Gulf Nations Seek Dollar Swap Lines as US Pushes Growth-Focused Budget

Bessent said the requests reflect continued confidence in the US financial system and the dollar's position as the world's reserve currency. "Treasury is committed to working with Congress to protect our nation's financial system, spur job growth, and strengthen the economy," he said, adding that the administration's $11.5 billion budget proposal -- a 12% cut from the enacted level -- is designed to "boost growth, promote efficiency within our agency, and target illicit actors that threaten our national security."

The budget request has drawn criticism from Democrats for reducing funding for IRS enforcement, the Treasury Inspector General, and community development grants. Ranking Member Senator Reid pressed Bessent on the nearly $900 million cut to IRS enforcement, noting the agency's own estimate that every dollar invested in enforcement returns $11 from tax cheats. Bessent pushed back, arguing that outcomes matter more than spending levels. He said enforcement recoveries rose 12% last year to nearly $41 billion, and that newly hired junior officers during the Biden administration lacked the experience to deliver results. "We believe in outcomes," he said, adding that technology and a digital-first taxpayer experience are now yielding better compliance and lower call volumes.

Bessent defended the administration's tax policies as relief for working families, citing the newly enacted "no tax on tips, no tax on overtime, and enhanced deductions for seniors." He said more than 60 million returns claimed at least one of President Trump's signature tax cuts this filing season, with 7 million filers claiming the tip deduction averaging over $7,000 and 28 million claiming the overtime deduction averaging $3,100. He also highlighted "Trump Accounts," with nearly 5.5 million accounts opened and 1.3 million children eligible for a $1,000 pilot contribution, as part of the administration's push to build long-term financial security.

Bessent further noted that the budget prioritizes investments in national security and digital finance. The Treasury's Office of Terrorism and Financial Intelligence would receive additional funding to expand its ability to trace, detect and sanction illicit financial networks. The department is also seeking $1.8 million and six full-time employees to advance rulemaking under the GENIUS Act, the first U.S. regulatory framework for stablecoins, along with $3 million and ten staff for FinCEN to bolster expertise in digital assets and global financial markets.

On customer service, Bessent acknowledged concerns raised by Senator Collins over the closure of taxpayer assistance centers in Maine, which would leave rural residents facing a 10-hour round trip to the nearest office. He said he has instructed the IRS to review the impact and "remedy this 10-hour problem," noting that only 10 centers were closed nationwide, one of which was already unmanned.

Bessent also addressed rising costs for Americans amid the Iran conflict, saying he expects gasoline prices to fall once the conflict ends. "The crude market is currently in what is known in the energy business as very steep backwardation, which means that the future prices are much lower than we are at present," he said. He argued that President Trump's energy dominance agenda has historically lowered prices and will do so again, though he conceded the timeline depends on when the conflict ends.

- ANI