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 Treasury Building | |
| Agency overview | |
|---|---|
| Formed | September 2, 1789; 236 years ago (1789-09-02) |
| Preceding agency |
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| Type | Executive department |
| Jurisdiction | U.S. federal government |
| Headquarters | Treasury Building 1500Pennsylvania Avenue,NW Washington, D.C., U.S 38°53′51″N77°2′4″W / 38.89750°N 77.03444°W /38.89750; -77.03444 |
| Employees | 87,336 (2019) |
| Annual budget | $20.2 billion (2024)[1] |
| Agency executives | |
| Child agencies | |
| Website | treasury.gov |
TheDepartment of the Treasury (USDT)[2] is thenational treasury and finance department of thefederal government of the United States. It is one of 15 currentU.S. government departments.[3]
The department oversees theBureau of Engraving and Printing and theU.S. Mint, two federal agencies responsible for printing allpaper currency and mintingcoins. The treasury executescurrency circulation in the domestic fiscal system,collects allfederal taxes through theInternal Revenue Service, managesU.S. government debt instruments,licenses and supervises banks andthrift institutions, and advises thelegislative andexecutive branches onfiscal policy. The department is administered by thesecretary of the treasury, who is a member of theCabinet. Thetreasurer of the United States has limited statutory duties, but advises the Secretary on various matters such as coinage and currency production.[4] Signatures of both officials appear on allFederal Reserve Notes.[5]
The department was established by anAct of Congress in 1789 to manage governmentrevenue.[6] The first secretary of the treasury wasAlexander Hamilton fromNew York, aFounding Father. Appointed byGeorge Washington, the nation's firstpresident, Hamilton was sworn into office on September 11, 1789.[7] Hamilton was recommended to Washington byRobert Morris fromPennsylvania, who was also a Second Continental Congress delegate. Morris was Washington's first choice for the position, but declined the appointment.[8] Hamilton established the nation's early financial system and for several years was a major presence inWashington's administration.[9]
The department is customarily referred to as "Treasury", solely, without anypreceding article – a transitional remnant fromBritish toAmerican English. Hamilton's portrait appears on theobverse of theten-dollar bill, while theTreasury Building in Washington, D.C. is depicted on thereverse.[10]
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The history of the Department of the Treasury began during theAmerican Revolution when theContinental Congress, convening inPhiladelphia, deliberated the crucial question of how it would finance theAmerican Revolutionary War in which theThirteen Colonies ultimately soughtindependence from theKingdom of Great Britain, then led byKing George III.
The Congress had no power tolevy andcollect taxes, nor was there a tangible basis for securing funds from foreign investors or governments. The delegates resolved to issue paper money in the form ofbills of credit, promisingredemption incoin on faith in the revolutionary cause. On June 22, 1775, only a few days after theBattle of Bunker Hill, the Continental Congress issued $2 million in bills; on July 25, 28 citizens of Philadelphia were employed by Congress to sign and number the currency.
On July 29, 1775, theSecond Continental Congress assigned responsibility for the administration of the revolutionary government's finances to joint Continental treasurersGeorge Clymer andMichael Hillegas. Congress stipulated that each of the colonies contribute to the Continental government's funds. To ensure proper and efficient handling of the growingnational debt in the face of weak economic and political ties between the colonies, the Congress, on February 17, 1776, designated a committee of five to superintend the treasury,settle accounts, and report periodically to the Congress. On April 1, a Treasury Office of Accounts, consisting of an auditor general andclerks, was established to facilitate the settlement of claims and to keep the public accounts for the government of the United Colonies. With the signing of theDeclaration of Independence on July 4, 1776, the newborn republic as asovereign nation was able to secure loans from abroad.[11]
Despite the infusion of foreign and domestic loans, theunited colonies were unable to establish a well-organized agency for financial administration. Michael Hillegas was first called Treasurer of the United States on May 14, 1777. The Treasury Office was reorganized three times between 1778 and 1781. The $241.5 million in paper Continental billsdevalued rapidly. By May 1781, the dollarcollapsed at a rate of from 500 to 1000 to 1 againsthard currency. Protests against the worthless money swept the colonies, giving rise to the expression "not worth a Continental".
