Legal Definitions - treasury warrant

A treasury warrant is an official document issued by a government treasury (such as a federal, state, or municipal treasury) that authorizes the payment of a specific sum of money to a designated recipient. It serves as a directive to disburse funds from the public treasury, often for expenses, refunds, or other authorized governmental disbursements.

Here are some examples to illustrate how a treasury warrant functions:

• Paying a Government Contractor: Imagine a city government hires a landscaping company to maintain its public parks. After the work is completed and approved, the city's treasury department would issue a treasury warrant to the landscaping company. This warrant acts as the official authorization for the city's finance office to release the agreed-upon payment from the municipal funds to the contractor.

• Issuing a State Tax Refund: If an individual overpaid their state income taxes during the year, the state tax authority would process their return and determine the refund amount. The state treasury would then issue a treasury warrant, often in the form of a check, payable to the individual for the overpaid amount. This warrant is the official instrument by which the state government returns the excess funds.

• Disbursing Federal Grant Money: A non-profit organization applies for and receives a federal grant to fund a community development project. Once the grant is approved, the U.S. Treasury might issue a treasury warrant to the non-profit. This warrant serves as the formal instruction to disburse the approved grant funds from the federal treasury to the organization, enabling them to begin their project.