbursed for any losses under the 

Program from funds authorized under that 

Act. The Program is set to expire on 

September 18, 2009. 

Community Development Financial 

Institutions Program Account 

This program is authorized to make loans to 

Community Development Financial 

Institutions and insured financial 

institutions. The loan funding is permanent, 

indefinite authority from the general fund. 

Presidential Election Campaign Fund 

The fund supports payments to the 

candidates running for President during the 

primaries and the general election, as well as 

support of nominating conventions. 

Appropriations to the fund represent receipts 

from the Presidential Election check-off on 

taxpayers' income tax returns. Upon 

certification by the Federal Election 

Commission, payments are made for the 

above purposes. Major expenditures occur 

during the year of the Presidential election -- 

appropriations represent collections from the 

check-off. 

Treasury Forfeiture Fund 

Public Law 102-393 established this 

permanent appropriation to be used to pay or 

reimburse certain seizure and forfeiture 

costs that occur pursuant to the laws 

enforced by the bureaus participating in the 

Fund and other expenses authorized by 31 

U.S.C. 9703. 

Biomass Energy Development: 

This account provided loan guarantees for 

the construction of biomass-to-ethanol 

facilities, as authorized under Title II of the 

Energy Security Act. All loans went into 

default, and the assets of all but one project 

have been liquidated. 

Payment to Terrestrial Wildlife Habitat 

Restoration Trust Fund 

Under P.L. 106-53, the Secretary of the 

Treasury is required to invest funds 

deposited in the Cheyenne River Sioux 

Tribe Terrestrial Wildlife Restoration Trust 

Fund and the Lower Brule Sioux Tribe 

Terrestrial Wildlife Restoration Trust Fund, 

until the funds are fully capitalized. 

Debt Collection Special Fund 

FMS provides debt collection operational 

services to client agencies which include 

collection of delinquent accounts; offset of 

federal payments against debts owed the 

government; collection of unclaimed 

financial assets; and disposition of 

foreclosed property. 

Financial Agent Services 

This permanent, indefinite appropriation 

allows the Financial Management Service to 

reimburse financial institutions for services 

provided in their capacity as depositaries 

and fiscal agents for the United States. The 

services provided are authorized under 

numerous statutes, including, but not limited 

to, 12 U.S.C. 90 and 265. The services 

include the acceptance and processing of 

deposits of public money, as well as services 

essential to the disbursement of and 

accounting for public monies. 

Reimbursement to Federal Reserve 

Banks 

Permanent, indefinite appropriations were 

established at the Bureau of the Public Debt 

and Financial Management Service to 

Department of the Treasury - Budget in Brief FY 2010 Page 118
reimburse Federal Reserve Banks for their 

services as fiscal agents and/or depositaries 

for the United States for all services required 

or directed by the Secretary of the Treasury 

to be performed on behalf of the Treasury or 

other Federal agencies. 

Claims, Judgments and Relief Acts 

Appropriations are made for payment of 

claims and interest for damages not 

chargeable to appropriations of individual 

agencies, and for payment of private and 

public relief acts. Public Law 95-26 

authorized a permanent, indefinite 

appropriation to pay certain judgments from 

the general fund of the Treasury. 

Check Forgery Insurance Fund 

This fund was established as a permanent, 

indefinite appropriation in order to maintain 

adequate funding for the Check Forgery 

Insurance Fund (Fund). The Fund facilitates 

timely payments for replacement Treasury 

checks necessitated due to a claim of 

forgery. The fund recoups disbursements 

through reclamations made against banks 

negotiating forged checks. 

To reduce hardships sustained by payees of 

Government checks that have been stolen 

and forged, settlement is made in advance of 

the receipt of funds from the endorsers of 

the checks. If the U.S. Treasury is unable to 

recover funds through reclamation 

procedures, the Fund sustains the loss. 

Continued Dumping and Subsidy Offset 

P.L. 106-387 provided for relief for certain 

domestic producers that may be impacted by 

injurious dumping and/or subsidization of 

imported products. Assessed duties are 

deposited into a special fund, and distributed 

to domestic producers, based on a 

determination that a domestic producer has 

been injured by these unfair trade practices. 

Internal Revenue Collections for Puerto 

Rico 

Treasury’s Alcohol and Tobacco Tax and 

Trade Bureau collects excise taxes on 

articles produced in Puerto Rico and the 

U.S. Virgin Islands. After the bureau 

deducts its cost of collecting these funds, the 

balance is refunded back to Puerto Rico and 

the U.S. Virgin Islands. The repayment is 

required to be included in total Treasury 

expenditures.

Government Losses in Shipment 

This account was created as self-insurance 

to cover losses in shipment of Government 

property such as coins, currency, securities, 

and some other losses. 

