Message from the Secretary of the Treasury 

Dear Member: 

The Fiscal Year (FY) 2020 President's Budget (Budget) prioritizes Treasury's goals to maintain a strong 

economy and create economic and job opportunities by promoting economic growth and stability at 

home and abroad, and to strengthen national security by combating threats and protecting the integrity 

of the financial system. In particular, the Budget requests $12.7 billion for Treasury's operating bureaus 

and $1.6 billion for our international programs. 

Consistent with the Administration's priorities, the Budget provides $35 million to support 

implementation of the Foreign Investment Risk Review Modernization Act (FIRRMA). FIRRMA, enacted 

in 2018, expands the Committee on Foreign Investment in the United States' jurisdiction and 

strengthens its authorities to protect critical U.S. technologies and infrastructure from new and evolving 

threats, while preserving an open investment environment. 

Treasury's request includes $11.5 billion for the Internal Revenue Service (IRS) and provides $290 million 

in funding for the first installment in a multi-year plan to greatly modernize IRS systems and operations 

and deliver a customer experience comparable to the best financial institutions in the world. I cannot 

emphasize enough the long-term critical need we have to invest in the modernization of IRS information 

technology systems and infrastructure. The integrity of the voluntary tax compliance system depends on 

it. In addition, the Budget requests a program integrity cap adjustment to protect the integrity of the tax 

system and reduce the tax gap, returning $32 billion in measurable net savings to taxpayers over ten 

years. 

Treasury's request also includes increased resources for the Office of Terrorism and Financial 

Intelligence and the Financial Crimes Enforcement Network (FinCEN) to continue their critical work 

safeguarding the financial system from abuse and combating other national security threats using nonkinetic economic tools. These resources continue important investments in the Terrorist Financing 

Targeting Center, address sanctions workload increases and demand for staffing, and build core 

information technology infrastructure. The Budget provides funding to expand FinCEN's role in fighting 

cybercrime and the exploitation of emerging payment systems such as cryptocurrency. 

The Budget includes funding increases for the Office of Critical Infrastructure Protection and Compliance 

Policy to enhance Treasury's capacity to identify and remediate new threats and vulnerabilities. 

The FY 2020 Congressional Budget Justification includes the information required for the Annual 

Performance Report. I have validated the accuracy, completeness, and reliability of the performance 

data in this report. 

Sincerely,

Steven T. Mnuchin

U.S. Department of the Treasury

FY 2020 Budget in Brief

Summary of FY 2020 President’s Budget

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

Summary Tables and Charts

FY 2020 President’s Budget Discretionary Appropriations Request........................................................... 1

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

FY 2020 President’s Budget by Strategic Goal .......................................................................................... 5

Summary of FY 2020 Increases and Decreases ........................................................................................ 6

Appropriated Accounts – Bureau Program Detail

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

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

Department-wide Systems and Capital Investment Program....................................................................... 19

Terrorism and Financial Intelligence............................................................................................................ 21

Committee on Foreign Investment in the US (CFIUS)................................................................................. 29

Office of Inspector General.......................................................................................................................... 33

Special Inspector General for TARP............................................................................................................ 37

Treasury Inspector General for Tax Administration ..................................................................................... 43

Community Development Financial Institutions Fund.................................................................................. 47

Financial Crimes Enforcement Network....................................................................................................... 51

Alcohol and Tobacco Tax and Trade Bureau .............................................................................................. 57

Bureau of the Fiscal Service........................................................................................................................ 63

Internal Revenue Service ............................................................................................................................ 69

Non-Appropriated Accounts – Bureau Program Detail

Office of Financial Stability .......................................................................................................................... 79

Office of Financial Research....................................................................................................................... 83

Financial Stability Oversight Council........................................................................................................... 85

Treasury Executive Office of Asset Forfeiture ............................................................................................. 87

Bureau of Engraving and Printing................................................................................................................ 91

United States Mint ....................................................................................................................................... 95

Office of the Comptroller of the Currency .................................................................................................... 99

Treasury Franchise Fund .......................................................................................................................... 103

Treasury International Programs

International Programs .............................................................................................................................. 109

Supplemental Information

Summary of FY 2020 Appropriations Language........................................................................................ 111

Mandatory Funding Levels for the FY 2020 President’s Budget – Treasury Chapter ................................ 119

Total Treasury Department Mandatory Funding ........................................................................................ 120

The information presented in the FY 2020 Budget in Brief is accurate and complete as of 

March 2019. Any updates will be reflected in the budget available on the Department of the 

Treasury website, www.Treasury.gov.

FY 2020 EXECUTIVE SUMMARY

FY 2020 President’s Budget Discretionary Appropriation Request

Department of 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 $12.7 billion in base discretionary resources for the Department of the 

Treasury’s domestic programs, a $62 million or 0.5 % decrease from the FY 2019 enacted level. 

It also requests $1.6 billion for Treasury’s international programs, a $4.5 million or 0.3 % 

increase from the FY 2018 enacted level. The Budget:

• Provides $35 million to fully fund Foreign Investment Risk Review Modernization Act 

(FIRRMA) implementation (partially offset by an estimated $10 million in user fees). By 

modernizing the Committee on Foreign Investment in the United States, FIRRMA improves 

the government’s ability to protect national security while preserving the longstanding open 

investment policy of the United States. The budget includes funding for Treasury in the 

Departmental Offices salary and expenses account ($20 million) and creates a new FIRRMAspecific account to address Committee-wide requirements ($20 million, including $15 

million for Treasury-specific information technology requirements and $5 million to support 

government-wide emerging needs). 

• Provides the Internal Revenue Service (IRS) with $11.5 billion from base discretionary 

appropriations to collect more than $3 trillion in revenue, to deliver quality customer service 

to more than 180 million taxpayers, and to begin to transform systems to improve tax 

administration over the long-term. 

o The request provides $290 million for the multi-year IT modernization efforts. Every 

day, private-sector companies introduce technologies that raise Americans’ expectations 

of the services that they receive from their government. While IRS systems process 

trillions of tax dollars and hundreds of millions of interactions every year, some using 

cutting edge technology, it is increasingly difficult to meet these expectations without 

wholesale changes to the core tax systems. IRS’s computing infrastructure cannot keep 

pace with the desire for instantaneous data, real-time interactions, and taxpayer-centered 

customer service. The cost to operate the IRS technology ecosystem is quickly becoming 

prohibitive. The IRS’s ability to successfully modernize information technology is 

critical to our ability to continue to deliver the IRS mission in a cost-effective way. 

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

support deficit reduction and protect the integrity of the tax system. The FY 2020 Budget 

investment is $362 million. Additional resources will be provided in later years. These 

investments will generate approximately $47 billion in additional revenue and will cost 

approximately $15 billion, yielding estimated net savings of $32 billion over ten years. 

o The request includes $4.7 billion in the enforcement account to stabilize staffing, increase 

future audit rates, improve predictive modeling of tax compliance risk areas, and increase 

the number of identity theft criminal investigations. 

• Provides $236 million for Treasury Departmental Offices to address priorities: fully fund 

FIRRMA implementation, strengthen financial-sector wide cybersecurity vulnerability 

detection and response, and respond to growing workload with an increase for Domestic 

Finance policy and Management staff. 

Department of Treasury - Budget in Brief 2
• Provides $167 million for Treasury’s Office of Terrorism and Financial Intelligence (TFI), a 

$25 million increase over the FY 2018 enacted level; and $125 million for the Financial 

Crimes Enforcement Network (FinCEN), a $10 million increase over the FY 2018 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 rogue regimes, support 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. 

• 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 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. The request includes $206.5 million for the 

first of up to six installments for International Bank of Reconstruction and Development 

general and selective capital increases, which upon payment protect U.S. shareholding at the 

institution. 

• Consolidates and streamlines Federal Financial Literacy Education Efforts. The Budget 

proposes that Federal efforts to promote financial literacy be focused on the high-impact 

areas of: basic financial capability, housing, higher education, military and veteran 

programs, and investment and retirement planning. More than 20 Federal agencies have 

some form of financial education or literacy programs. Collectively, Federal agencies spent 

an estimated $250 million on financial literacy and education activities in 2017. 

Streamlining and consolidating programs and activities will be a multi-year effort.

• 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. 

• Brings accountability and transparency to regulatory oversight functions. The Federal 

Insurance Office within Treasury is coordinating with state insurance regulators and 

insurance industry groups to improve oversight and administration of the Terrorism Risk 

Insurance Program (TRIP), as recommended in Treasury’s October 2017 report to the 

President on asset management and insurance. Treasury is also evaluating reforms, to be 

included in any legislation extending TRIP beyond its current sunset date of December 31, 

2020, to further decrease taxpayer exposure. 

Department of Treasury - Budget in Brief 3
Appropriation Direct Reimb. Total Direct Reimb. Total Direct Reimb. Total

Departmental Offices Salaries and Expenses 772 91 863 689 52 741 745 52 797 Terrorism and Financial Intelligence 408 36 444 495 36 531 545 36 581 Cybersecurity Enhancement 8 8 19 19 11 11 Office of Inspector General 161 3 164 166 3 169 166 3 169 Treasury Inspector General for Tax Administration 764 2 766 800 2 802 800 2 802 Special Inspector General for TARP 131 131 125 125 95 95 Community Development Financial Institutions Fund 66 66 66 66 42 42 Financial Crimes Enforcement Netw ork 280 1 281 332 1 333 359 1 360 Alcohol and Tobacco Tax and Trade Bureau 475 10 485 507 10 517 507 10 517 Bureau of the Fiscal Service1 1,996 11 2,007 2,089 10 2,099 2,031 10 2,041 2,3Internal Revenue Service funded from regular appropriations 73,518 735 74,253 73,933 521 74,454 72,254 521 72,775 Subtotal, Treasury Appropriated Level 78,579 889 79,468 79,221 675 79,856 77,555 675 78,190 Office of Financial Stability (Administrative Account) 32 32 24 24 20 20 Small Business Lending Fund Program 5 5 4 4 4 4 Capital Magnet Fund 4 4 5 5 6 6 Office of Financial Research 185 185 130 130 145 145 Financial Stability Oversight Council 13 13 18 18 18 18 Treasury Franchise Fund 1,643 1,643 1,919 1,919 2,023 2,023 Bureau of Engraving and Printing 1,748 1,748 1,836 1,836 1,863 1,863 United States Mint 1,545 1,545 1,705 1,705 1,705 1,705 Office of the Comptroller of the Currency 3,840 3,840 3,788 3,788 3,788 3,788 Terrorism Insurance Program 4 4 4 4 4 4 IRS Private Collection Agent Program 23 23 112 112 118 118 Subtotal, Treasury Non-Appropriated Level 266 8,776 9,042 297 9,248 9,545 315 9,379 9,694 

Total, Treasury 78,845 9,665 88,510 79,518 9,923 89,401 77,870 10,054 87,884 

3/ Amounts for the IRS exclude the proposed $362 million program integrity cap adjustment that, if enacted, w ould increase IRS levels by an estimated 1,760 FTE in FY 2020. 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. 

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.

2018 Actual 2019 Annualized CR 2020 President's Budget

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

Department of 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 $361,458 $29,253 $340,996 $419,497 $75,608 $1,226,811 

Departmental Offices Salaries and Expenses $89,931 $29,253 $39,584 $25,716 $51,490 $235,973 

Committee on Foreign Investment in the United States1 $10,000 $10,000 Terrorism and Financial Intelligence $166,712 $166,712 Cybersecurity Enhancement $18,000 $18,000 

Department-wide Systems and Capital Investments Program $6,118 $6,118 

Office of Inspector General $37,044 $37,044 Treasury Inspector General for Tax Administration $166,000 $166,000 Special Inspector General for TARP $17,500 $17,500 

Community Development Financial Institutions Fund2 ($9,900) ($1,100) ($11,000)

Financial Crimes Enforcement Network $124,700 $124,700 Alcohol and Tobacco Tax and Trade Bureau $115,427 $115,427 

Bureau of the Fiscal Service $340,337 $340,337 

Tax Administration $11,472,389 $11,472,389 

IRS Taxpayer Services $2,402,000 $2,402,000 IRS Enforcement $4,705,368 $4,705,368 

IRS Operations Support $4,075,021 $4,075,021 Business Systems Modernization $290,000 $290,000 

IRS Cap Adjustment 3 $361,571 $361,571 

IRS Total, Including Cap Adjustment $11,833,960 $0 $0 $0 $0 $11,833,960 

Total, Treasury Appropriations Committee Excluding Cap Adjustment and TEOAF $11,833,847 $29,253 $340,996 $419,497 $75,608 $12,699,200 

Treasury International Programs $32,194 $1,520,011 $1,552,205 

Total, Appropriated Level $11,833,847 $61,447 $340,996 $1,939,508 $75,608 $14,251,405 Non-Appropriated Accounts

Office of Financial Stability (Administrative Account) $53,469 $53,469 

Terrorism Risk Insurance (Administrative) $3,000 $3,000 Financial Stability Oversight Council $5,244 $5,244 $10,487 

Office of Financial Research $37,636 $37,636 $75,271 Bureau of Engraving and Printing $886,887 $886,887 

United States Mint $2,728,168 $2,728,168 Office of the Comptroller of the Currency $872,653 $218,163 $1,090,816 Federal Reserve Bank $622,786 $622,786 Reimbursable to the Federal Reserve Banks $170,615 $170,615 Financial Agent Services $848,400 $848,400 

Total, Non-Appropriated Level $4,530,587 $261,042 $3,000 $1,695,270 $0 $6,489,899 Grand Total $16,364,433 $322,489 $343,996 $3,634,778 $75,608 $20,741,304 

FY 2020 President’s Budget 

1/ Total CFIUS funding is $40 million - includes $20 million in Departmental Offices and $20 million in the CFIUS fund (with $15 million for Treasury). The CFIUS fund will be partially offset by $10 million in user fees. $10 million is the initial estimate for FY 2020 partial year fee revenues and are subject to revision once the regulations are finalized. 2/ This reflects a rescission of $25M in the CDFI Bank Enterprise Award Program3/ The FY 2020 budget includes a program integrity cap adjustment of $361 million (Enforcement $200 million, Operations Support $162 million). 

by Strategic Goal

Department of Treasury - Budget in Brief 5
 

DO CFIUS TFI Cyber DSCIP OIG TIGTA SIGTARP CDFI FinCEN TTB FS IRS Total

FY 2019 Annualized CR Rate $214,576 $0 $141,778 $24,000 $4,426 $37,044 $169,634 $34,000 $250,000 $115,003 $111,439 $338,280 $11,187,554 $12,627,734 

(MCLs)Maintaining Current Levels $1,761 $1,553 $193 $558 $190 $138 $1,194 $1,001 $2,239 $50,565 $59,392 Non-Recurring Costs (22,349) ($4,426) ($26,775)Efficiency Savings/Reinvestment ($1,675) ($3,830) ($109,600) ($115,105Realignment $1,651 (1,651) $0 

Adjustments to Base $1,737 $0 ($2,277) ($24,000) ($4,426) $193 $558 $190 $138 $1,194 $1,001 $2,239 ($59,035) ($82,488)FY 2020 Base $216,313 $0 $139,501 $0 $0 $37,237 $170,192 $34,190 $250,138 $116,197 $112,440 $340,519 $11,128,519 $12,545,246 

Program Decreases ($281) ($4,697) ($16,832) ($236,182) ($2,226) ($3,013) ($7,915) ($271,146)CFIUS User Fees ($10,000) ($10,000)Program Increases 19,660 20,000 27,211 $18,000 $6,118 88 505 142 44 10,729 6,000 7,733 343,870 $460,100 Rescission (25,000) ($25,000)

Subtotal, Program Changes $19,660 $10,000 $27,211 $18,000 $6,118 ($193) ($4,192) ($16,690) ($261,138) $8,503 $2,987 ($182) $343,870 $153,954 resourcesfunded from discretionary FY 2020 President's Budget 

$235,973 $10,000 $166,712 $18,000 $6,118 $37,044 $166,000 $17,500 ($11,000) $124,700 $115,427 $340,337 $11,472,389 $12,699,200 

Program Integrity Cap Adjustment $361,571 $361,571cap adjustmentincluding program integrity FY 2020 President's Budget 

$235,973 $10,000 $166,712 $18,000 $6,118 $37,044 $166,000 $17,500 ($11,000) $124,700 $115,427 $340,337 $11,833,960 $13,060,771 

(Dollars in Thousands)

Summary of FY 2020 Increases and Decreases

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

Program Summary by Budget Activity 

Dollars in Thousands

* FY 2018 shows actual FTE usage. This column reflects levels appropriated in P.L. 115-141 Consolidated Appropriations Act, 2018.

For further details on the execution of these resources see the FY 2020 Appendix chapter for the Department of the Treasury.

Note: FY 2018 CFIUS funds were enacted in the International Affairs and Economic Policy Budget Activity. They are broken out here

for comparison purposes.

Summary

The FY 2020 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. In particular, this request supports the 

Committee on Foreign Investment in the United States (CFIUS) program’s expanded 

responsibilities under the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA), 

expansion of the Office of Tax Policy’s impact analyses of tax regulations, a significant expansion 

of the Office of Critical Infrastructure Protection and Compliance Policy to protect the U.S. 

financial services sector from cyberattacks and improve resilience of critical infrastructure, and 

increased funding for additional Domestic Finance staff to support Administration priorities. 

In addition to requested increases for the Treasury Departmental Offices (DO) Salaries and 

Expenses (SE) account, DO anticipates transferring in and executing $15 million of the $20 million 

CFIUS Fund request. 

This request also consolidates and streamlines federal financial literacy education efforts. The 

budget proposes that federal efforts to promote financial literacy focus on the high-impact areas of

basic financial capability, housing, higher education, military and veteran programs, and 

investment and retirement planning. More than 20 federal agencies have some form of financial 

education or literacy programs. Collectively, federal agencies spent an estimated $250 million on 

these activities in 2017. Streamlining and consolidating programs and activities will be a multiyear effort. 

Department of Treasury - Budget in Brief 7
DO Salaries and Expenses FY 2020 Budget Highlights

Dollars in Thousands

FY 2020 Budget Adjustments 

Adjustments to Request

Maintaining Current Level (MCLs)

Non-Pay +$1,761,000 / +0 FTE 

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

adjustments, postage, supplies, and equipment. 

Transfers

Office of Critical Infrastructure Protection and Compliance Policy’s (OCIP) Cybersecurity 

Enhancement Funding to DO SE +$1,651,000 / +8 FTE 

DO proposes to realign to the DO SE appropriation the portion of OCIP’s funding for financial 

services sector cybersecurity that is currently provided through the Cybersecurity Enhancement 

Department of Treasury - Budget in Brief 8
Account (CEA). This budget-neutral realignment will combine funding for OCIP under the single 

DO SE appropriation and focus CEA solely on enterprise-wide cybersecurity investments. 

Efficiency Savings

Contractual Support -$1,675,000 / -0 FTE 

DO will achieve cost savings and efficiencies in contract services through more efficient oversight 

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

DO components to leverage common technology or administrative support needs. 

Program Increases

Operations and Maintenance (O&M) of Prior-year Enterprise-wide Cybersecurity Investments

+$2,175,000 / +0 FTE 

The FY 2020 request includes funding to support operations and maintenance (O&M) for prior 

year Cybersecurity Enhancement Account investments. O&M will be funded by Treasury Bureaus 

through Treasury Franchise Fund (TFF) billing. This increase represents the bureau’s portion of 

the $17.5 million O&M total. 

Committee on Foreign Investment in the United States (CFIUS) Expansion 

+$5,000,000 / +16 FTE

FIRRMA expanded the jurisdiction of CFIUS to address growing national security concerns over 

foreign exploitation of certain investment structures which traditionally have fallen outside of 

CFIUS jurisdiction. This request funds FTE and contract resource requirements for the Office of 

International Affairs and Office of General Counsel necessary to implement FIRRMA and handle 

the expected workload of 1,000 cases per year (compared to 238 prior to FIRRMA). 

Impact Analyses of Tax Regulations +$1,802,000 / +6 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 of 2017, 

pursuant to a Memorandum of Agreement (MOA) between Treasury and the Office of 

Management and Budget (OMB) in April 2018, Treasury agreed to create a new framework to 

accommodate the Executive Order (EO) 12866 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 $1.802 million and 6 FTE to conduct robust regulatory impact 

analyses of “significant” tax regulations as determined by OMB. 

 

The requested funding would provide the resources needed to comply with 60 potential EO 12866 

reviews in FY 2020 versus 10 regulatory reviews under current funding. These reviews include 

conducting the analyses needed to determine the significance of regulations under EO 12866, 

including whether specific regulations require a regulatory impact analysis, and when needed, the 

creation of this analysis. 

OTP estimates that the Internal Revenue Service (IRS) and Treasury produce approximately 350 

regulatory projects annually. These regulatory projects will be analyzed to determine if regulatory 

impact analysis is required. OTP estimates that 50-60 projects may be deemed significant by OMB

during a fiscal year.

Department of Treasury - Budget in Brief 9
To conduct timely and accurate analysis, OTP will work with the IRS Office of Research, Analysis 

and Statistics (RAAS) to stand up a mirrored server at the RAAS location to provide OTP 

personnel with appropriate applications and storage in order to conduct burden estimates for 

regulatory projects. 

Strengthen the Financial Services Sector’s Cybersecurity and Critical Infrastructure Protection 

(OCIP) +$7,700,000 / +13 FTE 

The U.S. financial services sector faces a broad range of cybersecurity vulnerabilities and physical 

hazards, both domestically and internationally. The United States’ adversaries have grown in 

technical capability, and their attacks have likewise increased in sophistication. This request would 

enable Treasury to proactively reduce risks to the sector by identifying previously unidentified 

vulnerabilities before they can be exploited. 

Vulnerability Identification +$5,300,000 / +7 FTE: 

The FY 2020 request will improve Treasury's capabilities to identify and assess vulnerabilities, 

thereby helping mitigate risks to the financial infrastructure. This will build upon critical financial 

services sector infrastructure process maps developed by OCIP in 2014. Of this request, $3.0 

million will be used to update outdated maps, identify and diagram additional processes, visualize 

linkages among major sector actors, and link to geographically-based risks. 

The remaining $2.3 million of this request will be used to study vulnerabilities at the 27 most 

critical financial institutions and conduct exercises on a broader range of financial services sector 

institutions and sub-sectors. OCIP will also work with the sector to identify and prioritize 

vulnerabilities with an emphasis on the largest financial institutions. This effort will identify 

common systemic risks within these institutions and the other infrastructures on which the sector 

relies (e.g. energy and telecommunications) to pinpoint shared vulnerabilities. 

Without the identification and assessment of these vulnerabilities, the financial system will remain 

exposed to an unacceptable level of risk. Both activities will help identify and avoid potential 

damage from malicious actors as well as natural disasters such as hurricanes and earthquakes.

Early Vulnerability Mitigation/Avoidance +$2,400,000 / +6 FTE: 

To support the President's National Cyber Strategy, issued in September of 2018, OCIP seeks to 

assist the financial services sector by focusing on early detection of a broad range of cybersecurity 

vulnerabilities and developing recommended mitigation strategies. This request will allow 

Treasury and the sector to shift to a more proactive risk reduction approach by finding and 

mitigating vulnerabilities before they can cause damage, reducing the number of incidents as well 

as the cost of the recovery for those that occur. This funding will be used to research and 

understand potential risks of new technology, in particular fintech, promote international 

cybersecurity, expand OCIP's presence at Federal Cyber Centers, and increase collaboration with 

other key U.S. critical infrastructures.

Department of Treasury - Budget in Brief 10
Management Capacity Building to Support Program Initiatives +$885,000 / +2 FTE1

Treasury Management requests funding for the oversight and administrative support associated 

with the growth of program offices. The resources would provide funding for: 

• Two FTE within the Office of Human Resources (OHR) of the Centralized Treasury 

Administrative Services (CTAS) program. OHR is charged with providing direct support for 

the recruitment, staffing, onboarding, engagement, performance and retention of staff for

DO. For example, the CFIUS program office is expected to increase by 55 FTE through FY 

2020. OHR’s current staffing levels will be unable to appropriately support growth in these 

areas and other FY 2020 initiatives.

• Two FTE within the Office of Privacy, Transparency, and Records of the CTAS program. 

There are 1,559 cases pending in FY 2019 compared to 1,259 in FY 2018. Without these 

additional resources, the FOIA backlog will continue to grow by 300 cases per year. Two 

additional FTE would allow PTR to process the same number of requests they receive. 

