Executive Summary ‐ 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. 

Executive Summary 

FY 2019 President’s Budget Discretionary Appropriation Request 

Dollars in Thousands 

 

FY 2017 FY 2018 FY 2019 Increase/ Percent

Enacted Annualized CR 

Rate Request Decrease Change

Management & Financial $1,473,456 $1,463,449 $1,181,636 ($291,820) -19.81%

Departmental Offices Salaries and Expenses $224,376 $222,852 $201,751 ($22,625) -10.08%

Terrorism and Financial Intelligence $123,000 $122,165 $159,000 $36,000 29.27%

Cybersecurity Enhancement $47,743 $47,419 $25,208 ($22,535) -47.20%

Department-wide Systems and Capital 

Investments Program $3,000 $2,980 $4,000 $1,000 33.33%

Office of Inspector General $37,044 $36,792 $36,000 ($1,044) -2.82%

Treasury IG for Tax Administration $169,634 $168,482 $161,113 ($8,521) -5.02%

Special Inspector General for TARP $41,160 $40,880 $17,500 ($23,660) -57.48%

Community Development Financial Institutions 

Fund $248,000 $246,316 $14,000 ($234,000) -94.35%

Financial Crimes Enforcement Network $115,003 $114,222 $117,800 $2,797 2.43%

Alcohol and Tobacco Tax and Trade Bureau $111,439 $110,682 $114,427 $2,988 2.68%

Bureau of the Fiscal Service $353,057 $350,659 $330,837 ($22,220) -6.29%

Tax Administration1 $11,235,000 $11,158,703 $11,135,000 ($100,000) -0.89%

IRS Taxpayer Services $2,455,754 $2,349,688 $2,241,000 ($214,754) -8.74%

IRS Enforcement $4,640,000 $4,606,996 $4,628,204 ($11,796) -0.25%

IRS Operations Support $3,849,246 $3,913,988 $4,155,796 $306,550 7.96%

IRS Business Systems Modernization $290,000 $288,031 $110,000 ($180,000) -62.07%

IRS Cap Adjustment 2 $0 $0 $361,571 $361,571 NA

IRS Total, Including Cap Adjustment $11,235,000 $11,158,703 $11,496,571 $261,571 2.33%

Subtotal, Treasury Appropriations excluding 

Cap Adjustment and TEOAF $12,708,456 $12,622,152 $12,316,636 ($391,820) -3.08%

Treasury Forfeiture Fund Total3 ($1,302,000) ($1,302,000) ($400,000) $902,000 -69.28%

Temporary Rescission ($988,000) ($988,000) $988,000 -100.00%

Permanent Rescission ($314,000) ($314,000) ($400,000) ($86,000) 27.39%

Subtotal, Treasury Appropriations including 

TEOAF $11,406,456 $11,320,152 $11,916,636 $510,180 4.47%

Treasury International Programs $1,800,577 $1,788,349 $1,446,422 ($354,155) -19.67%

Multilateral Development Banks $1,571,014 $1,560,345 $1,348,122 ($222,892) -14.19%

Food Security $53,000 $52,640 $0 ($53,000) -100.00%

Environmental Trust Funds $146,563 $145,568 $68,300 ($78,263) -53.40%

Office of Technical Assistance $30,000 $29,796 $30,000 $0 0.00%

Total, Treasury Appropriations $13,207,033 $13,108,501 $13,363,058 $156,025 1.18%

FY 2017 Enacted to FY 2019

1/ IRS FY 2017 Enacted levels include $220 million transfer from Enforcement to Taxpayer Services ($90 million) and Operations 

Support ($130 million). IRS FY 2018 Annualized CR levels include notional $220 million transfer from Enforcement to 

Operations Support. 

2/ IRS Program Integrity Cap Adjustment includes $205 million for Enforcement and $157 million for Operations Support.

3/ In FY 2017 and FY 2018, it includes ($187,000,000) of the DHS Rescission (temporary).
Executive Summary ‐ 2

OVERVIEW OF REQUEST

The Budget requests $12.3 billion in base discretionary resources for the Department of the 

Treasury’s domestic programs, a $392 million or 3 percent decrease from the FY 2017 enacted 

level. It also requests $1.4 billion for Treasury’s international programs, a $354 million or 

19.7 percent decrease from the FY 2017 enacted level. The Budget: 

 Provides $159 million for Treasury’s Office of Terrorism and Financial Intelligence (TFI), a 

$36 million increase over the FY 2017 enacted level; and $118 million for the Financial 

Crimes Enforcement Network (FinCEN), a $3 million increase over the FY 2017 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 

economically isolate North Korea, stand up the Terrorist Financing Targeting Center in Saudi 

Arabia, implement the Countering America’s Adversaries Through Sanctions Act, and 

counter the financial networks that support terrorists, organized transnational crime, weapons 

of mass destruction proliferators, and other threats. 