Payment Where Recovery Rebate 

Exceeds Liability for Tax 

The Economic Stimulus Act of 2008 (Public 

Law 110-185) allowed for the issuance of 

tax rebates (economic stimulus payments) to 

certain eligible taxpayers through December 

31, 2008. This tax rebate was a one-time 

benefit provided to taxpayers to stimulate 

the economy. Additionally, in 2009 the 

rebate were provided to taxpayers who did 

not receive the full economic stimulus 

payment in 2008 and whose circumstances 

may have changed, making them eligible for 

some or all of the unpaid portion. No 

outlays are expected from this account in 

2010, as the one-time program is no longer 

active. 

Payment Where Earned Income Credit 

Exceeds Liability for Tax 

As provided by law, there are instances 

wherein the earned income tax credit (EITC) 

exceeds the amount of tax liability owed 

through the individual income tax system, 

resulting in an additional payment to the tax 

filer. The EITC was originally authorized by 

the Tax Reduction Act of 1975 (Public Law 

94-12) and made permanent by the Revenue 

Adjustment Act of 1978 (Public Law 95-

600). The Tax Reform Act of 1986 and the 

Omnibus Budget Reconciliation Acts of 

1990 and 1993 increased the credit amount 

and expanded the eligibility for the EITC. 

Department of the Treasury - Budget in Brief FY 2010 Page 119
The American Recovery and Reinvestment 

Act of 2009 (Public Law 111-5) temporarily 

increases the EITC for working families 

with three or more children, and increases 

the threshold for the phase-out range for all 

married couples filing a joint return. 

Internal Revenue Service – User Fees 

The Secretary of the Treasury may establish 

new fees or raise existing fees for services 

provided by the IRS. The fees can be used 

to supplement IRS appropriations. 

Payment Where Child Credit Exceeds 

Liability for Tax 

As provided by law, there are instances 

wherein the child credit exceeds the amount 

of tax liability owed through the individual 

income tax system, resulting in an additional 

payment to the tax filer. The child credit was 

originally authorized by the Taxpayer Relief 

Act of 1997 (Public Law 105-34). The 

American Recovery and Reinvestment Act 

of 2009 (Public Law 111-5) expanded the 

pool of eligible low-income earners. The 

credit is refundable to the extent of 15 

percent of an individual’s earned income in 

excess of $3,000 for 2009 and 2010. 

Payment Where Health Care Credit 

Exceeds Liability for Tax 

The Trade Act of 2002 established the 

Health Coverage Tax Credit (HCTC), an 

advanceable, refundable tax credit for a 

portion of the cost of qualified insurance. 

This credit is available to certain recipients 

of trade adjustment assistance (TAA) and 

Pension Benefit Guaranty Corporation 

pension beneficiaries who are aged 55-64. 

The American Recovery and Reinvestment 

Act of 2009 (Public Law 111-5) 

significantly increased the benefits for 

certain HCTC eligible individuals. 

Payment Where Alternative Minimum Tax 

Exceeds Liability for Tax 

The Tax Relief and Health Care Act of 2006 

(Public Law 109-432) allows certain 

taxpayers to claim a refundable credit for a 

portion of their unused long-term alternative 

minimum tax (AMT) credits each year. The 

Emergency Economic Stabilization Act of 

2008 (Public Law 110-343) increases the 

AMT refundable credit portion from 

20 percent to 50 percent of the unused longterm minimum tax credits for the taxable 

year in question. 

Payment Where Certain Tax Credits 

Exceeds Liability for Corporate Tax 

The Housing and Economic Recovery Act 

of 2008 (Public Law 110-289) allows certain 

businesses to accelerate the recognition of a 

portion of their historic AMT or research 

and development (R&D) credits in lieu of 

taking bonus depreciation. The amount is 

capped at the lesser of $30 million or 

6 percent of historic AMT and R&D credits. 

The American Recovery and Reinvestment 

Act of 2009 (Public Law 111-5) extends this 

temporary benefit through 2009. 

Payment Where Tax Credit to Aid FirstTime Homebuyers Exceeds Liability for 

Tax 

The Housing and Economic Recovery Act 

of 2008 provided a refundable tax credit of 

up to $7,500 for first-time homebuyers. The 

credit allows for up to 10 percent of the 

purchase price for qualified residences. 

Taxpayers who qualify are allowed a onetime credit against their income tax for 

principal residences purchased on or after 

April 9, 2008, and before July 1, 2009. 

They must repay the credit over a 15-year 

period. 

The American Recovery and Reinvestment 

Act of 2009 (Public Law 111-5) expanded 

the credit and eliminated the repayment 

requirement. Taxpayers have the option of 

claiming up to $8,000 on either their 2008 or 

2009 tax returns for qualifying 2009 

purchases. The credit is available for 

Department of the Treasury - Budget in Brief FY 2010 Page 120
qualifying purchases made between January 

1, 2009 and November 30, 2009. 

