UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number: 811-02603
T. Rowe Price Government Money Fund, Inc.
(Exact name of registrant as specified in charter)
100 East Pratt Street, Baltimore, MD 21202
(Address of principal executive offices)
David Oestreicher
100 East Pratt Street, Baltimore, MD 21202
(Name and address of agent for service)
Registrant’s telephone number, including area code: (410) 345-2000
Date of fiscal year end: May 31
Date of reporting period: November 30, 2022
Item 1. Reports to Shareholders
(a) Report pursuant to Rule 30e-1
Highlights
and
Market
Commentary
Management’s
Discussion
of
Fund
Performance
Performance
and
Expenses
Financial
Highlights
Portfolio
of
Investments
Financial
Statements
and
Notes
Additional
Fund
Information
For
more
insights
from
T.
Rowe
Price
investment
professionals,
go
to
troweprice.com
.
T.
ROWE
PRICE
PRRXX
Government
Money
Fund
–
.
TTGXX
Government
Money
Fund–
.
I Class
T.
ROWE
PRICE
Government
Money
Fund
HIGHLIGHTS
The
Government
Money
Fund
produced
a
positive
return
in
the
last
six
months
and
outperformed
its
peer
group
benchmark,
the
Lipper
U.S.
Government
Money
Market
Funds
Index.
Money
market
yields
have
risen
sharply
from
near-zero
levels
since
March
2022.
By
the
end
of
November,
the
Federal
Reserve
(Fed)
had
raised
the
fed
funds
target
rate
to
the
3.75%
to
4.00%
range,
a
level
unseen
in
about
15
years.
(After
our
reporting
period
ended,
the
Fed
lifted
the
target
rate
to
the
4.25%
to
4.50%
range
on
December
14.)
In
anticipation
of
the
Fed’s
first
rate
increase
back
in
March,
we
shortened
the
portfolio’s
weighted
average
maturity
(WAM)
so
that
we
could
quickly
use
the
proceeds
from
maturing
money
market
instruments
to
purchase
newer
securities
with
higher
yields.
We
expect
to
keep
the
portfolio’s
WAM
relatively
short
so
that
we
can
respond
accordingly
to
subsequent
rate
increases.
With
year-over-year
consumer
price
index
inflation
around
8%
through
the
end
of
October,
real
(inflation-adjusted)
yields
remain
negative,
so
we
agree
that
the
central
bank
has
more
work
to
do.
If
inflation
remains
elevated,
we
would
not
be
surprised
to
see
additional
rate
increases
that
take
the
fed
funds
rate
to
5%
and
possibly
higher.
Log
in
to
your
account
at
troweprice.com
for
more
information.
*
Certain
mutual
fund
accounts
that
are
assessed
an
annual
account
service
fee
can
also
save
money
by
switching
to
e-delivery.
T.
ROWE
PRICE
Government
Money
Fund
Market
Commentary
Dear
Shareholder
Global
stock
markets
generally
produced
negative
returns
during
the
first
half
of
your
fund’s
fiscal
year,
the
six-month
period
ended
November
30,
2022,
while
rising
bond
yields
weighed
on
returns
for
fixed
income
investors.
Investors
contended
with
tightening
financial
conditions
and
slowing
economic
and
corporate
earnings
growth,
but
hopes
that
persistently
high
inflation
might
be
easing
helped
spark
a
rally
late
in
the
period
that
partially
offset
earlier
losses.
In
the
U.S.,
equity
results
were
mixed.
The
Dow
Jones
Industrial
Average
recorded
positive
results
and
mid-cap
growth
stocks
also
performed
well,
while
most
other
benchmarks
finished
in
negative
territory.
The
S&P
500
Index
was
modestly
negative
for
the
period,
but
results
varied
widely
at
the
sector
level,
with
industrials
and
energy
shares
delivering
strong
gains
while
communication
services
stocks
struggled.
Outside
the
U.S.,
most
major
country
and
regional
benchmarks
lost
ground.
Emerging
markets
stocks
generally
underperformed
shares
in
developed
markets.
Meanwhile,
the
U.S.
dollar
strengthened
versus
most
currencies
during
the
period,
which
weighed
on
returns
for
U.S.
investors
in
international
securities.
Elevated
inflation
remained
a
leading
concern
for
investors
throughout
the
period,
although
hopes
that
inflation
may
have
peaked
led
to
rallies
during
the
summer
and
again
in
November.
The
October
consumer
price
index
report,
which
was
released
in
mid-November,
was
better
than
expected
and
showed
price
increases
easing
from
recent
40-year
highs.
However,
the
7.7%
year-over-
year
increase
in
the
headline
inflation
number
remained
well
above
the
Fed’s
2%
target.
In
response
to
the
high
inflation
readings,
global
central
banks
continued
to
tighten
monetary
policy,
and
investors
focused
on
communications
from
central
bank
officials
on
how
high
rates
would
have
to
go.
The
Federal
Reserve
delivered
four
historically
large
75-basis-point
(0.75
percentage
point)
rate
hikes
during
the
period,
which
lifted
its
short-term
lending
benchmark
to
a
target
range
of
3.75%
to
4.00%
by
early
November,
the
highest
level
since
2008.
As
our
reporting
period
came
to
an
end,
Fed
officials
signaled
that
they
were
likely
to
dial
back
the
pace
of
rate
increases.
Bond
yields
increased
considerably
across
the
Treasury
yield
curve
as
the
Fed
tightened
monetary
policy,
with
the
yield
on
the
benchmark
10-year
U.S.
Treasury
note
climbing
from
2.85%
at
the
start
of
the
period
to
3.68%
at
the
end
of
November.
Significant
inversions
in
the
Treasury
curve,
which
are
often
considered
a
warning
sign
of
a
coming
recession,
occurred
during
the
period
T.
ROWE
PRICE
Government
Money
Fund
as
shorter-maturity
Treasuries
experienced
the
largest
yield
increases.
The
sharp
increase
in
yields
led
to
generally
negative
results
across
the
fixed
income
market
as
bond
prices
and
yields
move
in
opposite
directions.
On
a
positive
note,
the
U.S.
jobs
market
remained
resilient
during
the
period,
and
overall
economic
growth
turned
positive
in
the
third
quarter
after
two
slightly
negative
quarters.
However,
recession
fears
also
grew
as
corporate
earnings
slowed
and
manufacturing
gauges
drifted
toward
contraction
levels.
In
addition,
the
housing
market
began
to
weaken
as
mortgage
rates
climbed
to
the
highest
level
in
more
than
20
years.
The
past
year
has
been
a
trying
time
for
investors
as
few
sectors
remained
untouched
by
the
broad
headwinds
that
markets
faced,
and
volatility
may
continue
in
the
near
term
as
central
banks
tighten
policy
amid
slowing
economic
growth.
However,
in
our
view,
valuations
have
become
more
attractive
across
many
market
sectors
during
the
downturn,
which
provides
potential
opportunities
for
selective
investors
focused
on
fundamentals.
We
believe
this
environment
makes
skilled
active
management
a
critical
tool
for
identifying
risks
and
opportunities,
and
our
investment
teams
will
continue
to
use
fundamental
research
to
identify
securities
that
can
add
value
to
your
portfolio
over
the
long
term.
Thank
you
for
your
continued
confidence
in
T.
Rowe
Price.
Sincerely,
Robert
Sharps
CEO
and
President
T.
ROWE
PRICE
Government
Money
Fund
Management’s
Discussion
of
Fund
Performance
INVESTMENT
OBJECTIVE
The
fund’s
goals
are
preservation
of
capital,
liquidity,
and,
consistent
with
these,
the
highest
possible
current
income.
FUND
COMMENTARY
How
did
the
fund
perform
in
the
past six
months?
Amid
rapidly
rising
money
market
interest
rates,
the
Government
Money
Fund
returned
1.05%
in
the
six-month
period
ended
November
30,
2022.
The
fund’s
performance
surpassed
that
of
its
peer
group
benchmark,
the
Lipper
U.S.
Government
Money
Market
Funds
Index,
which
returned
0.94%.
(Returns
for
the
I
Class
may
vary
due
to
its
different
fee
structure.
Past
performance
cannot
guarantee
future
results.
)
What
factors
influenced
the
fund’s
performance?
Money
market
yields
have
risen
sharply
from
near-zero
levels
since
March
2022,
when
the
Federal
Reserve
(Fed)
began
to
raise
the
fed
funds
target
rate
from
the
0.00%
to
0.25%
range
it
adopted
when
the
coronavirus
pandemic
erupted
in
March
2020.
