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📍 Washington, D.C. — July 9, 2025
The U.S. Treasury Department has announced plans to rebuild its cash balance to $500 billion by the end of July, citing strong tariff revenue and increased short-term debt issuance as key drivers. The move follows the passage of President Donald Trump’s $5 trillion tax and spending bill, which included a substantial debt ceiling increase.
💰 Tariff Revenue Boost Treasury Secretary Scott Bessent reported that the government has already collected $100 billion in tariff revenue in 2025 and projects that figure could reach $300 billion by year-end, reflecting the fiscal impact of Trump’s aggressive trade policy.
📉 Cash Balance Shortfall As of last week, the Treasury’s cash balance had dropped to $372 billion, well below its operational target range, according to a JPMorgan research note.
📈 Expanded T-Bill Auctions To replenish reserves, the Treasury will:
- Increase four-week bill auctions to $80 billion
- Raise eight-week bill auctions to $70 billion
- Sell a total of $150 billion in bills on Thursday—the largest auction sizes since May 22
The department will continue relying on shorter-tenor securities (four-, six-, and eight-week bills) and confirmed it will not issue additional cash management bills (CMBs), signaling confidence in the market’s ability to absorb the increased supply.
📊 Long-Term Outlook At its May refunding, the Treasury set a target of $850 billion in cash reserves by the end of September, suggesting further issuance is likely in the coming months to meet internal liquidity goals.
Excerpts from Menafn.com