• One FTE to the Treasury Management and Budget office to work to analyze bureau base 

budgets and resource needs. 

• One FTE to the Office of Strategic Planning and Performance Improvement to support 

increased oversight requirements for the Program Management Improvement and 

Accountability Act, the Foundations in Evidence Building Act, and the President’s 

Management Agenda.

• The Treasury WAVES request system, which is an upgrade of the U.S. Secret Service IT 

System for processing background checks for visitors seeking entrance to the Treasury 

Complex (Main Treasury and the Freedman’s Bank Building). The Treasury WAVES request 

system includes a customer facing application that removes the collection of PII from the 

requestor to the visitors themselves. This program improves the visitor clearance process and 

allows Treasury to carry out its day-to-day business in a more efficient manner. 

Increase Domestic Finance Staff to Support Strategic Objectives and Priority Goals 

+$2,098,000 / +11 FTE 

Between FYs 2016 and 2018, Domestic Finance’s (DF) workforce declined by 50 personnel 

(roughly one-third) within the offices funded by the DO SE appropriation. After a careful review 

of policy priorities and in light of emerging initiatives, Treasury determined that it needs to 

increase DF staff by 11 FTE personnel to achieve the Administration’s goals timely and 

effectively. 

The FY 2020 request would support achievement of the following Treasury and Administration 

strategic objectives by allowing DF to increase staffing to support the following policy objectives:

Office of Assistant Secretary for Financial Markets, +4 FTE 

• Reforming housing finance;

• Monitoring and addressing fiscal issues of state and local governments, including municipal 

bonds and fiscal crises; 

• Implementing the Core Principles recommendations for reforming regulation of the U.S. 

financial system corporate finance; 

• Managing the U.S. debt through securities auctions; and 

1 These FTE numbers include only the direct FTE in DO Salaries and Expenses. The initiative also funds 4 FTE in 

the Treasury Franchise Fund.

Department of Treasury - Budget in Brief 11
• Ensuring accurate and timely fiscal projections of receipts to the government.

Office of the Assistant Secretary for Financial Institutions, +3 FTE

• Implementing the Core Principles recommendations for reforming regulation of the U.S.

financial system corporate finance.

Office of the Fiscal Assistant Secretary (OFAS), +4 FTE

• Managing the U.S. debt through securities auctions;

• Ensuring accurate and timely fiscal projections of receipts to the government;

• Effectively awarding and monitoring compliance of grants for Gulf Coast restoration;

• Improving federal government financial management; and

• Increasing data transparency about government spending.

In addition to supporting these policy objectives, the new personnel for OFAS will help to achieve 

the following Cross-Agency Priority goals: 

• Leverage Data as a Strategic Asset (DATA Act, federal financial management);

• Sharing Quality Services (overseeing the Bureau of the Fiscal Service, which reports to the

Fiscal Assistant Secretary, and leading federal financial management);

• Shifting from Low-Value to High-Value Work (federal financial management);

• Results-Oriented Accountability for Grants (RESTORE Act awards and compliance); and

• Getting Payments Right (managing the Bureau of the Fiscal Service).

Transfers 

CFIUS Fund +$15,000,000 / +0 FTE 

This funding would be transferred from the Committee on Foreign Investment in the United 

States (CFIUS) Fund. This investment will fund development of an end-to-end IT infrastructure 

comprised of a public-facing portal and a case management system to modernize processes and 

to handle anticipated increasing caseloads for CFIUS member agencies that will promote 

efficiencies in the Committee’s processes. This investment is the first year of a multi-year 

project. Treasury will require steady funding through FY 2021 with costs expected to partially 

non-recur as the project moves into operations and maintenance starting in FY 2022. 

Legislative Proposals 

Departmental Offices has no legislative proposals.

DO Salaries and Expenses Performance Highlights

Department of Treasury - Budget in Brief 12
Description of Performance 

DF - 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 2018 was 2.3 percent, which is significantly lower than the 4.25 percent target.

The FY 2018 level was the lowest variance since 2007, when it was 2.1 percent. Because tax 

receipts are quite variable year-to-year and 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. The target for both FYs 2019 and 2020 is 4.25 percent.

IA - 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 FY 2018. IA’s target 

for this measure in FY 2019 and FY 2020 is 100 percent. 

Treasury-wide “Leaders Lead” Index of Federal Employee Viewpoint Survey (FEVS): Treasury 

also set the goal to increase the “Leaders Lead” index above FY 2017 results. Treasury’s score 

for the Leaders Lead Index increased from 55 percent in FY 2016 to 56 percent in FY 2017, and 

held steady at 56 percent in FY 2018. Treasury’s score in FY 2018 was equal to the governmentwide average and the average score for very large agencies. Targets for FYs 2019 and 2020 are 58 

percent. 

Department of Treasury - Budget in Brief 13
Department of Treasury - Budget in Brief 14
Cybersecurity Enhancement Account

Program Summary by Budget Activity 

Summary

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

Enhancement Account (CEA). The FY 2020 Budget Request supports Treasury’s FY 2018-2022 

Strategic Goal: Achieve Operational Excellence.

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. To more proactively and strategically protect Treasury systems against cybersecurity 

threats, the FY 2020 budget requests $18.0 million for the CEA. The 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 components of 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. 

Dollars in Thousands

Cybersecurity Enhancement Account

Appropriated Resources

New Appropriated Resources FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

Cybersecurity Enhancement Account 8 $24,000 19 $24,000 11 $18,000 (8) ($6,000) -42.11% -25.00%

Total Budgetary Resources 8 $24,000 19 $24,000 11 $18,000 (8) ($6,000) -42.11% -25.00%

* FY 2018 FTE and Other Resources are Actuals. This column reflects levels appropriated in P.L. 115-141, the Consolidated Appropriations Act of 2018. For further details on the 

execution of these resources see the 2020 Budget Appendix chapter for the Department of the Treasury.

FY 2018 FY 2019 FY 2019 to FY 2020

Enacted* Annualized CR Request Change % Change

FY 2020

Department of Treasury - Budget in Brief 15
CEA FY 2020 Budget Highlights

Dollars in Thousands

Cybersecurity Enhancement Account FTE Amount

FY 2019 Annualized CR 19 $24,000 

Changes to Base:

Non-Recurring Costs: 

FY 2019 Non-Recurring Costs (11) ($22,349)

Re-alignments: 

OCIP Re-alignment to DO SE (8) ($1,651)

Subtotal Changes to Base (19) ($24,000)

Total FY 2020 Base 0 $0

Program Changes:

Program Increases: 11 $18,000 

Improving High Value Asset (HVA) Cybersecurity 0 $3,800 

Proactive Cyber Risk and Threat Identification 0 $966 

Cybersecurity Enhancements 7 $2,407 

Enhanced Incident Response and Recovery 

Capabilities 2 $10,428 

Enhancements to Cybersecurity Infrastructure 2 $399 

Total FY 2020 Request 11 $18,000 

FY 2020 Budget Adjustments 

Non-Recurring Costs 

FY 2019 Non-Recurring Costs -$22,349,000 / -11 FTE 

This amount represents non-recurring initial investments. 

Re-alignments 

OCIP Re-alignment to DO SE -$1,651,000 / -8 FTE

The Office of Critical Infrastructure Protection and Compliance Policy (OCIP) investment has 

been realigned to the Departmental Offices Salaries and Expenses account. 

Program Increases

Improving High Value Asset (HVA) Cybersecurity +$3,800,000 / +0 FTE 

The HVA Cybersecurity initiative builds on the prior investments to secure Treasury’s top tier 

HVAs and data at rest encryption solutions for payment platforms, tax processing systems, and 

collection processing systems, as well as enhanced user authentication for these systems. It will 

deliver enhanced data assurance capabilities, minimizing accessibility of highly sensitive data in 

the event of compromises to multi-layered defenses and storage solutions. 

Proactive Cyber Risk and Threat Identification +$966,000 / +0 FTE 

This initiative significantly improves network visibility, threat identification, incident response 

time, data aggregation, and data management by Treasury’s enterprise cybersecurity operations 

center. It provides high definition monitoring of IT assets and activities, and detailed visibility 

across the enterprise and into bureau networks. This initiative will result in faster detection, 

response, and recovery time in the event of an advanced persistent threat attack, other malicious 

activities, or negligent acts.

Cybersecurity Enhancements +$2,407,000 / +7 FTE 

This request improves cyber security situational awareness through the implementation of 

processes and automated tools that support cyber information sharing Department-wide and 

Department of Treasury - Budget in Brief 16
eliminates organizational stovepipes that negatively impact the Department’s cybersecurity 

posture. Enhanced situational awareness will provide Department-wide awareness of breaches 

and attack information. It will increase the effectiveness of cybersecurity functions and achieve 

efficiencies through the elimination of redundant efforts.

Enhanced Incident Response and Recovery Capabilities +$10,428,000 / +2 FTE 

This initiative improves the Department’s ability to identify, respond to, and recover from cyber 

threats through the implementation of solutions that support early detection and avoidance of 

currently unknown threats. Activities include retroactive examination of network traffic; 

assessment of adversarial movement; determination of information compromise; implementation 

of mitigations and countermeasures; and reconstitution. The initiative will reduce the risk of 

incident occurrence, minimize their impact, and decrease recovery time.

Enhancements to Cybersecurity Infrastructure +$399,000 / +2 FTE

This initiative will enhance encryption, enterprise-wide identity management, and network 

monitoring and scanning. It is critical to the Department’s cyber posture due to the increases in 

volume, sophistication, frequency, impact, and brazenness of global cyber threats and recent 

privacy breaches (including financial institutions). It will result in higher level of assurance for 

data integrity and access management.

Legislative Proposals 

The Cybersecurity Enhancement Account has no legislative proposals. 

Cybersecurity Enhancement Account Performance Highlights

Budget Activity Performance Measure FY 2016 

Actual

FY 2017 

Actual

FY 2018 

Actual

FY 2019 

Target

FY 2020 

Target

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

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

CEA

Percentage of Tier I High Value Assets (HVA) 

where Risk and Vulnerability Assessment 

(RVA) or Security Architecture Review (SAR) 

are Completed On Time

N/A N/A 100 100 100

CEA Risk Management Assessment Overall Rating N/A N/A 68 60 70

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: The number of cybersecurity incidents reported by Treasury to the 

United States Computer Emergency Readiness Team (US-CERT) in a given fiscal year. This is a 

measure of how effective Treasury’s defenses are at mitigating all security threats, as well as an 

indicator of how often Treasury is being targeted by malicious actors. If the number of reported 

incidents rises while the number of major incidents remains steady, it may indicate an effective 

Department of Treasury - Budget in Brief 17
cybersecurity program. The incidence of intrusion events at Treasury has not remained constant 

over time, and our projections must be used as a baseline to measure against. As noted in the 

Actual value column, there was an actual reduction in incidents for FY 2018 in comparison to

those projected by Treasury. This is likely the result of changes in the reporting criteria applied 

during the course of the year. As new incident recognition investments are implemented within 

Treasury throughout FY 2019, the target goals for FY 2019 are expected to show an increase in 

recognized incidents of up to 25 percent from FY 2018 actuals, applying the same criteria, within 

the FY 2019 timeframe. Allowing for increasing preventative measures, FY 2020 should remain 

flat from FY 2019 numbers. The FY 2019 and FY 2020 targets of 280 reported incidents, 

representing a 25 percent increase in the visibility of incidents, will be met through training, 

implementation of technology, and interagency collaboration. 

Percentage of Tier I High Value Assets (HVA) with Risk and Vulnerability Assessment (RVA) or 

Security Architecture Review (SAR) Completed On Time: The percentage of Treasury’s top tier 

high value assets, which were scheduled for a third party risk assessment, for which the 

assessments were completed on time. This is a measure of the extent to which Treasury’s most 

important systems are being actively reviewed and assessed for weaknesses that could be exploited 

by an adversary. The FY 2020 performance target of 100 percent (of the current annual target of 

5 HVA systems to be assessed) will be met through continuing current staffing levels and 

interagency collaboration. Although Treasury has been able to meet its HVA assessment goals 

thus far, additional challenges are foreseen for the short-, mid- and long-terms. Pending changes 

may result in a reduced number of Department of Homeland Security- (DHS-) funded RVA and 

SAR assessments. As a result of this change, continued success at the 100 percentage level will 

require the Department to offset the DHS reduction by funding additional 3rd party RVA/SAR 

assessments to meet OMB compliance requirements, ensuring that Treasury HVAs are 

appropriately identified and can be mitigated from cyber risks with potentially significant impacts 

to the Federal enterprise and/or national economy. Factors such as the likely greater complexity 

imposed in Federal requirements and mandates for assessments/reviews, as well as an ongoing reevaluation of HVA systems, requires continuing investment in a well-founded HVA management 

structure, which Treasury has been addressing through its Cybersecurity Enhancement Account 

(CEA) program.

Risk Management Assessment Overall Rating: This is an assessment performed by OMB to 

evaluate agencies’ overall cybersecurity risk management capabilities. It consists of a risk 

management rating and a maturity rating. The Risk Management Assessment rating is based on 

agency responses to the reporting metrics of the Federal Information Security Modernization Act 

of 2014 (FISMA). In December 2018, the Office of Management and Budget revised the FISMA 

reporting metrics, eliminating several measures that had been factored into the Risk Management 

Assessment calculus. As a result of these changes to the reporting metrics, agency Risk 

Management Assessment ratings are expected to decline. Treasury has accounted for this by 

setting a performance target for FY 2019 that is slightly below the actual rating achieved in 

FY 2018, with a rebound anticipated in FY 2020 based on cybersecurity enhancement investments 

that are planned to mature by that time. This is a measure of how well Treasury is managing risk 

across the enterprise as well as the maturity level of the program. The FY 2020 target Risk 

Management Rating of 70 percent will be met through increased training, implementation of 

technology, and continued federal support. 

Department of Treasury - Budget in Brief 18
Department-wide Systems and Capital Investments Program 

Program Summary by Budget Activity 

Summary

The Department-wide Systems and Capital Investments Program (DSCIP) account provides a 

mechanism for Treasury to fund capital investments that have complex contracts with projects that 

span several fiscal years. 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. It is estimated that it will cost $95.5 million to 

address the remaining issues identified in the report. The assessment was validated in FY 2017 by 

an external architectural and engineering firm. 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 FY 2020 request of 

$6.118 million addresses MT and FBB repair and restoration. The DSCIP investments support the 

Treasury goal to Achieve Operational Excellence. 

DSCIP FY 2020 Budget Highlights

Dollars in Thousands

Department-wide Systems and FY 2018 FY 2019 FY 2020

Capital Investments Program Enacted Annualized CR Request $ Change % Change

 DSCIP $4,426 $4,426 $6,118 $1,692 38.23%

Total Program Operating Level $4,426 $4,426 $6,118 $1,692 38.23%

FY 2019 TO FY 2020

Department-wide Systems and Capital 

Investments Program FTE Amount

FY 2019 Annualized Continuing Resolution 0 $4,426

Changes to Base:

Non-Recurring Costs 0 ($4,426)

Zero Based Budget 0 ($4,426)

Subtotal Changes to Base 0 ($4,426)

Total FY 2020 Base 0 $0

Program Increases: 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

Total FY 2020 Request 0 $6,118

Dollars in Thousands

Department of Treasury - Budget in Brief 19
FY 2020 Budget Adjustments 

Adjustments to Request

Program Decreases

Non-Recur -$4,426,000 / -0 FTE

These funds are provided for repairs to the Main Treasury and Freedman’s Bank Building.

Program Increases +$6,118,000 / +0 FTE 

FBB Domestic Water Line Repair +$1,500,000 / +0 FTE 

The sole domestic water supply line for the Freedman’s Bank Building is well beyond its useful 

life expectancy. Temporary repairs have been made to the piping, but its condition poses a 

significant risk for the line failing and the building losing its only domestic water supply. This 

project will replace the corroded piping from the street main into the building, install a new main 

isolation valve, and also install a code compliant water backflow assembly with a drain. 

FBB Repair and Restoration (Phase 2) +$1,500,000 / +0 FTE

The exterior façade is undergoing a comprehensive restoration due to 100 years of wear and 

pollutants. The perimeter exterior façade has open masonry joints that have been leaking for years 

as a result of systematic building failures. The masonry restoration will provide a watertight 

envelope and stabilize all the historic fabric. The scope will address repair, cleaning, and repointing 

of all masonry surfaces. 

MT Repair and Restoration (Phase 1) +$3,118,000 / +0 FTE 

The exterior façade has heavy staining and open masonry joints and is in need of comprehensive 

repair and restoration to prevent further damage. Perimeter exterior walls have been leaking for 

years as a result of systematic building failures. Water infiltration creates a risk of mold

development in office spaces and results in costly plaster and paint damage to the historic interiors. 

The masonry restoration will provide a watertight envelope and stabilize all the historic fabric. 

The scope will address repair, cleaning, and repainting of all masonry surfaces. 

Legislative Proposals 

The Department-wide Systems and Capital Investments Program has no legislative proposals. 

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 2020 

request addresses MT and FBB repair and restoration. 

Department of Treasury - Budget in Brief 20
Terrorism and Financial Intelligence

Program Summary by Budget Activity 

⃰FY 2018 shows actual FTE usage. This column reflects levels appropriated in P.L. 115-141 Consolidated Appropriations Act, 2018. 

For further details on the execution of these resources see the FY 2020 Appendix chapter for the Department of the Treasury.

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 2020 Budget Request 

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

Achieve Operational Excellence.

TFI requests $166.712 million, which is a $24.934 million increase from the FY 2019 Annualized 

Continuing Resolution. 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, 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. 

Dollars in Thousands

FY 2018 FY 2019 FY 2020

Terrorism and Financial Intelligence Enacted Annualized CR Request $ Change % Change

Terrorism and Financial Intelligence $141,778 $141,778 $166,712 $24,934 17.59%

Subtotal, TFI $141,778 $141,778 $166,712 $24,934 17.59%

 Transfer out to Dept Office S&E ($31,452) $0 $0 $0 NA

 Payments to Treasury Franchise Fund $0 ($31,452) ($35,094) ($3,642) 11.58%

 Reimbursables $8,626 $8,626 $8,626 $0 0.00%

Total Program Operating Level $118,952 $118,952 $140,244 $21,292 17.90%

Direct FTE 408 495 545 50 10.10%

Reimbursable FTE 36 36 36 0 0.00%

Total FTE 444 531 581 50 9.42%

FY 2019 TO FY 2020

Department of Treasury - Budget in Brief 21
Terrorism and Financial Intelligence FY 2020 Budget Highlights

Terrorism and Financial Intelligence FTE Amount

FY 2019 Annualized CR 495 $141,778

Changes to Base:

Maintaining Current Levels (MCLs) 0 $1,553

Non-Pay 0 $1,553

Efficiency Savings 0 ($3,830)

Subtotal Changes to Base 0 ($2,277)

Total FY 2020 Base 495 $139,501

Program Changes:

Program Increases: 50 27,211

Operations and Maintenance (O&M) of Prior-year 

Enterprise-w ide Cybersecurity investments

0 $2,277

Terrorist Financing Targeting Center 10 $6,211

Terrorist Finance and Financial Crimes 2 $530

TFI National Security Programs 27 $6,634

Committee on Foreign Investment in the United States 3 $859

IT Infrastructure Investments 8 $10,700

Total FY 2020 Request 545 $166,712 $ ,

Dollars in Thousands

FY 2020 Budget Adjustments 

Adjustments to Request

Maintaining Current Level (MCLs)

Non-Pay +$1,553,000 / +0 FTE 

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

Efficiency Savings -$3,830,000 / -0 FTE

TFI Contractual Support -$3,830,000 / -0 FTE 

TFI will achieve cost savings and efficiencies in contract services through more efficient oversight 

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

and DO components to leverage common technology or administrative support needs. 

Program Increases +$27,211,000 / +50 FTE

O&M of Prior-Year Enterprise-wide Cybersecurity Investments +$2,277,000 / +0 FTE 

This request includes funding to support O&M for prior-year Cybersecurity Enhancement Account 

investments. O&M will be funded by Treasury Bureaus through Treasury Franchise Fund billing. 

This increase represents the TFI portion of the $17.5 million O&M total. 

Terrorist Financing Targeting Center +$6,211,000 / +10 FTE 

On May 21, 2017, the United States and the six Gulf Cooperation Council countries signed an 

historic agreement announcing a joint commitment to establish the Terrorist Financing Targeting 

Center (TFTC). The TFTC’s efforts support the Administration’s priorities to fight terrorism in 

new and innovative ways through a multilateral initiative that will dramatically increase the ability 

to curb terrorist financing. The TFTC has already resulted in greater regional cooperation as 

evidenced by the sharing of intelligence, the capacity building, and the joint designations by the 

seven participating members of TFTC that targeted terrorist leaders, financiers, and facilitators. 

The TFTC will continue to disrupt the finances and operations of terrorist organizations by 

Department of Treasury - Budget in Brief 22
identifying, tracking, and sharing information regarding terrorist financial networks; coordinating 

joint disruptive actions, like sanctions; and offering support to countries in the region that need 

assistance building capacity to counter terrorist finance threats. 

Terrorist Finance and Financial Crimes +$530,000 / +2 FTE 

TFI requests two FTEs to develop and build global capacity to combat illicit financing in the 

international arena. These FTEs will be responsible for establishing strategies and employing 

targeted financial measures to disrupt and dismantle the financial networks that support terrorism, 

proliferation of weapons of mass destruction, and organized crime. 

TFI National Security Programs +$6,634,000 / +27 FTE 

Treasury requests additional staffing to support its ever increasing role in the Administration's 

efforts to apply economic pressure in pursuit of national security and foreign policy goals. This 

has included the use of unilateral designations and other economic authorities, as well as working 

with other countries to increase multilateral economic pressure and continuous interaction with the 

financial and private sector through advisories and engagement to cut off malign actors’ access to 

the international financial system. As the number of sanctions programs continues to grow, there 

is a crucial need for increasing intelligence, policy, and targeting staff to identify and take 

impactful actions against the individuals, entities, and their networks responsible for this 

dangerous and malign behavior. Many of these actors have complex business structures that are 

well integrated into the global markets, which requires additional analysis and post-designation 

support to ensure that the actions have maximum impact on malign activity while minimizing the 

collateral damage to U.S. businesses and our allies. 

This requested staffing increase will address personnel needs, including Virtual Currency, Cyber, 

Iran, Russia, Human Rights/Corruption, and Counterterrorism Programs. These are high priority 

areas for the Administration and Treasury and constitute the majority of taskings and requirements 

levied upon TFI and its component offices. Below are some highlights of TFI’s activities:

• The use of virtual currency is expanding rapidly with instances of its use having been identified 

in many key sanctions programs, including Russia, Iran, and Venezuela. This request will help 

support additional intelligence, targeting, and policy expertise to ensure that TFI and Treasury 

remain well positioned to stay ahead of emerging financial threats in this space. 

• TFI will increase intelligence, policy, and targeting personnel to support the Administration’s 

priority in countering Iran’s malign behavior and Russia’s destabilizing activities. This 

includes Treasury’s ongoing efforts to implement the Countering America’s Adversaries 

Through Sanctions Act (CAATSA) targeting and reporting requirements. The Administration 

remains committed to countering the threat posed by Iran by using Treasury’s economic 

authorities to deny the regime and the Islamic Revolutionary Guard funding for malign 

activities, including its support for terrorism and regional destabilization in Yemen and Syria. 

Treasury’s Russia-related sanctions program remains a top priority as well, with strategic, 

complex actions that target key actors across the full range of Russian malign activity, to 

include malign cyber activities, interference in democratic elections, aggressive behavior in 

Ukraine, and purported illegal annexation of Crimea as well as its continued support for the 

Assad regime. 

• The December 2017 Executive Order implementing the Global Magnitsky Act highlights 

Treasury’s critical role in identifying and financially isolating those who destabilize countries 

Department of Treasury - Budget in Brief 23
and regions by pilfering the wealth and resources of their nation or commit human rights abuse 

and atrocities. TFI’s use of these authorities has already impacted individuals across the globe 

and changed the way regimes are operating, directly advancing objectives outlined in the 

National Security Strategy. These funds will support TFI in supporting policy, intelligence, 

and targeting efforts in this program. 

• TFI monitors and takes action against numerous terrorist entities across the globe, an effort 

that has become increasingly complex as terrorist groups continue to splinter and fracture into 

more independently operated organizations. This request will assist in supporting TFI’s efforts 

in maintaining persistent pressure to disrupt the financing of these terrorist organizations. 