Fed
rate
hikes
have
been
aggressive,
as
the
central
bank
is
combatting
elevated
inflation
stemming
from
factors
such
as
a
tight
labor
market,
pandemic-related
global
supply
chain
disruptions,
and
higher
prices
of
energy
commodities
as
many
nations
attempt
to
reduce
reliance
on
Russian
energy
exports
due
to
its
ongoing
attacks
against
Ukraine.
In
fact,
several
Fed
rate
increases
this
year
have
been
75
basis
points
(0.75%),
rather
than
the
25-basis-point
(0.25%)
incremental
changes
that
the
central
bank
typically
makes
to
the
fed
funds
rate.
By
the
end
of
November,
the
Fed
had
raised
the
fed
funds
target
rate
to
the
3.75%
to
4.00%
range,
a
level
unseen
in
about
15
years.
(After
our
reporting
period
ended,
the
Fed
lifted
the
target
rate
to
the
4.25%
to
4.50%
range
on
December
14.)
PERFORMANCE
COMPARISON
Six-Month
Period
Ended
11/30/22
Total
Return
Government
Money
Fund
–
.
1.05%
Government
Money
Fund–
.
I Class
1.11
Lipper
U.S.
Government
Money
Market
Funds
Index
0.94
T.
ROWE
PRICE
Government
Money
Fund
Thanks
to
a
series
of
large
interest
rate
increases
and
continued
hawkish
rhetoric
from
Federal
Reserve
officials
who
are
committed
to
bringing
inflation
back
down
to
the
Fed’s
long-term
2%
goal,
U.S.
Treasury
yields
have
risen
sharply
in
the
first
half
of
our
fiscal
year.
In
the
money
market
universe,
three-
month
U.S.
Treasury
bill
yields
surged
from
1.16%
to
4.37%,
while
six-month
T-bill
yields
climbed
from
1.64%
to
4.70%.
One-year
T-bill
yields
advanced
from
2.08%
to
4.74%.
How
is
the
fund
positioned?
In
anticipation
of
the
Fed’s
first
rate
increase
back
in
March,
we
shortened
the
portfolio’s
weighted
average
maturity
(WAM)
so
that
we
could
quickly
use
the
proceeds
from
maturing
money
market
instruments
to
purchase
newer
securities
with
higher
yields.
Because
we
believe
the
Fed
will
continue
raising
rates
aggressively
in
the
near
term,
we
expect
to
keep
the
portfolio’s
WAM
relatively
short
so
that
we
can
respond
accordingly
to
subsequent
rate
increases.
As
always,
we
try
to
take
advantage
of
opportunities
to
buy
money
market
instruments
with
attractive
yields
without
reducing
our
high
credit
quality
standards.
As
shown
in
the
Security
Diversification
exhibit,
more
than
two-thirds
of
the
portfolio
was
invested
in
repurchase
agreements
(repos)
at
the
end
of
November,
while
U.S.
Treasury
securities
accounted
for
15%
of
the
fund.
The
remainder
was
invested
in
other
U.S.
government
and
agency
securities.
What
is
portfolio
management’s
outlook?
The
Fed’s
rate-hiking
cycle
is
well
underway
in
an
attempt
to
curb
inflation
pressures.
However,
policymakers
have
yet
to
give
any
clear
indication
as
to
when
they
expect
to
pause
their
rate
increases
or
at
what
level
they
expect
the
fed
funds
rate
to
peak.
According
to
the
Fed’s
post-meeting
statement
published
on
November
2,
policymakers
anticipate
that
“ongoing
increases
in
the
target
range
will
be
appropriate
in
order
to
attain
a
stance
of
monetary
policy
that
is
sufficiently
restrictive”
to
bring
inflation
back
down
to
2%.
Fed
Chair
Jerome
Powell
confirmed
in
his
post-meeting
press
conference
that
Fed
officials
“still
have
some
ways
to
go”
regarding
interest
rate
increases
and
noted
that
“the
ultimate
level
of
interest
rates
will
be
higher
than
previously
expected.”
SECURITY
DIVERSIFICATION
Repurchase
Agreements
69%
Other
U.S.
Government
and
Agencies
17
U.S.
Treasury
Bills
10
U.S.
Treasury
Notes
5
Other
Assets
Less
Liabilities
-1
Total
100%
Based
on
net
assets
as
of
11/30/22.
T.
ROWE
PRICE
Government
Money
Fund
Money
market
fund
investors
undoubtedly
welcome
higher
money
market
yields
and
returns,
though
with
year-over-year
consumer
price
index
inflation
around
8%
through
the
end
of
October,
real
(inflation-adjusted)
yields
remain
negative,
so
we
agree
that
the
central
bank
has
more
work
to
do.
If
inflation
remains
elevated,
we
would
not
be
surprised
to
see
additional
rate
increases
that
take
the
fed
funds
rate
to
5%
and
possibly
higher.
We
would
also
not
be
surprised
to
see
the
central
bank
keep
short-term
interest
rates
at
higher
levels
for
some
time—even
if
it
causes
a
recession—to
make
sure
that
inflation
trends
back
down
toward
the
Fed’s
long-term
2%
target.
As
we
watch
the
economy
evolve
and
monitor
the
words
and
actions
of
Fed
policymakers
for
clues
about
possible
future
rate
increases,
we
believe
that
our
strategy
of
keeping
a
relatively
short
WAM
should
enable
us
to
respond
quickly
to
any
changes
in
the
interest
rate
outlook
or
other
factors
affecting
the
money
markets.
In
any
event,
we
remain
committed
to
managing
a
high-
quality,
diversified
money
market
portfolio
focused
on
liquidity
and
stability
of
principal,
which
we
deem
of
utmost
importance
to
our
investors.
The
views
expressed
reflect
the
opinions
of
T.
Rowe
Price
as
of
the
date
of
this
report
and
are
subject
to
change
based
on
changes
in
market,
economic,
or
other
conditions.
These
views
are
not
intended
to
be
a
forecast
of
future
events
and
are
no
guarantee
of
future
results.
T.
ROWE
PRICE
Government
Money
Fund
Risks
of
Investing
in
the
Government
Money
Fund
You
could
lose
money
by
investing
in
the
Fund.
Although
the
Fund
seeks
to
preserve
the
value
of
your
investment
at
$1.00
per
share,
it
cannot
guarantee
it
will
do
so.
An
investment
in
the
Fund
is
not
insured
or
guaranteed
by
the
Federal
Deposit
Insurance
Corporation
or
any
other
government
agency.
The
Fund’s
sponsor
has
no
legal
obligation
to
provide
financial
support
to
the
Fund,
and
you
should
not
expect
that
the
sponsor
will
provide
financial
support
to
the
Fund
at
any
time.
The
potential
for
realizing
a
loss
of
principal
could
derive
from:
Interest
rate
risks.
A
decline
in
interest
rates
may
lower
the
portfolio’s
yield,
or
a
rise
in
the
overall
level
of
interest
rates
may
cause
a
decline
in
the
prices
of
fixed
income
securities
held
by
the
portfolio.
The
portfolio’s
yield
will
vary;
it
is
not
fixed
for
a
specific
period
like
the
yield
on
a
bank
certificate
of
deposit.
Credit
risks.
An
issuer
of
a
debt
instrument
held
by
the
fund
may
default
(fail
to
make
scheduled
interest
or
principal
payments),
or
the
counterparty
to
a
contract
may
be
unable
or
unwilling
to
honor
its
obligations,
potentially
reducing
the
fund’s
income
and
share
price.
Credit
risk
is
increased
when
a
portfolio
security
is
downgraded
or
the
perceived
financial
condition
of
the
issuer
or
counterparty
deteriorates.
Rule
2a-7
requires
money
market
funds
to
purchase
securities
that
have
a
maturity
of
no
more
than
397
calendar
days
and
which
have
been
determined
by
T.
Rowe
Price,
pursuant
to
guidelines
approved
by
the
fund’s
Board,
to
present
minimal
credit
risk
to
the
fund.
Repurchase
agreement
risks.
The
counterparty
to
a
repurchase
agreement
may
be
unable
to
repurchase
the
securities
from
the
fund
as
required,
causing
the
fund
to
experience
delays
in
accessing
its
collateral
or
additional
costs
in
disposing
of
the
collateral.
If
a
counterparty
becomes
insolvent
and
seeks
relief
under
the
bankruptcy
laws,
the
fund
may
be
limited
or
delayed
in
its
ability
to
exercise
its
rights
to
liquidate
assets
or
may
be
required
to
accept
collateral
related
to
a
repurchase
agreement
that
will
need
to
be
liquidated
in
order
to
maintain
compliance
with
the
fund’s
investment
restrictions.
BENCHMARK
INFORMATION
Note:
Portions
of
the
mutual
fund
information
contained
in
this
report
were
supplied
by
Lipper,
a
Refinitiv
Company,
subject
to
the
following:
Copyright
2022
©
Refinitiv.
