Michael Faulkender, the second-highest-ranking official at the U.S. Treasury Department, is leaving the Trump administration less than five months after his Senate confirmation on March 26, the Treasury Department confirmed on Friday.
Treasury Secretary Scott Bessent praised Faulkender’s contributions, stating, “Since January, he has played a critical role in overseeing the U.S. Department of the Treasury’s operations and executing on President Trump’s bold economic agenda,” particularly citing his work on the One Big Beautiful Bill and the GENIUS Act, as well as sanctions against adversaries.
No official reason for Faulkender’s departure was provided, marking the second high-level exit from the Treasury this month following the removal of IRS Commissioner Billy Long, who is expected to be nominated as U.S. ambassador to Iceland, per Reuters.
Background and Role at Treasury
Faulkender, a finance professor at the University of Maryland’s Robert H. Smith School of Business since 2008, was nominated by President Donald Trump in December 2024 for the deputy secretary role, having previously served as assistant secretary for economic policy during Trump’s first term from 2019 to 2021.
During that time, he was a key architect of the CARES Act and led the implementation of the Paycheck Protection Program (PPP), which saved an estimated 14 million jobs, according to his research with former Treasury colleagues.
Confirmed by a 53-43 Senate vote, Faulkender oversaw Treasury operations, including tax policy, international finance, sanctions, and financial regulation. He also briefly served as acting IRS commissioner in April 2025 during a leadership dispute involving Treasury Secretary Bessent and Elon Musk, per Politico.
Context of Departure
The departure, first reported by far-right activist Laura Loomer on X on August 21, comes amid a turbulent period for the Treasury Department, which has seen multiple leadership changes in 2025.
Billy Long, the sixth IRS commissioner this year, was ousted after less than two months, with Bessent currently serving as acting commissioner.
Faulkender’s exit raises questions about stability within the agency as it implements Trump’s economic policies, including the July 2025 tax-and-spending package, which he helped shape, per citybiz.
Prior to his Treasury roles, Faulkender was chief economist at the America First Policy Institute, a conservative think tank aligned with Trump’s agenda, and his academic work on corporate finance and tax policy has been widely cited in outlets like The Wall Street Journal and The New York Times.
Implications and Future Outlook
Faulkender’s tenure included navigating complex economic challenges, such as advancing Trump’s tariff policies and managing the $28 trillion Treasury debt market.
His departure coincides with heightened congressional scrutiny of the administration’s economic initiatives, though no specific policy disagreements were cited as reasons for his exit.
The Treasury Department has not announced a replacement, and Bessent’s statement emphasized gratitude for Faulkender’s service without elaborating on future plans.
As the administration continues to push its economic agenda, including potential sanctions and further tax reforms, the loss of experienced leadership like Faulkender may impact ongoing efforts, though the Treasury remains focused on executing Trump’s priorities, per Reuters.