 Provides $11.1 billion for the Internal Revenue Service (IRS) from base discretionary 

appropriations to collect more than $3 trillion in revenue and continue administering the first 

comprehensive tax reform legislation in over 30 years. This funding includes $199 million to 

further invest in cybersecurity safeguards for taxpayer data and empower taxpayers with 

modern customer service options. 

o In addition to base discretionary resources, the Budget proposes a program integrity 

initiative to support deficit reduction and narrow the gap between taxes owed and taxes 

paid. The FY 2019 Budget investment is $362 million. Additional resources will be 

provided in later years. These investments will generate approximately $43.8 billion in 

additional revenue and will cost approximately $15 billion, yielding estimated net savings 

of $28.8 billion over ten years. 

 Provides $25 million to proactively and strategically protect the Treasury information 

technology (IT) systems that carry out these activities as well as those that account for, and 

process, trillions of dollars in revenue and payments from cybersecurity threats. 

 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 reflects continued reductions in OFR 

spending commensurate with the renewed fiscal discipline being applied across the Federal 

Government. 
Executive Summary ‐ 3

 Eliminates funding for the Community Development Financial Institutions (CDFI) Fund’s 

discretionary grant and direct loan programs, a savings of $234 million from the FY 2017 

enacted level. The CDFI Fund was created more than 20 years ago to increase access to 

capital and financial services in communities characterized by high rates of poverty and 

unemployment, low incomes, and other economic challenges. The Budget assumes that 

CDFIs have access to other sources of capital. However, the Budget maintains funding for 

administrative expenses to support ongoing CDFI Fund program activities, including the New 

Markets Tax Credit program, and proposes to extend the CDFI Bond Guarantee Program, 

which offers CDFIs low-cost, long-term financing at no cost to taxpayers, because the 

program requires no credit subsidy. 

 Proposes to provide the Bureau of Engraving and Printing (BEP) with the authority to vacate 

its aging production facility, purchase land, and construct a new facility in the National 

Capital Region, which would result in an estimated 10-year savings of $579 million in lower 

project costs, ultimately lowering operating costs. 

 Provides $1.4 billion for Treasury’s International Programs to support the most critical 

investments in multilateral development institutions, while ensuring that U.S. contributions 

are set at an appropriate level relative to our partner countries. The proposed funding level 

meets current year U.S. commitments to international financial institutions and maintains 

funding for the Office of Technical Assistance. 

REFORM PROPOSALS 

Treasury’s reform plan includes proposals that will drive efficiency and effectiveness within the 

Department and across government. 

 Treasury proposes consolidating coordination of the federal government’s financial education 

programs, which are currently spread across more than 20 executive agencies. 

 

 In coordination with the Department of Justice’s Bureau of Alcohol, Tobacco, Firearms, and 

Explosives (ATF), Treasury’s Alcohol and Tobacco Tax and Trade Bureau (TTB) proposes 

to assume responsibility for federal tobacco and alcohol tax jurisdiction. 

 Treasury proposes to merge certain functions currently performed by both BEP and United 

States Mint, such as the sales and marketing of collectible products and non-IT procurement. 

 

 In light of a declining number of private American printing firms providing secure printing 

for official documents (birth, marriage, and death certificates), Treasury will offer intaglio 

printing services to states and local governments using BEP’s secure printing technology. 
Executive Summary ‐ 

4

Fiscal Year Comparison of Full‐Time Equivalent (FTE) Staffing (Direct and Reimbursable)

Appropriation Direct Reimb. Total Direct Reimb. Total Direct Reimb. Total

Departmental Offices Salaries and Expenses 856 99 955 856 100 956 646 58 704 Terrorism and Financial Intelligence 395 33 428 421 36 457 518 36 554 Cybersecurity Enhancement - - - 19 - 19 19 - 19 Office of Inspector General 158 7 165 175 5 180 175 5 180 Treasury Inspector General for Tax Administration 800 2 802 800 2 802 800 2 802 Special Inspector General for TARP 139 - 139 140 - 140 85 - 85 