Committee on Foreign Investment in the United States +859,000 / +3 FTE 

Additional TFI resources are required to meet the increase in the CFIUS caseload. 

IT Infrastructure Investments +$10,700,000 / +8 FTE 

Treasury Financial Intelligence Network (TFIN) +$4,498,000 / +2 FTE 

• IT Infrastructure upgrade - Increases bandwidth on existing infrastructure in support of the 

TFI expansion and build a more robust capability for TFI’s collaborative data discovery 

initiative. Currently, TFI’s virtual desktop infrastructure is not sufficient to support the new 

demands of data analytics. Without more processing power, TFIN users will continue to lack 

the ability to query certain databases or effectively utilize analytic tools, undermining OIA’s 

ability to support TFI efforts to identify, disrupt, and dismantle threats to the United States and 

international financial system.

• TFIN Network Defense - Enhances the ability to monitor the classified network against cyber 

threats by incorporating more comprehensive and integrated risk and threat management. 

Without enhanced network defense capabilities, Treasury’s classified network may potentially 

be vulnerable to cyber threats like network intrusions, malicious actors, or other vulnerable 

exploits. Cyber defense services are critical components to detect, monitor, and analyze TFIN 

network elements to keep our organization’s data center healthy and functional. 

• Multi-factor Authentication (MFA) - Creates a layered defense and make it more difficult for 

an unauthorized person to access a target such as a physical location, computing device, 

network, or database. Failure to effectively use current MFA technologies on TFIN would 

result in vulnerable computing devices, networks, or databases. 

• Cross Domain - One Way Transfer (OWT) - Implements the OWT system that provides 

secure transfer of data between the unclassified domain to that of a higher security level using 

proven technology that automatically scans files for viruses. Manually transferring data is 

cumbersome, time consuming, and often impacts data confidentiality, integrity, and 

availability. OWT systems reduce the amount of time currently required to transfer data from 

lower to higher classification systems.

User Activity Monitoring (UAM) on Unclassified Bureau Networks +$3,047,000 / +4 FTE 

Rapid technological advances are allowing a broad range of foreign intelligence entities (FIEs) to 

field increasingly sophisticated capabilities and aggressively target the government, including

Treasury. FIEs are proactive and use creative approaches—including malicious insiders threats—

to advance their interests and gain advantage over the United States. To mitigate these threats, the 

Office of Counterintelligence (OCI) must drive innovative counterintelligence (CI) and insider 

threat solutions to include implanting more effective monitoring solutions. This request includes 

Department of Treasury - Budget in Brief 24
funding for UAM licenses, hardware, software, and professional services, as well as additional 

insider threat analysts and CI investigators. Treasury Order 105-20 (Revised) will give the OCI 

the authority to monitor all cleared users on unclassified networks. As 75 percent of Treasury's 

cleared population is employed by the bureaus, and the exfiltration of sensitive information is most

likely to occur on an unclassified network, this is a critical need. This deployment will cover over 

100,000 endpoints and collect activity data on approximately 5,000 employees. The additional 

analysts and investigators will support this expanded effort, as well as the launch of Treasury’s 

Insider Threat Reporting Guidelines, which will be disseminated Department-wide and require all 

Treasury employees and insider threat stakeholders to report CI and insider threat indicators; OCI 

anticipates a significant increase in CI and insider threat reporting due to its publication. The 

overall increased workload will greatly exceed levels manageable with current Insider Threat 

Program staffing. 

OFAC-wide IT Infrastructure +3,117,000 / +2 FTE 

• Enhancement to the OFAC Administrative System for Investigations and Sanctions 

(OASIS) to aid with TAR Processing. Further automates the Terrorist Assets Report (TAR) 

to Congress by enabling the electronic upload of data from financial institutions directly into 

OFAC’s collection system instead of having the data manually transmitted to OFAC and reentered into the system by employees, introducing the opportunity for error. While an 

important measurement of the blocked assets of State Sponsors of Terrorism as well as terrorist 

groups, OFAC’s preparation of the annual TAR remains a labor-intensive, mostly manual 

process. This enhancement will allow OFAC to replicate automation gains already 

implemented on some programs across additional sanctions programs. 

• Secure Online Communications Tool. Completes secure bi-directional, data/ecommunication transfers with the public in order to allow financial institutions to file 

information required by OFAC regulations (such as blocking reports) in a secure and 

expeditious manner. This initiative will transform the public’s ability to submit and track 

respective OFAC transactions, including maintaining an online account with OFAC, and 

improve OFAC’s communication with the general public. The solutions to date have either 

been cost-prohibitive or inefficient, requiring a visit to the public institution seeking to 

establish a connection. OFAC has identified a government-approved, secure, sustainable, and 

efficient bi-directional solution to solve this need, and OFAC is in the process (via prototype) 

of implementing the solution for the Banking Institution High Volume Blocking report filers. 

This request would take the prototype to a production system and will be greeted as a 

significant step forward. 

• OFAC Classified Network e-workflow and Case Management. Enhances the hardware and 

software necessary to enable case management functionality on Treasury’s classified networks 

that mirrors OFAC’s unclassified OASIS case management system. These enhancements will 

allow for the installation of the software necessary to support case management, TFI 

collaboration, and other analytical efforts on Treasury’s high and mid-side networks. 

• TFIN Enhancement Information Analysis Project. Complements the larger TFI-wide data 

discovery and analysis initiative by providing mature data analytics functionality on TFIN for 

disparate OFAC (and TFI) investigative data sets. With this investment, TFI would be able to 

perform maintenance on existing designees, with the expectation of a 150 percent increase in 

ISIS terrorism targets, by introducing the ability to identify direct and indirect relationships in 

Department of Treasury - Budget in Brief 25
a way not possible without this technology and a 50 percent increase in targeting across other 

counter terrorism groups. 

Legislative Proposals 

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

Terrorism and Financial Intelligence Performance Highlights

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

Actual Actual Actual Target Target

Impact of TFI Programs and Activities 8.7 8.5 DISC DISC DISC

New or Modifications to Existing 

Sanctions Programs

N/A 5 6 I I 

Number of Designation Actions N/A 867 725* I I 

Analytic Intelligence Support N/A 385 704 I I 

Review and Support of Foreign AML/CFT 

Laws and Regulations

N/A 49 64 I I 

Key: I - Indicator 

* This number does not include the more than 700 individuals, entities, aircraft and vessels sanctioned on November 5, 2018, as part of the reimposition of the U.S. nuclear-related sanctions that were lifted or waived in connection with the Joint Comprehensive Plan of Action (JCPOA). 

Although technically completed in FY 2019, the vast majority of the work was completed in FY 2018. 

Description of Performance 

Impact of TFI Programs and Activities: To gauge its performance, TFI previously used a 

composite measure consisting of three program office focus areas related to its mission and 

strategic goals, including customer outreach, increasing production and dissemination of 

intelligence products, and implementing IT modernization projects. TFI discontinued this measure 

in FY 2018 but proposes four new measures with targets for FY 2019 and FY 2020. 

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. 

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 

Department of Treasury - Budget in Brief 26
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.

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 AML/CFT Standards. The data 

is collected from 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 multilateral meetings, foreign travel, and reviewing draft legislation.

Department of Treasury - Budget in Brief 27
Department of Treasury - Budget in Brief 28
Committee on Foreign Investment in the United States

Program Summary by Budget Activity 

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 facilitates 

the leveraging of skills, subject matter expertise, and integrated analysis across the Committee. 

CFIUS voting member agencies 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

• U.S. Trade Representative

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

policies, implementing processes and functions, and in its daily operations. Treasury participates 

in every aspect of the process, including reviews and investigations, mitigation and oversight, nonnotified transaction analysis, legal support, and national security threat assessments. The Office 

of International Affairs (IA) is responsible for case management and coordination for the 

Committee in addition to representing the Committee to parties who file notices. The Office of 

General Counsel (OGC) provides legal support to IA in its role as Chair and Member and is 

responsible for certain analyses conducted on each notice filed with the Committee.

The Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA) modernized and 

expanded the jurisdiction of the CFIUS to address growing national security concerns over foreign 

exploitation of certain investment structures which traditionally have fallen outside of the 

Committee’s jurisdiction. Additionally, FIRRMA modernized CFIUS’ processes to better enable 

Department of Treasury - Budget in Brief 29
timely and effective reviews of covered transactions. 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 CFIUS functions and responsibilities and collect filing fees.

In recent years, CFIUS caseload has increased in volume and complexity. CFIUS handled less 

than 100 cases in calendar year (CY) 2010 compared to 238 in CY 2017. Transactions have also 

become more complex which has contributed to an increasing investigation rate. CFIUS generally 

investigates cases that require more resource intensive analysis and/or corrective action. In CY 

2007, CFIUS investigated approximately four percent of cases compared to approximately 73 

percent in CY 2017. The FY 2020 budget requests resources necessary to implement FIRRMA 

and handle an expected 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 $10 million in offsetting collections from filing fees, which will be established in 

forthcoming regulation. $15 million of these funds are proposed for transfer to Treasury to fund 

long-term and capital investments. The remaining $5 million will be available for transfer to other 

agencies, to facilitate, for example, interagency connectivity with Treasury’s IT and case 

management systems, and to address emerging needs.

Department of Treasury - Budget in Brief 30
CFIUS FY 2020 Budget Highlights

The total request for Treasury is $35 million, with requested funding increases shown in the two 

Budget Adjustment tables below.

FY 2020 Budget Adjustments 

Adjustments to Request

Offsetting User Fees -$10,000,000 / +0 FTE

Treasury and CFIUS anticipate collection of filing fees that will be credited to the fund as offsetting 

collections. 

Department of Treasury - Budget in Brief 31
Program Increases +$20,000,000 / +0 FTE 

Transfer to Treasury CFIUS Program +$15,000,000 / +0 FTE 

This funding would be transferred from the Fund to Departmental Offices’ Salaries & Expense 

account. This investment will fund development of an end-to-end IT infrastructure comprised of a 

public-facing portal and a case management system to modernize processes and to handle 

anticipated increasing caseloads for CFIUS member agencies that will promote efficiencies in the 

Committee’s processes. Treasury conducted an extensive analysis of alternative systems and found 

the best value for such a case management system to come at a cost of approximately $13 million. 

This will include the ability to work in both classified and unclassified environments, meeting 

FedRAMP high certification requirements. In addition, the remaining $2 million will fund 

expected increases in secure space to support Treasury’s expected CFIUS employee footprint, data 

subscriptions, and temporary contractor resources. The expanded writ of CFIUS under FIRRMA 

is expected to lead to a further increase in complex cases reviewed by the Committee, many of 

which will include investigating new sectors currently outside of the expertise of CFIUS staff. To 

address these expertise gaps Treasury requires an expanded set of data subscriptions and will 

complement federal staff with temporary contractor resources. This request represents the first 

year of several multi-year projects. Treasury will require steady funding with costs expected to 

partially non-recur as the IT infrastructure projects move from development into operations and 

maintenance. 

Available for Transfer to Member Agencies +$5,000,000 / +0 FTE 

This investment will be available for transfer to other CFIUS agencies to facilitate, for example, 

interagency connectivity with Treasury’s IT and case management systems, and for related 

operations. 

Legislative Proposals 

CFIUS has no legislative proposals. 

Description of Performance 

This fund will be used in concert with CFIUS funds provided for Treasury in the Departmental 

Offices Salaries & Expenses (DO S&E) account. These accounts must both be fully funded in 

order for Treasury to achieve its post-FIRRMA CFIUS mission requirements. 

FIRRMA authorized CFIUS to identify and respond to developing trends, such as the more 

frequent need to use mitigation measures to neutralize identified national security risks; the 

increasing prevalence of complex acquisitions; and the use of new types of transactions that 

could pose national security concerns. CFIUS requires commensurate appropriations in order to 

fully implement these new authorities. Full funding of this account and the DO S&E account 

will promote the identification and mitigation of national security concerns while reducing case 

review and investigation periods, and ensuring the United States’ continued open investment 

environment. 

Department of Treasury - Budget in Brief 32
Office of Inspector General

Program Summary by Budget Activity

Dollars in Thousands

FY 2018 FY 2019 FY 2020 FY 2019 TO FY 2020

Budget Activity Enacted * Annualized 

CR Request $ Change % Change

Audit $24,413 $28,524 $28,524 0 0.00% 

Investigations $11,512 $8,520 $8,520 0 0.00% 

Subtotal, OIG $35,925 $37,044 $37,044 $0 0.00% 

Offsetting Collections - Reimbursables $6,116 $9,000 $9,000 $0 0.00%

Total Program Operating Level $42,041 $46,044 $46,044 $0 0.00%

Direct FTE 161 166 166 0 0.00% 

Reimbursable FTE 3 3 3 0 0.00%

Total FTE 164 169 169 0 0.00%

* FY 2018 shows actual FTE usage. This column reflects levels appropriated in P.L. 115-141 Consolidated Appropriations Act, 2018.

For further details on the execution of these resources see the FY 2020 Appendix chapter for the Department of the Treasury.

Summary

The FY 2020 request for $37,044,000 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; DoddFrank Wall Street Reform and Consumer Protection Act (Dodd-Frank); Federal Information 

Security Modernization Act of 2014 (FISMA); 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.

With the resources available after mandated requirements are met, the OIG will conduct audits of 

the highest risk programs and operations and respond to stakeholder requests for specific work as 

appropriate. Some of the Department’s highest risk programs and operations are identified as part 

of the Department’s management and performance challenges: (1) Operating in an Uncertain 

Environment, (2) Cyber Threats, (2) Anti-Money Laundering/Terrorist Financing and Bank 

Secrecy Act Enforcement, and (4) Efforts to Promote Spending Transparency and to Prevent and 

Detect Improper Payments. 

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

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

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

Department of Treasury - Budget in Brief 33
and performance challenge include: (1) Federal Statutory and Regulatory Compliance, and (2)

Grant and Interagency Agreement Compliance Monitoring. 

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 Governmentwide 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. 

OIG FY 2020 Budget Highlights

Dollars in Thousands

Office of Inspector General FTE Amount

FY 2019 Annualized CR 166 $37,044 

Changes to Base:

Maintaining Current Levels (MCLs): 0 $193 

Non-Pay 0 $193 

Subtotal Changes to Base 0 $193 

Total FY 2020 Base 166 $37,237 

Program Changes:

Program Decreases

Reduction in Staffing and Absorption of Rent Increase 0 ($281)

Program Increases:

Operations and Maintenance (O&M)

of Prior-year Enterprise-wide Cybersecurity investments 0 $88 

Subtotal Program Changes 0 ($193)

Total FY 2020 Request 166 $37,044 

Department of Treasury - Budget in Brief 34
FY 2020 Budget Adjustments 

Adjustments to Request

Maintaining Current Levels (MCLs)

Non-Pay +$193,000 / +0 FTE 

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

postage, supplies, and equipment. 

Program Decreases 

Reduction in Staffing and Absorption of Rent Increase -$281,000 / -0 FTE 

Program decrease to meet guidance and accommodate GSA rent increase.

Program Increases

Operations and Maintenance (O&M) of Prior-year Enterprise-wide Cybersecurity investments

+$88,000 / +0 FTE

The FY 2020 request includes funding to support operations and maintenance (O&M) for prior 

year Cybersecurity Enhancement Account investments. O&M will be funded by Treasury Bureaus 

through Treasury Franchise Fund (TFF) billing. This increase represents the bureau’s portion of 

the $17.5 million O&M total. 

Legislative Proposals 

OIG has no legislative proposals. 

OIG Performance Highlights

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

Budget Activity Performance Measure Actual Actual Actual Target Target

Audit Number of Completed Audit Products 98 90 91 74 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 84 98 80 80

Description of Performance 

The Office of Audit completed 91 audit products in FY 2018 and expects to complete 74 in 

FY 2019 due to the reduced funding and a significant rent increase that will consume resources 

that would otherwise be used to fully staff the Office of Audit. In FY 2018, the Office met its 

mandated audit requirements and identified $130,668 in monetary benefits.

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. 

In FY 2018 the OIG exceeded the Investigative Performance Measure target, opened 100 new 

investigations, and closed 133 investigations. The OIG also referred six investigations that 

Department of Treasury - Budget in Brief 35
substantiated administrative violations against a Treasury employee to the appropriate regulated 

bureau for action. In addition, the OIG referred 135 investigations for criminal prosecution and 

37 investigations for civil prosecution. The OIG arrested 160 subjects leading to 52 convictions. 

This, along with civil judicial settlements, resulted in recoveries ordered to the Treasury of more 

than $639 million. The OIG received investigative referrals regarding potential criminal 

misconduct that occurred prior to or during bank failures, and has worked criminal investigations 

with the Federal Deposit Insurance Corporation Office of Inspector General, the National Credit 

Union Administration Office of Inspector General and the OIG Office of Audit 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. 

Department of Treasury - Budget in Brief 36
Special Inspector General for TARP

Program Summary by Budget Activity 

Dollars in Thousands

FY 2018 FY 2019 FY 2020 FY 2019 TO FY 2020

Budget Activity Enacted *

Annualized 

CR Request $ Change % Change

Investigations $28,220 $28,900 $15,050 ($13,850) -47.92%

Audit $5,780 $5,100 $2,450 ($2,650) -51.96%

Subtotal, SIGTARP $34,000 $34,000 $17,500 ($16,500) -48.53%

Other Resources $1,542 $0 $7,500 $7,500 N/A

Total Program Operating Level $35,542 $34,000 $25,000 ($9,000) -26.47%

Direct FTE 131 125 95 (30) -24.00%

Total FTE 131 125 95 (30) -24.00%

* FY 2018 shows actual FTE usage. This column reflects levels appropriated in P.L. 115-141 Consolidated Appropriations Act, 2018. 

For further details on the execution of these resources see the FY 2020 Appendix chapter for the Department of the Treasury.

Summary

The FY 2020 Budget proposes $17,500,000,1 a 49 percent reduction from both the FY 2019 

Annualized CR level and the FY 2018 enacted level. The proposed budget is intended to fund the 

mandated independent oversight of TARP, which impacts all 50 states, to include the $34 billion 

that has and will be spent through 2023 for TARP foreclosure prevention programs, such as the 

Making Home Affordable (MHA) and the Hardest Hit Fund (HHF) programs. Through FY 2018, 

banks, mortgage servicers, state agencies, thousands of contractors and other recipients have 

already received $28 billion for TARP foreclosure prevention programs (nearly $3 billion that

year), with nearly $6 billion left to spend through 2023. 

SIGTARP’s audit and investigation goals and priorities are driven by independently-identified 

TARP threats and findings of fraud, waste, and abuse. SIGTARP’s goals through 2023 are: 

• Justice - protect Americans through law enforcement’s fight against TARP-related crime; 

• Impact - assess, understand, and counter the most serious risks, threats, and challenges to 

TARP; 

• Innovation - expand the use of technology, virtual information sharing, and data analytics to 

increase the expedited identification of TARP-related crime, fraud, waste and abuse; and

• Stewardship - ensure TARP programs and oversight proceed responsibly and transparently. 

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; (2) 

promote financial stability; (3) enhance national security; (4) transform government-wide financial 

stewardship; and (5) 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 2020 

budget request of $17.5 million would substantially inhibit the Special Inspector General from 

performing the duties of the office. The President’s budget request is a 49 percent reduction from 

the FY 2018 enacted level and a 24 percent reduction from the FY 2019 enacted level, despite that 

TARP foreclosure prevention programs continue to spend (nearly $3 billion last year), and carry a 

1 Includes $50,000 for training and $50,000 for the Council of the Inspectors General on Integrity and Efficiency.

Department of Treasury - Budget in Brief 37
high risk of fraud, waste, and abuse. I independently proposed an appropriation of $23 million for 

FY 2020, which is an additional $5.5 million, and I respectfully request that Congress consider 

this amount. That level is flat with the FY 2019 enacted level, and is a 32 percent reduction from 

the FY 2018 enacted level. 

The President’s budget request would substantially inhibit our oversight because it will require a 

reduction in staffing levels to cover increases in fixed mandatory operating costs paid to Treasury 

and cost of living or other payroll increases. SIGTARP has experienced a recent increase in 

referrals, tips, and other information that have been used to open criminal and civil investigations 

into the open TARP programs, including MHA’s HAMP and HHF, and to audit those programs to 

prevent and detect waste and abuse. 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 and the number 

of investigations and waste-finding audits. As of September 30, 2018, TARP foreclosure 

prevention programs have spent over $28 billion with nearly $6 billion remaining to spend. When 

left unchecked, fraud, waste, and abuse in these programs can have a devastating impact on those 

the program are intended to help. There are currently 846,763 homeowners in HAMP, including 

participants from all 50 states. The Hardest Hit Fund, which Congress expanded with an additional 

$2 billion and extended in FY 2016, continues to assist homeowners and homebuyers, and to fund 

blight demolition. SIGTARP’s request is less than 0.1 percent to investigate and audit over $28 

billion spent in MHA & HHF (before counting future TARP spending of nearly $6 billion). 

SIGTARP investigations of TARP recipients lead to indictments, civil enforcement actions, and 

the recovery of dollars lost to fraud. SIGTARP audits identify waste and abuse that Treasury can 

recover, promote efficiency and effectiveness in TARP, and make recommendations to save costs 

and prevent future fraud, waste, and abuse. In FY 2018, more than $314 million dollars were 

recovered as a result of SIGTARP’s investigations, exceeding a nine times annual return on 

investment (ROI). Already in FY 2019, actual dollars recovered as a result of SIGTARP’s 

investigations are more than $290 million. 

SIGTARP has demonstrated that it is a solid investment for taxpayers, as SIGTARP has provided 

the Federal government and other victims with cumulative recoveries of more than $10 billion – a 

31 times cumulative ROI from our annual budgets. This would rank 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.2 

We appreciate strong Congressional support for our budget each year. Some of the significant 

completed and ongoing SIGTARP work over the last year includes: 

• The Special Inspector General testified before the House Oversight Committee on SIGTARP’s 

audits that identified $11 million in waste and abuse by state agencies on holiday parties, family 

picnics, celebrations, a Mercedes Benz car allowance, steak and seafood dinners, large catered 

barbeque dinners with tiki torches, employee gifts, discrimination litigation, employee gym 

memberships, cash bonuses, expenses unrelated to HHF, and more. SIGTARP continues to 

audit travel and conference expenses.

2 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 Treasury - Budget in Brief 38
• Our audit report found that most of the $9.6 billion Hardest Hit Fund program (which includes

future spending of $1.3 billion) has no Federal competition requirements for contract awards.

We reported that Treasury has not applied the Federal procurement standards, and

recommended that they apply those standards.

• We warned in an evaluation report (based on findings by the U.S. Army Corps of Engineers)

of the risk of asbestos exposure, illegal dumping, and contaminated soil in the HHF blight

demolition program given the absence of industry safeguards.

• We increased our investigations into TARP’s Hardest Hit Fund blight demolition program.

This year, the Department of Justice (DOJ) indicted an official on bribery charges related to

awarding TARP-funded demolition-related contracts. DOJ also resolved a false claims act

investigation against a multi- million TARP recipient – the primary HHF demolition contractor

in Fort Wayne, Indiana – for dumping construction debris in the ground, covering it with clean

dirt, and filing false claims for TARP dollars.

• SIGTARP expanded its investigations into TARP’s HAMP program. Treasury will continue

to pay more than 130 financial institutions up to $3.9 billion to administer the program. Some

institutions have enforcement records of violating the law and abusing consumers. The largest

recipients of these future TARP funds include Ocwen Financial, Wells Fargo, JP Morgan

Chase, Nationstar Mortgage, SPS, CitiMortgage, and CIT/One West Bank.

• SIGTARP continues to support the DOJ in prosecuting defendants we investigated. Courts

have convicted 359 defendants investigated by SIGTARP, including 92 bankers. Courts

sentenced 71 bankers to prison, including in the last year:

o A Delaware Federal court sentenced to prison for up to six years, seven bank insiders at

$330 Million TARP recipient Wilmington Trust Corp. including the president and CFO for

a massive fraud while the bank was in TARP when Treasury was a shareholder. The judge

called it, “the worst financial crime in Delaware in at least the last 35 years.” The bank

collapsed and was acquired by another bank;

o A California Federal court sentenced to prison for more than 8 years each, the president of

TARP recipient Sonoma Valley Bank and the chief lending officer, for a fraud that

contributed to the failure of the bank; and

o A Kansas Federal court sentenced to prison for more than 5 years, the majority shareholder

who virtually had complete control of TARP recipient Excel Bank for a crime that

threatened the soundness of the bank that later failed.

