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Is catch shares management of commercial fisheries a good investment for the US federal government? We estimate the federal budget effects of switching US commercial fisheries from traditional management to catch shares, and describe the resulting impact on the federal deficit in net present value (NPV) terms. We examine two existing catch shares fisheries and two traditional management fisheries, and estimate that converting to catch shares in these fisheries could reduce the federal deficit by approximately $165M in NPV. Catch shares reduce the federal deficit for two primary reasons. First, fishermen are more profitable, and therefore contribute increased income tax payments. Second, catch shares programs are mandated to recover some costs of management from participants, as per federal law. An additional analysis suggests that the federal deficit could be decreased by an estimated $890M to $1.24B in NPV if 36 of the 44 federal US fisheries adopted catch shares. Keywords: Catch shares, Budget, Sustainability, Fishery management 1. Introduction Is catch shares commercial fishery management a good investment for the US federal government? Catch shares appear to be an important tool for fishery managers to consider for a variety of economic, ecological, and social reasons (National Oceanic and Atmospheric Administration, 2010). Many recent studies suggest that catch shares may ensure sustainable fishing stocks, reduce ecological waste, increase revenues per boat, and improve safety, providing for more sustainable communities. However, there is often a transition from more part time jobs to fewer full-time jobs; and a shift in landings between ports, causing economic losses for some communities and processors and gains for others (Branch, 2008; Costello, Gaines, & Lynham, 2008; Essington, 2010; GSGislason and Associates, 2008; Knapp, 2006; McCay, Creed, Finlayson, Apostle, & Mikalson, 1995; Redstone Strategy Group, LLC (2007), "Assessing the potential for LAPPs in U.S. fisheries," unpublished). With increased attention to deficit reduction, and little attention paid to catch shares programs' government fiscal impacts, we seek to estimate the revenues and costs to the US federal government when switching commercial fisheries from traditional fishery management to catch shares. Historically, most US fisheries transitioned from open-access to traditional management. In the last 20 years, some traditionally managed fisheries have transitioned to catch shares (including Individual Fishing Quotas [IFQs] or limited access privilege programs [LAPPs]). Traditional management fisheries are non-catch shares fisheries that use any or all of the following management tools: limited entry, effort control, and total catch limits. Catch shares management regimes allocate privileges to harvest a portion of a fishery's total allowable catch (TAC) to individual fishermen or groups. Managers set the TAC and hold participants responsible for not exceeding their allotment. These varying management regimes have important effe...