All
rights
reserved.
Any
copying,
republication
or
redistribution
of
Lipper
content
is
expressly
prohibited
without
the
prior
written
consent
of
Lipper.
Lipper
shall
not
be
liable
for
any
errors
or
delays
in
the
content,
or
for
any
actions
taken
in
reliance
thereon.
T.
ROWE
PRICE
Government
Money
Fund
GROWTH
OF
$10,000
This
chart
shows
the
value
of
a
hypothetical
$10,000
investment
in
the
fund
over
the
past
10
fiscal
year
periods
or
since
inception
(for funds
lacking
10-year
records).
The
result
is
compared
with
benchmarks,
which
include
a
broad-based
market
index
and
may
also
include
a
peer
group
average
or
index.
Market
indexes
do
not
include
expenses,
which
are
deducted
from
fund
returns
as
well
as
mutual fund
averages
and
indexes.
GOVERNMENT
MONEY
FUND
Note:
Performance
for
the
I
Class share
will
vary
due
to
its differing
fee
structure.
See
the
Average
Annual
Compound
Total
Return
table.
AVERAGE
ANNUAL
COMPOUND
TOTAL
RETURN
Periods
Ended
11/30/22
1
Year
5
Years
10
Years
Since
Inception
Inception
Date
Government
Money
Fund
–
.
1.08%
0.96%
0.53%
–
–
Government
Money
Fund–
.
I Class
1.17
1.03
–
1.00%
5/3/17
This
table
shows
how
the
fund
would
have
performed
each
year
if
its
actual
(or
cumulative)
returns
for
the
periods
shown
had
been
earned
at
a
constant
rate.
Returns
do
not
reflect
taxes
that
the
shareholder
may
pay
on
fund
distributions
or
the
redemption
of
fund
shares.
Past
performance
cannot
guarantee
future
results.
T.
ROWE
PRICE
Government
Money
Fund
EXPENSE
RATIO
FUND
EXPENSE
EXAMPLE
As
a
mutual
fund
shareholder,
you
may
incur
two
types
of
costs:
(1)
transaction
costs,
such
as
redemption
fees
or
sales
loads,
and
(2)
ongoing
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
fund
expenses.
The
following
example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
mutual
funds.
The
example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
most
recent
six-month
period
and
held
for
the
entire
period.
Please
note
that
the
fund
has
two
share
classes:
The
original
share
class
(Investor
Class)
charges
no
distribution
and
service
(12b-1)
fee,
and
the
I
Class
shares
are
also
available
to
institutionally
oriented
clients
and
impose
no
12b-1
or
administrative
fee
payment.
Each
share
class
is
presented
separately
in
the
table.
Actual
Expenses
The
first
line
of
the
following
table
(Actual)
provides
information
about
actual
account
values
and
expenses
based
on
the
fund’s
actual
returns.
You
may
use
the
information
on
this
line,
together
with
your
account
balance,
to
estimate
the
expenses
that
you
paid
over
the
period.
Simply
divide
your
account
value
by
$1,000
(for
example,
an
$8,600
account
value
divided
by
$1,000
=
8.6),
then
multiply
the
result
by
the
number
on
the
first
line
under
the
heading
“Expenses
Paid
During
Period”
to
estimate
the
expenses
you
paid
on
your
account
during
this
period.
Hypothetical
Example
for
Comparison
Purposes
The
information
on
the
second
line
of
the
table
(Hypothetical)
is
based
on
hypothetical
account
values
and
expenses
derived
from
the
fund’s
actual
expense
ratio
and
an
assumed
5%
per
year
rate
of
return
before
expenses
(not
the
fund’s
actual
return).
You
may
compare
the
ongoing
costs
of
investing
in
the
fund
with
other
funds
by
contrasting
this
5%
hypothetical
example
and
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
the
other
funds.
The
hypothetical
account
values
and
expenses
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period.
Government
Money
Fund
0.31%
Government
Money
Fund–I
Class
0.20
The
expense
ratio
shown
is
as
of
the
fund’s
most
recent
prospectus.
This
number
may
vary
from
the
expense
ratio
shown
elsewhere
in
this
report
because
it
is
based
on
a
different
time
period
and,
if
applicable,
includes
acquired
fund
fees
and
expenses
but
does
not
include
fee
or
expense
waivers.
T.
ROWE
PRICE
Government
Money
Fund
Note:
T.
Rowe
Price
charges
an
annual
account
service
fee
of
$20,
generally
for
accounts
with
less
than
$10,000.
The
fee
is
waived
for
any
investor
whose
T.
Rowe
Price
mutual
fund
accounts
total
$50,000
or
more;
accounts
electing
to
receive
electronic
delivery
of
account
statements,
transaction
confirmations,
prospectuses,
and
shareholder
reports;
or
accounts
of
an
investor
who
is
a
T.
Rowe
Price
Personal
Services
or
Enhanced
Personal
Services
client
(enrollment
in
these
programs
generally
requires
T.
Rowe
Price
assets
of
at
least
$250,000).
This
fee
is
not
included
in
the
accompanying
table.
If
you
are
subject
to
the
fee,
keep
it
in
mind
when
you
are
estimating
the
ongoing
expenses
of
investing
in
the
fund
and
when
comparing
the
expenses
of
this
fund
with
other
funds.
You
should
also
be
aware
that
the
expenses
shown
in
the
table
highlight
only
your
ongoing
costs
and
do
not
reflect
any
transaction
costs,
such
as
redemption
fees
or
sales
loads.
Therefore,
the
second
line
of
the
table
is
useful
in
comparing
ongoing
costs
only
and
will
not
help
you
determine
the
relative
total
costs
of
owning
different
funds.
To
the
extent
a
fund
charges
transaction
costs,
however,
the
total
cost
of
owning
that
fund
is
higher.
GOVERNMENT
MONEY
FUND
Beginning
Account
Value
6/1/22
Ending
Account
Value
11/30/22
Expenses
Paid
During
Period*
6/1/22
to
11/30/22
Investor
Class
Actual
$1,000.00
$1,010.50
$1.66
Hypothetical
(assumes
5%
return
before
expenses)
1,000.00
1,023.41
1.67
I
Class
Actual
1,000.00
1,011.10
1.06
Hypothetical
(assumes
5%
return
before
expenses)
1,000.00
1,024.02
1.07
*
Expenses
are
equal
to
the
fund’s
annualized
expense
ratio
for
the
6-month
period,
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
the
number
of
days
in
the
most
recent
fiscal
half
year
(183),
and
divided
by
the
days
in
the
year
(365)
to
reflect
the
half-year
period.
The
annualized
expense
ratio
of
the
1
Investor
Class
was
0.33%,
and
the
2
I Class
was
0.21%.
FUND
EXPENSE
EXAMPLE
(CONTINUED)
T.
ROWE
PRICE
Government
Money
Fund
QUARTER-END
RETURNS
Periods
Ended
9/30/22
SEC
Yield
(7-Day
Simple)
With
Waiver
a
SEC
Yield
(7-Day
Simple)
Without
Waiver
......
1
Year
....
5
Years
....
10
Years
Since
Inception
Inception
Date
Government
Money
Fund
–
.
2.69%
2.69%
0.58%
0.88%
0.48%
–
–
Government
Money
Fund–
.
I Class
2.82
2.82
0.65
0.96
–
0.94%
5/3/17
The
fund's
performance
information
represents
only
past
performance
and
is
not
necessarily
an
indication
of
future
results.
Current
performance
may
be
lower
or
higher
than
the
performance
data
cited.
Yield
and
return
will
vary.
For
the
most
recent
month-end
performance,
please
visit
our
website
(troweprice.com)
or
contact
a
T.
Rowe
Price
representative
at
1-800-225-5132
or,
for
I
Class
shares,
1-800-638-8790.
This
table
provides
returns
through
the
most
recent
calendar
quarter-end
rather
than
through
the
end
of
the
fund’s
fiscal
period.
It
shows
how
the
fund
would
have
performed
each
year
if
its
actual
(or
cumulative)
returns
for
the
periods
shown
had
been
earned
at
a
constant
rate. Average
annual
total
return
figures
include
reinvested
dividends.
Returns
do
not
reflect
taxes
that
the
shareholder
may
pay
on
fund
distributions
or
the
redemption
of
fund
shares.
When
assessing
performance,
investors
should
consider
both
short-
and
long-term
returns.
A
money
fund’s
yield
more
closely
represents
its
current
earnings
than
does
the
total
return.
a
In
an
effort
to
maintain
a
zero
or
positive
net
yield
for
the
fund,
T.
Rowe
Price
has
voluntarily
waived
all
or
a
portion
of
the
management
fee
it
is
entitled
to
receive
from
the
fund.
