Money & Finance › Government agencies & regulation › Fiscal policy: Congress, taxes and spending
US Department of the Treasury
Since 1789· Institution or agency
Fact, law or dataA rule, statute, definition or measured number.
The cabinet department, founded in 1789, that collects taxes, pays the government's bills, borrows and manages the dollar.
See it on the Money & Finance map →How it works
Alexander Hamilton was the first Secretary. Today Treasury houses the IRS, which collects taxes; the Bureau of the Fiscal Service, which pays bills and runs debt auctions; the Mint and the Bureau of Engraving and Printing; OFAC, which runs sanctions; FinCEN, which fights money laundering; and the OCC, which charters national banks. Its cash sits in the Treasury General Account at the Fed. The Secretary, Scott Bessent since January 2025, chairs the Financial Stability Oversight Council.
Why it matters
As the government's treasurer and borrower, its choice of how much debt and which maturities to sell moves bond yields, and it leads in crises, from TARP to the SVB guarantee.
Think of it like
Think of it as the government's CFO and asset manager: it collects the rents, pays the bills, refinances the debt and keeps the cash account.
Facts, rules and data
The Act of September 2, 1789; Treasury's Daily and Monthly Treasury Statements; auction results on TreasuryDirect; and the Secretary's signature printed on every paper dollar.
Debates and risks
How much Treasury's mix of short bills and long bonds affects yields, and whether issuance should be coordinated with the Fed, are debated in 2026.
Inside this (3)
Connections (7)
▸Janet Yellen, Fed chair and Treasury Secretary later led US Department of the TreasuryFact, law or data
The connection
After chairing the Fed, Yellen became the first person to have led the Fed, the Treasury and the White House Council of Economic Advisers. At Treasury she oversaw pandemic relief payments, federal borrowing, sanctions on Russia and the 2023 debt-ceiling standoff.
When and why
Sworn in as the 78th Treasury Secretary, and the first woman in the job, on January 26, 2021; served until January 2025.
How we know
Senate confirmation records and Treasury's official list of secretaries.
Debates and risks
Critics said her Treasury leaned on short-term bills to hold down long rates before the 2024 election; she rejected that, and the effect is debated.
▸US Department of the Treasury issues US Treasury securitiesFact, law or data
The connection
Treasury decides how much of each maturity to issue to fund deficits at the lowest cost, and its Bureau of the Fiscal Service sells bills, notes, bonds, TIPS and floating-rate notes at public auctions. Individuals can buy directly at TreasuryDirect or through a brokerage, or hold them through money market and bond funds.
When and why
Auctions run several times a week, and quarterly 'refunding' announcements set the plan. Borrowing dates to Hamilton's 1790 funding plan.
How we know
Auction results and quarterly refunding statements are published on TreasuryDirect and Treasury's website.
Debates and risks
How much the mix of short versus long debt moves long-term yields, and whether rising debt will push yields higher, is debated.
▸US Department of the Treasury oversees Internal Revenue Service (IRS)Fact, law or data
The connection
The IRS is a bureau of the Treasury. Treasury's Office of Tax Policy writes regulations with the IRS's chief counsel, and the IRS administers them: processing returns, collecting payments and auditing. The commissioner, appointed by the President, reports to the Treasury Secretary, and the money collected flows into Treasury accounts.
When and why
Since the Commissioner of Internal Revenue was created within the Treasury in 1862; in 2025 the IRS cycled through several leaders, and Secretary Scott Bessent served as acting commissioner.
How we know
The Internal Revenue Code (26 U.S.C. 7801–7803) places the IRS under the Secretary; Treasury organization charts and budget documents.
Debates and risks
How independent the IRS should be from political leadership is debated, especially after 2025 disputes over sharing taxpayer data with immigration enforcement.
▸US Department of the Treasury runs Bureau of Engraving and Printing and the US MintFact, law or data
The connection
Both are Treasury bureaus. The Mint makes coins and sells them to the Federal Reserve at face value; the gap between face value and cost, called seigniorage, goes to the Treasury. The BEP prints the notes the Fed orders and is reimbursed by the Fed. Every note bears the signatures of the Treasury Secretary and the US Treasurer.
When and why
The Mint since 1792, made a Treasury bureau by the Coinage Act of 1873; the BEP since 1862, printing in Washington, D.C. and Fort Worth, Texas.
How we know
Mint and BEP annual reports and audited financial statements; the Fed's yearly currency budget sets the print order.
Debates and risks
Whether to replace the $1 bill with a longer-lasting $1 coin, which GAO estimated would save billions of dollars over 30 years, keeps resurfacing; Congress has never retired the note.
▸US Department of the Treasury houses FinCEN: Financial Crimes Enforcement NetworkFact, law or data
The connection
FinCEN sits in Treasury's Office of Terrorism and Financial Intelligence, alongside OFAC. The Treasury Secretary holds the Bank Secrecy Act powers and delegates them to FinCEN, which writes the reporting rules banks follow, collects the reports, and can cut foreign banks off from the US system under Section 311 of the PATRIOT Act.
When and why
Washington; created by Treasury order in April 1990, made a bureau in 2001, and grouped under the new Office of Terrorism and Financial Intelligence in 2004.
How we know
Treasury delegation orders and FinCEN's regulations (31 CFR chapter X); Section 311 actions such as the 2005 finding against Macau's Banco Delta Asia over North Korean funds.
Debates and risks
Whether FinCEN, with only about 300 staff, can meaningfully analyze millions of reports a year, and how far its rules should be eased for small businesses.
▸US Department of the Treasury houses OFAC: Office of Foreign Assets ControlFact, law or data
The connection
OFAC is a Treasury office that turns presidential sanctions orders into lists, rules and licenses. The Treasury Secretary holds the delegated power to designate targets, usually in consultation with the State Department, and OFAC investigates and fines violators. Treasury's role at the center of the dollar system is what makes the sanctions bite.
When and why
Washington; its predecessor, the Office of Foreign Funds Control, dates to 1940, and the modern office to December 1950.
How we know
Executive orders delegating IEEPA powers to the Treasury Secretary; OFAC's regulations (31 CFR chapter V) and published enforcement actions.
Debates and risks
How far presidents can stretch emergency economic powers is still being tested; in 2026 the Supreme Court ruled IEEPA, the main sanctions law, does not authorize tariffs.
▸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.