Since the late 18th century, the office has beencustomarily referred to as the singular "Treasury", without anypreceding article, as a remnant of the country's transition fromBritish toAmerican English.[12][13] For example, the department notes its guiding purpose as "Treasury's mission" instead of "the Treasury's mission."[14]
Robert Morris was designated Superintendent of Finance in 1781 and restored stability to the nation's finances. Morris, a wealthy colonialmerchant, was nicknamed "the financier" because of his reputation for procuring funds or goods on a moment's notice. His staff included acomptroller, atreasurer, aregister, andauditors, who managed the country's finances through 1784, when Morris resigned because of ill health. The treasury board, consisting of three commissioners, continued to oversee the finances of the confederation of former colonies until September 1789.
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TheFirst United States Congress convened inNew York City on March 4, 1789, marking the beginning of government under theU.S. Constitution. On September 2, 1789, Congress created a permanent institution for the management of government finances:
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That there shall be a Department of Treasury, in which shall be the following officers, namely: a Secretary of the Treasury, to be deemed head of the department; a Comptroller, an Auditor, a Treasurer, a Register, and anAssistant to the Secretary of the Treasury, which assistant shall be appointed by the said Secretary.[6][15]
Alexander Hamilton took the oath of office as the firstsecretary of the treasury on September 11, 1789. Hamilton had served asGeorge Washington'saide-de-camp during theAmerican Revolutionary War and was influential in theratification of the Constitution. Hamilton'sfinancial and managerial acumen made him a logical choice for addressing the problem of the new nation's heavywar debt. His first official act as secretary was to submit a report to Congress in which he laid the foundation for the nation's financial health.
To the surprise of many legislators, he insisted uponfederal assumption and dollar-for-dollar repayment of the country's $75 million debt in order to revitalize thepublic credit: "[T]he debt of the United States was the price of liberty. The faith of America has been repeatedly pledged for it, and with solemnities that give peculiar force to the obligation."[16] Hamilton foresaw the development of industry and trade in the United States, suggesting that government revenues be based uponcustoms duties.[16] His soundfinancial policies also inspired investment in theBank of the United States, which acted as the government'sfiscal agent.[citation needed]
The Department of Treasury believes their seal was created byFrancis Hopkinson, the treasurer of loans. He submitted bills to Congress in 1780 that authorized the design of department seals, including a seal for the Board of Treasury. While it is not certain that Hopkinson designed the seal, it closely resembles others he created.[17]
In 1861, Sophia Holmes became the first Black woman to be employed by the Treasury Department and by theFederal government of the United States whenSenator Henry Wilson,James G. Blaine and others advocated for her hiring as a janitor under Secretary of the TreasuryFrancis Spinner. She was paid fifteen dollars per month. In 1862, she prevented a major theft from the department of more than $200,000 when she came across a box filled with U.S. currency, including a number of thousand-dollar bills, and reported it to Secretary Spinner.
U.S. presidentAbraham Lincoln subsequently honored her with a commendation for her actions, and thefederal government rewarded her with an appointment for life as a messenger with its department of Issues.[18][19][20] Another early woman hired by the department wasJennie Douglas in 1862.[21] Douglas, who was also recruited by Spinner, is sometimes attributed to having been the first woman to have held an appointed position in the federal government.[22]
TheU.S. Congress transferred several agencies that had previously been under the aegis of the Treasury Department to other departments as a consequence of theSeptember 11 attacks. Effective January 24, 2003, theBureau of Alcohol, Tobacco and Firearms (ATF), which had been a bureau of the department since 1972, was extensively reorganized under the provisions of theHomeland Security Act of 2002. Thelaw enforcement functions of ATF, including the regulation of legitimate traffic infirearms andexplosives, were transferred to theDepartment of Justice as the Bureau of Alcohol, Tobacco, Firearms, and Explosives (BATFE).[23] The regulatory and tax collection functions of ATF related to legitimate traffic in alcohol and tobacco remained with the treasury at its newAlcohol and Tobacco Tax and Trade Bureau (TTB).[24]
Effective March 1, 2003, theFederal Law Enforcement Training Center, theU.S. Customs Service, and theU.S. Secret Service were transferred to the newly createdDepartment of Homeland Security ("DHS").[25]
In 2020, Treasurysuffered a data breach following acyberattack likely conducted by anation state adversary, possibly Russia.[26][27] This was in fact the first detected case of the much wider2020 United States federal government data breach, which involved at least eight federal departments.[28]
The basic functions of the Department of the Treasury include:[29]
With respect to the estimation of revenues for theexecutive branch, Treasury serves a purpose parallel to that of theOffice of Management and Budget for the estimation of spending for the executive branch, theJoint Committee on Taxation for the estimation of revenues for Congress, and theCongressional Budget Office for the estimation of spending for Congress.
