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United States Department of the Treasury

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TheDepartment of the Treasury(USDT)[2]is thenational treasuryand finance department of thefederal government of the United States,where it serves as anexecutive department.[3]The department oversees theBureau of Engraving and Printingand theU.S. Mint.These two agencies are responsible for printing allpaper currencyand mintingcoins,while the treasury executescurrency circulationin the domestic fiscal system. Itcollectsallfederal taxesthrough theInternal Revenue Service;managesU.S. government debt instruments;licenses and supervises banksandthrift institutions;and advises thelegislativeandexecutive brancheson matters offiscal policy.The department is administered by thesecretary of the treasury,who is a member of theCabinet.Thetreasurer of the United Stateshas 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]

United States Department of the Treasury
Seal of the Department
Flag of the Department

Treasury Building
Agency overview
FormedSeptember 2, 1789;235 years ago(1789-09-02)
Preceding agency
  • Board of Treasury
TypeExecutive department
JurisdictionU.S. federal government
HeadquartersTreasury Building
1500Pennsylvania Avenue,NW
Washington, D.C.,U.S
38°53′51.2″N77°2′3.4″W/ 38.897556°N 77.034278°W/38.897556; -77.034278
Employees87,336 (2019)
Annual budget$20 billion (2019)[1]
Agency executives
Child agencies
Websitetreasury.gov

The department was established by anAct of Congressin 1789 to manage governmentrevenue.[6]The first secretary of the treasury wasAlexander Hamilton,who was sworn into office on September 11, 1789.[7]Hamilton was appointed by PresidentGeorge Washingtonon the recommendation ofRobert Morris,Washington's first choice for the position, who had 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 fromBritishtoAmerican English.Hamilton's portrait appears on theobverseof theten-dollar bill,while theTreasury Buildingin Washington, D.C. is depicted on thereverse.[10]

History

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Revolutionary period

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The history of the Department of the Treasury began in the turmoil of theAmerican Revolution,when theContinental CongressatPhiladelphiadeliberated the crucial issue of financing a war of independence againstGreat Britain.The Congress had no power tolevyandcollecttaxes, 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,promisingredemptionincoinon 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 Congressassigned the responsibility for the administration of the revolutionary government's finances to joint Continental treasurersGeorge ClymerandMichael Hillegas.Congress stipulated that each of the colonies contribute to the Continental government's funds. To ensure proper and efficient handling of the growingnational debtin 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 Independenceon July 4, 1776, the newborn republic as asovereign nationwas able to secure loans from abroad.[11]

Despite the infusion of foreign and domestic loans, theunited colonieswere 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 billsdevaluedrapidly. By May 1781, the dollarcollapsedat 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".The office has, since the late 18th century, beencustomarily referredto as the singular "Treasury", without anypreceding article,as a remnant of the country's transition fromBritishtoAmerican English.[12][13]For example, the department notes its guiding purpose as "Treasury's mission" instead of "the Treasury's mission."[14]

Robert Morriswas 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.

Creation of the Treasury

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Original seal, dating from before 1968

TheFirst United States Congressconvened inNew York Cityon 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 Hamiltontook the oath of office as the firstsecretary of the treasuryon September 11, 1789. Hamilton had served asGeorge Washington'saide-de-campduring theAmerican Revolutionary Warand was influential in theratificationof the Constitution. Hamilton'sfinancial and managerial acumenmade 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 assumptionand 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 policiesalso 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]

1860s

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In 1861, Sophia Holmes became the first Black woman to be employed by the Treasury Department and by theFederal government of the United StateswhenSenator Henry Wilson,James G. Blaineand 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 Lincolnsubsequently honored her with a commendation for her actions, and the federal government rewarded her with an appointment for life as a messenger with its Department of Issues.[18][19][20][21]

2003 reorganization

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TheTreasury Buildingat 1500Pennsylvania Avenue,NWinWashington, D.C.

TheU.S. Congresstransferred 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 enforcementfunctions of ATF, including the regulation of legitimate traffic infirearmsandexplosives,were transferred to theDepartment of Justiceas the Bureau of Alcohol, Tobacco, Firearms, and Explosives (BATFE).[22]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).[23]

Effective March 1, 2003, theFederal Law Enforcement Training Center,theUnited States Customs Service,and theUnited States Secret Servicewere transferred to the newly createdDepartment of Homeland Security ( "DHS" ).[24]

2020 data breach

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In 2020, the Treasurysuffered a data breachfollowing acyberattacklikely conducted by anation state adversary,possibly Russia.[25][26]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.[27]

Responsibilities

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A Treasury Department official surrounded by packages of newly minted currency, counting and wrapping dollar bills inWashington, D.C.in 1907
The organizational structure of the U.S. Department of the Treasury
TheOffice of Foreign Assets Control,theTreasury Library,and the main branch of theTreasury Department Federal Credit Unionin theFreedman's Bank Buildingin Washington, D.C.