We continue to deliver investigative and audit results, and maintain extremely high cumulative 

and annual returns on investment. 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 Treasury - Budget in Brief 39
SIGTARP FY 2020 Budget Highlights Dollars in Thousands

Special Inspector General for TARP FTE Amount

FY 2019 Annualized CR 125 $34,000 

Changes to Base:

Maintaining Current Levels (MCLs) 0 $190 

Non-Pay 0 $190 

Subtotal Changes to Base 0 $190 

Total FY 2020 Base 125 $34,190 

Program Changes:

Program Decreases (40) ($16,832)

Technical FTE Adjustment (Workforce Management) (30) ($5,600)

Realignment from Annual to No-Year (10) ($7,500)

Efficiency Savings 0 ($3,732)

Program Increases 0 $142 

Operations and Maintenance (O&M) of Prior-year Enterprisewide Cybersecurity investments 0 $142 

Subtotal Program Changes (40) ($16,690)

Total FY 2020 Request 85 $17,500 

FY 2020 Budget Adjustments 

Maintaining Current Level (MCL)

Non-Pay +$190,000 / +0 FTE 

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

Program Decreases 

Staff Reduction -$5,600,000 / -30 FTE

The technical adjustment reduces SIGTARP staff levels to 95 FTE.

Realignment from Annual to No-Year -$7,500,000 / -10 FTE 

SIGTARP will fund a portion of its operations from its no-year accounts.

Efficiency Savings -$3,732,000 / -0 FTE

SIGTARP will seek to reduce non-personnel costs. 

Program Increases 

Operation and Maintenance (O&M) Prior-year Enterprise-wide Cybersecurity Investments 

+$142,000 / +0 FTE 

The FY 2020 request includes funding to support (O&M) for prior year Cybersecurity 

Enhancement Account investments. O&M will be funded by Treasury Bureaus through Treasury 

Franchise Fund (TFF) billing. This increase represents SIGTARP’s portion of the O&M total. 

Department of Treasury - Budget in Brief 40
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 2019 and FY 2020. 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. 

PROPOSED LANGUAGE 

Sec. 128 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. 

SIGTARP Performance Highlights

Description of Performance 

SIGTARP exceeded all metric targets in FY 2018. 

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

 Budget Activity Performance Measures Actual Actual Actual Target* Target

Investigations Percentage of Cases Accepted for Consideration by Civil or 

Criminal Authorities Resulting in a Positive Final Outcome 77 81 79 70 35

Investigations Percentage of Cases Presented to Civil or Criminal Authorities 

within Eight Months of the Case Being Opened 80 80 85 70 25

Investigations Percentage of Cases That are Joint Agency/Task Force 

Investigations 71 75 78 70 70

Audit

Number of Completed Audit Products Identifying Waste, 

Abuse, Mismanagement, Inefficiencies, or Referrals to 

Investigations Division (Units)

N/A N/A 6 3 1

*The FY 2019 targets are based on an annualized CR. The FY 2019 Congressional Justification included lower targets based on the PB.

Department of Treasury - Budget in Brief 41
Department of Treasury - Budget in Brief 42
Treasury Inspector General for Tax Administration 

 

Program Summary by Budget Activity 

Dollars in Thousands

 FY 2018 FY 2019 FY 2020 FY 2019 TO FY 2020

Budget Activity Enacted * Annualized 

CR Request $ Change % Change

Audit $66,020 $66,020 $64,606 ($1,414) -2.14%

Investigations $103,614 $103,614 $101,394 ($2,220) -2.14%

Subtotal, TIGTA $169,634 $169,634 $166,000 ($3,634) -2.14%

Reimbursables $414 $600 $600 $0 0.00%

Recovery from Prior Years $1,831 $0 $0 $0 NA

Unobligated Balances Brought Forward $4,300 $4,400 $5,000 $600 13.64% 

Total Program Operating Level $176,179 $174,634 $171,600 ($3,034) -1.74%

Direct FTE 764 800 800 0 0.00%

Reimbursable FTE 2 2 2 0 0.00%

Total FTE 766 802 802 0 0.00%

* FY 2018 shows actual FTE usage. This column reflects levels appropriated in P.L. 115-141 Consolidated Appropriations Act, 2018. 

For further details on the execution of these resources see the FY 2020 Appendix chapter for the Department of the Treasury.

Summary

The Treasury Inspector General for Tax Administration’s (TIGTA) Fiscal Year (FY) 2020 budget 

request of $166,000,000 represents a decrease of 2.1 percent below its FY 2019 Annualized 

Continuing Resolution (CR) 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.” While there are a number of critical areas in which TIGTA 

will provide oversight, its FY 2020 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 2.4 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 Treasury - Budget in Brief 43
• 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. 

Congress established TIGTA under the Internal Revenue Service Restructuring and Reform Act 

of 1998 (RRA 98). TIGTA’s audits, investigations, and inspections and evaluations protect and 

promote the fair administration of the U.S. tax system. 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 

audit recommendations improve the administration of the Federal tax system. 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.

TIGTA FY 2020 Budget Highlights 

Dollars in Thousands

Treasury Inspector General for Tax Administration FTE Amount

FY 2019 Annualized CR 800 $169,634 

Changes to Base:

Maintaining Current Levels (MCLs): 0 $558 

Non-Pay 0 $558 

Subtotal Changes to Base 0 $558 

FY 2020 Base 800 $170,192 

Program Changes:

Program Decreases: 0 ($4,697)

Non-Personnel Reductions 0 ($4,697)

Program Increases: 0 $505 

Operation and Maintenance (O&M) of Prior-year 

Enterprise-wide Cybersecurity Investments 0 $505 

Subtotal FY 2020 Program Changes 0 (4,192)

Total FY 2020 Request 800 $166,000 

FY 2020 Budget Adjustments 

Adjustments to Request

Maintaining Current Level (MCLs)

Non-Pay +$558,000 / +0 FTE 

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

Department of Treasury - Budget in Brief 44
Program Decreases 

Non-Personnel Reductions -$4,697,000 / -0 FTE

TIGTA will reduce program levels in order to meet its FY 2020 budget request. Reaching this 

target without impacting the quality of TIGTA’s programs will require balancing mission 

requirements and workload. 

TIGTA will continue to look for contract efficiencies by evaluating contracts for strategic sourcing 

and by negotiating more advantageous contract terms. Additionally, TIGTA will continue to 

pursue opportunities to reduce its footprint and lower its rent costs. 

Program Increases 

O&M of Prior-year Enterprise-wide Cybersecurity Investments +$505,000 / +0 FTE 

The FY 2020 request includes funding to support O&M for prior year Cybersecurity

Enhancement Account investments. O&M will be funded by Treasury Bureaus through 

Treasury Franchise Fund billing. This increase represents the bureau’s portion of the $17.5 

million O&M total.

Legislative Proposals 

TIGTA has no legislative proposals. 

TIGTA Performance Highlights

 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

Budget Activity Performance Measure Actual Actual Actual Target Target

Audit

Percentage of Audit Products 

Delivered When Promised to 

Stakeholders

75 79 81 68 70

Audit

Percentage of Recommendations 

Made That Have Been 

Implemented

97 92 85 85 85

Investigations

Percentage of Closed 

Investigations Resulting in a 

Criminal, Administrative, or Law 

Enforcement Action

90 90 89 79 81

Description of Performance 

• For FY 2018, OA issued 102 audit reports and other products identifying approximately $9.9 

billion in potential financial benefits.

• For FY 2018, the actual Percentage of Audit Products Delivered When Promised to

Stakeholders was 81 percent. TIGTA exceeded the full-year target of 68 percent by 13 

percentage points. 

• For FY 2018, the actual Percentage of Recommendations Made That Have Been Implemented 

was 85 percent. TIGTA met its full-year target of 85 percent as a result of continuous 

discussions with the IRS throughout the audit process, both on the findings and on the 

potential recommended solutions, to ensure that feasible alternatives were identified. 

Department of Treasury - Budget in Brief 45
• For FY 2020, 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 2018, TIGTA initiated 25 proactive investigative initiatives to detect systemic 

weaknesses or potential IRS program vulnerabilities. TIGTA processed 10,676 complaints, 

opened 2,588 investigations, and closed 2,573 investigations in FY 2018. During this period, 

TIGTA referred for IRS action 1,135 cases of employee misconduct, and 151 cases of all types 

of investigations were accepted for criminal prosecution. 

• For FY 2018, the Percentage of Closed Investigations Resulting in a Criminal, Administrative, 

or Law Enforcement Action was 89 percent, which exceeded the full-year target of 79 percent

by 10 percentage points. The Office of Investigations exceeded the FY 2018 performance 

measure as a result of the hard work of experienced executives, managers, and special agents.

• For FY 2020, OI’s performance target is 81 percent. The Office of Investigations 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 Treasury - Budget in Brief 46
Community Development Financial Institutions Fund

Program Summary by Budget Activity

Dollars in Thousands

 FY 2018 FY 2019 FY 2020 FY 2019 TO FY 2020

Budget Activity Enacted * Annualized

CR Request $ Change % Change

Community Development Financials Institutions 

Program $160,000 $160,000 $0 ($160,000) -100.00%

Bank Enterprise Award Program ** $25,000 $25,000 ($25,000) ($50,000) -200.00%

Native American CDFI Assistance Program $16,000 $16,000 $0 ($16,000) -100.00%

Administration $27,000 $27,000 $14,000 ($13,000) -48.15%

Healthy Food Financing Initiative Program $22,000 $22,000 $0 ($22,000) -100.00%

Subtotal, Bureau Name Abbreviation $250,000 $250,000 ($11,000) ($261,000) -104%

Offsetting Collections - Reimbursables $700 $1,000 $1,200 $200 20.00%

Recovery from Prior Years $1,015 $1,000 $1,000 $0 0.00%

Unobligated Balances Brought Forward $32,544 $33,000 $223,000 $190,000 575.76%

Total Program Operating Level $284,259 $285,000 $214,200 ($70,800) -24.84%

Direct FTE 66 66 42 (24) -36.36%

Total FTE 66 66 42 (24) -36.36%

* FY 2018 shows actual FTE usage. This column reflects levels appropriated in P.L. 115-141 Consolidated Appropriations Act, 2018. 

For further details on the execution of these resources see the FY 2020 Appendix chapter for the Department of the Treasury.

** Bank Enterprise Award Program reflects a cancellation of $25m in FY 2020.

Summary

The FY 2020 Budget requests an appropriation of $14,000,000 for the Community Development 

Financial Institutions (CDFI) Fund to oversee the existing portfolio of loans and grants and to 

administer the CDFI Fund’s other programs. The Budget also proposes to cancel $25 million in 

anticipated carryover balances for the Bank Enterprise Award (BEA) program. The CDFI Fund 

supports Treasury’s strategic goals of Boosting U.S. Economic Growth and Transforming

Government-wide Financial Stewardship. 

The Bond Guarantee (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 long-term capital in lowincome and underserved communities. The Budget continues to propose reforms such as reducing 

the minimum bond size to increase participation. The Administration encourages the 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 four discretionary grant and direct loan 

programs (i.e. the Community Development Financial Institutions Program, the Bank Enterprise 

Award Program, the Native American CDFI Assistance Program, and the Healthy Food Financing 

Initiative) and includes a proposal to eliminate new funding for the Capital Magnet Fund (CMF) 

effective in 2020. 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 Treasury - Budget in Brief 47
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 $500 million. 

The Budget also proposes reforms such as reducing the minimum bond size to increase 

participation.

The Budget also proposes to eliminate new allocations into the Capital Magnet Fund (CMF) 

effective in FY 2020. This would eliminate recurrent funding of the CMF through allocations 

from the Government-Sponsored Enterprises, Fannie Mae and Freddie Mac. 

CDFI Fund Performance Highlights

Community Development Financial 

Institutions Program

CDFI - Percentage of Loans & 

Investments Originated in 

Eligible Distressed or 

Underserved Communities by 

Dollar Amount of Loans 

(Annual %)

80.9 81.2 73.7 60 N/A

Administration All Award Cycle Time 

(Months) 7.6 6.3 5.8 6.5 6.5

Administration

ALL- Number of Affordable 

Housing Units Developed or 

Produced

35,251 27,443 34,083 21,500 21,500

New Markets Tax Credit Program

NMTC - Percentage of Loans 

and Investments That Went 

Into Severly Distressed 

Communities

74.5 77.5 74 75 75

FY 2019 

Target

FY 2020 

Target Performance Measure FY 2016 Actual

FY 2017 

Actual

FY 2018 

Actual

Description of Performance 

In FY 2018, the CDFI Program awarded $215 million to 416 organizations, including $165 million 

in financial and technical assistance awards, $22 million for the Healthy Food Financing Initiative 

(HFFI) awards, $5 million for the Disability Fund awards, and $80 million for the Persistent 

Poverty Counties financial assistance. In addition, the CDFI Fund awarded $15.1 million in grants 

to 38 Native CDFIs for the FY 2018 funding round of the Native American CDFI Assistance 

(NACA) Program. 

In FY 2018, the CDFI Program surpassed the 60.0 percent threshold for the percentage of both the 

dollar amount (73.7 percent) and the number of CDFI loans (72.1 percent) made to eligible 

distressed communities and underserved populations. No target is set for the FY 2020 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 2018, the number of HFFI Retail outlets 

created was 26, thereby exceeding the target of 20 new retail outlets for FY 2018. 

Department of Treasury - Budget in Brief 48
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 2018 was 5.8 months, surpassing the target 

of 7 months. This achievement reflects improved efficiency in making awards, which is largely a 

function of the implementation of the Awards Management and Information system (AMIS). 

CDFI, New Markets Tax Credit (NMTC), and CMF Program awardees and allocation recipients 

reported 34,083 affordable housing units developed or produced as a result of CDFI Fund program 

awards, thereby exceeding the FY 2018 target of 28,000 affordable housing units. The target 

reflects projected outcomes for program investments from prior-year award recipients’ reported 

eligible affordable housing projects. The FY 2020 target was lowered 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. 

The NMTC allocation authority for Calendar Year 2017 was allocated in February 2018 in which 

the NMTC Program awarded $3.5 billion in NMTC allocation authority to 73 CDEs, out of a 

pool of 230 applicants requesting $16.2 billion. 

Department of Treasury - Budget in Brief 49
Department of Treasury - Budget in Brief 50
Financial Crimes Enforcement Network 

Program Summary by Budget Activity

Dollars in Thousands

FY 2018 FY 2019 FY 2020

Budget Activity Enacted * Annualized 

CR Request $ Change % Change

BSA Administration and Analysis $115,003 $115,003 $124,700 $9,697 8.43%

Subtotal, FinCEN $115,003 $115,003 $124,700 $9,697 8.43%

Offsetting Collections - Reimbursables $3,000 $3,000 $3,000 $0 0.00%

Recovery from Prior Years $500 $500 $500 $0 0.00%

Total Program Operating Level $118,503 $118,503 $128,200 $9,697 8.18%

Direct FTE 280 332 359 27 8.13%

Reimbursable FTE 1 1 1 0 0.00%

Total FTE 281 333 360 27 8.11%

* FY 2018 shows actual FTE usage. This column reflects levels appropriated in P.L. 115-141 Consolidated Appropriations Act, 2018. 

For further details on the execution of these resources see the FY 2020 Budget Appendix chapter for the Department of the Treasury.

FY 2019 TO FY 2020

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 2020 President’s Budget 

requests additional resources totaling $9,697,000—providing $7,411,000 for three critical 

program areas and $3,318,000 for two program areas previously included in the FY 2019 

President’s Budget; and program decreases totaling $2,226,000. Specifically, FinCEN will 

enhance its national security capacity, which includes expanding its efforts to combat cybercrime 

threats; expanding Special Measures enforcement efforts; maintaining cyber security investments; 

sustaining contractor support related to national security intelligence analysis; and beginning the 

development of a non-bank financial institutions profile that targets compliance toward high risk 

institutions.

Department of Treasury - Budget in Brief 51
FinCEN FY 2020 Budget Highlights 

Financial Crimes Enforcement Network (FinCEN) FTE

FY 2019 Annualized CR 332 $115,003

Changes to Base:

Maintaining Current Levels (MCLs): 0 $1,194

Non-Pay 0 $1,194

Subtotal Changes to Base 0 $1,194

Total FY 2020 Base 332 $116,197

Program Changes:

Program Decreases 0 ($2,226)

Programmatic Contract and Equipment Reductions 0 ($2,226)

Program Increases: 27 $10,729

Enhance National Security Capacity 0 $2,118

Develop NBFI Risk Assessment Model 0 $1,200

Operations and Maintenance (O&M) of Prior-year 

Enterprise-wide Cybersecurity Investments 0 $511

Expand Efforts to Combat Cybercrime Threats 13 $3,563

Expansion of Special Measures Enforcement Efforts 14 $3,337

Subtotal Program Changes 27 $8,503

Total FY 2020 Request 359 $124,700

Dollars in Thousands

FY 2020 Budget Adjustments 

Adjustments to Request

Maintaining Current Level (MCLs)

Non-Pay +$1,194,000 / +0 FTE 

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

Program Decreases

Programmatic Contract and Equipment Reductions -$2,226,000 / -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

Enhance National Security Capacity +$2,118,000 / +0 FTE 

These funds were also included in the FY 2019 President’s Budget and are necessary to sustain 

FinCEN’s increased contractor resources needed to adequately support Treasury’s Terrorism and 

Financial Intelligence priorities. FinCEN is increasingly called upon to identify sources of revenue 

for illicit actors and their attempts to access and exploit the international financial system. These 

requests stem from the growing threats from rogue nations including the Democratic People’s 

Republic of North Korea (DPRK) and continued efforts to combat international organized crime, 

terrorism, narcotics, and proliferation. These additional funds will support these activities, as well 

as the growing analysis of and demand for FinCEN’s Bank Secrecy Act (BSA) data to assist in 

combating the emerging threats to the financial system. 

Department of Treasury - Budget in Brief 52
Develop NBFI Risk Assessment Model +$1,200,000 / +0 FTE 

These funds were also included in the FY 2019 President’s Budget and will allow FinCEN to begin 

the development of a Non-Bank Financial Institution (NBFI) Risk Assessment Model that will 

ultimately improve FinCEN’s ability to identify, detect, and examine the highest risk NBFIs and 

foster enhanced BSA compliance within the NBFI sectors.

NBFIs have the potential to create significant vulnerabilities for the financial system that can be 

exploited by money launderers, terrorist financiers, and other criminal actors. The NBFI sector - 

encompassing approximately 320,000 financial institutions and over $13 trillion in financial 

services - presents inherent risks to the U.S. and global financial system ranging from the lack of 

traditional depository institution relationships for money services businesses; the abuse of casinos 

and card clubs by criminal organizations; the relative isolation of precious metals, stones, and 

jewels from the financial services sector; and the rapidly changing technologies and customer 

identification challenges of virtual currency exchanges and administrators. 

This effort is the first step to ensure that these sectors are effectively supervised; and, it is a key 

Treasury Department priority not only to mitigate these vulnerabilities but also to protect the 

financial system from criminal abuse. This initiative will also help NBFIs continue to play their 

important role in financial inclusion and the economy, and to improve the government’s oversight 

and supervision of this industry. 

Operations and Maintenance (O&M) of Prior-year Enterprise-wide Cybersecurity Investments 

+$511,000 / +0 FTE 

This funding will support operations and maintenance (O&M) for prior year enterprise-wide 

Cybersecurity Enhancement Account investments. O&M will be funded by Treasury Bureaus 

through Treasury Franchise Fund billing. This increase represents FinCEN’s portion of the 

$17,500,000 O&M total. 

Expand Efforts to Combat Cybercrime and Cryptocurrency Threats +$3,563,000/+13 FTE 

This funding will allow FinCEN to expand efforts to combat cyber threats to financial institutions, 

cybercrime, and exploitation of emerging payment systems such as cryptocurrency. These efforts 

follow the money trail of virtual currencies and related financial instruments to identify the 

malicious cyber actors or networks receiving payment for conducting illicit financial activities or 

executing online scams. Through the BSA, financial institutions currently report to FinCEN 

suspicious cyber activity; this information is especially important because in many cases cyber 

actors have tested their tools on banks before deploying them elsewhere. To understand and utilize 

this information, FinCEN has developed unique expertise in cybercrime and cryptocurrency that 

is essential to understanding the evolving nature of financial crimes and their complex financial 

trails. These resources will allow FinCEN to expand its research and analytical services on the 

growing volume of BSA data related to cyber threats received from financial institutions. These 

additional resources are critical to ensuring that Treasury, law enforcement, and the broader U.S. 

government can take full advantage of the additional Suspicious Activity Report detail regarding 

cyber threats that affect U.S. financial institutions and their customers. In addition, this request 

also includes staffing to enhance FinCEN’s BSA enforcement responsibilities as the sole U.S. 

regulator for virtual currency, and support for international efforts to coordinate financial fraud 

recovery related to business e-mail compromise cyber threats (referred to as “rapid response”). 

Department of Treasury - Budget in Brief 53
These additional resources will allow FinCEN to meet the expected growing demand for its 

products and services (e.g., an expected 78 percent increase in cyber cases, enforcement actions, 

and reports, including a 94 percent expected increase in the number of strategic products 

disseminated; and a 150 percent expected increase in the number of cyber-related enforcement 

actions). The additional resources will also provide FinCEN the ability to increase the stolen assets 

recovered by the rapid response cases by 150 percent (from an anticipated $60M in FY 2019 to a 

projected $150M in FY 2022). 

Expansion of Special Measures Enforcement Efforts +$3,337,000/+14 FTE

These funds will allow FinCEN to meet the growing Special Measures workload. These activities 

focus on investigating foreign money laundering and terrorist financing threats to the U.S. financial 

system and taking administrative actions to prevent bad actors from accessing it. Over the past 

several years, data collected through FinCEN’s Special Measures tools and authorities has become 

one of the key sources of enforcement actions against ongoing money laundering concerns 

including rogue nation states, terrorists, and other national security threats. FinCEN is in a unique 

position to utilize the vast amount of information from special collection authorities to identify 

previously unknown money laundering concerns with the unique data collected under its 

authorities. Special Measures authorities are a very effective process to identify bad actors within 

the financial system, but they require a significant infusion of human capital as this process is 

lengthy and involves extensive legal coordination. In addition, working with foreign partners to 

address these threats can have a powerful multiplier effect. This funding will allow FinCEN to 

expand its use of its unique authorities such as Section 311, the Foreign Financial Agency rule, 

Demand Letters, and Geographic Targeting Orders—all of which were previously underutilized 

prior to FY 2017—to increase enforcement and data collection efforts. FinCEN’s Special 

Measures authorities have become one of the key sources of information used to disrupt the illicit 

use of the financial system and obtain special collection information directly from financial 

institutions. These resources are essential to address the national security threats such as DPRK, 

Iran, Hezbollah, Venezuela, cybercrime, fraud, and transnational organized crime. FinCEN 

anticipates an increase of 30 percent in the number of completed 311 actions and Geographic 

Targeting Order actions by FY 2022. FinCEN will also be able to collect more data, producing 

over three times the number of records collected by FY 2022 than in FY 2018, thus providing 

invaluable information for investigative leads. This data will lead to enhanced identification of 

enforcement and investigative leads as well as strategic trends and patterns. 

Legislative Proposals 

FinCEN has no legislative proposals. 

Department of Treasury - Budget in Brief 54
FinCEN Performance Highlights

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

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

83 86 85 86 87

BSA Administration and 

Analysis

Percentage of Users Satisfied with FinCEN 

Information Sharing Systems 80 87 86 84 84

Description of Performance

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. This performance measure 

looks at the value of BSA 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 2018, FinCEN narrowly 

missed its target of 86 percent with 85 percent finding value. FinCEN will work toward increasing 

its FinCEN Portal/FinCEN Query training efforts to provide more users with the knowledge 

needed in order to better utilize both FinCEN Portal and FinCEN Query. In FY 2019, the target 

is set at 86 percent and 87 percent in FY 2020. 

FinCEN 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 E-Filing 

System, FinCEN Query, and the Egmont Secure Web. This measure is meaningful because the 

technology allows authorized persons to more readily access BSA information and better enables 

them to conduct investigations more efficiently and effectively. In FY 2018, FinCEN exceeded 

its target of 84 percent with 86 percent of the users satisfied with information sharing systems, 

which far exceeds the federal government benchmark of 70 percent for customer satisfaction. In 

FY 2019, FinCEN will keep the target at 84 percent because it plans to make modest updates to its 

information sharing systems. FinCEN does intend to make some more impactful modifications in 

FY 2020, but will keep the target at 84 percent due to the learning curve associated with the 

changes being introduced to the user base. 

