On May 30, 2024, Secretary of the Treasury Janet L. Yellen testified before the Senate Appropriations Subcommittee on Financial Services and General Government regarding the President’s Fiscal Year 2025 Budget Request.
Yellen began by thanking Chairman Van Hollen, Ranking Member Hagerty, and members of the subcommittee for their support. She highlighted Treasury’s role in driving economic recovery over the past three years. “GDP growth has been strong, growing 3.0 percent over the past four quarters,” she noted. Inflation has decreased significantly since its peak, although challenges remain in reducing high costs for families. The labor market is described as healthy, with companies announcing over $850 billion in clean energy and manufacturing investments under this Administration.
Treasury’s involvement in implementing the American Rescue Plan and the Inflation Reduction Act was emphasized. Yellen also discussed international efforts to bolster America’s economic leadership and national security. “I am heartened that Congress passed crucial support for Ukraine and for other allies,” she said. Sanctions against Russia are aimed at limiting its war capabilities, while measures are being taken to manage economic relations with China responsibly.
Key requests in the FY 2025 Budget were outlined by Yellen:
1. A request for $12.3 billion in discretionary resources for the Internal Revenue Service (IRS). Improvements attributed to IRA funding include additional taxpayer assistance hours and a pilot program allowing taxpayers to file taxes online directly with the IRS.
2. Funding requests aimed at addressing emerging threats: $312 million for Treasury’s Departmental Offices to support investment security in sensitive technologies and financial system stability; $150 million to enhance cybersecurity.
3. A request for $231 million for the Office of Terrorism and Financial Intelligence to provide critical financial intelligence and sanctions-related economic analysis; $216 million for the Financial Crimes Enforcement Network to protect against illicit finance.
Yellen concluded her testimony by opening up to questions from subcommittee members.