From 1830 until 1901, responsibility for overseeingweights and measures was carried out by the Office of Standard Weights and Measures under the auspices of the Treasury Department.[30] After 1901, that responsibility was assigned to the agency that subsequently became known as theNational Institute of Standards and Technology.
The Department of the Treasury is organized into two major components: the departmental offices and the operating bureaus. The departmental offices are primarily responsible for the formulation of policy and management of the department as a whole, while the operating bureaus carry out the specific operations assigned to the department.
| Bureau | Description |
| Alcohol and Tobacco Tax and Trade Bureau (TTB) | The Alcohol and Tobacco Tax and Trade Bureau (TTB) is responsible for enforcing and administering laws covering the production, use, and distribution of alcohol and tobacco products. TTB also collects excise taxes for firearms and ammunition. |
| Bureau of Engraving & Printing (BEP) | The Bureau of Engraving & Printing (BEP) designs and manufactures U.S. currency, securities, and other official certificates and awards. |
| Bureau of the Fiscal Service | The Bureau of the Fiscal Service was formed from the consolidation of the Financial Management Service and the Bureau of the Public Debt. Its mission is to promote the financial integrity and operational efficiency of the U.S. government through exceptional accounting, financing, collections, payments, and shared services. |
| Community Development Financial Institution (CDFI) Fund | The Community Development Financial Institution (CDFI) Fund was created to expand the availability of credit, investment capital, and financial services in distressed urban and rural communities. |
| Financial Crimes Enforcement Network (FinCEN) | The Financial Crimes Enforcement Network (FinCEN) supports law enforcement investigative efforts and fosters interagency and global cooperation against domestic and international financial crimes. It also provides U.S. policymakers with strategic analyses of domestic and worldwide trends and patterns. |
| Inspector General | The Inspector General conducts independent audits, investigations and reviews to help the Treasury Department accomplish its mission; improve its programs and operations; promote economy, efficiency and effectiveness; and prevent and detect fraud and abuse. |
| Treasury Inspector General for Tax Administration (TIGTA) | The Treasury Inspector General for Tax Administration (TIGTA) provides leadership and coordination and recommends policy for activities designed to promote economy, efficiency, and effectiveness in the administration of the internal revenue laws. TIGTA also recommends policies to prevent and detect fraud and abuse in the programs and operations of the IRS and related entities. |
| Internal Revenue Service | The Internal Revenue Service (IRS) is the largest of Treasury's bureaus. It is responsible for determining, assessing, and collecting internal revenue in the United States. |
| Office of the Comptroller of the Currency (OCC) | The Office of the Comptroller of the Currency (OCC) charters, regulates, and supervises national banks to ensure a safe, sound, and competitive banking system that supports the citizens, communities, and economy of the United States. |
| U.S. Mint | The U.S. Mint designs and manufactures domestic, bullion and foreign coins as well as commemorative medals and other numismatic items. The Mint also distributes U.S. coins to the Federal Reserve banks as well as maintains physical custody and protection of the nation's silver and gold assets. |
The Treasury Department has authorized a budget forFiscal Year 2024 of $16.5 billion. The budget authorization is broken down as follows:[36]
| Program | Funding (in millions) |
|---|---|
| Management and Finance | |
| Department Administration | $273 |
| Office of the Inspector General | $49 |
| Inspector General for Tax Administration | $174 |
| Special Inspector General for TARP (Troubled Asset Relief Program) | $9 |
| Community Development Financial Institutions Fund | $324 |
| Financial Crimes Enforcement Network | $190 |
| Alcohol and Tobacco Tax and Trade Bureau | $149 |
| Bureau of the Fiscal Services | $373 |
| Other | $339 |
| Tax Administration | |
| Internal Revenue Service | $12,319 |
| International Programs | |
| International Programs | $2,364 |
| Other | |
| Other | $293 |
| TOTAL | $16,517 |
In the 2015Center for Effective Government analysis of the 15 federal agencies that receive the mostFreedom of Information Act (FOIA) requests (using 2012 and 2013 data, the most recent years available), Treasury failed to earn a satisfactory overall grade.[37]
Treasury's mission highlights its role as the steward of U.S. economic and financial systems, and as an influential participant in the world economy.
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| Deputy Secretary of the Treasury |  | |
|---|---|---|
| Under Secretary of the Treasury for International Affairs |
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| Under Secretary of the Treasury for Domestic Finance |
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| Under Secretary of the Treasury for Terrorism and Financial Intelligence | ||
| Treasurer of the United States | ||