Department of Treasury - Budget in Brief 55
Department of Treasury - Budget in Brief 56
Alcohol and Tobacco Tax and Trade Bureau 

Program Summary by Budget Activity 

Dollars in Thousands

FY 2018 FY 2019 FY 2020

Budget Activity Enacted 1/ Annualized 

CR Request $ Change % Change

Collect the Revenue $53,560 $53,560 $59,956 $6,396 11.94%

Protect the Public $57,879 $57,879 $55,471 ($2,408) -4.16%

Subtotal, TTB $111,439 $111,439 $115,427 $3,988 3.58%

Offsetting Collections - Reimbursables 2/ $6,289 $6,900 $6,900 $0 0.00%

Transfers In 3/ $989 $0 $0 $0 NA

Total Program Operating Level $118,717 $118,339 $122,327 $3,988 3.37%

Direct FTE 475 507 507 0 0.00%

Reimbursable FTE 10 10 10 0 0.00%

Total FTE 485 517 517 0 0.00%

FY 2019 TO FY 2020

1/ FY 2018 show s actual FTE usage. This column reflects levels appropriated in P.L. 115-141 Consolidated 

Appropriations Act, 2018. For further details on the execution of these resources see the FY 2020 Appendix 

chapter for the Department of the Treasury.

2/ Includes reimburusements from the TEOAF Mandatory Fund and CDFI, and offsetting collections from Puerto Rico 

Cover-Over Program.

3/ Transfer from the TEOAF Strategic Support Fund.

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 (FAA) 

Act, which provides for the regulation of the alcohol beverage industry to protect U.S. consumers 

and ensure a fair and competitive marketplace for U.S. businesses. TTB supports Treasury 

Strategic Goal 1: Boost U.S. Economic Growth and Goal 5: Achieve Operational Excellence. 

In FY 2020, 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 2020 President’s Budget request enables TTB to 

improve tax administration and enforcement outcomes through investments in information 

technology (IT) modernization 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 implements the Craft Beverage 

Modernization and Tax Reform provisions of P.L. 115-97. In the first year, 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. 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 2020 request supports an initial investment of $3.3 million in startDepartment of Treasury - Budget in Brief 57
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. 

Total resources required to support TTB activities for FY 2020 are $122,327,000, including 

$115,427,000 from direct appropriations, and $6,900,000 from other offsetting collections and 

reimbursable programs. 

TTB FY 2020 Budget Highlights

Alcohol and Tobacco Tax and Trade Bureau FTE Amount

FY 2019 Annualized CR 507 $111,439

Changes to Base:

Maintaining Current Levels (MCLs): 0 $1,001

Non-Pay 0 $1,001

Subtotal Changes to Base 0 $1,001

Total FY 2020 Base 507 $112,440

Program Changes:

Program Decreases: (13) ($3,013)

Trade Practice Enforcement (13) ($3,013)

Program Increases: 13 $6,000

Consolidation of Federal Alcohol and Tobacco Tax Jurisdiction 1/ 9 $3,330

Tax System Modernization 4 $2,500

Operations and Maintenance (O&M) of Prior-year Enterprise-w ide Cybersecurity 

Investments 0 $170

Subtotal Changes to Base 0 $2,987

Total FY 2020 Request 507 $115,427

Dollars in Thousands

1/ Pending legislation to effectuate the transfer of federal alcohol and tobacco jurisdiction from the Department of 

Justice to the Department of the Treasury.

FY 2020 Budget Adjustments 

Adjustments to Request

Maintaining Current Level (MCLs)

Non-Pay +$1,001,000 / +0 FTE 

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

adjustments postage, supplies, and equipment. 

Program Decreases

Trade Practice Enforcement -$3,013,000 / -13 FTE

TTB will reduce its 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 funding provided in both FY 2017 and FY 2018, TTB added 

staffing to increase its capacity for trade practice investigations from approximately one each year 

to up to more than 50 active cases annually. At the FY 2020 funding level, TTB will work to bring 

most of its active trade practice investigations to closure and continue its process of evaluating and 

prioritizing the highest risk cases as part of its annual enforcement planning process. 

Department of Treasury - Budget in Brief 58
Program Increases

Consolidation of Federal Alcohol and Tobacco Tax Jurisdiction +$3,330,000 /+9 FTE

Start-up funding is requested 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 9 FTE, which will allow TTB to hire auditors, investigators, 

and other program staff. Further, TTB will hire criminal enforcement agents under an expansion 

of the 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.

Tax System Modernization +$2,500,000 / +4 FTE 

TTB requests an investment of $2.5 million and 4 FTE for the first year of a multi-year effort to 

modernize its outdated tax system to support efficient filing and processing as well as facilitate 

data analytics to timely detect tax evasion, particularly in light of these recent tax reforms that 

present workload and enforcement challenges. The functionality of TTB's Integrated Revenue 

Information System (IRIS) is substantially the same as in 2000 while, over the same period, the 

number of TTB taxpayers has increased nearly 250 percent to approximately 25,000. The IT 

development plan would transform IRIS incrementally to deliver independent modules to create 

the full functionality needed. The total cost includes the IT development team; additional tax 

specialist positions to backfill the experienced staff required to support the development effort; 

and analytics support to streamline work processes, improve non-compliance detection, and 

improve workload management. 

Operations and Maintenance (O&M) of Prior-year Enterprise-wide Cybersecurity Investments 

+$170,400 / +0 FTE

The FY 2020 request includes funding to support operations and maintenance (O&M) for prior 

year Cybersecurity Enhancement Account investments. O&M will be funded by Treasury Bureaus 

through Treasury Franchise Fund (TFF) billing. This increase represents the bureau's portion of 

the $17.5 million O&M total. 

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. 

Department of Treasury - Budget in Brief 59
TTB Performance Highlights 

Description of Performance 

During FY 2018, TTB met or exceeded the performance targets for two of its nine existing 

performance measures, and added several new indicators related to online system use and customer 

satisfaction to support data-driven 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 streamlining internal processes, implementing enhancements to 

online filing systems, modernizing application requirements, and providing clearer guidance to 

industry members. 

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

Actual Target Target

Collect the Revenue Amount of Revenue Collected Per Program Dollar 1/ 414 406 369 DISC DISC

Collect the Revenue Percent of Voluntary Compliance from Large Taxpayers in Filing 

Returns/Payments Timely (by filing) 2/ 87 85 85 DISC DISC

Collect the Revenue Percent of Voluntary Compliance from Large Taxpayers in Filing Tax 

Returns/Payments Timely (by taxpayer) 2/ N/A N/A N/A B

Collect the Revenue Percent of Voluntary Compliance from Large Taxpayers in Filing 

Operational Reports Timely (by taxpayer) 2/ N/A N/A N/A B

Collect the Revenue Percent of Electronically Filed Tax Returns - Pay.gov 34 35 38 50 50

Collect the Revenue Percent of Electronically Filed Operational Reports - Pay.gov 39 40 42 50 50

Protect the Public Percentage of Permit Applications Processed w ithin Service Standards 

(75 days) 3/ 32 48 71 85 85

Protect the Public Initial Error Rate for Permit Applications 4/ 81 83 80 25 25

Protect the Public Percent of Electronically Filed Permit Applications 5/ 81 84 86 90 90

Protect the Public Customer Satisfaction Rate w ith TTB Permitting Process 71 80 83 DISC DISC

Protect the Public Customer Satisfaction Rate w ith eGov Systems - Permits Online 6/ 54 68 77 80 80

Protect the Public Percentage of Alcohol Beverage Label and Formula Applications 

Processed w ithin Service Standards 7/ 80 62 84 85 85

Protect the Public Initial Error Rate for Label and Formula Applications 44 43 40 25 25

Protect the Public Percent of Electronically Filed Label and Formula Applications 97 98 98 95 95

Protect the Public Customer Satisfaction Rate w ith eGov Systems - COLAs Online 8/ 74 82 81 80 80

Protect the Public Customer Satisfaction Rate w ith eGov Systems - Formulas Online 8/ 58 70 81 80 80

8/ New measures of user satisfaction with TTB's COLAs Online and Formulas Online (FONL) electronic filing systems. Results for FONL 

represent beverage alcohol formula filers; nonbeverage alcohol formula filers are excluded.

Actual

3/ Prior year data subject to additional validations following TTB migration to new reporting platform in FY 2018.

4/ Prior year data revised due to errors in methodology related to wholesaler and importer applications.

5/ Revised actuals for fiscal years 2016 and 2017 due to error in source data.

6/ New measure of user satisfaction with TTB's Permits Online electronic filing system; replaces discontinued measure of satisfaction 

rates with permitting process.

7/ 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. 

1/ Beginning in FY19, results will be reported as an indicator rather than a performance measure; as such, no target is established for 

FY19.

2/ TTB is developing 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 will also formally add a measure of the compliance rate for operational reports.

Key: DISC - Discontinue; B - Baseline

Budget Activity Performance Measure Actual

Department of Treasury - Budget in Brief 60
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 all 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 2018, TTB collected excise taxes totaling nearly $21 billion consisting of $12 billion for 

tobacco products, $8 billion for alcohol beverage products, and $625 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 2018: 

• TTB collected nearly $21 billion in excise taxes and other revenues from a tax base of more 

than 29,000 taxpayers in the alcohol, tobacco, firearms, and ammunitions industries. TTB 

returned $369 for every $1 expended on its revenue collection activities.

• TTB’s two new measures of electronically filed tax returns and operational reports indicate 

that less than half of these required filings are submitted to TTB via Pay.gov, the current online 

system for electronic submissions. High rates of paper filings make compliance checks and 

fraud monitoring more difficult and costly. The FY 2020 requested tax system investment will 

drive increases in electronic filing rates, which should support timelier, complete, and more 

accurate submissions as well as timely access to the data for TTB tax verification and analysis.

• In FY 2018, TTB achieved a compliance rate of 85 percent from its large taxpayers (i.e., those 

that pay more than $50,000 in annual taxes), which fell below the performance target of 90 

percent. The declining compliance rate in recent years is due, in part, to an increase in the 

taxpayers paying more than $50,000 in annual taxes due to continued industry growth and 

expansion, which 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 2020 requests 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 

regulations by more than 90,000 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 2018: 

• TTB received approximately 195,000 label applications and 17,000 formula applications, 

which reflects the ongoing expansion of the alcohol beverage industry. Despite increased 

Department of Treasury - Budget in Brief 61
submission volume, which increased approximately 15 percent over the prior year for label 

and formula applications, TTB nearly met its FY 2018 performance target to process 85 percent 

of label and formula applications within its 15-day service standard. TTB also achieved a 98 

percent electronic filing rate for alcohol beverage label and formula applications. Federal law 

prohibits the import or domestic bottling of an alcohol beverage without an approved COLA, 

making this TTB service integral to U.S. business operations. 

• TTB received approximately 9,000 applications for a Federal permit or registration, and 

qualified approximately 6,500 new businesses, predominantly small businesses. TTB made 

significant strides in achieving Treasury's Agency Priority Goal by reducing processing times 

by 20 percent to an overall average of 61 days since 2017, and achieving its 75-day service 

standard for 71 percent of applicants. TTB also achieved an 86 percent electronic filing rate 

for permit applications. A TTB permit or registration is required before a business can lawfully 

operate in the alcohol and tobacco industries. TTB ensures a fair and lawful marketplace and 

protects consumers by screening permit applicants to ensure only qualified persons engage in 

operations in the alcohol and tobacco industries. 

• TTB made 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 80 percent for permit applications and 40 percent for label and 

formula applications. Improvements in FY 2018 were driven by system enhancements and 

online guidance. Performance in permitting is expected to continue to improve following the 

July 2018 release of the redesigned Permits Online system, and once TTB completes planned 

rulemaking to implement broader changes to the permit application. TTB will also continue 

to pursue system-based checks and user guidance to reduce label and formula application 

errors. System enhancements to date have resulted in increased customer satisfaction with 

TTB's eGov systems, with performance nearing or exceeding the 80 percent target in FY 2018. 

Department of Treasury - Budget in Brief 62
Bureau of the Fiscal Service

Program Summary by Budget Activity 

* FY 2018 shows actual FTE usage. This column reflects levels appropriated in P.L. 115-141 Consolidated Appropriations Act, 2018. 

For further details on the execution of these resources see the FY 2020 Appendix chapter for the Department of the Treasury.

Summary

The FY 2020 request for the Bureau of the Fiscal Service (Fiscal Service) is $340.3 million, which

supports the Federal Government’s National Financial Critical Infrastructure (NFCI). Fiscal 

Service is committed to delivering strong leadership, exceptional operations, and a vision focused 

on transforming government-wide financial management and acting as the catalyst of change for 

the Federal financial community by offering increased standardization and automation in Treasury 

financial services. 

Fiscal Service touches the lives of every American taxpayer and plays a critical mission support 

role in the Federal financial management community. We will continue to optimize federal 

disbursing by advancing electronic invoicing and increasing electronic payments; transform 

federal collections through oversight of reducing the use of lockboxes; strengthen public trust in 

federal government finances by making federal financial data more accessible; and expand 

services available to agencies by offering data analytic services to reduce improper payments and 

fraud. 

With this funding, Fiscal Service will focus on: 

• Maximizing efficiencies, transparency, and accountability with the goal of improving 

government-wide financial management; 

• Revolutionizing the Federal Government’s collections and deposit systems by expanding the 

Electronic Federal Tax Payment System (EFTPS) and other electronic payment options 

available to Federal agencies and the public; 

• Modernizing and enhancing payment services by further centralizing federal payment services 

to Federal agencies and increasing payment options available to beneficiaries, taxpayers, and 

other payees; 

Department of Treasury - Budget in Brief 63
• Expanding investors’ ability to buy and manage Treasury securities online by improving 

systems and customers’ ability to quickly and easily obtain on-line self-service options; 

• Borrowing the money needed to operate the Federal Government by conducting auctions; and 

• Furthering progress in efforts to prevent, detect, and recover improper payments by increasing 

partnerships and making additional data sources available. 

Fiscal Service continues to work with the Federal financial community, which includes the Office 

of Management and Budget (OMB) and Federal agency Chief Financial Officers (CFOs), to 

identify improvements to core programs and streamline operations government-wide. The 

bureau’s vision to “Transform financial management and the delivery of shared services in the 

Federal Government” and the commitment to deliver strong leadership and exceptional operations 

align with Treasury’s Strategic Goal 4 (Transform Government-wide Financial Stewardship) and 

Goal 5 (Achieve Operational Excellence). It is also consistent with the President's Management 

Agenda and Cross Agency Priority (CAP) Goal 5, Sharing Quality Services. As part of the 10-

Year Future of Federal Financial Management Vision, Fiscal Service is leading the way in the 

Federal financial community. 

Fiscal Service has critical roles in making sure federal obligations to the public are met, 

government-wide and agency operations are supported, and the national economy is sustained. 

Through these roles, Fiscal Service demonstrates high performance and achieves outcomes and 

results that include: 

• Accounting and reporting financial activity for $22.0 trillion in public debt 

• Financing federal operations by collecting over $4.0 trillion in annual revenue 

• Improving the USAspending.gov website by timely addressing user feedback to enhance the 

customer experience

Fiscal Service FY 2020 Budget Highlights

Dollars in Thousands

Fiscal Service FTE Amount

FY 2019 Annualized CR 1,668 $338,280 

Changes to Base:

Maintaining Current Levels (MCLs): 0 2,239 

Non-Pay 0 2,239 

Subtotal Changes to Base 0 2,239 

Total FY 2020 Base 1,668 $340,519 

Program Changes

 Program Decreases: (58) (7,915)

 Streamline Staffing (58) (7,915)

 Program Increases: 0 7,733 

Operations and Maintenance (O&M) of Prior-year

Enterprise-wide Cybersecurity Investments 0 2,960 

Cybersecurity Enhancements 0 2,367 

Enterprise Cloud Strategy 0 2,406 

Subtotal Program Changes (58) ($182)

Total FY 2020 Request 1610 $340,337

Department of Treasury - Budget in Brief 64
FY 2020 Budget Adjustments 

Adjustments to Request

Maintaining Current Level (MCLs)

Non-Pay +$2,239,000 / +0 FTE 

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

adjustments postage, supplies, and equipment. 

Program Decreases

Streamline Staffing -$7,915,000 / -58 FTE 

Anticipated savings as a result of disciplined hiring prioritization and governance. 

Program Increases

Operations and Maintenance (O&M) Prior-year Enterprise-wide Cybersecurity Investments 

+$2,960,000 / +0 FTE 

Thisrequest includes funding to support O&M for prior-year Cybersecurity Enhancement Account 

investments, primarily related to the Continuous Diagnostics and Mitigation Program (CDM). 

O&M will be funded by Treasury Bureaus through Treasury Franchise Fund billing. This increase 

represents the Fiscal Service portion of the $17.5 million O&M total. 

Cybersecurity Enhancements +$2,367,000 / +0 FTE 

This funding will enable the bureau to continue strengthening the Fiscal Service High Value Assets 

(HVAs) and National Financial Critical Infrastructure (NFCI) posture. Further delays in 

implementing cybersecurity enhancements, such as data centric security measures, personally 

identifiable information (PII) and sensitive financial records encryption, and delays increasing the 

use of multi-factor authentication, and event monitoring, will significantly increase the risk to 

Treasury’s HVAs. More specifically, this funding will allow Fiscal Service to perform six HVA 

assessments and begin to remediate identified data encryption gaps.

Enterprise Cloud Strategy +$2,406,000 / +0 FTE 

This request will support the start of a phased approach to transition NFCI systems currently hosted 

and developed with outdated technology that result in increased risk of security incidents and 

service interruptions to new, more modern, cloud-based solutions that will support the security, 

resiliency, and agility needed in the 21st century. This strategy aligns with government-wide goals 

and objectives to increase utilization of cloud-based solutions and micro-service/shared IT 

functionality, while also furthering efforts to consolidate similar functions and standardize access 

to systems and financial management functions. This effort is crucial to ensuring the integrity of 

the Federal Government's financial systems for the future. 

Legislative Proposals 

1. Give the Do Not Pay Business Center (DNP) the direct authority to expand its user base to 

include other federally funded government entities, such as federally funded state administered 

programs. Estimated savings: $2.1 billion over 1 year 

2. Expand Treasury's authority to access the National Directory of New Hires to include 

prevention, identification, and recovery of improper payments. Total increase in improper 

Department of Treasury - Budget in Brief 65
payments identified by Treasury: $3.19 billion over 10 years (98.3 percent of the improper 

payments estimated)

3. Allow Treasury to access the Death Master File for improper payment purposes. Total increase 

in improper payments identified by Treasury: $49.5 million over 10 years (99.4 percent of the 

improper payments estimated) 

4. Increase delinquent Federal non-tax debt collections by authorizing administrative bank 

garnishment for non-tax debts of commercial entities. Estimated collections: $320.0 million in 

commercial debts over 10 years

5. 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: $62.0 million over 10 years 

Fiscal Service 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 2018, Fiscal Service timely issued 

Government-wide accounting reports 100 percent of the time.

Fiscal Service will meet its FY 2019 and FY 2020 performance measure targets and transform the 

quality, effectiveness and transparency of federal financial management data and reports; 

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

Budget Activity Performance Measure Actual Actual Actual Target Target

Accounting and Reporting Percentage of Government-w ide Accounting 

Reports Issued Timely (%) 100.0 100.0 100.0 98.0 98.0

Collections Percentage of Total Federal Government Receipts 

Settled Electronically (%) 98.2 98.3 98.0 98.0 98.0

Payments Percentage of Treasury Payments Made 

Electronically (%) 94.9 95.1 95.4 95.3 95.5

Payments Count of Improper Payments Identified or Stopped 

Fiscal Year To Date (# in thousands) N/A N/A 20.3 19.5 20.5 

Payments Dollar Amount of Improper Payments Identified or 

Stopped Fiscal Year To Date ($ Millions) N/A N/A 35.53 33.60 35.30

Retail Securities Services Cost Per Customer Assisted Retail Transaction ($) N/A B 116.24 DISC DISC

Retail Securities Services Cost Per Electronic Retail Transaction ($) N/A B 3.06 DISC DISC

Retail Securities Services Percentage of Retail Customer Service Transactions 

That Are Unassisted (%) N/A N/A N/A B TBD

Wholesale Securities Services Percentage of Auction Results Released Accurately 

(%) 100.0 98.9 98.9 100.0 100.0

Wholesale Securities Services Percent of Auctions Successfully Completed by the 

Scheduled Close Date N/A N/A N/A B 100.0

Debt Collections Amount of Delinquent Debt Collected Through All 

Available Tools ($ billions) 7.41 7.61 7.44 7.67 7.8

Debt Collections All Delinquent Debt Collected FYTD as a Percentage 

of all Delinquent Debt Referred FYTD (%) N/A N/A N/A B TBD

Debt Collections Percentage of the active delinquent debt portfolio 

collected FYTD (%) N/A N/A N/A B TBD

Key: Disc - Discontinue; B - Baseline; N/A - Not in use in prior years; TBD - To Be Determined

Department of Treasury - Budget in Brief 66
delivering value-added business process and system improvements; re-define the federal approach 

to audits; and expanding/enhancing relationships with stakeholders and customers. 

Collections: Fiscal Service met its target of electronically settling 98 percent of all Federal 

Government receipts through a continued commitment to agency outreach efforts. Fiscal Service 

expects to maintain an annual electronic collections rate of at least 98 percent through FY 2020 by 

continuing to promote the use of electronic systems in the collections process, increase the 

efficiency of the bureau's centralized collections activities, and to assist agencies in converting 

collections from paper to electronic media. 

 

Payments: Fiscal Service continues to increase the electronic payment rate each year. In FY 2018, 

the electronic payment rate rose to 95.4 percent, with the number of electronic payments increasing 

by 17.0 million, and paper check volume decreasing by 2.3 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 34,000 over the FY 2017 volume. 

Fiscal Service will meet FY 2019 and FY 2020 targets by promoting and increasing electronic 

funds transfer payments with emphasis on tax refunds, electronic invoicing and vendor payments, 

and benefit payments; and exploring, developing, and deploying innovative, customer-driven 

electronic payment and DNP analytic solutions. 

In FY 2019, Fiscal Service will establish two performance measures that will provide transparency 

on progress towards detecting and preventing improper payments. These performance measures 

align with the President's Management Agenda on getting payments right. Fiscal Service along 

with other partner Federal agencies will lead the effort on reducing the amount of cash lost to 

taxpayers through incorrect payments. 

Retail Securities Services: In FY 2018, Fiscal Service electronically issued $63.6 billion in 

marketable securities and $394.4 million in savings bonds; redeemed 22 million paper savings 

bonds totaling $10.4 billion and $890.0 million in electronic savings bonds; added 190,828 new 

accounts to TreasuryDirect; and made 2.5 million retail payments worth $19.9 billion. 

Cost of Customer Assisted Retail Transaction and Cost per Electronic Retail Transactions

performance measures target have been discontinued due to the rigid nature of the associated fixed 

costs producing skewed results. In FY 2019, Percent of Retail Customer Service Transactions 

That Are Unassisted is the new performance measure, which encompasses self-directed customer 

interactions for current and future retail securities. 

Wholesale Securities Services: In FY 2018, Fiscal Service awarded $10.0 trillion in Treasury 

marketable securities to institutions and individual investors by conducting 270 auctions to fund 

critical daily federal operations and released the results timely. In FY 2019, Fiscal Service will 

continue to measure its performance as it relates to the accuracy of the auction results and will 

introduce a new performance measure to track the percentage of auctions held by the scheduled 

close date. This will measure the operational resiliency of the program and the target is 100 percent 

performance in FY 2019 and FY 2020. 

Department of Treasury - Budget in Brief 67
Debt Collection: FY 2018 was the first time in five years that Fiscal Service did not exceed the 

amount of delinquent debt collected over the previous year. This decrease was due to declines in 

tax refund offsets because of the inability to refer debts to Private Collections Agencies (PCAs) 

for a majority of the fiscal year due to technical difficulties, a decline in collections from child 

support, and a drop in Unemployment Insurance Compensation collections. Tax refund offsets 

should increase in FY 2019 as Fiscal Service is referring debt again to PCAs.

Despite these challenges, projections for FY 2019 and FY 2020 show a return to modest growth 

in overall collections years. These performance targets were developed using debt data and 

macroeconomic variables as a basis, while considering assumptions related to legislative changes 

that are difficult to forecast. 

To meet FY 2019 and FY 2020 delinquent debt performance targets, Fiscal Service will add new 

Treasury Offset Program (TOP) payment streams to increase payments eligible for offset and 

delinquent debt collection. 

