Money & Finance › Money flows around the world › Dollar plumbing: bank reserves, the TGA and the Fed's reverse repo
Treasury General Account (TGA): the government's account at the Fed
About $0.8–1.0 trillion in 2026· Concept
Fact, law or dataA rule, statute, definition or measured number.
The US government's main checking account, held at the Federal Reserve Bank of New York.
See it on the Money & Finance map →How it works
All tax receipts and proceeds from selling Treasury securities land in the TGA; Social Security, salaries, contractor bills and interest are paid out of it. Treasury aims to keep about a week of outflows on hand, and its 2025–26 borrowing plans assumed around $850 billion at quarter-ends. In September 2026 the balance swung between roughly $840 billion and $990 billion as mid-month taxes arrived. Before 2008, Treasury kept most of its cash at commercial banks and the TGA held only a few billion dollars.
Why it matters
Every dollar that flows into the TGA leaves bank reserves, so big TGA swings, such as the rebuild after a debt-ceiling deal, tighten money markets.
Facts, rules and data
Treasury's Daily Treasury Statement reports the balance every business day; the Fed's weekly H.4.1 release shows it as a Fed liability.
Debates and risks
How big the cash cushion should be is debated: a larger buffer protects against shocks but drains reserves from banks.
Connections (3)
▸Treasury General Account (TGA): the government's account at the Fed is the checking account of US Department of the TreasuryFact, law or data
The connection
The Treasury keeps its operating cash at the Federal Reserve Bank of New York, which acts as its fiscal agent. Taxes and debt-sale proceeds flow in; benefit, salary, contractor and interest payments flow out. Treasury's Bureau of the Fiscal Service runs the account, aiming to keep about a week of payments on hand.
When and why
At the New York Fed; the current one-week cash-buffer policy dates from May 2015.
How we know
The Daily Treasury Statement reports the balance and every major flow each business day.
Debates and risks
It is debated whether a cushion near $850 billion is too large, given its drain on bank reserves, or too small for a cyberattack or market shock.
▸Fiscal policy: Congress, taxes and spending spends and collects taxes through Treasury General Account (TGA): the government's account at the FedFact, law or data
The connection
Every federal tax payment moves money from a taxpayer's bank, and from the banking system's reserves, into the TGA. Every federal payment moves it back. When spending exceeds taxes, Treasury sells securities to refill the account. So budget decisions in Congress show up daily as flows in and out of the TGA.
When and why
Daily, over Fedwire; the biggest swings come on quarterly tax dates, above all mid-April, and on large benefit-payment days.
How we know
The Daily Treasury Statement itemizes deposits by tax type and withdrawals by agency.
Debates and risks
MMT economists say spending comes first and taxes follow; mainstream economists see taxes and borrowing as funding it. The daily flows look the same either way.
▸Treasury General Account (TGA): the government's account at the Fed is run down during standoffs over The debt ceilingFact, law or data
The connection
When debt hits the legal limit, Treasury cannot borrow more, so it uses accounting 'extraordinary measures' and spends down the TGA. The 'X-date' is when both run out. After a deal, Treasury sells a flood of bills to rebuild cash, pulling money from bank reserves and money funds.
When and why
In 2023 the TGA fell to about $23 billion before the June deal; in July 2025 a new law raised the limit by $5 trillion and the account was rebuilt.
How we know
Daily Treasury Statements, CBO and Treasury X-date estimates, and Fed data on reserves after each deal.
Debates and risks
No one knows exactly what would happen past the X-date: whether Treasury could prioritize interest payments, or how markets would react.