This
voluntary
waiver
is
in
addition
to
any
contractual
expense
ratio
limitation
in
effect
for
the
fund
and
may
be
amended
or
terminated
at
any
time
without
prior
notice.
A
fee
waiver
has
the
effect
of
increasing
the
fund’s
net
yield;
without
it,
the
fund’s
7-day
yield
would
have
been
lower.
Please
see
the
prospectus
for
more
details.
T.
ROWE
PRICE
Government
Money
Fund
(Unaudited)
For
a
share
outstanding
throughout
each
period
Investor
Class
6
Months
.
Ended
11/30/22
..
Year
..
..
Ended
.
5/31/22
5/31/21
5/31/20
5/31/19
5/31/18
NET
ASSET
VALUE
Beginning
of
period
$
1.00
$
1.00
$
1.00
$
1.00
$
1.00
$
1.00
Investment
activities
Net
investment
income
(1)(2)
0.01
—
(3)(4)
—
(3)(4)
0.01
0.02
0.01
Net
realized
and
unrealized
gain/loss
—
(3)
—
(3)
—
(3)
—
(3)
—
(3)
—
(3)
Total
from
investment
activities
0.01
—
(3)
—
(3)
0.01
0.02
0.01
Distributions
Net
investment
income
(0.01)
—
(3)
—
(3)
(0.01)
(0.02)
(0.01)
NET
ASSET
VALUE
End
of
period
$
1.00
$
1.00
$
1.00
$
1.00
$
1.00
$
1.00
T.
ROWE
PRICE
Government
Money
Fund
(Unaudited)
For
a
share
outstanding
throughout
each
period
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Investor
Class
6
Months
.
Ended
11/30/22
..
Year
..
..
Ended
.
5/31/22
5/31/21
5/31/20
5/31/19
5/31/18
Ratios/Supplemental
Data
Total
return
(2)(5)
1.05%
0.04%
(4)
0.01%
(4)
1.27%
(4)
1.89%
0.87%
Ratios
to
average
net
assets:
(2)
Gross
expenses
before
waivers/
payments
by
Price
Associates
(6)
0.33%
(7)
0.31%
0.38%
0.40%
0.38%
0.40%
Net
expenses
after
waivers/payments
by
Price
Associates
0.33%
(7)
0.11%
(4)
0.14%
(4)
0.36%
0.38%
0.40%
Net
investment
income
2.09%
(7)
0.03%
(4)
0.01%
(4)
1.24%
1.86%
0.86%
Net
assets,
end
of
period
(in
millions)
$7,902
$7,776
$10,228
$9,065
$7,531
$7,307
0%
0%
0%
0%
0%
0%
(1)
Per
share
amounts
calculated
using
average
shares
outstanding
method.
(2)
See
Note
5
for
details
of
expense-related
arrangements
with
Price
Associates.
(3)
Amounts
round
to
less
than
$0.01
per
share.
(4)
See
Note
5.
Includes
the
effect
of
voluntary
management
fee
waivers
and
operating
expense
reimbursements
(0.20%,
0.20%
and
0.01%
of
average
net
assets)
for
the
years
ended
5/31/22,
5/31/21
and
5/31/20,
respectively.
(5)
Total
return
reflects
the
rate
that
an
investor
would
have
earned
on
an
investment
in
the
fund
during
each
period,
assuming
reinvestment
of
all
distributions,
and
payment
of
no
redemption
or
account
fees,
if
applicable.
Total
return
is
not
annualized
for
periods
less
than
one
year.
(6)
See
Note
5.
Prior
to
5/31/20,
the
gross
expense
ratios
presented
are
net
of
a
management
fee
waiver
in
effect
during
the
period,
as
applicable.
(7)
Annualized
T.
ROWE
PRICE
Government
Money
Fund
(Unaudited)
For
a
share
outstanding
throughout
each
period
I
Class
6
Months
.
Ended
11/30/22
..
Year
..
..
Ended
.
5/31/22
5/31/21
5/31/20
5/31/19
5/31/18
NET
ASSET
VALUE
Beginning
of
period
$
1.00
$
1.00
$
1.00
$
1.00
$
1.00
$
1.00
Investment
activities
Net
investment
income
(1)(2)
0.01
—
(3)(4)
—
(3)(4)
0.01
0.02
0.01
Net
realized
and
unrealized
gain/loss
—
(3)
—
(3)
—
(3)
—
(3)
—
(3)
—
(3)
Total
from
investment
activities
0.01
—
(3)
—
(3)
0.01
0.02
0.01
Distributions
Net
investment
income
(0.01)
—
(3)
—
(3)
(0.01)
(0.02)
(0.01)
NET
ASSET
VALUE
End
of
period
$
1.00
$
1.00
$
1.00
$
1.00
$
1.00
$
1.00
T.
ROWE
PRICE
Government
Money
Fund
(Unaudited)
For
a
share
outstanding
throughout
each
period
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
I
Class
6
Months
.
Ended
11/30/22
..
Year
..
..
Ended
.
5/31/22
5/31/21
5/31/20
5/31/19
5/31/18
Ratios/Supplemental
Data
Total
return
(2)(5)
1.11%
0.06%
(4)
0.01%
(4)
1.37%
2.01%
0.99%
Ratios
to
average
net
assets:
(2)
Gross
expenses
before
waivers/
payments
by
Price
Associates
(6)
0.21%
(7)
0.20%
0.28%
0.30%
0.26%
0.28%
Net
expenses
after
waivers/payments
by
Price
Associates
0.21%
(7)
0.13%
(4)
0.14%
(4)
0.27%
0.26%
0.28%
Net
investment
income
2.23%
(7)
0.12%
(4)
0.01%
(4)
1.34%
2.01%
1.05%
Net
assets,
end
of
period
(in
thousands)
$2,436,518
$2,091,466
$563,446
$498,266
$384,185
$158,498
0%
0%
0%
0%
0%
0%
(1)
Per
share
amounts
calculated
using
average
shares
outstanding
method.
(2)
See
Note
5
for
details
of
expense-related
arrangements
with
Price
Associates.
(3)
Amounts
round
to
less
than
$0.01
per
share.
(4)
See
Note
5.
Includes
the
effect
of
voluntary
management
fee
waivers
and
operating
expense
reimbursements
(0.07%
and
0.11%
of
average
net
assets)
for
the
years
ended
5/31/22
and
5/31/21,
respectively.
(5)
Total
return
reflects
the
rate
that
an
investor
would
have
earned
on
an
investment
in
the
fund
during
each
period,
assuming
reinvestment
of
all
distributions,
and
payment
of
no
redemption
or
account
fees,
if
applicable.
Total
return
is
not
annualized
for
periods
less
than
one
year.
(6)
See
Note
5.
Prior
to
5/31/20,
the
gross
expense
ratios
presented
are
net
of
a
management
fee
waiver
in
effect
during
the
period,
as
applicable.
(7)
Annualized
T.
ROWE
PRICE
Government
Money
Fund
November
30,
2022
(Unaudited)
Par
$
Value
(Amounts
in
000s)
‡
U.S.
GOVERNMENT
AGENCY
DEBT
16.8%
Federal
Farm
Credit
Banks,
4.69%,
5/8/23
23,000
22,537
Federal
Farm
Credit
Banks,
4.75%,
6/6/23
15,000
14,639
Federal
Farm
Credit
Banks,
4.94%,
10/30/23
30,000
28,690
Federal
Farm
Credit
Banks,
FRN,
3M
UST
+
0.055%,
4.387%,
1/31/23
50,000
50,000
Federal
Farm
Credit
Banks,
FRN,
SOFR
+
0.013%,
3.823%,
1/30/23
44,800
44,799
Federal
Farm
Credit
Banks,
FRN,
SOFR
+
0.32%,
4.13%,
6/9/23
5,000
5,007
Federal
Home
Loan
Banks,
0.21%,
12/2/22
100,000
100,000
Federal
Home
Loan
Banks,
0.21%,
12/12/22
32,000
32,000
Federal
Home
Loan
Banks,
0.22%,
12/16/22
50,000
50,000
Federal
Home
Loan
Banks,
2.37%,
12/15/22
108,980
108,880
Federal
Home
Loan
Banks,
2.78%,
12/29/22
25,000
24,946
Federal
Home
Loan
Banks,
2.91%,
12/2/22
113,400
113,391
Federal
Home
Loan
Banks,
3.11%,
12/8/22
36,100
36,078
Federal
Home
Loan
Banks,
3.21%,
1/26/23
102,450
101,945
Federal
Home
Loan
Banks,
4.02%,
1/20/23
50,000
49,724
Federal
Home
Loan
Banks,
4.02%,
1/25/23
125,000
124,242
Federal
Home
Loan
Banks,
4.25%,
4/14/23
100,000
99,998
Federal
Home
Loan
Banks,
4.33%,
2/21/23
284,885
282,108
Federal
Home
Loan
Banks,
4.49%,
4/10/23
75,000
73,806
Federal
Home
Loan
Banks,
4.60%,
6/16/23
8,525
8,316
Federal
Home
Loan
Banks,
4.62%,
5/12/23
73,721
72,221
Federal
Home
Loan
Banks,
4.67%,
5/16/23
60,000
58,736
Federal
Home
Loan
Banks,
4.72%,
9/1/23
100,000
96,548
Federal
Home
Loan
Banks,
4.90%,
11/22/23
28,000
27,992
Federal
Home
Loan
Mortgage,
0.25%,
6/26/23
78,990
77,396
Federal
National
Mortgage,
0.25%,
11/27/23
31,873
30,460
Total
U.S.