Department of Treasury - Budget in Brief 68
Internal Revenue Service

Program Summary by Budget Activity 

Dollars in Thousands

FY 2018 FY 2019 FY 2020 FY 2019 TO FY 2020

Budget Activity Enacted1 Annualized 

CR2 Request3 $ Change % Change 

Taxpayer Services $2,512,554 $2,571,554 $2,402,000 ($169,554) -6.59%

Pre-filing Taxpayer Assistance and Education 640,379 634,019 634,762 743 0.12%

Filing and Account Services 1,872,175 1,937,535 1,767,238 (170,297) -8.79%

Enforcement $4,627,000 $4,672,000 $4,705,368 $33,368 0.71%

Investigations 581,680 597,658 614,046 16,388 2.74%

Exam and Collections 3,875,098 3,894,129 3,923,583 29,454 0.76%

Regulatory 170,222 180,213 167,739 (12,474) -6.92%

Operations Support $4,181,000 $3,834,000 $4,075,021 $241,021 6.29%

Infrastructure 870,360 858,932 853,738 (5,194) -0.60%

Shared Services and Support 920,283 942,568 953,686 11,118 1.18%

Information Services 2,390,357 2,032,500 2,267,597 235,097 11.57%

Business Systems Modernization $110,000 $110,000 $290,000 $180,000 163.64%

Subtotal Internal Revenue Service $11,430,554 $11,187,554 $11,472,389 $284,835 2.55%

Reimbursables 171,140 116,551 122,379 5,828 5.00%

Offsetting Collections - Non Reimbursables 26,069 37,719 39,605 1,886 5.00%

User Fees 283,267 563,053 460,900 36,857 8.69%

Recovery from Prior Years 13,233 17,994 18,905 911 5.06%

Unobligated Balances from Prior Years 360,031 357,637 153,567 (343,080) -69.08%

Transfers In/Out (4,188)

Resources from Other Accounts

Total Program Operating Level $12,280,106 $12,280,508 $12,267,745 ($12,763) -0.10%

Direct FTE 73,268 73,584 71,945 (1,639) -2.23%

Reimbursable FTE 795 521 521 

Offsetting Collections - Non Reimbursables

User Fee FTE 14 60 71 11 18.33%

Recovery from Prior Years

Unobligated Balances from Prior Years 236 289 100 (189) -65.40%

Resources from Other Accounts

Total FTE 74,313 74,454 72,637 (1,817) -2.44%

1

FY 2018 Enacted includes $320 million in Section 113 Administrative Provision funding in the following amounts: $19 million 

in Taxpayer Services, $10 million in Enforcement, and $291 million in Operations Support. FY 2018 Enacted also includes 

an interappropriation transfer of $256 million to Operations Support ($13 million from Taxpayer Services and $243 million 

from Enforcement), and budget activity adjustments in accordance with Section 608 of Public Law 115-141. FY 2018 full-time 

equivalent (FTE) are actuals and reconcile to the final FY 2018 column in the FY 2020 President's Appendix. Other 

Resources are actuals.

2

FY 2019 Annualized Continuing Resolution (CR) includes a $200 million interappropriation transfer from Enforcement to 

Operations Support to cover anticipated operations and maintenance requirements in FY 2019. FY 2019 Annualized CR also 

includes $77 million ($65 million in Taxpayer Services and $12 million in Enforcement) for the Section 112 Administrative 

Provision to implement requirements under the Tax Cuts and Jobs Act (Public Law 115-97). $320 million is automatically 

available in a full year continuing resolution scenario under IRS Administrative Provision Section 113. Of this amount, 

$243 million is excluded for illustrative purposes consistent with the requirements identified for implementing the Tax Cuts 

and Jobs Act and the FY 2019 Section 112 / Tax Reform Spending Plan transmitted to Congress on February 28, 2019. 

Additional information and a full accounting of these funds can be found in the FY 2020 President’s Budget Appendix.

3

FY 2020 Request column here excludes the proposed $362 million discretionary program integrity investment: $200 million 

for Enforcement and $162 million for Operations Support. More information about the program integrity cap adjustment can 

be found in Section 4.1 of the IRS FY 2020 Congressional Justification.

Department of Treasury - Budget in Brief 69
Summary

The IRS FY 2020 President’s Budget request is $11.472 billion, $285 million or 2.55 percent 

more than the FY 2019 Annualized Continuing Resolution (CR) level of $11.188 billion

(adjusted for tax reform funding). The base request provides funding to carry out the IRS 

mission and invest in high-priority programs that will allow the IRS to administer tax law more 

efficient and effectively. 

The request includes an increase of $344 million for four high-priority areas: modernization, 

cybersecurity and identity theft, infrastructure, and data analytics. The investment in 

modernization provides a down payment on a multi-year plan to modernize IRS systems and 

operations and deliver a customer experience that is comparable to the best financial institutions. 

Modernization and the other priority programs will allow the IRS to improve taxpayer service 

and compliance, protect the trillions of dollars in revenue that taxpayers pay voluntarily each 

year into the Treasury, and secure taxpayer data and information. 

The Budget will allow the IRS to: 

• Help all taxpayers meet their tax obligations by simplifying the process of filing and 

amending returns and submitting payments; 

• Protect the integrity of the tax system;

• Partner with key stakeholders in the state and local tax administration, tax preparation, and 

international communities; 

• Cultivate and retain a well-equipped, diverse, flexible, and engaged workforce; 

• Improve data access, usability, and analytics to inform decision making; and 

• Drive increased agility, efficiency, effectiveness, and security in operations. 

The IRS Strategic Plan FY 2018–2022 guides resource decisions, programs, and operations. The 

Plan aligns with the goals and objectives in Treasury’s strategic plan, including increasing U.S. 

economic growth by administering tax laws to help taxpayers meet their obligations while 

protecting the integrity of the tax system; transforming government-wide financial stewardship 

by increasing access to and usage of data; and achieving operational excellence. 

In FY 2018, the IRS delivered a successful filing season that opened on January 29, 2018. 

During the 2018 filing season, the IRS: 

• Received about 137 million individual tax returns and issued more than 95 million refunds 

totaling $265 billion with an average individual refund of $2,780. Almost 91 percent of 

these individual returns were filed electronically; 

• Achieved an 80 percent filing season level of service (LOS), the relative success rate of 

taxpayers calling the toll-free line for assistance, an increase of about one percent over the 

2017 filing season; 

• Answered more than 10 million calls and addressed another 17 million calls through 

automated systems; 

Department of Treasury - Budget in Brief 70
• Served nearly five million taxpayers, almost three million face-to-face assistor contacts, and 

two million taxpayers who had issues resolved over the phone when calling for an 

appointment; 

• Received 387 million visitors to the IRS.gov website with 265 million taxpayers checking the 

Where’s My Refund? tool for the status of their refund. This represents a 24 percent increase 

in the use of IRS.gov and an eight percent increase in Where’s My Refund? compared to last 

filing season; 

• Received about 31 million business returns, an increase of one percent over the 2017 filing 

season. Approximately 20.4 million were filed electronically, an increase of six percent from 

2017; 

• Leveraged filtering capabilities and the PATH Act refund hold to automate and expand the 

selection of potentially fraudulent returns, holding 9.4 million returns with $46.9 billion in 

refunds and identifying 340,000 returns with possible overstated income or withholding 

issues; and

• Launched the Field Assistance Scheduling Tool to schedule appointments for taxpayers in all 

Taxpayer Assistance Centers (TAC) and Virtual Service Delivery sites. 

Information Technology Modernization 

The Budget includes $300 million for the IRS Integrated Modernization Business Plan (“the 

plan”), including $290 million from the Business Systems Modernization appropriation and at 

least $10 million from IRS user fees. The plan – validated by independent assessors – calls for 

approximately $2.3 to $2.7 billion over six years. Modernizing is necessary to maintain the 

integrity of the nation’s tax system, collect trillions of dollars, and keep up with economic and 

population growth. Additional information will be included in the forthcoming IRS Integrated 

Modernization Business Plan. 

Department of Treasury - Budget in Brief 71
IRS FY 2020 Budget Highlights

Dollars in Thousands

FY 2020 Budget Adjustments 

Resource Adjustments

The FY 2019 Annualized CR level of $11.188 billion (adjusted for tax reform) includes a 

$200 million inter-appropriation transfer from Enforcement to Operations Support to cover 

operations and maintenance requirements in FY 2019. The IRS will submit a formal notice to 

Congress this spring. The FY 2019 Annualized CR level includes $77 million of the $320 million 

appropriated for tax reform implementation. 

 

Adjustments to Request

Other Adjustments

Offset to Support Operations and Maintenance (O&M) of Critical Systems 

-$101,636,000 / -1,192 FTE 

The request realigns $102 million from Taxpayer Services account to the Operations Support 

account to support mission-critical systems that benefit operational programs.

Maintaining Current Levels (MCLs) 

Non-Pay +$50,565,000 / 0 FTE 

Funds are requested for non-labor inflationary cost increases for items such as travel, contracts, 

rent, supplies, and equipment. 

Bureau: Internal Revenue Service 

Summary of FY 2020 Request $000 FTE $000 FTE $000 FTE $000 FTE $000 FTE

FY 2019 Annualized CR Level (Pre-IAT and TCJ Adjustments) $2,506,554 27,947 $4,860,000 35,327 $3,634,000 10,340 $110,000 361 $11,110,554 73,975

Planned Interappropriation Transfer (200,000) (1,346) 200,000 (1,346)

Section 112 Administrative Provision 65,000 887 12,000 68 $77,000 955

FY 2019 Annualized CR Level $2,571,554 28,834 $4,672,000 34,049 $3,834,000 10,340 $110,000 361 $11,187,554 73,584

Changes to Base:

Other Adjustments ($101,636) (1,192) $101,636 163 (1,029)

Offset to O&M for Critical IT Systems (101,636) (1,192) $101,636 163 (1,029)

Maintaining Current Levels (MCLs) $3,161 $6,249 $41,155 $50,565

Non-Pay Inflation Adjustment (2.0%) 3,161 6,249 41,155 50,565

Efficiency/Savings ($71,079) (1,003) ($13,717) (68) ($24,804) ($109,600) (1,071)

Increase e-File Savings (6,079) (116) (104) (6,183) (116)

Space Optimization (24,700) (24,700)

Reduce Contractual Services (1,717) (1,717)

Non-Recur for Section 112 Tax Reform Funding (65,000) (887) (12,000) (68) (77,000) (955)

Subtotal FY 2020 Changes to Base ($169,554) (2,195) ($7,468) (68) $117,987 163 ($59,035) (2,100)

New FY 2020 Current Services $2,402,000 26,639 $4,664,532 33,981 $3,951,987 10,503 $110,000 361 $11,128,519 71,484

Program Changes:

Program Increases: $40,836 201 $123,034 180 $180,000 80 $343,870 461

IRS Technology Modernization Plan 180,000 80 180,000 80

Data Analytics to Enhance Compliance 28,470 174 5,363 16 33,833 190

Prevent Identity Theft 12,366 27 10,122 2 22,488 29

O&M of Prior-year Enterprise-wide Cybersecurtiy Investments 6,744 6,744

O&M of Critical Systems 100,805 162 100,805 162

Subtotal FY 2020 Program Changes $40,836 201 $123,034 180 $180,000 80 $343,870 461

Total FY 2020 Request1

$2,402,000 26,639 $4,705,368 34,182 $4,075,021 10,683 $290,000 441 $11,472,389 71,945

1

Total FY 2020 Request excludes the proposed $362 million discretionary program integrity investment: $200 million for Enforcement and $162 million for Operations Support. More information about the program integrity cap 

adjustment can be found in Section 4.1 of the IRS FY 2020 Congressional Justification.

TAXPAYER SERVICES ENFORCEMENT OPERATIONS SUPPORT BSM TOTAL

Department of Treasury - Budget in Brief 72
Efficiency/Savings 

Increase e-File Savings -$6,183,000 / -116 FTE 

The IRS projects that taxpayers will file 1,870,800 fewer paper returns (1,256,100 individual and 

614,700 business returns). As a result, the IRS will need 116 fewer FTEs in submission 

processing, generating a savings of $6.2 million. 

Space Optimization -$24,700,000 / 0 FTE 

The IRS will reduce expenditures on rent and improve usage of office space across the country. 

In FY 2020, the IRS is estimating space optimization savings of $24.7 million. Since 2013, the 

IRS has released 3.2 million square feet, closing 106 buildings and reducing rent costs by more 

than 10 percent to $578 million projected in FY 2020. 

Reduce Contractual Services -$1,717,000 / 0 FTE 

The IRS will generate savings by improving the effectiveness of existing acquisitions practices 

to reduce the cost of contracts. 

Non-Recur Administrative Provision Section 112 Tax Reform -$77,000,000 / -955 FTE 

This results from the non-recurrence of one-time funding provided by the Section 112 

Administrative Provision for tax reform implementation. 

Program Increases 

IRS Technology Modernization Plan +$180,000,000 / +80 FTE 

The Budget includes $300 million for the IRS Integrated Modernization Plan in FY 2020, 

including $290 million in discretionary appropriations and at least $10 million from IRS user 

fees. 

Data Analytics to Enhance Compliance +$33,833,000 / +190 FTE 

This investment in advanced data analytics will improve the IRS’s risk identification capabilities 

and reduce the need for manual or limited risk assessments. The IRS will focus on identifying 

compliance risks. Recent changes in tax law have reduced the accuracy of traditional “backward 

looking” risk identification tools, and this investment will help the IRS identify new risks. This 

investment will result in an additional 1,032 large business return examination closures and 

increase the examination coverage rate by 0.3 percent by FY 2022. 

Prevent Identity Theft +$22,488,000 / +29 FTE 

This investment will be used to hire four Attorneys, 11 Special Agents, and 14 Analysts to 

conduct more criminal investigations related to identity theft. As a result, the IRS should 

complete about 250 additional criminal investigations between FY 2020 and FY 2025. The 

investment also funds contractor support to classify fraud cases, facilitate sharing of anonymized 

data, enhance fraud intelligence, and operate databases critical to identity authentication. 

Department of Treasury - Budget in Brief 73
O&M of Prior-year Enterprise-wide Cybersecurity Investments +$6,744,000 / 0 FTE 

The request includes an increase of $6.7 million to support the O&M of prior year Cybersecurity 

Enhancement Account (CEA) investments. This increase represents the IRS’s portion of the 

Departmental O&M cost of $17.5 million. 

O&M of Critical Systems +$100,805,000 / +162 FTE

These funds will be used to address the operations and maintenance of critical filing season 

systems and technology operations across the IRS. 

Legislative Proposals 

The FY 2020 President’s Budget request includes tax administration legislative proposals. 

Lower the threshold from 250 to 10 for mandatory electronic reporting of W-2 data by 

employers: Providing the IRS with timely and accurate Wage and Tax Statement (W-2) 

information reported by employers facilitates pre-refund verification of wage and withholding 

information, which in turn reduces the issuance of questionable tax refunds through early 

detection of fraud and other erroneous refund claims. Extra time and resources are needed for 

the Social Security Administration (SSA) to process paper W-2s submitted by employers before 

information on paper statements can be transmitted to the IRS. Under current law, employers 

who file 250 or more Forms W-2 in a year must e-file these information returns, but those filing 

fewer than 250 Forms W-2 in a year may choose to file on paper. To enhance pre-refund W-2 

checks, the Budget proposes increasing the number of employers subject to mandatory electronic 

reporting of W-2 data. The proposal would reduce the W-2 e-file threshold from 250 to 10 

Forms W-2. 

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 

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.

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. 

Department of Treasury - Budget in Brief 74
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 has exceeded the lifetime 

limit for claiming a deduction or credit; or (3) the taxpayer has 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 make it easier for the IRS to correct clear taxpayer errors, directly improving tax 

compliance and 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. 

Except Certain Federal Student Aid (FSA) Programs from Section 6103 Restrictions: 

Section 6103 of the Internal Revenue Code of 1986 (26 U.S.C. 6103) (IRC) provides that tax 

returns and tax return information are confidential and cannot be disclosed or used unless 

permitted under the IRC. The Administration proposes to authorize the IRS to disclose tax

return information directly to the U.S. Department of Education for administering programs 

authorized by Title IV of the Higher Education Act of 1965. The section 6103 exception is 

expected to improve administration of student aid programs, enhance program cost estimation, 

increase servicing efficiency, and reduce improper payments. 

Program Integrity Cap Adjustment: In addition to the base appropriations request, the Budget 

proposes a $362 million discretionary program integrity cap adjustment in FY 2020 to fund new 

and continuing investments in the IRS’s tax enforcement program. The Budget proposes 

$200 million for the Enforcement account and $162 million for the Operations Support account. 

It also proposes additional adjustments in future years to fund new initiatives and inflation. The 

proposed investments will generate about $47.1 billion in additional revenue over 10 years and 

would cost about $14.5 billion for a net revenue of $32.6 billion.

Department of Treasury - Budget in Brief 75
Streamlined Critical Pay (SCP): The Budget proposes to reinstate Streamlined Critical Pay 

(SCP) authority through September 30, 2023. The authority to make new SCP appointments 

expired September 30, 2013. As a result of the expired authority, the IRS continues to face 

challenges recruiting top-level talent, especially IT professionals who help protect taxpayer data 

from cyber-attacks and who assist with modernizing the IRS's IT infrastructure. The Office of 

Personnel Management existing government-wide Critical Position Pay (CPP) authority is not a 

viable alternative to SCP.

IRS Performance Highlights

Budget Activity Performance 

Measures

FY 2016 

Actual

FY 2017 

Actual

FY 2018 

Actual

FY 2018 

Target

FY 2019 

Target

FY 2020 

Target

Filing and Account 

Services

Customer Service 

Representative Level 

of Service (LOS) 1

53.4% 77.1% 75.9% 75.0% 63.0% 68.0%

Exam and Collections Examination Coverage 

- Individual 0.7% 0.6% 0.6% 0.6% 0.5% 0.5%

Investigations Criminal Investigations 

Completed 3,721 3,089 3,051 3,000 2,800 2,700

Investigations Conviction Rate 92.1% 91.5% 91.7% 92.0% 92.0% 92.0%

Information Services Percentage of Aged 

Hardware2 52.2% 52.3% 45.5% 53.1% 43.8% 39.0%

1

The FY 2019 level of service target was calculated at the FY 2019 Enacted level. 2

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 2018, 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 87.2 percent individual e-file rate and a 55.6 percent business e-file rate; 

• Delivered a fiscal year telephone LOS of 75.9 percent; 

• Answered about 25.3 million calls and addressed another 17 million calls through automated 

systems; and

• Answered 96.1 percent of account questions over the telephone correctly. 

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 provided free tax 

assistance for the elderly, disabled, and limited English proficient individuals and families. 

Department of Treasury - Budget in Brief 76
Enforcement

In FY 2018, the IRS collected $59.4 billion through enforcement programs, a return on 

investment (ROI) of about $5.3 to $1 for all appropriations. 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) 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 2018 CI completed 3,051 criminal investigations, achieved 

1,879 convictions with a rate of 91.7 percent, and achieved a Department of Justice case 

acceptance rate of 93.1 percent and a U.S. Attorney case acceptance rate of 90.1 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. The 

performance goals that the IRS uses to gauge the Examination program’s performance include 

Individual Exam Coverage which met the 0.6 percent target. There were about 22,000 fewer 

individual audits completed, a 2.5 percent decrease compared to FY 2017. In FY 2018, Business 

Examination Coverage was 2.2 percent, below the target of 2.4 percent. 

The Tax Exempt and Government Entities (TE/GE) program plays a crucial role in compliance. 

Determination Case Closures includes both applications for tax-exempt status for employee 

retirement plans and applications from various charitable entities seeking tax-exempt status. The 

IRS reviews applications to determine eligibility and closes them upon approval or disapproval. 

In FY 2018, TE/GE closed 98,249 determination cases, exceeding the target of 94,103. 

Business Systems Modernization 

IRS modernization efforts continued in FY 2018. Some key accomplishments were: 

• Web Apps deployed the initial component of the Taxpayer Protection Program Identity 

Verification Service (TPP ID Verify) capability enabling taxpayers to verify/confirm their 

identity online and establish the return filed under their Taxpayer Identification Number was 

fraudulent. Prior to the release of this capability, a taxpayer who was the potential victim of 

identity theft would receive a letter requiring him or her to call the IRS or to make an 

appointment to authenticate in person at a local TAC before filing a return. 

• IRS transformed the look and feel of the IRS.gov website, including new landing pages, a 

unified design and architecture that provides a consistent user experience, and modern 

technology standards and practices, including a mobile friendly application. 

• IRS added new features to taxpayer Online Account, including enabling the Tax Records 

Snapshot for secondary taxpayers, the addition of a Balance Assistance FAQ page, and 

updates to messaging and business logic. 

Department of Treasury - Budget in Brief 77
Department of Treasury - Budget in Brief 78
Office of Financial Stability

Program Summary

Dollars in Billions

 

Cumulative 

Obligated 

(as of 

11/30/2018)

Cumulative 

Disbursed 

(as of 

11/30/2018)

Cumulative 

Outstanding 

(as of 

11/30/2018)

Total 

Cumulative 

Income (as 

of 

11/30/2017)

Total Cash 

Back (as of 

11/30/2018)

Total 

Estimated 

Life Costs 

(as of 

11/30/2018)

Bank Support Programs 250.5 245.1 0.1 35.7 275.5 (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 70.5 12.1 

Treasury Housing Programs 33.4 28.9 0.0 0.0 0.0 32.8 

Total 450.5 440.6 0.1 48.6 425.0 32.5 

Additional AIG Common Shares 

Held by Treasury 0.0 0.0 0.0 17.6 17.6 * (17.6)

Total for Programs and Shares 450.5 440.6 0.1 66.2 442.6 14.9 

*If all Treasury AIG Investments are combined, we currently estimate a net gain of nearly $2.4 billion on those 

shares.

Administrative Account Summary

Dollars in thousands

 FY 2018 FY 2019 FY 2020 FY 2019 to FY 2020

Actual Estimated Estimated $ Change % Change

AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT

Obligations

Tarp Administrative Account 75,057 61,796 53,469 (8,327) -13.48%

Total Obligations $75,057 $61,796 $53,469 ($8,327) -13.48%

FTE 32 24 20 -4 -16.67%

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, but in 2016 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, 2018, OFS has recovered more than 96 percent of the $440.6 billion in total 

program funds disbursed under TARP, as well as an additional $17.6 billion from Treasury’s 

Department of Treasury - Budget in Brief 79
equity in AIG. When all of Treasury’s AIG investments are included, the amount recovered is 

greater than the funds disbursed by more than $2.0 billion. In FY 2020, OFS plans to obligate no 

more than $54 million and use no more than 20 Full-Time Equivalent (FTE) employees, a 

reduction of over 13% and 16% respectively from the current FY 2019 estimates, to fund the 

management of the TARP housing programs and the continuing disposition of OFS’s remaining 

investments. 

 

Legislative Proposals

Treasury seeks 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. Although these reporting requirements corresponded to the level of risk associated with 

a start-up entity in 2009, risk has dramatically decreased as programs have closed. OFS estimates 

that enacting the following legislative proposals would result in more than $2 million in annual 

savings in contracting cost and Government Accountability Office (GAO) reimbursements and 

would reduce OFS’s workload by four FTE employees per year. The remaining statutory 

requirements will continue to provide sufficient transparency during the wind-down of TARP. 

Replace OFS’s stand-alone financial audit performed by GAO: Since inception, OFS has been 

required to undertake a stand-alone financial audit requiring significant resources. As the 

majority of programs have closed, the need for a stand-alone audit has diminished. As such, a 

stand-alone financial audit could be replaced with an agreed-upon procedure (AUP) performed 

by GAO, or Treasury's Office of the Inspector General could audit OFS's financial operations 

under the Treasury-wide audit, similar to most other Treasury programs.

Sunset the Financial Stability Oversight Board (FinSOB): This interagency group meets monthly 

and reports quarterly. The group has reviewed OFS’s program formulation and monitored 

program performance since the 2008 financial crisis. Because no new OFS programs can be 

implemented, all major investments have been disposed, and the housing programs are in winddown, the need for the board’s oversight and reporting has diminished. 