Basic functions

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The basic functions of the Department of the Treasury mainly include:[28]

With respect to the estimation of revenues for theexecutive branch,Treasury serves a purpose parallel to that of theOffice of Management and Budgetfor the estimation of spending for the executive branch, theJoint Committee on Taxationfor the estimation of revenues for Congress, and theCongressional Budget Officefor the estimation of spending for Congress.

From 1830 until 1901, responsibility for overseeingweights and measureswas carried out by the Office of Standard Weights and Measures under the auspices of the Treasury Department.[29]After 1901, that responsibility was assigned to the agency that subsequently became known as theNational Institute of Standards and Technology.

Organization

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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.

Structure

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Seal on United States Department of the Treasury on the Building

Bureaus

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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.

Budget and staffing

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The Treasury Department has authorized a budget forFiscal Year 2024of $16.5 billion. The budget authorization is broken down as follows:[37]

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

Freedom of Information Act processing performance

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In the latestCenter for Effective Governmentanalysis of the fifteen federal agencies that receive the mostFreedom of Information ActFOIA requests, published in 2015 (using 2012 and 2013 data, the most recent years available), the treasury failed to earn a satisfactory overall grade.[38]

See also

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Notes and references

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  1. ^"Department of Treasury – List of Federal Departments".federalpay.org.Archivedfrom the original on January 28, 2019.RetrievedJanuary 28,2019.
  2. ^Donald A. Torres (1985).Handbook of Federal Police and Investigative Agencies.Greenwood Publishing Group. p. 275.ISBN0313245789.
  3. ^"An Act to Establish the Treasury Department".September 2, 1789.Archivedfrom the original on September 14, 2018.RetrievedOctober 11,2018.
  4. ^"The Treasurer".U.S. Department of the Treasury.Archivedfrom the original on April 4, 2018.RetrievedMay 6,2018.
  5. ^Crutsinger, Martin (November 15, 2017)."New money: Mnuchin and Carranza signatures now on the dollar bill".USA Today.Gannett Satellite Information Network, LLC. The Associated Press.Archivedfrom the original on May 7, 2018.RetrievedMay 6,2018.
  6. ^ab"Image 1 of An act to establish the Treasury department.... [Dated] 1789, July 2. New-York. Printed by Thomas Greenleaf.]".The Library of Congress.January 1, 1970.Archivedfrom the original on December 1, 2022.RetrievedDecember 1,2022.
  7. ^"Appointment as Secretary of the Treasury".founders.archives.gov.Archivedfrom the original on March 4, 2017.RetrievedMarch 4,2017.
  8. ^Adams, Jonathan."Department of the Treasury".George Washington Digital Encyclopedia.Mount Vernon Ladies' Association.Archivedfrom the original on May 7, 2018.RetrievedMay 6,2018.
  9. ^Scanlan, Laura Wolff (2006)."Alexander Hamilton: the man who modernized money".Humanities: The Magazine of the National Endowment for the Humanities.27(1).Archivedfrom the original on May 7, 2018.RetrievedMay 6,2018.
  10. ^"$10".U.S. Currency Education Program.Archivedfrom the original on May 7, 2018.RetrievedMay 6,2018.
  11. ^Hammond, Bray (1957).Banks and Politics in America: From the Revolution to the Civil War.Princeton, NJ: Princeton University Press.
  12. ^Hamilton, Alexander (1851).Reports of the secretary of the Treasury of the United States: prepared in obedience to the act of May 10, 1800.Printed by Blair & Rives.Archivedfrom the original on December 13, 2023.RetrievedApril 27,2020.
  13. ^Dewey, Davis Rich (1922).Financial History of the United States.Longmans, Green and Company.Archivedfrom the original on December 13, 2023.RetrievedNovember 22,2020.
