When government agencies bank at the Fed

The large ones will, for the usual fee.  Their imbalances are revealed. When the pit boss exceeds a certain excursion, the default process will erase some of its account. So the default process has first priority to observe the Fed market account.  The Fed default tax dwindles away toward the end of the contract.

But, like I say, efficiency gains remove about half that tax right away.  Reenue sharing should be the second biggest budget item, after entitlements.  Then defense.