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 by OFS office and is required under the annual 

Treasury 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 5 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 2018, OFS continued to wind-down 

remaining CPP investments through repayments by those institutions that were able to do so and 

restructuring investments in limited cases. As of November 30, 2018, CPP has generated $226.8 

Department of Treasury - Budget in Brief 80
billion in recoveries for taxpayers with three institutions remaining in the program, for a total of 

$23 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. The initial dividend or interest rate was two percent. To 

encourage repayment, the dividend rate increased to nine percent after eight years, which 

occurred in August and September, 2018. As of November 30, 2018, CDCI has generated $579 

million in recoveries for taxpayers with eight institutions remaining in the program, for a total of 

$29 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, 2018, OFS had disbursed $19.8 billion 

out of a possible $23.8 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, 2018, OFS had disbursed 

$9.1 billion out of a possible $9.6 billion under HHF. 

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 $15 million for 

outstanding refinanced loans. 

Department of Treasury - Budget in Brief 81
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, 2018, OFS has collected $70.5 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. 

For more details, please see the Budgetary Effects of the TARP chapter in the Analytical

Perspectives volume. 

Department of Treasury - Budget in Brief 82
Office of Financial Research

Program Summary by Budget Activity 

Dollars in Thousands

Summary

The Office of Financial Research (OFR or Office) resides within the Department of the Treasury. 

In carrying out its mission, the OFR seeks to achieve its vision of a transparent, efficient, and stable 

financial system. The OFR’s work contributes to making informed and comprehensive policies 

and taking actions that will strengthen the financial system. The Office monitors the financial 

environment for the emergence of new vulnerabilities and migration of financial activity that could 

threaten financial stability.

To align with the Administration’s initiative to improve government efficiency and effectiveness, 

the OFR implemented an organizational realignment effort to ensure appropriate structure for 

maximum efficiency. In addition, the Budget reflects continued reductions in OFR non-labor 

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

Government. 

OFR FY 2020 Budget Highlights

Dollars in Thousands

FY 2018 FY 2019 FY 2020

Budget Activity Actual Estimated Estimated $ Change % Change

Data Center $15,967 $6,010 $6,796 $786 13.08%

Technology Center $23,530 $34,162 $32,218 ($1,944) -5.69%

Research and Analysis Center $12,302 $13,180 $14,274 $1,094 8.30%

Operations and Support Services $24,226 $21,919 $21,983 $64 0.29%

Total Cost of Operations $76,025 $75,271 $75,271 $0 0.00%

FTE 185 130 145 15 11.54%

FY 2019 to FY 2020

Office of Financial Research FTE Amount

FY 2019 President's Budget 140 $75,271

Changes to Base:

Program Decrease (10) $0

FTE Adjustment (10) $0

Revised FY 2019 Estimated 130 $75,271

Initiative Annualization 15 $1,633

Staff Restructuring 15 $1,633

Efficiency Savings 0 ($1,633)

Administrative Cost Savings 0 ($1,633)

Subtotal Changes to Base 15 $0

FY 2020 Estimated 145 $75,271

Department of Treasury - Budget in Brief 83
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 2021.

OFR Performance by Budget Activity

Budget Activity Performance Measure FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

 Actual Actual Actual Target Target

Data Center

Number of LEIs Issued 

Cumulatively in the United States 

and Internationally

395,861 587,941 1,300,832 I I 

Data Center

Number of Times That Financial 

Data Standards are Incorporated in 

Rules and Regulations

9 4 1 I I 

Description of Performance 

The OFR has begun its next five-year strategic planning effort, targeted for completion in FY 2019 

Q4. A key part of the planning process is establishing strategic goals and objectives that are both 

meaningful and measurable. The OFR is currently reviewing measurement approaches such as 

more sophisticated website monitoring of product usage and direct outreach to external 

stakeholders in the financial community. The OFR is targeting FY 2020 to introduce new 

measures, concurrent with the implementation of its new five-year strategic plan. 

Department of Treasury - Budget in Brief 84
Financial Stability Oversight Council

Program Summary by Budget Activity 

Dollars in Thousands

Summary

The Financial Stability Oversight Council (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, to promote market discipline, and to 

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

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; facilitate information 

sharing and interagency coordination with respect to various regulatory initiatives; and consider 

comments on its notice of proposed interpretive guidance regarding nonbank financial company 

determinations. 

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 2018, the Council convened seven times. The Council will remain focused on identifying nearterm 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 to the public about Council activities and decisions. 

FSOC supports the Department of the Treasury’s Strategic Plan for FY 2018-2022 as follows: 

• Goal 1: Boost U.S. Economic Growth 

o Objective 1.2 – Strong Economic Fundamental 

• Goal 2: Promote Financial Stability

o Objective 2.4 – Financial Sector Critical Infrastructure & Cybersecurity 

FY 2018 FY 2019 FY 2020

Budget Activity Actual Estimated Estimated $ Change % Change

FSOC $4,966 $6,186 $6,186 $0 NA

FDIC $4,162 $4,301 $4,301 $0 NA

Total Cost of Operations $9,128 $10,487 $10,487 $0 NA

FTE 13 18 18 0 NA

FY 2019 to FY 2020

Department of Treasury - Budget in Brief 85
FSOC FY 2020 Budget Highlights

Dollars in Thousands

Financial Stability Oversight Council FTE Amount

FY 2019 President's Budget 18 $11,054 

Changes to Base:

Program Decrease: 0 ($567)

Labor Adjustment 0 ($279)

Non-Labor Adjustment 0 ($288)

Revised FY 2019 Estimate 18 $10,487 

Total FY 2020 Estimated 18 $10,487 

Legislative Proposals 

The Budget proposes to impose appropriate Congressional oversight of Council functions by 

subjecting its activities to the annual appropriations process beginning in FY 2021.

Description of Performance

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

and other public documents, as well as individual Council member agencies’ performance 

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, and member agency websites to 

provide transparency and accountability. 

Department of Treasury - Budget in Brief 86
Treasury Forfeiture Fund

Program Summary by Budget Activity

Dollars in Thousands

 FY 2018 FY 2019 FY 2020 FY 2019 to FY 2020

Budget Activity Actual Estimated 3 Estimated $ Change % Change

Mandatory Obligations 1 $919,464 $527,772 $538,327 $10,555 2.00%

Secretary's Enforcement $38,383 $22,316 $22,762 $446 2.00%

Strategic Support $49,579 $601,000 $0 ($601,000) -100%

First Tranche 2 $242,000 

Second Tranche 2 $359,000

FY 2018 Strategic Support obligated in 

FY 2019 $2,590

Total Cost of Operations $1,007,426 $1,153,678 $561,090 ($592,589) -51.37% 

Rescissions/Cancellations4 ($1,215,775) ($232,742) $0 $232,742 -100.00% 

Contingent Liabilities $407,460 $400,000 $400,000 $0 0.00%

FTE 26 

 

27 

 

27 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 In February 2019, Treasury submitted a strategic support plan to the committees including two tranches. The first tranche of up to 

$242 million will be available for obligation 15 days after Treasury's plan was submitted. The second tranche of $359 million will be 

available for obligation after that date subject to the receipt of additional anticipated forfeitures. 

3 FY 2019 estimated is based on approved financial plan and excludes the additional anticipated forfeitures of $359 million that may 

come in FY 2019.

4 The FY 2019 sequestration would increase by $22 million if the additional anticipated forfeitures of $359 million are finalized in FY 

2019. Treasury will compute the FY 2020 sequestration reduction once the OMB Report to Congress on the Joint Committee 

Sequestration for Fiscal Year 2020 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 ($538,327,000 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 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. 

Department of Treasury - Budget in Brief 87
Secretary's Enforcement Fund ($22,762,000 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 ($0 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. Recentlyenacted large rescissions have had a severe negative impact on the participating member agencies’ 

investigations. Insufficient and inconsistent funding support, uncertainty about future funding, 

investigations disrupted by cash flow problems, and inability to obtain necessary

technology/infrastructure in the absence of Strategic Support all undermine both current and future 

financial investigations and forfeitures. 

Contingent Liabilities ($400,000 from 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. 

TEOAF Performance Highlights

Budget Activity Performance Measure FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

Actual Actual Actual Target Target

Asset Forfeiture Fund Percent of Forfeited Cash Proceeds 

Resulting from High-Impact Cases 89.09 81.79 94.19 80.00 80.00

Description of Performance 

($561,090,000 in obligations from revenue/offsetting collections): 

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. 

Focusing on strategic cases and investigations that result in high impact forfeitures will help to

impede criminal organizations while accomplishing the ultimate objective, which is to disrupt and 

Department of Treasury - Budget in Brief 88
dismantle criminal enterprises. Member law enforcement bureaus participating in the Fund have 

met or exceeded the performance target since FY 2013. The Fund maintains a target of 80 percent 

because some cases may be important to pursue, even if they are not high-impact cases and result 

in deposits of less than $100,000. 

The member bureaus exceeded the target 80 percent by 14.19 percent for FY 2018. The 

performance increased to 94.19% in FY 2018 because one major case resulted in $453 million 

which was used to compensate victims entirely. For FY 2019 and FY 2020, the target will remain 

at 80 percent. 

Department of Treasury - Budget in Brief 89
Department of Treasury - Budget in Brief 90
Bureau of Engraving and Printing

Program Summary by Budget Activity 

Dollars in Thousands

 FY 2018 FY 2019 FY 2020 FY 2019 to FY 2020

Budget Activity Actual Estimated Estimated $ Change % Change

Manufacturing $914,134 $881,201 $886,887 $5,686 0.65%

Total Cost of Operations $914,134 $881,201 $886,887 $5,686 0.65%

 

FTE 1,748 1,836 1,863 27 1.47%

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 2020 budget funds the following projects:

Replacement Production Facility: BEP’s current Washington, D.C. facility has an aging and 

outdated infrastructure which drives up costs and adversely impacts quality of the currency. BEP’s 

FY 2020 Congressional Justification displays expenditures for planning and design services for a 

new, smaller, more efficient currency production facility. A new 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 space by 28 percent and reduce its annual operating costs 

by at least $38 million. In 2019 and 2020 these costs will include costs associated with initial 

planning as well as the cost for the preliminary analysis by the Army Corps of Engineers for 

compliance with the National Environmental Policy Act (NEPA) and the cost of site surveys. 

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. 

Banknote Design and Development: In FY 2020, 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 updated notes will 

focus on innovative banknote security and anti-counterfeit technology that will enhance and ensure 

the security and integrity of U.S. currency. 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). Many factors are taken into consideration 

when updating currency, however, 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. 

Department of Treasury - Budget in Brief 91
Retooling: BEP is conducting a multi-year effort to retool its manufacturing processes with stateof–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.

 

Talent Management: BEP will continue its designated talent management initiatives, while 

filling personnel gaps in needed STEM and cybersecurity skill sets. Throughout FY 2020, BEP 

will continue to develop, execute, and communicate the results of Employee Engagement Plans 

and the annual Federal Employee Viewpoint Survey (FEVS) results.

BEP FY 2020 Budget Highlights

Dollars in Thousands

Bureau Name FTE Materials O perating & Capital Total

FY 2019 Estimated 1,924 $292,250 $571,690 $863,940

Changes to Base

Maintaining Current Levels (MCLs) 0 0 6,192 6,192

Pay-Raise 0 0 0 0

Pay Annualization 0 0 0 0

Non-Pay 0 0 6,192 6,192

Efficiency Savings (5) 500 (2,000) (2,000)

Efficiency savings 1 (5) 500 (2,000) (2,000)

Subtotal Changes to Base (5) 500 4,192 4,192

Total FY 2020 Base 1,919 $292,750 $575,882 $868,132

Program Changes

Program Decreases (3) (90,000) (5,000) (5,000)

Decrease 1 (3) (90,000) (5,000) (5,000)

Subtotal Program Changes (3) (90,000) (5,000) (5,000)

Total FY 2020 Estimated 1,916 $202,750 $570,882 $863,132

*The 2020 President’s Budget continues to include the proposal to give BEP the authority to purchase land and construct a new facility 

as a legislative proposal, rather than enacted law, due to the timing of the enactment of the final 2019 appropriations bill. This table 

assumes enactment of the proposal in 2019. 

FY 2020 Budget Adjustments 

Adjustment to Estimates

Program Decreases 

Washington D.C. New Facility -$30,820,000 / -0 FTE 

This is an adjustment to the original estimate to reflect when the new facility work will begin. 

Program Increases

Mint/BEP OMS II Consolidation Costs +294,000 / +0 FTE 

One time consolidation costs to the Mint’s E-Commerce infrastructure and services platform. 

Department of Treasury - Budget in Brief 92
Washington D.C. Facility Building Upgrades +$15,297,000/ +0 FTE

These building and supporting system upgrades (i.e. HVAC, freight elevators) are necessary to 

maintain the existing facility until the new production facility is complete.

Maintaining Current Levels (MCLs)

Non-Pay +$7,275,000 / +0 FTE 

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

Efficiency Savings

Productivity Improvements & Overtime Reduction -$3,000,000 / -0 FTE 

By employing new production technologies, BEP plans for increased operational efficiencies that 

require less overtime. 

Program Decreases

Washington D.C. Building Renovations -$18,960,000 / -0 FTE

This adjustment reflects a transition from renovation costs to new facility costs. 

Program Increases

Operations and Maintenance (O&M) of Prior-year Enterprise-wide Cybersecurity Investments 

+$371,000 / +0 FTE 

The request includes funding to support O&M for prior year Cybersecurity Enhancement Account

investments. O&M will be funded by Treasury Bureaus through Treasury Franchise Fund (TFF) 

billing. This increase represents the bureau’s portion of the $17.5 million O&M total. 

Security Feature Equipment +$15,000,000 / +0 FTE

Funds are needed for the award of a contract for production equipment needed to print new 

currency features. 

Workforce Planning Hiring Efforts (STEM) +$5,000,000 / +27 FTE 

Includes personnel costs for BEP’s STEM hiring program to meet its critical mission and cyber 

security requirements. 

Legislative Proposals1

As in the FY 2019 Budget, 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. 

1 The 2020 President’s Budget continues to include the proposal to give BEP the authority to purchase land and 

construct a new facility as a legislative proposal, rather than enacted law, due to the timing of the enactment of the 

final 2019 appropriations bill. 

Department of Treasury - Budget in Brief 93
BEP Performance Highlights

Key: DISC – Discontinued; B – Baseline 

Description of Performance 

($886,887,000 from reimbursable resources):

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. 

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 2018, the cost of manufacturing was lower than anticipated

due to the success of the $100 Single Note Inspection program, which enables BEP to reclaim 

notes which previously would have been destroyed. The 2018 actual cost was $47.41 per 1,000 

notes produced compared to the target of $48.00. Due to the mix of denominations ordered in FY 

2019, BEP’s target for this performance metric in FY 2019 and FY 2020 is set at $50.00 per 1,000 

notes produced. 

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 2018 with an actual result of 0.0031ppm notes returned due to 

a defect. BEP’s target for this performance metric will be held constant at <1 ppm for FY 2019 

and FY 2020. 

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 engagement index with a target of 65 percent. In FY 2019 and 2020, 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 2018 Lost Time Accident rate was at 0.90 cases per 100 

employees, 50 percent lower than the target of 1.80 cases per 100 employees. Both plants ended 

the year below target, which contributed to the best safety performance in a decade. This 

performance resulted from increased focus on following safe work practices, avoiding hazards, 

and being a Director’s priority. For FY 2020, 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 2019 and FY 2020. 

Department of Treasury - Budget in Brief 94
United States Mint

Program Summary by Budget Activity 

Dollars in Thousands

 FY 2018 FY 2019 FY 2020 FY 2019 to FY 2020

Budget Activity Actual Estimated Estimated $ Change % Change

Manufacturing $1,424,770 $2,620,570 $2,728,168 $107,598 4.11%

Total Resources $1,424,770 $2,620,570 $2,728,168 $107,598 4.11%

FTE 1,545 1,705 1,705 0 0.00%

Summary

The United States Mint (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 2020 include: 

• Circulating - Efficiently and effectively mint and issue approximately 14.0 billion circulating 

coins in FY 2020 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. 

FY 2020 United States Mint estimated total revenues are $2.9 billon. Total expenses are $2.73 

billion with $40.5 million are for capital investments. 

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) foster a safe, flexible, diverse, and engaged 

workforce; 2) improve mission critical activities and governance; and 3) integrate technology into 

operations and support lines. These goals align with Treasury Strategic Goal 1: Boost U.S. 

Economic Growth and Goal 5: Achieve Operational Excellence. 

Department of Treasury - Budget in Brief 95
United States Mint FY 2020 Budget Highlights

FY 2020 Budget Adjustments 

Adjustments to Estimate

Metals Due to Forecasted Increase in Circulating Coin Metal Prices +$40,000,000 / +0 FTE 

FY 2019 forecasted demand for the numismatic and bullion coin programs has decreased by -5 

percent and -20 percent, respectively.

Metals Due to Forecasted Decrease in Bullion/Numismatic Production -$390,000,000 / -0 FTE

FY 2019 forecasted circulating coin production has decreased by 4 percent (from 14.5 billion to 

14.0 billion); however, metal prices are forecasted to increase from originally- planned levels (zinc 

+20 percent; copper +16 percent; nickel +5 percent). The net result is an overall increase to the 

circulating coin program cost.

Mint/BEP OMS II Consolidation +$294,000 / +0 FTE 

Mint will streamline its E-Commerce infrastructure and services platform to migrate BEP’s online 

numismatic sales and marketing presence.

Maintaining Current Level (MCLs) +$4,571,000 / +0 FTE

Non-Pay +$4,571,000 / +0 FTE 

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

equipment. 

Operating Efficiencies -$7,389,000 / -0 FTE

The Mint will reduce its operating budget by continuing to monitor costs and implement various 

savings strategies. 

Program Decreases -$30,000,000 / -0 FTE

Metal Due to Forecasted Decrease in Numismatic Production -$30,000,000 / -0 FTE

Demand for the numismatic coin program is forecasted to decrease from FY 2019 to FY 2020 (3.6 

to 2.7 million units). 

Department of Treasury - Budget in Brief 96
Program Increases +$140,416,000 / +0 FTE

Metals Due to Forecasted Increase in Bullion Production +$140,000,000/ +0 FTE

Forecasted demand for the bullion coins will increase slightly from FY 2019 to FY 2020 (29.6 to 

31.7 million ounces). This increase, coupled with forecasted increases in metal prices, will result 

in an increase in overall production costs for the bullion coin program. 

Operations and Maintenance (O&M) of Prior-year Enterprise-wide Cybersecurity Investments 

+$416,000 / +0 FTE 

The request includes funding to support O&M for prior year Cybersecurity Enhancement 

Account investments. O&M will be funded by Treasury Bureaus through Treasury Franchise 

Fund (TFF) billing. This increase represents the bureau’s portion of the $17.5 million O&M 

total. 

Legislative Proposals 

Alternative Metal Composition 

The Budget includes a repeat legislative proposal from the FY 2019 President’s Budget. 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. 

Mint Performance Highlights

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. In FY 2018, the CSI was 93.6 

percent, exceeding its 90.0 percent target. The Mint anticipates that the CSI will remain steady 

and thus, has set the target at 90.0 percent for both FY 2019 and FY 2020.

Numismatic Sales Units

The numismatic sales unit metric measures public demand for coin products sold from numismatic 

operations. Numismatics product sales for FY 2018 totaled 3.3 million units, falling short of the 

3.5 million target. The greatest contributors to the decline in sales were lower American Eagle 

Department of Treasury - Budget in Brief 97
product sales and lower- than- anticipated demand for the Breast Cancer Commemorative Coin. 

Continuing weakness in core product sales and the loss of the Presidential Coin sets also 

contributed to the decline in sales, but which were somewhat mitigated by strong demand for 

special products. The performance target for numismatic sales units is 3.9 for FY 2019 and 3.0 

for FY 2020. 

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. In FY 2018 the 

total recordable case rate reached 1.90, well below the Mint’s 2.46 FY 2018 target, and 

significantly below the most recent industry average rate of 5.2 published in 2015 by the U.S. 

Bureau of Labor Statistics for the Non-Automotive Metal Stamping industry. The performance 

targets for the safety incident recordable rate are 2.39 for FY 2019 and 2.32 for FY 2020.

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. At the end of 

FY 2018, Seigniorage per Dollar Issued was $0.37, below the FY 2018 performance target of 

$0.43. The FY 2018 shortfall resulted from a 2.8 percent decrease in circulating shipment volumes 

combined with a 24.5 percent increase in the cost of metal. The Seigniorage per Dollar Issued 

performance targets are set at $0.36 for both FY 2019 and FY 2020.

Department of Treasury - Budget in Brief 98
Office of Comptroller of the Currency

Program Summary by Budget Activity 

Dollars in Thousands

 FY 2018 FY 2019 FY 2020 FY 2019 TO FY 2020

Budget Activity Actual Estimated Estimated $ Change % Change

Supervise $1,105,022 $975,457 $975,457 $0 0.00%

Regulate $106,649 $94,144 $94,144 $0 0.00%

Charter $24,033 $21,215 $21,215 $0 0.00%

Total Cost of Operations $1,235,704 $1,090,816 $1,090,816 $0 100%

FTE 3,840 3,788 3,788 0 0.00%

The FY 2018 increase is attributable to an additional contribution payment to the Pentegra Defined Benefit Plan, a legacy retirement 

plan that covers staff inherited from the Office of Thrift Supervision.

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, 2018, the OCC supervised 891 national bank charters and 57 federal branches

of foreign banks in the United States with total assets of approximately $11.8 trillion, and 316

federal savings associations with total assets of approximately $749 billion. In total, the OCC 

supervises approximately $12.5 trillion in financial institution assets.

The OCC has established three goals to affirm its mission: 1) The OCC fosters a safe, sound, and 

fair system of national banks, federal savings associations and federal branches of foreign banks 

and agencies of foreign banks 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. 

As such, 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 (Treasury)

FY 2018-2022 strategic goals: Boost U.S. Economic Growth, Promote Financial Stability; 

Enhance National Security, and Goal 5) 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 

Department of Treasury - Budget in Brief 99
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). 

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 (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. 

 

OCC Performance Highlights

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

Budget Activity Performance Measures Actual Actual Actual Target Target

Charter

Percentage of Licensing Applications 

and Notices Completed within 

Established Timeframes

98.0 96.0 97.0 95.0 95.0

Supervise

Percentage of National Banks and 

Federal Savings Associations with 

Composite CAMELS Rating 1 or 2

93.0 94.0 96.0 90.0 90.0

Supervise

Percentage of National Banks and 

Federal Savings Associations That Are 

Categorized As Well Capitalized 

96.0 97.0 95.0 95.0 97.0

Supervise

Percentage of National Banks and 

Federal Savings Associations With 

Consumer Compliance Rating of 1 or 2

98.0 97.0 98.0 94.0 94.0

Supervise

Rehabilitated National Banks And 

Federal Savings Associations As A 

Percentage Of Problem National Banks 

One Year Ago (CAMEL 3,4, or 5)

43.0 40.0 44.0 40.0 40.0

Supervise

Total OCC Costs Relative To Every 

$100,000 in Bank and Federal Savings 

Associations Assets Regulated ($)

9.65 9.49 9.12 8.50 8.50

Department of Treasury - Budget in Brief 100
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 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 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, 2018, 96 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 98 percent earning a consumer compliance rating of either 1 

or 2 through September 30, 2018. 

Department of Treasury - Budget in Brief 101
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 97 percent of 

applications and notices within the time standard through September 30, 2018. 

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.

Department of Treasury - Budget in Brief 102
Treasury Franchise Fund

Program Summary by Budget Activity 

Summary

The Treasury Franchise Fund (TFF) supports effective administrative and information technology 

services through commitment to service, efficient operations, openness to change, and valuesbased behavior. The TFF achieves cost savings, promotes economies of scale, and increases 

productivity and efficiency in the use of resources by shared services providers. 

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, HR, IT, and other administrative services to federal customers on a fully cost 

recoverable, fee-for-service basis. 

Dollars in Thousands

FY 2018 FY 2019 FY 2020

Budget Activity Actual Estimated Estimated $ Change % Change

Treasury Shared Services Programs $236,221 $232,515 $249,436 $16,921 7.28%

Centralized Treasury Administrative Services NA $140,522 $166,591 $26,069 18.55%

Administrative Support Services $160,743 $155,315 $170,535 $15,220 9.80%

Information Technology Services $197,335 $185,066 $188,572 $3,506 1.89%

Recoveries from Prior Years $8,541 $19,196 $22,925 $3,729 19.43%

Unobligated Balances from Prior Years $182,961 $196,071 $211,837 $15,767 8.04%

Total Program Operating Level $785,801 $928,684 $1,009,896 $81,212 8.74%

Total FTE 1,643 1,919 2,023 104 5.42%

FY 2019 to FY 2020

Department of Treasury - Budget in Brief 103
TFF FY 2020 Budget Highlights 

FY 2020 Budget Adjustments 

Adjustments to Request

Maintaining Current Level (MCLs)

Non-Pay +$9,728,000 / +0 FTE 

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

equipment. 

