The Government Agency Investment Services program includes the offering of specialized investments for government entities at the federal, state, and local levels, as well as borrowings by federal agencies.
Because these investments and borrowings are based on a broad array of statutes and serve a diverse customer base, our challenge is to ensure that we meet both statutory requirements and customer needs, while providing the most efficient operations possible.
This program has three distinct components:
Federal Investments: This component includes issuing, servicing, and redeeming Government Account Series securities for federal agencies that have specific statutory authority to invest in these special, non-marketable Treasury securities. More than 230 federal funds are invested in Government Account Series securities totaling approximately $4 trillion, or nearly half of the public debt.
The Secretary of the Treasury has been designated by statute as the managing trustee for 18 significant trust funds, including the Social Security and Unemployment trust funds. For these funds, we perform additional services, such as accounting and reporting on all receipts and disbursements.
Special Purpose Securities: In this component, we administer a variety of special purpose securities, including some issued by other federal agencies for which we serve as fiscal agent.
Treasury’s State and Local Government Series securities represent the largest portion of principal outstanding. These securities offer a flexible investment alternative for state and local governments to refinance their outstanding, tax-exempt debt. We issue, service, and redeem these securities. There are about 6,900 government entities that hold investments in these securities, amounting to approximately $290 billion.
Federal Borrowings: This is a unique element of the Government Agency Investment Services program in that its purpose is to loan funds to federal agencies. We act on Treasury’s behalf to make these direct loans and loan guarantees to federal agencies operating loan programs to support, for example, education, housing, veterans, and small businesses.
Our responsibilities include ensuring that all principal and interest amounts are accounted for appropriately, reported timely, and presented accurately. There are approximately 80 funds administered by various federal agencies whose outstanding borrowings total, on average, $224 billion annually.
In support of our strategic goal to effectively finance government operations, our strategies for the Government Agency Investment Services program are: