Chairman Quigley Statement at Hearing on FY 2021 Treasury Budget Request

Today’s hearing is called to order—

This morning we welcome Secretary of the Treasury, Steven Mnuchin, to testify on the Department’s fiscal year 2021 budget request. 

Mr. Secretary, thank you for being here today.

The Treasury Department plays a vital role in both the domestic and global economy.

Not only does the Department oversee the Federal Government’s ability to collect trillions in revenue and finance government operations, but you are also charged with investigating and protecting our financial system from the illicit and criminal activities of both foreign and domestic adversaries.

The fiscal year 2021 budget for the Department of the Treasury is $15.7 billion, which is $2.6 billion above the amount we enacted in fiscal year 2020. 

In addition, the budget proposes a $400 million discretionary cap adjustment for IRS program integrity activities.

The budget appears to request a dramatic increase in funding for the Department. The vast majority of this increase—nearly $2.4 billion—can be attributed to the proposed transfer of the U.S. Secret Service from the Department of Homeland Security to the Department of the Treasury. 

The remaining increase of $281 million over fiscal year 2020 levels is largely due to a requested $528 million increase for the IRS, which is offset by eliminating funding for discretionary grant programs within the Community Development Financial Institutions Fund.

While I’m pleased that the request includes a substantial increase for the IRS, I am disappointed that it also continues to request funds outside of the discretionary budget caps, despite it not being included in the budget agreement reached late last year. 

In addition to zeroing out CDFI grants, the budget cuts funding for the Special Inspector General for TARP by 20 percent—despite the continued obligation of billions of dollars for TARP programs that will continue into 2023.

I am happy to see the budget continues to support Treasury’s efforts to protect the integrity of America’s financial system by maintaining robust funding for the Office of Terrorism and Financial Intelligence and the Financial Crimes Enforcement Network.

And it boosts staffing for the Committee on Foreign Investment in the United States (CFIUS) to support the Committee’s expanded jurisdiction to guard against transactions that pose a national security risk.

I look forward to hearing from our witness today on these and other issues facing the Department in fiscal year 2021.

Before I turn to Secretary Mnuchin for his statement, I would like to recognize Mr. Graves for his opening remarks.