Program Increases 

Operations and Maintenance of Prior-year Enterprise-wide Cybersecurity Investments (TSSP) 

+$8,821,000, +8 FTE 

The TFF requires to increase TSSP by $8,821,000 to transition operations and maintenance costs 

from the Cybersecurity Enhancement Account (CEA) to the TFF. Funding to pay these bills is 

included in the individual bureau Congressional Justifications. These bureau funds will support 

operations and maintenance of the following cybersecurity projects that were initially implemented 

with CEA funding and per Department of Homeland Security directives:

• Continuous Mitigation and Diagnostics (CDM) Licenses Phase II 

• Trusted Internet Connection (TIC) Encrypted Traffic Inspection 

• Endpoint Incident Response 

• Enhanced Packet Capture 

• Government Security Operations Center (GSOC) Analytics and Expansion 

• Malware Content Filter

Treasury Franchise Fund FTE Amount

FY 2019 Estimated 1,919 $716,847

Changes to Base:

Maintaining Current Levels (MCLs): $9,728

Non-Pay $9,728

Subtotal Changes to Base 0 $9,728

Total FY 2020 Base 1,919 $726,575

Program Changes:

Program Increases: 104 $75,604

Operations and Maintenance of Prior-year Enterprise-wide Cybersecurity Investments (TSSP) 8 $8,821

Program changes/realignment to TSSP 0 $22,415

Program changes/realignment to CTAS 7 $28,312

Customer Growth (ARC Admin) 89 $16,056

Program Decreases: 0 ($1,065)

Continuous Diagnostics and Mitigation Licenses (TSSP) 0 ($1,065)

Subtotal Changes to Base 104 $74,539

Total FY 2020 Estimated 2,023 $801,114

Note/ Continuous Diagnostics and Mitigation licenses are included in the FY 2019 base budget of TFF and the FY 2020 estimate.

Dollars in Thousands

Department of Treasury - Budget in Brief 104
Program Changes/Realignment to TSSP +22,415,000, +0 FTE 

The TFF requires changes to TSSP in order to facilitate quality customer service, address the 

growing needs of agencies, and attain goals set by the Administration. Bureaus will fund changes 

that increase efficiency and manage costs while also receiving quality services attributed to the 

TFF. TSSP changes include: 

• Increase of program support by $1,187,000 for anticipated shared and customer specific needs 

across the shared services programs. 

• Expend an additional $4,092,000 to Treasury Network (TNET) service changes for the Internal 

Revenue Service (IRS) toll-free network circuits. 

• Expending an estimated $3,000,000 in FY 2019 to transition from the current Networx contract 

to the General Services Administrative (GSA) Enterprise Infrastructure Support (EIS) contract. 

For FY 2020, Treasury requests to expend an additional $17,136,000 for the multi-year 

transition project. The transition of the current contract is dependent on timelines established 

by GSA and costs may be revised once the contract is awarded.

In FY 2020, the Credit Modeling and Web Solutions programs will be realigned from CTAS to 

TSSP. The shift of these programs results in a more efficient method of formulating program 

budgets and executing customer billings by consolidating these programs into TSSP. The 

transitions of these programs has a net neutral effect on FTEs and budgetary resources for TFF. 

Program Changes/Realignment to CTAS +28,312,000, +7 FTE 

The transfer of CTAS to the TFF created streamlined services that address rises in technological 

needs of agencies across government. These increases in CTAS programs will provide bureaus 

including Departmental Offices, specifically Salaries and Expenses Initiatives and Terrorism 

Financial Intelligence (TFI), with advanced capabilities in administrative support and information 

security. With these programmatic changes the TFF can properly and proficiently provide 

increased support within government. The TFF requires to: 

• Expend $23,053,000 and request 4 FTE increase in support of administrative costs contained 

within in the Departmental Offices (DO) Salaries and Expenses (SE) FY 2020 Congressional 

Justification. This funding will support the expansion of Treasury’s implementation of the 

Committee on Foreign Investment in the United States (CFIUS) program in addition to 

initiatives in support of Critical Infrastructure Protection, Domestic Finance, and Tax Policy. 

This will include funding for the construction of secure spaces and the development of a case 

management system associated with the growth of the CFIUS program. Funding would also 

support new hires required to manage an increased CFIUS caseload as well as program growth 

in Domestic Finance and Tax Policy. 

• Expend $1,631,000 in support of administrative costs associated with the DO Office of 

Terrorism and Financial Intelligence (TFI) initiatives contained in the DO TFI FY 2020 

Congressional Justification

• Increase CTAS by $778,000 to transition operations and maintenance costs to the TFF for 

Communications Security (COMSEC).

• Increase CTAS by $2,850,000 and 3 FTE to transition operations and maintenance costs from 

the CEA to the TFF for Treasury Secure Data Network (TSDN).

Department of Treasury - Budget in Brief 105
Customer Growth (ARC Admin) +$16,056,000 +89 FTE 

In FY 2018 ARC initiated shared services transitions with the four agencies listed below and 

anticipates full implementation by FY 2020. These transitions demonstrate the support of ARC 

and these agencies for the Administration’s sharing of quality services CAP goal 5 and a 

commitment to maximizing resource allocations to mission activities. The program increase 

reflects operations and maintenance costs, and provides cost sharing and avoidance opportunities 

for both the new and current agencies supported by ARC.

• National Capital Planning Commission

• U.S. Consumer Product Safety Commission 

• Corporation for National and Community Service 

• National Records and Archive Administration 

Program Decreases

Continuous Diagnostics and Mitigation Licenses (TSSP) -$1,065,000 / -0 FTE

Continuous Diagnostics and Mitigation Licenses (TSSP), -$1,065K, -0 FTE

Treasury expects a decrease in the cost of Continuous Diagnostics and Mitigation (CDM) licenses 

from the original estimates that were provided by the Department of Homeland Security. Treasury 

bureaus have requested $5,081K for CDM licenses in their individual bureau FY 2020 

Congressional Justifications. 

Legislative Proposals 

The Treasury Franchise Fund does not have legislative proposals. 

TFF Performance Highlights

Budget Activity Performance Measure FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

Actual Actual Actual Target Target

Treasury Shared Services Programs Average Cost per FTE NA NA NA 1,383.0 1,460.0

Treasury Shared Services Programs Annual Effective Spend Rate NA NA NA 96.0 96.0

Treasury Shared Services Programs Customer Satisfaction NA NA NA B TBD

Centralized Treasury Administrative Services Annual Effective Spend Rate NA NA NA 96.0 96.0

Centralized Treasury Administrative Services Customer Satisfaction NA NA NA B TBD

Administrative Support Services Customer Unmodified Audit Opinions NA NA 100.0 100.0 100.0

Administrative Support Services Percentage of Shared Services Service Level 

Agreement Performance Metrics Met Or Exceeded NA NA NA B 94.0

Administrative Support Services Customer Satisfaction NA NA NA B 80.0

Information Technology Services

Fiscal IT Hosting – Percentage of Time Service is 

Operational (Uptime Excluding Planned 

Maintenance)

99.8 99.0 99.8 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 [#]

1.0 2.0 1.0 2.0 2.0

Key: DISC - Discontinued; B - Baseline

Note: After collaboration with Office of Strategic Planning and Performance Improvement (OSPPI) and Office of Management and Budget (OMB) the TFF reviewed performance 

metrics to determine best practices resulting in the discontinuing of inefficient measures.

Department of Treasury - Budget in Brief 106
Description of Performance 

The TFF has a history of high performance and is considered a leader in delivering high quality, 

cost effective federal shared services. With services in high demand, the TFF continues to 

demonstrate success through new federal agency partnerships and operational excellence, meeting 

or exceeding performance measures, achieving high customer satisfaction results, and cost 

effective and stable prices. After internal review of existing measures resulted in the discontinuing 

of inefficient measures, the TFF will implement new performance measures in FY 2020 that 

provide a high-level overview of the effectiveness and efficiency of the programs within the TFF. 

The new measures will allow the shared services providers to focus on broader based metrics to 

gauge customer satisfaction, operations support resources, and the benefit from centralized 

approaches to program support and administration. 

Department of Treasury - Budget in Brief 107
Department of Treasury - Budget in Brief 108
International Programs

Program Summary Dollars in Thousands

 FY 2018 

Enacted 

FY 2019

Enacted 

FY 2020

Request 

FY 2019 to FY 2020 

$ 

Change 

% 

Change 

Multilateral Development Banks (MDBs) $1,348,123 $1,348,122 $1,522,205 $174,083 11.44%

International Development Association (IDA) $1,097,010 $1,097,010 $1,097,010 $0 0.00%

Int'l Bank for Reconstruction and Development 

(IBRD) $206,500

 

- NA

African Development Fund (AfDF) $171,300 $171,300 $171,300 $0 0.00%

African Development Bank (AfDB) $32,418 $32,417 ($32,417)

-

100.00%

Asian Development Fund (AsDF) $47,395 $47,395 $47,395 $0 0.00%

Food Security $30,000 $30,000 $0 ($30,000)

-

100.00%

Int'l Fund for Agricultural Development (IFAD) $30,000 $30,000 ($30,000)

-

100.00%

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

-

100.00%

Global Environment Facility (GEF) $139,575 $139,575 $0 ($139,575)

-

100.00%

Treasury Office of Technical 

Assistance (OTA) $30,000 $30,000 $30,000 $0 0.00%

TOTAL $1,547,698 $1,547,697 $1,552,205 $4,508 0.29%

Summary

The Treasury Department requests $1.55 billion for International Programs in FY 2020. In 

recognition of the Administration’s prioritization on national defense and security as well as a 

streamlined Federal Government that makes the best possible use of taxpayer dollars, we will 

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. 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 improved monitoring and evaluation, 

stronger independent compliance functions, adopting mechanisms to improve financial 

sustainability, and a larger allocation of lending to the world’s poorest countries. 

Multilateral Development Banks

Our request includes $1.52 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. 

Department of Treasury - Budget in Brief 109
International Development Association (IDA): $1,097 million in support of IDA programs over 

the eighteenth replenishment (IDA-18; FY 2018 – FY 2020), including towards the third of three 

installments to IDA-18. 

International Bank for Reconstruction and Development (IBRD): $206.5 million towards the first 

of up to six installments for the IBRD general and selective capital increases.

International Finance Corporation (IFC): No funding is requested in FY 2020. Treasury is 

requesting 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 Fund (AfDF): $171.3 million in support of AfDF programs over the 

fourteenth replenishment (AfDF-14; FY 2018 – FY 2020), including towards the third of three 

installments to AfDF-14. 

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 third of four installments 

to AsDF-12. 

North American Development Bank (NADB): No funding is requested in FY 2020. Treasury is 

requesting authorization to subscribe to the paid-in capital shares for which funding was 

appropriated by the Consolidated Appropriations Act of 2016. 

Environmental Trust Funds

Global Environment Facility (GEF): While the GEF remains a priority for Treasury, no funding 

is requested in FY 2020, as the Consolidated Appropriations Act, 2019 provides more than 

double the amount requested for FY 2019, which keeps the Administration on track to meet its 

GEF-7 pledge by FY 2022. (GEF-7; FY 2019 – FY 2022). 

Technical Assistance

Treasury Office of Technical Assistance (OTA): $30 million to help ensure that OTA is able to 

respond quickly and in a sustained way 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. 

Department of Treasury - Budget in Brief 110
Summary of FY 2020 Appropriations Language

A full-year 2019 appropriation for this account 

was not enacted at the time the budget was 

prepared; therefore, the budget assumes this 

account is operating under the Continuing 

Appropriations Act, 2019 (Division C of P.L. 

115–245, as amended). The amounts included 

for 2019 reflect the annualized level provided 

by the continuing resolution. 

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 and local entities; and Treasury-wide 

management policies and programs activities, 

$235,973,000: 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, 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. 

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, $166,712,000: Provided, That 

of the amounts appropriated under this 

heading, $10,000,000 shall remain available 

until September 30, 2021. 

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: 

Provided, That amounts made available under 

this heading shall be in addition to other 

amounts available to Treasury offices and 

bureaus for cybersecurity. 

DEPARTMENT-WIDE SYSTEMS AND 

CAPITAL INVESTMENTS PROGRAMS

(INCLUDING TRANSFER OF FUNDS)

For development and acquisition of automatic 

data processing equipment, software, and 

services and for repairs and renovations to 

buildings owned by the Department of the 

Treasury, $6,118,000, to remain available until 

September 30, 2022: Provided, That these 

funds shall be transferred to accounts and in 

amounts as necessary to satisfy the 

requirements of the Department's offices, 

bureaus, and other organizations: Provided 

Department of Treasury - Budget in Brief 111
further, That this transfer authority 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, $37,044,000, 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, 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 chair- person of 

the Committee may transfer funds provided 

under this heading to any department or 

agency represented on the Committee 

(including the Department of the Treasury) 

upon the advance notification of 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 the Defense Production 

Act of 1950, as amended, shall be credited to 

this appropriation as off- setting 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, so as to result in a total appropriation 

from the general fund estimated at not more 

than $10,000,000. 

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; 

$166,000,000, of which $5,000,000 shall 

remain available until September 30, 2021; 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 Improvements 

Act of 1994 (subtitle A of title I of Public Law 

103–325), including services authorized 

Department of Treasury - Budget in Brief 112
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-3, 

$14,000,000, to be used for administrative 

expenses, including administration of CDFI 

fund programs and the New Markets Tax 

Credit Program: Provided, That during fiscal 

year 2020, 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 through December 31, 2020: 

Provided further, That such section 114A shall 

remain in effect until December 31, 2020: 

Provided further, That of the unobligated 

balances from prior year appropriations 

available for the Community Development 

Financial Institutions Fund for the Bank 

Enterprise Award program under this heading, 

$25,000,000 is hereby permanently cancelled: 

Provided further, That no amounts may be 

cancelled from amounts that were designated 

by the Congress as an emergency or disaster 

relief requirement pursuant to the concurrent 

resolution on the budget or the Balanced 

Budget and Emergency Deficit Control Act of 

1985. 

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), $17,500,000. 

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, $124,700,000 , of 

which not to exceed $34,335,000 shall remain 

available until September 30, 2022. 

BUREAU OF THE FISCAL SERVICE

SALARIES AND EXPENSES

For necessary expenses of operations of the 

Bureau of the Fiscal Service, $340,337,000; 

of which not to exceed $8,000,000, to remain 

available until September 30, 2022, 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, 

115,427,000, of which $5,000,000 shall remain 

available until September 30, 2021; of which 

not to exceed $6,000 shall be available 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 

Department of Treasury - Budget in Brief 113
and local agencies with or without 

reimbursement.

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 under such section 5136 for 

circulating coinage and protective service 

capital investments of the United States Mint 

shall not exceed $30,000,000. 

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, $2,402,000,000; of which 

not less than $8,890,000 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 $15,000,000, 

to remain available until September 30, 

2021, shall be available for a Community 

Volunteer Income Tax Assistance matching 

grants program for tax return preparation 

assistance; and of which not less than 

$206,000,000 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 $5,000,000 

shall be for identity theft 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, $4,705,368,000, of which not 

to exceed $50,000,000 shall remain available 

until September 30, 2021, and of which not 

less than $60,257,000 shall be for the Interagency Crime and Drug Enforcement

program: Provided, That of the funds 

provided under this paragraph, 

$4,705,368,000 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 

$199,886,000 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 

Department of Treasury - Budget in Brief 114
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; 

$4,075,021,000, of which not to exceed 

$250,000,000 shall remain available until 

September 30, 2021; 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 exceed $1,000,000 

shall remain available until September 30, 

2022, for research; 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: Provided further, 

That the Internal Revenue Service shall 

include, in its budget justification for fiscal 

year 2020, a summary of cost and schedule 

performance information for its major 

information technology systems: Provided 

further, That the Internal Revenue Service shall 

of the funds provided under this paragraph, 

$4,075,021,000 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 

$161,685,000 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. 

BUSINESS SYSTEMS

MODERNIZATION

For necessary expenses of the Internal Revenue 

Service's business systems modernization 

program, $290,000,000, to remain available 

until September 30, 2022, 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 life-cycle 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. 

ADMINISTRATIVE PROVISIONS— 

INTERNAL REVENUE SERVICE

(INCLUDING TRANSFER OF FUNDS)

SEC. 101. Not to exceed 5 percent of any 

appropriation made available in this Act to the 

Internal Revenue Service may be transferred to 

any other Internal Revenue Service 

appropriation upon the advance notification of 

the Committees on Appropriations. 

SEC. 102. The Internal Revenue Service shall 

maintain an employee training pro- gram, 

which shall include the following topics: 

Department of Treasury - Budget in Brief 115
taxpayers' rights, dealing courteously with 

taxpayers, cross-cultural 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. Section 9503(a) of title 5, United 

States Code, is amended by striking the clause 

"Before September 30, 2013" and inserting 

"before September 30, 2023". 

SEC. 109. Section 9503(a) (5) of title 5, United 

States Code, is amended by inserting before the 

semicolon the following: ", but are renewable 

for an additional two years, based on a critical 

organizational need". 

SEC. 110. Notwithstanding 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 up to $10,000,000 

without prior Congressional notification of 

such action. 

ADMINISTRATIVE PROVISIONS—

DEPARTMENT OF THE TREASURY

SEC. 114. 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. 115. Not to exceed 2 percent of any 

appropriations in this title made available 

under the headings "Departmental Offices—

Salaries and Expenses", "Community 

Development Financial Institutions Fund", 

"Office of Terrorism and Financial 

Intelligence", "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 

notification of the Committees on 

Appropriations of the House of Representatives 

and the Senate: Provided, That no transfer 

Department of Treasury - Budget in Brief 116
under this section may increase or decrease 

any such appropriation by more than 2 percent.

SEC. 116. 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 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. 117. 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. 118. 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. 119. 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 

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. 120. 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 advance 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. 121. 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 until the enactment of 

the Intelligence Authorization Act for Fiscal 

Year 2020. 

SEC. 122. 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. 123. 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 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. 124. (a) Not later than 60 days after the 

end of each quarter, the Office of Financial 

Research shall submit reports on its 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, 

Department of Treasury - Budget in Brief 117
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 Research shall make 

officials available to testify on the contents of 

the reports required under subsection (a). 

SEC. 125. 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 

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. 126. During fiscal year 2020— (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. 127. Amendments to Community 

Development Financial Institutions Bond 

Program. Section 114A of the Riegle 

Community Development and Regulatory 

Improvement Act of 1994 (12 U.S.C. 4713a) is 

amended— 

(a) in subsection (c)(2) by striking ", 

multiplied by an amount equal to the outstanding principal balance of issued notes or 

bonds"; and 

(b) in subsection (e)(2)(B) by striking 

"$100,000,000" and inserting "$50,000,000". 

SEC. 128. 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. 

Department of Treasury - Budget in Brief 118
Mandatory Funding Levels for the FY 2020 President’s Budget – Treasury Chapter

(Dollars in Millions, Includes Legislative Proposals)

Appropriations (Dollars in Millions) FY 2018 FY 2019 FY 2020 FY 2020 FY 2020

Actual Estimated Estimated $ Change % Change

Payment to the Resolution Funding Corporation 2,628 2,628 2,445 (183) -7.0%

Interest on Uninvested Funds 21 31 32 1 3.2%

Restitution of Forgone Interest 1,464 0 0 0 0.0%

Federal Interest Liabilities to States 0 1 1 0 0.0%

Interest Paid to Credit Financing Accounts 7,894 11,566 12,455 889 7.7%

Refunding Internal Revenue Collections, Interest 1,551 1,329 1,419 90 6.8%

Interest on Public Debt 521,553 593,100 679,707 86,607 14.6%

Other Interest (44,881) (52,027) (54,534) (2,507) 4.8%

INTEREST PAYMENTS $490,230 $556,628 $641,525 $84,897 15.3%

MANDATORY ACCOUNTS

Build America Bond Payments, Recovery Act 3,539 3,539 3,773 234 6.6%

Capital Magnet Fund, Community Development Financial Institutions 143 134 8 (126) -94.0%

Check Forgery Insurance Fund 5 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 1,627 2,255 2,252 (3) -0.1%

Community Development Financial Institutions Fund Program Account 3 7 1 (6) -85.7%

Comptroller of the Currency 1,255 1,192 1,195 3 0.3%

Continued Dumping and Subsidy Offset 27 21 19 (2) -9.5%

Exchange Stabilization Fund 338 483 600 117 24.2%

Federal Financing Bank 2,318 2,321 1,973 (348) -15.0%

Federal Reserve Bank Reimbursement Fund 518 615 623 8 1.3%

Financial Agent Services 801 831 847 16 1.9%

Financial Research Fund 59 72 74 2 2.8%

Grants for Specified Energy Property in Lieu of Tax Credits, Recovery Act 48 0 0 0 0.0%

GSE Mortgage-backed Securities Purchase Program Account 2 2 2 0 0.0%

Gulf Coast Restoration Trust Fund 179 322 361 39 12.1%

Hope Reserve Fund 8 0 0 0 0.0%

Informant Payments 215 228 225 (3) -1.3%

Internal Revenue Collections for Puerto Rico 446 413 423 10 2.4%

IRS Miscellaneous Retained Fees 389 336 334 (2) -0.6%

Office of Financial Stability 79 62 53 (9) -14.5%

Payment of Government Losses in Shipment 2 3 3 0 0.0%

Payment to Issuer of New Clean Renewable Energy Bonds 46 46 49 3 6.5%

Payment to Issuer of Qualified Energy Conservation Bonds 40 40 43 3 7.5%

Payment to Issuer of Qualified School Construction Bonds 680 688 733 45 6.5%

Payment to Issuer of Qualified Zone Academy Bonds 57 57 61 4 7.0%

Payment to United States Virgin Islands and Puerto Rico for Disaster Tax Relief 250 200 0 (200) -100.0%

Payment Where American Opportunity Credit Exceeds Liability for Tax 3,102 3,480 3,600 120 3.4%

Payment Where Certain Tax Credits Exceed Liability for Corporate Tax 1,120 8,525 6,231 (2,294) -26.9%

Payment Where Child Tax Credit Exceeds Liability for Tax 18,597 35,506 35,595 89 0.3%

Payment Where Earned Income Credit Exceeds Liability for Tax 58,640 60,666 62,551 1,885 3.1%

Payment Where Health Coverage Tax Credit Exceeds Liability for Tax 27 31 8 (23) -74.2%

Payment Where Small Business Health Insurance Tax Credit Exceeds Liability for Tax 2 5 4 (1) -20.0%

Presidential Election Campaign Fund 26 25 25 0 0.0%

Private Collection Agent Program 36 51 55 4 7.8%

Refundable Premium Tax Credit 54,351 48,639 41,854 (6,785) -13.9%

Reimbursements to Federal Reserve Banks 128 167 171 4 2.4%

Salaries and Expenses 173 217 201 (16) -7.4%

Small Business Lending Fund Program Account 52 4 6 2 50.0%

Social Impact Demonstration Projects 100 0 0 0 0.0%

Terrorism Insurance Program 2 37 104 67 181.1%

Travel Promotion Fund 93 94 0 (94) -100.0%

Treasury Forfeiture Fund 1,147 645 571 (74) -11.5%

Troubled Asset Relief Program Equity Purchase Program 0 2 0 (2) -100.0%

Subtotal, MANDATORY ACCOUNTS $150,671 $171,967 $164,634 ($7,333) -4.3%

Offsets:

Treasury Mandatory Offsetting Receipts (16,243) (27,693) (25,894) 1,799 -6.5%

Treasury Offsetting Collections (3,917) (4,002) (3,773) 229 -5.7%

TOTAL, DEPARTMENT OF THE TREASURY $620,741 $696,900 $776,492 $79,592 11.4%

Department of Treasury - Budget in Brief 119
Total Treasury Department Mandatory Budget

The Treasury Department Mandatory Budget 

includes $776 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 2020 policy proposals. For more 

detailed descriptions of each account, please 

see the Department of the Treasury chapter in 

the FY 2020 Appendix, Budget of the U.S. 

Government at: 

http://www.whitehouse.gov/omb/budget. 

Interest Payments - $642 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 - $165 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 2020 Appendix, Budget of the U.S. 

Government. 

Offsets - $30 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 Treasury - Budget in Brief 120