Anonymous donor gives $2.2 million to pay down national debt, Treasury says

Gregory Korte | USA TODAY

WASHINGTON — The Treasury Department received a record contribution of $2.2 million toward reducing the national debt in September, even as the government was running out of borrowed money as it approached the debt limit.

In all, donors contributed $2.3 million in the last month of the 2015 fiscal year, boosting the annual contributions for the year to $3.9 million, according to just-released data from the Bureau of the Fiscal Service. Treasury officials say September's haul was helped by a single $2.2 million payment, but would not provide any details on the source of the contribution.

A little-known account called the Public Debt Reduction Fund receives tax-deductible contributions from the public to pay down the national debt. Contributions to the account are sometimes as little as just a few cents, and come from online donations, contributions made through the Internal Revenue Service and hand-written checks to the Bureau of Public Debt in Parkersburg, W.Va. The biggest months for contributions to the fund are usually April and December.

The few millions collected through the fund barely put a dent in the national debt, which is now more than $18.6 trillion. And because the Treasury is running monthly deficits, the contributions don't really go to pay off debt. Instead, they're used to pay the expenses of the government instead of issuing new debt.

The previous monthly record for contributions to the fund was $2.1 million in April 2012. The Treasury Department said that month was also helped by a large donation from a single donor. And while officials would not disclose that donor, it came the same month that billionaire investor Warren Buffett had promised to match any similar gifts from members of Congress.

Members of Congress are, in fact, a significant source of contributions to reduce the debt. Eight members — five Republicans and three Democrats — gave a combined $55,739 in the first six months of the year, according to reports from the House of Representatives.

The biggest congressional contributor is Rep. Chris Gibson, R-N.Y., who writes a monthly check for $4,357.37 to the fund — the same amount as his Army pension.

"He donates his military pension, so he is not — to use the term we use in New York — double-dipping," said press secretary Matt Sheehey. "It’s cumbersome. He has no choice but to write a check and deliver it manually every month."

Members of Congress have introduced bills to make it easier for people to contribute to the fund through tax return check-offs, but the Treasury Department has resisted those efforts because they would add to the complexity of tax forms.