Payment Where American Opportunity 

Credit Exceeds Liability for Tax 

The American Recovery and Reinvestment 

Act of 2009 (Public Law 111-5) allows 

certain taxpayers to claim a refundable Hope 

Scholarship Credit. Up to 40 percent of the 

credit is refundable. The credit applies 

dollar-for-dollar to the first $2,000 of 

qualified tuition, fees and course materials 

paid by the taxpayer, and applies at a rate of 

25 percent to the next $2,000 in qualified 

tuition, fees and course materials for a total 

credit of up to $2,500. This tax credit is 

subject to a phase-out for high-income 

taxpayers. 

Making Work Pay Tax Credit 

The American Recovery and Reinvestment 

Act of 2009 (Public Law 111-5) allows 

certain taxpayers to claim a refundable 

Making Work Pay tax credit of 6.2 percent 

of earned income, up to $400 for single 

taxpayers and up to $800 for married 

couples filing joint returns. The refundable 

credit phases out for high-income taxpayers. 

The Making Work Pay credit is claimed by 

taxpayers when they file their 2009 and 

2010 returns, and in order to accelerate the 

credit, it is being delivered in small 

increments through reduced payroll 

withholding. 

Build American Bond Payments, 

Recovery Act 

The Recovery and Reinvestment Act of 

2009 (Public Law 111-5) allows State and 

local governments to issue “Build America 

Bonds,” through December 31, 2010. These 

tax credit bonds, which include Recovery 

Zone Bonds, differ from tax-exempt 

governmental obligation bonds in two 

principal ways: (1) interest paid on tax credit 

bonds is taxable; and (2) a portion of the 

interest paid on tax credit bonds takes the 

form of a federal tax credit. The bond issuer 

may elect to receive a direct payment in the 

amount of the tax credit. 

Payment Where COBRA Credit Exceeds 

Liability for Tax 

COBRA gives workers who lose their jobs, 

and thus their health benefits, the right to 

purchase group health coverage provided by 

the plan under certain circumstances. 

The American Recovery and Reinvestment 

Act of 2009 (Public Law 111-5) treats 

assistance eligible individuals who pay 35 

percent of their COBRA premium as having 

paid the full amount. The remaining 65 

percent is reimbursed to the employer, 

insurer or health plan as a credit against 

certain employment taxes. This schedule 

reflects the cases where the credit exceeds 

the tax liability resulting in payment to the 

tax filer. 

Payment Where Tax Credit for Certain 

Government Retirees Exceeds Liability 

for Tax 

The American Recovery and Reinvestment 

Act of 2009 (Public Law 111-5) allows 

certain federal and state retirees to claim a 

one-time refundable credit of up to $250 

($500 in the case of a joint return where 

both spouses are eligible individuals). 

Internal Revenue Service – Informant 

Payments 

The Secretary of the Treasury may make 

payments to individuals resulting from 

information given that leads to the collection 

of Internal Revenue taxes. The Taxpayer 

Bill of Rights of 1996 authorizes these 

payments from the proceeds of amounts 

(other than interest) collected as a result of 

the information provided. 

Internal Revenue Service – Private 

Collection Agent Program 

The American Jobs Creation Act of 2004 

(Public Law 108-357) allows the IRS to use 

private collection contractors to supplement 

its own collection staff's efforts to ensure 

that all taxpayers pay what they owe. The 

IRS used this authority to contract with 

Department of the Treasury - Budget in Brief FY 2010 Page 121
several private debt collection agencies 

starting in 2006. In March 2009, the IRS 

allowed its private debt collection contracts 

to expire, thereby administratively 

terminating the program. 

Offsetting Collections

In general, amounts collected by the Federal 

Government are classified in two major 

categories: 

Governmental receipts – Revenues that arise 

from the sovereign and regulatory powers 

unique to the Federal Government. They 

consist primarily of tax receipts, but also 

include customs duties, court fines, certain 

licenses, etc. All governmental receipts are 

deposited into receipt accounts. These 

receipts are always reported in total (rather 

than as an offset to budget authority and 

outlays). 

Offsetting receipts - Collections that are 

offset against the budget authority and 

outlays of the collecting agency rather than 

reflected as governmental receipts in 

computing budget totals. Offsetting receipts 

are comprised of: 

• Proprietary Receipts - These receipts 

from the public are market-oriented and 

are derived from activities operated as 

business-type enterprises. 

• Intragovernmental Receipts - These are 

collections from other governmental 

accounts deposited in receipt accounts. 

These are further classified as follows: 

 Interfund Receipts - These are 

amounts derived from payments 

between federal and trust funds. 

 Intrafund Receipts - These are 

amounts derived from payments 

within the same fund group (i.e., 

within the federal fund group or 

within the trust fund group). 

Department of the Treasury - Budget in Brief FY 2010 Page 122