Government
Agency
Debt
(Cost
$1,734,459)
1,734,459
U.S.
GOVERNMENT
AGENCY
REPURCHASE
AGREEMENT
37.2%(1)
Bank
of
America,
Tri-Party,
Dated
11/30/22,
3.80%,
Delivery
Value
of
$273,028,817
on
12/1/22,
Collateralized
by
U.S.
Government
securities,
5.50%,
10/20/52,
valued
at
$278,460,000
273,000
273,000
BNY
Mellon,
Bilateral,
Dated
11/30/22,
3.81%,
Delivery
Value
of
$746,078,952
on
12/1/22,
Collateralized
by
U.S.
Government
securities,
2.00%
-
6.50%,
10/15/25
-
12/1/52,
valued
at
$760,920,021
746,000
746,000
Citigroup
Global
Markets,
Tri-Party,
Dated
11/30/22,
3.81%,
Delivery
Value
of
$373,039,476
on
12/1/22,
Collateralized
by
U.S.
Government
securities,
1.50%
-
9.00%,
3/1/23
-
3/20/67,
valued
at
$380,460,000
373,000
373,000
T.
ROWE
PRICE
Government
Money
Fund
T.
ROWE
PRICE
Government
Money
Fund
Par
$
Value
(Amounts
in
000s)
Credit
Agricole,
Tri-Party,
Dated
11/30/22,
3.80%,
Delivery
Value
of
$17,501,847
on
12/1/22,
Collateralized
by
U.S.
Government
securities,
2.50%,
12/1/50,
valued
at
$17,850,000
17,500
17,500
Goldman
Sachs,
Tri-Party,
Dated
11/30/22,
3.81%,
Delivery
Value
of
$273,028,893
on
12/1/22,
Collateralized
by
U.S.
Government
securities,
3.50%
-
4.50%,
3/15/39
-
6/20/52,
valued
at
$278,460,000
273,000
273,000
HSBC
Securities,
Tri-Party,
Dated
11/30/22,
3.81%,
Delivery
Value
of
$149,015,769
on
12/1/22,
Collateralized
by
U.S.
Government
securities,
1.17%
-
3.78%,
10/1/30
-
5/1/52,
valued
at
$151,980,000
149,000
149,000
JPMorgan
Chase,
Tri-Party,
Dated
11/30/22,
3.81%,
Delivery
Value
of
$1,293,136,843
on
12/1/22,
Collateralized
by
U.S.
Government
securities,
1.50%
-
6.50%,
5/1/27
-
4/1/59,
valued
at
$1,318,860,001
1,293,000
1,293,000
RBC
Dominion
Securities,
Tri-Party,
Dated
11/30/22,
3.80%,
Delivery
Value
of
$621,065,550
on
12/1/22,
Collateralized
by
U.S.
Government
securities,
0.13%
-
5.50%,
11/15/25
-
10/20/52,
valued
at
$633,420,000
621,000
621,000
Royal
Bank
of
Canada,
Tri-Party,
Dated
11/30/22,
3.80%,
Delivery
Value
of
$99,010,450
on
12/1/22,
Collateralized
by
U.S.
Government
securities,
0.00%
-
4.50%,
2/14/23
-
5/1/52,
valued
at
$100,980,074
99,000
99,000
Total
U.S.
Government
Agency
Repurchase
Agreement
(Cost
$3,844,500)
3,844,500
U.S.
TREASURY
DEBT
15.0%
U.S.
Treasury
Bills,
2.892%,
2/2/23
96,000
95,521
U.S.
Treasury
Bills,
2.953%,
1/19/23
53,000
52,790
U.S.
Treasury
Bills,
3.085%,
7/13/23
246,400
241,813
U.S.
Treasury
Bills,
3.115%,
6/15/23
57,830
56,879
U.S.
Treasury
Bills,
3.307%,
8/10/23
50,000
48,880
U.S.
Treasury
Bills,
3.527%,
3/16/23
86,000
85,131
U.S.
Treasury
Bills,
3.704%,
12/20/22
250,000
249,514
U.S.
Treasury
Bills,
3.941%,
2/14/23
173,215
171,811
U.S.
Treasury
Bills,
4.451%,
4/4/23
64,000
63,059
U.S.
Treasury
Notes,
FRN,
3M
UST
+
0.029%,
4.361%,
7/31/23
147,000
147,001
U.S.
Treasury
Notes,
FRN,
3M
UST
+
0.034%,
4.366%,
4/30/23
150,118
150,119
U.S.
Treasury
Notes,
FRN,
3M
UST
+
0.035%,
4.367%,
10/31/23
36,540
36,540
U.S.
Treasury
Notes,
FRN,
3M
UST
+
0.049%,
4.381%,
1/31/23
88,750
88,751
U.S.
Treasury
Notes,
FRN,
3M
UST
+
0.14%,
4.472%,
10/31/24
61,700
61,607
Total
U.S.
Treasury
Debt
(Cost
$1,549,416)
1,549,416
T.
ROWE
PRICE
Government
Money
Fund
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Par
$
Value
(Amounts
in
000s)
U.S.
TREASURY
REPURCHASE
AGREEMENT
31.6%(1)
Federal
Reserve
Bank
of
New
York,
Tri-Party,
Dated
11/30/22,
3.80%,
Delivery
Value
of
$3,272,345,378
on
12/1/22,
Collateralized
by
U.S.
Government
securities,
0.13%
-
2.50%,
5/15/23
-
5/15/29,
valued
at
$3,272,345,378
3,272,000
3,272,000
Total
U.S.
Treasury
Repurchase
Agreement
(Cost
$3,272,000)
3,272,000
Total
Investments
in
Securities
100.6%
of
Net
Assets
(Cost
$10,400,375)
$
10,400,375
‡
Par
is
denominated
in
U.S.
dollars
unless
otherwise
noted.
(1)
See
Note
3.
Collateralized
by
U.S.
government
securities
valued
at
$7,193,735
at
November
30,
2022.
3M
UST
Three
month
U.S.
Treasury
bill
yield
FRN
Floating
Rate
Note
SOFR
Secured
overnight
financing
rate
T.
ROWE
PRICE
Government
Money
Fund
November
30,
2022
(Unaudited)
Statement
of
Assets
and
Liabilities
($000s,
except
shares
and
per
share
amounts)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Assets
Investments
in
securities,
at
value
(cost
$10,400,375)
$
10,400,375
Receivable
for
shares
sold
27,918
Interest
receivable
3,586
Cash
33
Other
assets
117
Total
assets
10,432,029
Liabilities
Payable
for
investment
securities
purchased
63,058
Payable
for
shares
redeemed
25,413
Due
to
affiliates
1,757
Investment
management
fees
payable
1,525
Payable
to
directors
4
Other
liabilities
1,673
Total
liabilities
93,430
NET
ASSETS
$
10,338,599
Net
Assets
Consist
of:
Total
distributable
earnings
(loss)
$
418
Paid-in
capital
applicable
to
10,338,148,850
shares
of
$0.01
par
value
capital
stock
outstanding;
30,000,000,000
shares
authorized
10,338,181
NET
ASSETS
$
10,338,599
NET
ASSET
VALUE
PER
SHARE
Investor
Class
($7,902,081,517
/
7,901,737,179
shares
outstanding)
$
1.00
I
Class
($2,436,517,585
/
2,436,411,671
shares
outstanding)
$
1.00
T.
ROWE
PRICE
Government
Money
Fund
(Unaudited)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
6
Months
Ended
11/30/22
Investment
Income
(Loss)
Interest
income
$
123,337
Expenses
Investment
management
9,151
Shareholder
servicing
Investor
Class
$
5,721
I
Class
300
6,021
Prospectus
and
shareholder
reports
Investor
Class
40
I
Class
1
41
Custody
and
accounting
175
Registration
66
Directors
14
Legal
and
audit
13
Miscellaneous
16
Total
expenses
15,497
Net
investment
income
107,840
Realized
Gain
/
Loss
–
Net
realized
gain
on
securities
22
INCREASE
IN
NET
ASSETS
FROM
OPERATIONS
$
107,862
T.
