Can Cash Transactions Between Private Entities Be Reflected in the Federal Budget?
The answer is clearly “yes” when a private entity is acting as an agent of the federal government in carrying out a federal program under the government’s direction. For example, the Coal Industry Retiree Health Benefits Program is included in the federal budget, even though its funds do not pass through the Treasury. That program guarantees lifetime health benefits for certain miners and their dependents, and coal companies are required by law to pay health insurance premiums to two privately managed trust funds on behalf of those miners. Even though the benefit plans are nominally private and the federal government plays no role in selecting their trustees, the receipts and spending appear in the federal budget because federal law requires the payment of premiums and determines the use of the money. Another example is the Universal Service Fund. Federal law requires providers of telecommunications services to make payments to that fund, which is administered by the Universal Servi
Related Questions
- What are the reporting requirements for the Federal Cash Transactions Report (SF 272) when grantees have both non-ARRA & ARRA awarded funds?
- Does the federal government have a monopoly on money, or can people use private money to conduct transactions?
- Can Cash Transactions Between Private Entities Be Reflected in the Federal Budget?