Community Development Financial Institutions Fund 74 - 74 74 - 74 42 - 42 Financial Crimes Enforcement Network 274 1 275 304 1 305 332 1 333 Alcohol and Tobacco Tax and Trade Bureau 478 10 488 507 10 517 492 10 502 Bureau of the Fiscal Service 2,084 10 2,094 2,110 10 2,120 2,089 10 2,099 

Internal Revenue Service funded from regular appropriations 76,831 854 77,685 73,870 1,034 74,904 70,876 553 71,429 integrity cap adjustmentInternal Revenue Service funded from proposed program 1,691 1,691 Subtotal, Treasury Appropriated Level 82,089 1,016 83,105 79,276 1,198 80,474 77,765 675 78,440 Office of Financial Stability (Administrative Account) 52 - 52 34 - 34 24 - 24 Small Business Lending Fund Program 8 - 8 8 - 8 6 - 6 State Small Business Credit Initiative 9 - 9 - - - - - - Capital Magnet Fund 4 - 4 5 - 5 5 - 5 Office of Financial Research 236 - 236 208 - 208 158 - 158 

Financial Stability Oversight Council - - - - - Treasury Franchise Fund - 1,702 1,702 - 1,770 1,770 - 1,977 1,977 

Bureau of Engraving and Printing - 1,818 1,818 - 1,842 1,842 - 1,836 1,836 

United States Mint - 1,645 1,645 - 1,705 1,705 - 1,705 1,705 

Office of the Comptroller of the Currency - 3,908 3,908 - 3,945 3,945 - 3,987 3,987 

Terrorism Insurance Program 5 - 5 9 - 9 9 - 9 IRS Private Collection Agent Program - - - 10 - 10 110 - 110 Subtotal, Treasury Non-Appropriated Level 314 9,073 9,387 274 9,262 9,536 312 9,505 9,817 Total, Treasury 82,403 10,089 92,492 79,550 10,460 90,010 78,077 10,180 88,257 1/ A portion of Fiscal Service's Reimbursable/Fee FTE is funded by fee revenue as authorized by the Debt Collection Improvement Act (DCIA) of 1996.2/ IRS FY 2018 Total FTE is overstated in the President's Budget Appendix by 102 FTE as a result of a reporting error in the Business Systems Modernization account. 

2017 Actual 2018 Annualized CR Rate 2019 President's Budget
Executive Summary ‐ 5

 
Executive Summary ‐ 6
Executive Summary ‐ 7

Organization

Treasury is organized into the Departmental Offices, seven bureaus, and three offices of inspector 

general. The Departmental Offices are primarily responsible for policy formulation, while the 

bureaus are the operating units of the organization. 

 
Executive Summary ‐ 8

Departmental Offices 

Domestic Finance works to preserve 

confidence in the U.S. Treasury securities 

market, strengthen financial institutions and 

markets, and promote access to credit, in 

service to long-term economic strength and 

stability. 

Terrorism and Financial Intelligence (TFI) 

uses unique policy, intelligence, enforcement 

and regulatory tools and authorities to disrupt 

and disable terrorists, criminals, and other 

national security threats while also 

safeguarding the financial system against 

abuse by illicit actors. 

International Affairs protects economic 

prosperity and national security by working to 

foster a most favorable external environment 

for sustained jobs and economic growth. 

Tax Policy develops and implements tax 

policies and programs, reviews regulations and 

rulings to administer the Internal Revenue 

Code, and provides revenue estimates for the 

President’s Budget. 

Economic Policy reports on economic 

developments and assists in the determination 

of appropriate economic policies. Reviews 

and analyzes domestic economic issues and 

financial market developments. 

The Treasurer of the United States serves as 

a principal advisor to the Secretary and leads 

the Office of Consumer Policy, which 

provides policy leadership, research, and 

analysis in the areas of fostering economic 

growth and financial security for American 

families in a robust consumer marketplace. 

The Treasurer also oversees the U.S. Mint, 

including advising the Secretary on coinage 

matters and liaising with the Federal Reserve. 

The Office of Management, including the 

Chief Financial Officer, manages the 

Department’s financial resources and oversees 

Treasury-wide programs, including human 

capital, organizational performance, 

information technology, acquisition, and 

diversity issues and inclusion. 

The Office of Risk Management oversees the 

development and implementation of an 

integrated risk management framework for the 

Department, advising Treasury leaders on 

managing credit, market, liquidity, fraud, 

operational, and reputational risks. 