ROWE
PRICE
Government
Money
Fund
(Unaudited)
Statement
of
Changes
in
Net
Assets
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
6
Months
Ended
11/30/22
Year
Ended
5/31/22
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
$
107,840
$
4,290
Net
realized
gain
22
98
Increase
in
net
assets
from
operations
107,862
4,388
Distributions
to
shareholders
Net
earnings
Investor
Class
(
81,993
)
(
3,024
)
I
Class
(
25,847
)
(
1,266
)
Decrease
in
net
assets
from
distributions
(
107,840
)
(
4,290
)
Capital
share
transactions
*
Shares
sold
Investor
Class
4,384,591
12,882,783
I
Class
1,029,554
2,373,268
Distributions
reinvested
Investor
Class
79,337
2,910
I
Class
24,835
1,211
Shares
redeemed
Investor
Class
(
4,337,860
)
(
15,337,365
)
I
Class
(
709,353
)
(
846,532
)
Increase
(decrease)
in
net
assets
from
capital
share
transactions
471,104
(
923,725
)
Net
Assets
Increase
(decrease)
during
period
471,126
(
923,627
)
Beginning
of
period
9,867,473
10,791,100
End
of
period
$
10,338,599
$
9,867,473
*
Capital
share
transactions
at
net
asset
value
of
$1.00
per
share.
T.
ROWE
PRICE
Government
Money
Fund
Unaudited
NOTES
TO
FINANCIAL
STATEMENTS
T.
Rowe
Price
Government
Money
Fund,
Inc.
(the
fund) is
registered
under
the
Investment
Company
Act
of
1940
(the
1940
Act)
as a
diversified,
open-end
management
investment
company. The
fund’s
goal
are
preservation
of
capital,
liquidity,
and,
consistent
with
these,
the
highest
possible
current
income.
The
fund
intends
to
operate
as
a
government
money
market
fund
and
has
no
intention
to
voluntarily impose
liquidity
fees
on
redemptions
or
temporarily
suspend
redemptions.
The
fund
has
two classes
of
shares:
the
Government
Money
Fund
(Investor
Class)
and
the
Government
Money
Fund–I
Class
(I
Class).
I
Class
shares
require
a
$500,000
initial
investment
minimum,
although
the
minimum
generally
is
waived
or
reduced
for
financial
intermediaries,
eligible
retirement
plans,
and
certain
other
accounts.
Prior
to
November
15,
2021,
the
initial
investment
minimum
was
$1
million
and
was
generally
waived
for
financial
intermediaries,
eligible
retirement
plans,
and
other
certain
accounts.
As
a
result
of
the
reduction
in
the
I
Class
minimum,
certain
assets
transferred
from
the
Investor
Class
to
the
I
Class.
This
transfer
of
shares
from
Investor
Class
to
I
Class
is
reflected
in
the
Statement
of
Changes
in
Net
Assets
within
the
Capital
shares
transactions
as
Shares
redeemed
and
Shares
sold,
respectively. Each
class
has
exclusive
voting
rights
on
matters
related
solely
to
that
class;
separate
voting
rights
on
matters
that
relate
to
both
classes;
and,
in
all
other
respects,
the
same
rights
and
obligations
as
the
other
class.
NOTE
1
-
SIGNIFICANT
ACCOUNTING
POLICIES
Basis
of
Preparation
The fund
is
an
investment
company
and
follows
accounting
and
reporting
guidance
in
the
Financial
Accounting
Standards
Board
(FASB)
Accounting
Standards
Codification
Topic
946
(ASC
946).
The
accompanying
financial
statements
were
prepared
in
accordance
with
accounting
principles
generally
accepted
in
the
United
States
of
America
(GAAP),
including,
but
not
limited
to,
ASC
946.
GAAP
requires
the
use
of
estimates
made
by
management.
Management
believes
that
estimates
and
valuations
are
appropriate;
however,
actual
results
may
differ
from
those
estimates,
and
the
valuations
reflected
in
the
accompanying
financial
statements
may
differ
from
the
value
ultimately
realized
upon
sale
or
maturity.
Investment
Transactions,
Investment
Income,
and
Distributions
Investment
transactions
are
accounted
for
on
the
trade
date
basis.
Income
and
expenses
are
recorded
on
the
accrual
basis.
Realized
gains
and
losses
are
reported
on
the
identified
cost
basis.
Premiums
and
discounts
on
debt
securities
are
amortized
for
financial
reporting
purposes.
Income
tax-related
interest
and
penalties,
if
incurred,
are
recorded
T.
ROWE
PRICE
Government
Money
Fund
as
income
tax
expense.
Distributions
to
shareholders
are
recorded
on
the
ex-dividend
date.
Income
distributions,
if
any, are
declared
by
each
class daily
and
paid
monthly.
A
capital
gain
distribution,
if
any, may
also
be
declared
and
paid
by
the
fund
annually.
Class
Accounting
Shareholder
servicing,
prospectus,
and
shareholder
report
expenses
incurred
by
each
class
are
charged
directly
to
the
class
to
which
they
relate.
Expenses
common
to all classes
and
investment
income
are
allocated
to
the
classes
based
upon
the
relative
daily
net
assets
of
each
class’s
settled
shares;
realized
and
unrealized
gains
and
losses
are
allocated
based
upon
the
relative
daily
net
assets
of
each
class’s
outstanding
shares.
Capital
Transactions
Each
investor’s
interest
in
the
net
assets
of the
fund
is
represented
by
fund
shares. The
fund’s
net
asset
value
(NAV)
per
share
is
computed
at
the
close
of
the
New
York
Stock
Exchange
(NYSE),
normally
4
p.m.
ET,
each
day
the
NYSE
is
open
for
business.
However,
the
NAV
per
share
may
be
calculated
at
a
time
other
than
the
normal
close
of
the
NYSE
if
trading
on
the
NYSE
is
restricted,
if
the
NYSE
closes
earlier,
or
as
may
be
permitted
by
the
SEC.
Purchases
and
redemptions
of
fund
shares
are
transacted
at
the
next-computed
NAV
per
share,
after
receipt
of
the
transaction
order
by
T.
Rowe
Price
Associates,
Inc.,
or
its
agents.
New
Accounting
Guidance
The
FASB
issued
Accounting
Standards
Update
(ASU),
ASU
2020–04,
Reference
Rate
Reform
(Topic
848) –
Facilitation
of
the
Effects
of
Reference
Rate
Reform
on
Financial
Reporting
in
March
2020
and
ASU
2021-01
in
January
2021
which
provided
further
amendments
and
clarifications
to
Topic
848.
These
ASUs provide
optional,
temporary
relief
with
respect
to
the
financial
reporting
of
contracts
subject
to
certain
types
of
modifications
due
to
the
planned
discontinuation
of
the
London
Interbank
Offered
Rate
(LIBOR),
and
other
interbank-offered
based
reference
rates,
through December
31,
2022.
Management
intends
to
rely
upon
the
relief
provided
under
Topic
848,
which
is
not
expected to
have
a
material
impact
on
the fund's
financial statements.
Indemnification
In
the
normal
course
of
business, the
fund
may
provide
indemnification
in
connection
with
its
officers
and
directors,
service
providers,
and/or
private
company
investments. The
fund’s
maximum
exposure
under
these
arrangements
is
unknown;
however,
the
risk
of
material
loss
is
currently
considered
to
be
remote.
T.
ROWE
PRICE
Government
Money
Fund
NOTE
2
-
VALUATION
The
fund’s
financial
instruments
are
valued
at
the
close
of
the
NYSE
and
are
reported
at
fair
value,
which
GAAP
defines
as
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
at
the
measurement
date.
Assets
and
liabilities
other
than
financial
instruments,
including
short-term
receivables
and
payables,
are
carried
at
cost,
or
estimated
realizable
value,
if
less,
which
approximates
fair
value.
The
fund’s
Board
of
Directors
(the
Board)
has
designated
T.
Rowe
Price
Associates,
Inc.
as
the
fund’s
valuation
designee
(Valuation
Designee).
Subject
to
oversight
by
the
Board,
the
Valuation
Designee
performs
the
following
functions
in
performing
fair
value
determinations:
assesses
and
manages
valuation risks;
establishes
and
applies
fair
value
methodologies;
tests
fair
value
methodologies;
and
evaluates
pricing
vendors
and
pricing
agents.
The
duties
and
responsibilities
of
the
Valuation
Designee
are
performed
by
its
Valuation
Committee.
The
Valuation
Designee
provides
periodic
reporting
to
the
Board
on
valuation
matters.