  14. ^"Role of the Treasury | U.S. Department of the Treasury".home.treasury.gov.Archivedfrom the original on April 29, 2020.RetrievedApril 27,2020.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.
  15. ^"Chapter 12, 1 Statue. 65"(PDF).Archived fromthe original(PDF)on October 19, 2017.
  16. ^abSyrett, Harold C., ed. (1962).The Papers of Alexander Hamilton, vol. 6.New York City:Columbia University Press.ISBN978-0231089050.Archivedfrom the original on May 7, 2018.RetrievedMay 6,2018.
  17. ^Friedberg, Albert L. (2017).Paper money of the US 21st Edition.Clifton, New Jersey: Coin & Currency Institute. pp. 6–7.ISBN9780871840219.
  18. ^Logan, Mrs. John A.Thirty Years in Washington or Life and Scenes in Our National Capital.Hartford, Connecticut: A. D. Worthington & Co., 1901.
  19. ^The United States Treasury Register Containing a List of Persons Employed in the Treasury Department,p. 36. Washington, D.C.:U.S. Government Printing Office, 1874.
  20. ^Ziparo, Jessica.This Grand Experiment: When Women Entered the Federal Workforce in Civil War–Era Washington, D.C.Chapel Hill, North Carolina: University of North Carolina Press, 2017.
  21. ^Bailey, M.The Chautauquan: Organ of the Chautauqua Literary and Scientific Circle.Meadville, Pennsylvania: The T. L. Flood publishing House, 1892.
  22. ^"Move to Justice Dept. Brings ATF New Focus".Washington Post.January 23, 2003.Archivedfrom the original on March 11, 2023.RetrievedMarch 11,2023.
  23. ^"History".TTBGov.November 18, 2015.Archivedfrom the original on March 11, 2023.RetrievedMarch 11,2023.
  24. ^"Who Joined DHS".Department of Homeland Security.July 27, 2012.Archivedfrom the original on March 11, 2023.RetrievedMarch 10,2023.
  25. ^Nakashima, Ellen (December 13, 2020)."Russian government spies are behind a broad hacking campaign that has breached U.S. agencies and a top cyber firm".The Washington Post.Archived fromthe originalon December 13, 2020.RetrievedDecember 14,2020.
  26. ^Bing, Christopher (December 14, 2020)."Suspected Russian hackers spied on U.S. Treasury emails – sources".Reuters.Archivedfrom the original on December 14, 2020.RetrievedDecember 14,2020.
  27. ^Office, U. S. Government Accountability (March 21, 2024)."SolarWinds Cyberattack Demands Significant Federal and Private-Sector Response (infographic) | U.S. GAO".www.gao.gov.RetrievedApril 10,2024.
  28. ^US Treasury websiteOrganizationArchivedOctober 11, 2011, at theWayback Machine
  29. ^Records of the National Institute of Standards and Technology (NIST)ArchivedOctober 19, 2017, at theWayback Machine,National Archives website, (Record Group 167), 1830–1987.
  30. ^Treasury Order 101-05ArchivedMarch 19, 2021, at theWayback Machine,U.S. Dept. of the Treasury. January 10, 2011. Updated April 26, 2011. Accessed November 11, 2012.
  31. ^DF Org ChartArchivedJanuary 16, 2022, at theWayback Machine,"The Office of Domestic Finance". U.S. Dept. of the Treasury. October 2011. Accessed November 11, 2012.
  32. ^International AffairsArchivedJune 22, 2016, at theWayback Machine,"About International Affairs". U.S. Dept. of the Treasury. February 14, 2012. Accessed November 11, 2012.
  33. ^"Officials | U.S. Department of the Treasury".home.treasury.gov.Archivedfrom the original on September 22, 2018.RetrievedApril 20,2021.
  34. ^"Environment and Energy".www.treasury.gov.Archivedfrom the original on November 7, 2017.RetrievedOctober 30,2017.
  35. ^Terrorism and Financial IntelligenceArchivedSeptember 5, 2015, at theWayback Machine,"About Terrorism and Financial Intelligence". U.S. Dept. of the Treasury. July 2, 2012. Accessed November 11, 2012.
  36. ^"Treasury Announces Coordinated Climate Policy Strategy with New Treasury Climate Hub and Climate Counselor | U.S. Department of the Treasury".home.treasury.gov.Archivedfrom the original on April 20, 2021.RetrievedApril 20,2021.
  37. ^2025 Department of Treasury Budget,pg 1, United States Department of the Treasury, Accessed July 28, 2024
  38. ^Making the Grade: Access to Information Scorecard 2015ArchivedAugust 11, 2019, at theWayback Machine,March 2015, 80 pages,Center for Effective Government,retrieved March 21, 2016
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