 Other offices within Departmental Offices 

include the General Counsel, Legislative 

Affairs, and Public Affairs. 
Executive Summary ‐ 9

INSPECTORS GENERAL

 Three Inspectors General – the Office of 

Inspector General (OIG), the Treasury 

Inspector General for Tax Administration 

(TIGTA), and the Special Inspector General 

for the Troubled Asset Relief Program 

(SIGTARP) – provide independent audits, 

investigations, and oversight of Treasury and 

our programs. 

The Alcohol and Tobacco Tax and Trade 

Bureau (TTB) collects federal excise taxes on 

alcohol, tobacco, firearms, and ammunition. 

Enforces and administers laws covering 

production, use, and distribution of alcohol 

and tobacco products. 

The Bureau of Engraving and Printing 

(BEP) develops and produces U.S. currency 

notes, as well as secure documents for 

government use. 

The Financial Crimes Enforcement 

Network (FinCEN) safeguards the financial 

system from illicit use and combats money 

laundering. Promotes national security 

through the collection, analysis, and 

dissemination of financial intelligence and 

strategic use of financial authorities. 

The Bureau of the Fiscal Service (Fiscal 

Service) provides central payment services to 

federal agencies, operates the U.S. 

government’s collections and deposit systems, 

and delivers administrative shared services to 

federal agencies. Provides government-wide 

accounting and reporting, and manages the 

collection of delinquent debt. Borrows money 

needed to operate the U.S. government 

through the sale of marketable, savings, and 

special purpose U.S. Treasury securities. 

Accounts for and services the public debt. 

The Internal Revenue Service (IRS)

determines, assesses, and collects U.S. tax 

revenue. Helps taxpayers understand their tax 

responsibilities and combats tax-related fraud. 

The United States Mint (U.S. Mint) designs, 

mints, and issues U.S. circulating numismatic 

and bullion coins. Strikes Congressional gold 

medals and other medals of national 

significance. Maintains physical custody and 

protection of most of the nation’s gold and all 

of its silver assets. 

The Office of the Comptroller of the 

Currency (OCC) ensures that the federal 

banking system operates safely and soundly, 

provides fair access to financial services, treats 

customers fairly, and complies with applicable 

laws and regulations. The OCC charters, 

regulates, and supervises national banks and 

federal savings associations, and licenses and 

supervises federal branches and agencies of 

foreign banks.Treasury Strategic 

Framework 
Executive Summary ‐ 10

The Government Performance and Results Act Modernization Act of 2010 (GPRAMA) requires federal agencies to publish new strategic plans one year after each presidential inauguration. Treasury’s 

Strategic Plan for Fiscal Years (FY) 2018 - 2022 (Strategic Plan) describes long-term goals the 

Department aims to achieve during this administration and provides an internal guide for decisionmaking. Within the Strategic Plan, “goals” articulate larger outcomes or societal impacts that 

Treasury aims to achieve, while “objectives” support goals and reflect more focused policy or 

operational areas where Treasury plans to make significant improvements. Accountable officials are 

designated for each strategic objective. Concentrating on a focused set of objectives strengthens 

accountability, while allowing the Department to emphasize critical areas and meaningfully manage 

for results. 

Treasury’s FY 2018-2019 Agency Priority Goals, each supporting the achievement of a specific 

strategic objective, will be published concurrent with the Strategic Plan on www.performance.gov. 

FY 2018-2019 Agency Priority Goal: Reducing Refund Fraud 

In response to significant increases in refund fraud schemes and identity theft, the IRS increased its 

prevention efforts. One such effort is the Security Summit initiative, a public-private sector 

partnership started in 2015 between the IRS, state revenue departments, software developers, tax 

professionals, and financial services groups. 

This effort led to a sharp decline in identity theft and related refund fraud by 2017, with several 

indicators dropping by more than 50 percent since the Summit began. 

 In 2012, there was a 226 percent increase in new identity theft cases from the prior year. 

 In 2016, there was a 46 percent decrease in new identity theft cases from the prior year. 

FY 2018-2019 Agency Priority Goal: Improved Business Qualification Process 

Ongoing growth in the alcohol beverage industry in recent years has resulted in an increased volume 

in permit applications for new alcohol producers. This growth in workload has contributed to 

delayed permit approvals that exceed TTB’s service standards. In FY 2017, TTB reviewed its current 

processes, applications, and online systems to identify ways to streamline the process for prospective 

industry members. In FY 2018 and 2019, TTB will work to implement these improvements and 

reduce average approval times for business permits. 