Various
valuation
techniques
and
inputs
are
used
to
determine
the
fair
value
of
financial
instruments.
GAAP
establishes
the
following
fair
value
hierarchy
that
categorizes
the
inputs
used
to
measure
fair
value:
Level
1 – quoted
prices
(unadjusted)
in
active
markets
for
identical
financial
instruments
that
the
fund
can
access
at
the
reporting
date
Level
2 – inputs
other
than
Level
1
quoted
prices
that
are
observable,
either
directly
or
indirectly
(including,
but
not
limited
to,
quoted
prices
for
similar
financial
instruments
in
active
markets,
quoted
prices
for
identical
or
similar
financial
instruments
in
inactive
markets,
interest
rates
and
yield
curves,
implied
volatilities,
and
credit
spreads)
Level
3 – unobservable
inputs
(including
the Valuation
Designee’s
assumptions
in
determining
fair
value)
Observable
inputs
are
developed
using
market
data,
such
as
publicly
available
information
about
actual
events
or
transactions,
and
reflect
the
assumptions
market
participants
would
use
to
price
the
financial
instrument.
Unobservable
inputs
are
those
for
which
market
data
are
not
available
and
are
developed
using
the
best
information
available
about
the
assumptions
that
market
participants
would
use
to
price
the
financial
instrument.
GAAP
requires
valuation
techniques
to
maximize
the
use
of
relevant
observable
inputs
and
minimize
the
use
of
unobservable
inputs.
Input
levels
are
not
necessarily
an
indication
of
the
risk
or
liquidity
associated
with
financial
instruments
at
that
level
but
rather
the
degree
of
judgment
used
in
determining
those
values.
T.
ROWE
PRICE
Government
Money
Fund
In
accordance
with
Rule
2a-7
under
the
1940
Act,
the
fund
values
its
securities
at
amortized
cost,
which
approximates
fair
value.
Securities
for
which
amortized
cost
is
deemed
not
to
reflect
fair
value
are
stated
at
fair
value
as
determined
in
good
faith
by
the
Valuation
Designee,
in
accordance
with
fair
valuation
policies
and
procedures.
On
November
30,
2022,
all
of
the
fund’s
financial
instruments
were
classified
as
Level
2
in
the
fair
value
hierarchy.
NOTE
3
-
OTHER
INVESTMENT
TRANSACTIONS
Consistent
with
its
investment
objective,
the
fund
engages
in
the
following
practices
to
manage
exposure
to
certain
risks
and/or
to
enhance
performance.
The
investment
objective,
policies,
program,
and
risk
factors
of
the
fund
are
described
more
fully
in
the
fund’s
prospectus
and
Statement
of
Additional
Information.
Repurchase
Agreements
The
fund
engages
in
repurchase
agreements,
pursuant
to
which
it
pays
cash
to
and
receives
securities
from
a
counterparty
that
agrees
to
“repurchase”
the
securities
at
a
specified
time,
typically
within
seven
business
days,
for
a
specified
price.
The
fund
enters
into
such
agreements
with
well-established
securities
dealers
or
banks
that
are
members
of
the
Federal
Reserve
System
and
are
on
Price
Associates' approved
list.
All
repurchase
agreements
are
fully
collateralized
by
U.S.
government
or
related
agency
securities,
which
are
held
by
the
custodian
designated
by
the
agreement.
Collateral
is
evaluated
daily
to
ensure
that
its
market
value
exceeds
the
delivery
value
of
the
repurchase
agreements
at
maturity.
Although
risk
is
mitigated
by
the
collateral,
the
fund
could
experience
a
delay
in
recovering
its
value
and
a
possible
loss
of
income
or
value
if
the
counterparty
fails
to
perform
in
accordance
with
the
terms
of
the
agreement.
LIBOR
Transition
The fund
may
invest
in
instruments
that
are
tied
to
reference
rates,
including
LIBOR.
Over
the
course
of
the
last
several
years,
global
regulators
have
indicated
an
intent
to
phase
out
the
use
of
LIBOR
and
similar
interbank
offered
rates
(IBOR).
While
publication
for
most
LIBOR
currencies
and
lesser-used
USD
LIBOR
settings
ceased
immediately
after
December
31,
2021,
remaining
USD
LIBOR
settings
will
continue
to
be
published
until
June
30,
2023.
There
remains
uncertainty
regarding
the
future
utilization
of
LIBOR
and
the
nature
of
any
replacement
rate.
Any
potential
effects
of
the
transition
away
from
LIBOR
on
the fund,
or
on
certain
instruments
in
which
the fund
invests,
cannot
yet
be
determined.
The
transition
process
may
result
in,
among
other
things,
an
increase
in
volatility
or
illiquidity
of
markets
for
instruments
that
currently
rely
on
LIBOR,
a
reduction
in
the
value
of
certain
instruments
held
by
the fund,
or
a
reduction
in
the
effectiveness
of
related
fund
transactions
such
as
hedges.
Any
such
effects
could
have
an
adverse
impact
on
the fund's
performance.
T.
ROWE
PRICE
Government
Money
Fund
NOTE
4
-
FEDERAL
INCOME
TAXES
No
provision
for
federal
income
taxes
is
required
since
the
fund
intends
to
continue
to
qualify
as
a
regulated
investment
company
under
Subchapter
M
of
the
Internal
Revenue
Code
and
distribute
to
shareholders
all
of
its
taxable
income
and
gains.
Distributions
determined
in
accordance
with
federal
income
tax
regulations
may
differ
in
amount
or
character
from
net
investment
income
and
realized
gains
for
financial
reporting
purposes.
Financial
reporting
records
are
adjusted
for
permanent
book/tax
differences
to
reflect
tax
character
but
are
not
adjusted
for
temporary
differences.
The
amount
and
character
of
tax-basis
distributions
and
composition
of
net
assets
are
finalized
at
fiscal
year-end;
accordingly,
tax-basis
balances
have
not
been
determined
as
of
the
date
of
this
report.
At
November
30,
2022,
the
cost
of
investments
for
federal
income
tax
purposes
was $10,400,375,000.
NOTE
5
-
RELATED
PARTY
TRANSACTIONS
The
fund
is
managed
by
T.
Rowe
Price
Associates,
Inc.
(Price
Associates),
a
wholly
owned
subsidiary
of
T.
Rowe
Price
Group,
Inc.
(Price
Group).
The
investment
management
agreement
between
the
fund
and
Price
Associates
provides
for
an
annual
investment
management
fee
equal
to 0.18%
of
the
fund’s
average
daily
net
assets.
The
fee
is
computed
daily
and
paid
monthly.
The
I
Class
is
subject
to
an
operating
expense
limitation
(I
Class
Limit)
pursuant
to
which
Price
Associates
is
contractually
required
to
pay
all
operating
expenses
of
the
I
Class,
excluding
management
fees;
interest;
expenses
related
to
borrowings,
taxes,
and
brokerage; non-recurring,
extraordinary expenses; and
acquired
fund
fees
and
expenses, to
the
extent
such
operating
expenses,
on
an
annualized
basis,
exceed
the
I
Class
Limit. This
agreement
will
continue
through
the
expense
limitation
date
indicated
in
the
table
below,
and
may
be
renewed,
revised,
or
revoked
only
with
approval
of
the
fund’s
Board.
The
I
Class
is
required
to
repay
Price
Associates
for
expenses
previously
paid
to
the
extent
the
class’s
net
assets
grow
or
expenses
decline
sufficiently
to
allow
repayment
without
causing
the
class’s
operating
expenses
(after
the
repayment
is
taken
into
account)
to
exceed
the
lesser
of:
(1)
the
I
Class
Limit
in
place
at
the
time
such
amounts
were
paid;
or
(2)
the
current
I
Class
Limit.
However,
no
repayment
will
be
made
more
than
three
years
after
the
date
of
a
payment
or
waiver.
T.
ROWE
PRICE
Government
Money
Fund
Price
Associates
may
voluntarily
waive
all
or
a
portion
of
its
management
fee
and
reimburse
operating
expenses
to
the
extent
necessary
for
the
fund
to
maintain
a
zero
or
positive
net
yield
(voluntary
waiver).
This
voluntary
waiver
is
in
addition
to
the
contractual
expense
limit
in
effect
for
the
fund. Any
amounts
waived/paid
by
Price
Associates
under
this
voluntary
agreement
are
not
subject
to
repayment
by
the
fund.
Price
Associates
may
amend
or
terminate
this
voluntary
arrangement
at
any
time
without
prior
notice.
For
the
six
months ended
November
30,
2022,
the
fund
had
no
voluntary
waivers.
In
addition,
the
fund
has
entered
into
service
agreements
with
Price
Associates
and
two
wholly
owned
subsidiaries
of
Price
Associates,
each
an
affiliate
of
the
fund
(collectively,
Price).