FY 2018-2019 Agency Priority Goal: International Collaboration 

We must focus our combined efforts on disrupting illicit financial networks and protecting the U.S. 

and international financial system by expanding information sharing and collaboration with 

international partners to address risks from rogue regimes, terrorist financiers, transnational criminal 

organizations, human rights abusers, and proliferators of weapons of mass destruction. 
Executive Summary ‐ 11

The Government Performance and Results Act (GPRA) and the GPRAMA established the need for 

agencies to identify performance goals, report progress against targets, and conduct data-driven 

reviews. These practices serve two key purposes for stakeholders within and outside of the 

organization: to assess the organization’s health and impact and to inform decision-making and 

strategy (including effective resource allocation). In this spirit, we developed a strategic framework 

supported by best-in-class organizational performance practices to help achieve the Department’s 

strategic objectives.

Our organizational performance reviews provide a regular forum for open dialogue and coordination 

among Department, bureau, and office leadership and bringing together different perspectives to set 

and align priorities, identify and solve problems, review agency performance goals, and drive results. 

The cycle integrates statutory requirements to conduct performance reviews of agency strategic 

objectives, agency priority goals, and cross-agency priority goals.
Executive Summary ‐ 12

In addition to these Department-level reviews, bureaus and offices validate performance data each 

quarter and many run their own internal performance reviews.1

Human Capital Plan Implementation

In FY 2019, Treasury’s Human Capital Community will continue its efforts towards a competencybased management approach. In alignment with these efforts, below are some of the strategies that 

are the focus for FY 2019: 

 Continued implementation of the Integrated Talent Management System (DASHR-CHCO) 

 Validate the competency management approach developed in FY2018 and continue the 

development competency assessment tools (DASHR-CHCO) 

 Continue to integrate Workforce Planning with other business processes (DASHR-CHCO) 

 Develop evaluation process to determine the effectiveness of D&I Strategies (OCRD) 

 Begin/Continue implementing succession planning program (TTB) 

 Continue designing experienced leaders program (Mint) 

 Continue laying the foundation for the implementation of the Service-wide Workforce 

Planning process (IRS) 

 Evaluate the effectiveness of local Engagement plans and adjust approach if necessary 

(FINCEN) 

 Continue to close identified competency gaps (DO) 

 Utilized centralized recruitment and diversity plan (BFS) 

                                                            

1/ The FY 2017 Verification and Validation Report is available at: https://www.treasury.gov/about/budgetperformance/annual-performance-plan/Documents/FY17_AFR_508_FINAL.pdf
Executive Summary ‐ 13

 Assess the effectiveness of the Bureau-wide Workforce Planning efforts and adjust as 

necessary (BEP) 

Summary of Management and Performance Challenges 

OIG and TIGTA have identified the most significant management and performance challenges facing 

the Department, in accordance with the Reports Consolidation Act of 2000. These challenges do not 

necessarily indicate deficiencies in performance; some represent inherent risks that require 

continuous monitoring. Refer to Section C of Part 3, Other Information, in the 

FY 2017 Treasury Agency Financial Report (AFR) for a detailed discussion of these challenges, 

including our progress toward addressing them.2 GAO releases a government-wide high-risk list 

every two years. Treasury has shared responsibility for one risk area and lead responsibility in 

another.

OIG - Identified Management Challenges: 

 Operating in an Uncertain Environment (New Challenge)

 Cyber Threats 

 Anti-Money Laundering and Terrorist Financing/Bank Secrecy Act Enforcement

 Efforts to Promote Spending Transparency and to Prevent and Detect Improper Payments

TIGTA - Identified Management Challenges: 

 Security Over Taxpayer Data and Protection of IRS Resources 

 Identity Theft and Impersonation Fraud 

 Providing Quality Taxpayer Service and Expanding Online Services 

 Upgrading Tax Systems 

 Implementing Tax Law Changes 

 Improving Tax Compliance 

 Reducing Fraudulent Claims and Improper Payments 

 Impact of Global Economy on Tax Administration 

 Protecting Taxpayer Rights 

 Achieving Program Efficiencies and Cost Savings 

GAO - Identified High-Risk Areas: 

 Improvements needed in internal control over unpaid tax assessments 

 Improvements needed in controls over the processes used to prepare the U.S. Consolidated 

Financial Statements

 

                                                            

2

 The FY 2017 AFR is available at https://www.treasury.gov/about/budget-performance/annual-performanceplan/Documents/FY17_AFR_508_FINAL.pdf. The response letters are on pages 164-169.