Price
Associates
provides
certain
accounting
and
administrative
services
to
the
fund.
T.
Rowe
Price
Services,
Inc.
provides
shareholder
and
administrative
services
in
its
capacity
as
the
fund’s
transfer
and
dividend-disbursing
agent.
T.
Rowe
Price
Retirement
Plan
Services,
Inc.
provides
subaccounting
and
recordkeeping
services
for
certain
retirement
accounts
invested
in
the
Investor
Class.
For
the
six
months ended
November
30,
2022,
expenses
incurred
pursuant
to
these
service
agreements
were
$50,000 for
Price
Associates;
$4,384,000 for
T.
Rowe
Price
Services,
Inc.;
and
$603,000 for
T.
Rowe
Price
Retirement
Plan
Services,
Inc.
All
amounts
due
to
and
due
from
Price,
exclusive
of
investment
management
fees
payable,
are
presented
net
on
the
accompanying
Statement
of
Assets
and
Liabilities.
The
fund may
participate
in
securities
purchase
and
sale
transactions
with
other
funds
or
accounts
advised
by
Price
Associates
(cross
trades),
in
accordance
with
procedures
adopted
by the
fund’s
Board
and
Securities
and
Exchange
Commission
rules,
which
require,
among
other
things,
that
such
purchase
and
sale
cross
trades
be
effected
at
the
independent
current
market
price
of
the
security.
During
the
six
months ended
November
30,
2022,
the
fund
had
no
purchases
or
sales
cross
trades
with
other
funds
or
accounts
advised
by
Price
Associates.
I
Class
Expense
limitation/I
Class
Limit
0.05%
Expense
limitation
date
09/30/23
(Waived)/repaid
during
the
period
($000s)
$—
T.
ROWE
PRICE
Government
Money
Fund
NOTE
6
-
OTHER
MATTERS
Unpredictable
events
such
as
environmental
or
natural
disasters,
war,
terrorism,
pandemics,
outbreaks
of
infectious
diseases,
and
similar
public
health
threats
may
significantly
affect
the
economy
and
the
markets
and
issuers
in
which
a
fund
invests.
Certain
events
may
cause
instability
across
global
markets,
including
reduced
liquidity
and
disruptions
in
trading
markets,
while
some
events
may
affect
certain
geographic
regions,
countries,
sectors,
and
industries
more
significantly
than
others,
and
exacerbate
other
pre-existing
political,
social,
and
economic
risks.
Since
2020,
a
novel
strain
of
coronavirus
(COVID-19)
has
resulted
in
disruptions
to
global
business
activity
and
caused
significant
volatility
and
declines
in
global
financial
markets.
In
February
2022,
Russian
forces
entered
Ukraine
and
commenced
an
armed
conflict
leading
to
economic
sanctions
being
imposed
on
Russia
and
certain
of
its
citizens,
creating
impacts
on
Russian-related
stocks
and
debt
and
greater
volatility
in
global
markets.
These
are
recent
examples
of
global
events
which
may
have
a
negative
impact
on
the
values
of
certain
portfolio
holdings
or
the
fund’s
overall
performance.
Management
is
actively
monitoring
the
risks
and
financial
impacts
arising
from
these
events.
T.
ROWE
PRICE
Government
Money
Fund
INFORMATION
ON
PROXY
VOTING
POLICIES,
PROCEDURES,
AND
RECORDS
A
description
of
the
policies
and
procedures
used
by
T.
Rowe
Price
funds
to
determine
how
to
vote
proxies
relating
to
portfolio
securities
is
available
in
each
fund’s
Statement
of
Additional
Information.
You
may
request
this
document
by
calling
1-800-225-5132
or
by
accessing
the
SEC’s
website,
sec.gov.
The
description
of
our
proxy
voting
policies
and
procedures
is
also
available
on
our
corporate
website.
To
access
it,
please
visit
the
following
Web
page:
https://www.troweprice.com/corporate/us/en/utility/policies.html
Scroll
down
to
the
section
near
the
bottom
of
the
page
that
says,
“Proxy
Voting
Guidelines.”
Click
on
the
links
in
the
shaded
box.
Each
fund’s
most
recent
annual
proxy
voting
record
is
available
on
our
website
and
through
the
SEC’s
website.
To
access
it
through
T.
Rowe
Price,
visit
the
website
location
shown
above,
and
scroll
down
to
the
section
near
the
bottom
of
the
page
that
says,
“Proxy
Voting
Records.”
Click
on
the
Proxy
Voting
Records
link
in
the
shaded
box.
HOW
TO
OBTAIN
QUARTERLY
PORTFOLIO
HOLDINGS
The
fund
files
its
complete
schedule
of
portfolio
holdings
with
the
Securities
and
Exchange
Commission
(SEC)
each
month
on
Form
N-MFP. The
fund’s
reports
on
Form
N-MFP
are
available on
the
SEC’s
website
(sec.gov).
In
addition,
most
T.
Rowe
Price
funds
disclose
their portfolio
holdings
information
on
troweprice.com
.
T.
Rowe
Price
Investment
Services,
Inc.
|
100
East
Pratt
Street
|
Baltimore,
MD
21202-1009
You
have
many
investment
goals.
Explore
products
and
services
that
can
help
you
achieve
them.
Whether
you
want
to
put
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child’s
education,
or
for
other
priorities,
we
have
solutions
for
you.
See
how
we
can
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you
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the
investment
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you.
RETIREMENT
IRAs:
Traditional,
Roth,
Rollover/Transfer,
or
Brokerage
Small
Business
Plans
help
minimize
taxes,
maximize
savings
T.
Rowe
Price
®
ActivePlus
Portfolios
1
for
online
investing
powered
by
experts
GENERAL
INVESTING
Individual
or
Joint
Tenant
Brokerage
2
offers
access
to
stocks,
ETFs,
bonds,
and
more
Gifts
and
transfers
to
a
child
(UGMA/UTMAs)
Trust
Transfer
on
Death
COLLEGE
SAVINGS
T.
Rowe
Price-managed
529
plans
offer
tax-
advantaged
solutions
for
families
saving
money
for
college
tuition
and
education-
related
expenses
Visit
troweprice.com/broadrange
Call
1-800-225-5132
to
request
a
prospectus
or
summary
prospectus;
each
includes
investment
objectives,
risks,
fees,
expenses,
and
other
information
that
you
should
read
and
consider
carefully
before
investing.
All
mutual
funds
are
subject
to
market
risk,
including
possible
loss
of
principal.
Investing
internationally
involves
special
risks
including
economic
and
political
uncertainty
and
currency
fluctuation.
1
The
T.
Rowe
Price
®
ActivePlus
Portfolios
is
a
discretionary
investment
management
program
provided
by
T.
Rowe
Price
Advisory
Services,
Inc.,
a
registered
investment
adviser
under
the
Investment
Advisers
Act
of
1940.
Brokerage
services
are
provided
by
T.
Rowe
Price
Investment
Services,
Inc.,
member
FINRA/SIPC.
Brokerage
accounts
are
carried
by
Pershing
LLC,
a
BNY
Mellon
Company,
member
NYSE/FINRA/SIPC.
T.
Rowe
Price
Advisory
Services,
Inc.,
and
T.
Rowe
Price
Investment
Services,
Inc.,
are
affiliated
companies.
2
Brokerage
services
are
provided
by
T.
Rowe
Price
Investment
Services,
Inc.,
member
FINRA/SIPC.
Brokerage
accounts
are
carried
by
Pershing
LLC,
a
BNY
Mellon
Company,
member
NYSE/FINRA/SIPC.
202301-2568421
F44-051
1/23
Item 1. (b) Notice pursuant to Rule 30e-3.
Not applicable.
Item 2. Code of Ethics.
A code of ethics, as defined in Item 2 of Form N-CSR, applicable to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions is filed as an exhibit to the registrant’s annual Form N-CSR. No substantive amendments were approved or waivers were granted to this code of ethics during the registrant’s most recent fiscal half-year.
Item 3. Audit Committee Financial Expert.
Disclosure required in registrant’s annual Form N-CSR.
Item 4. Principal Accountant Fees and Services.
Disclosure required in registrant’s annual Form N-CSR.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
(a) Not applicable. The complete schedule of investments is included in Item 1 of this Form N-CSR.
(b) Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There has been no change to the procedures by which shareholders may recommend nominees to the registrant’s board of directors.
Item 11. Controls and Procedures.
(a) The registrant’s principal executive officer and principal financial officer have evaluated the registrant’s disclosure controls and procedures within 90 days of this filing and have concluded that the registrant’s disclosure controls and procedures were effective, as of that date, in ensuring that information required to be disclosed by the registrant in this Form N-CSR was recorded, processed, summarized, and reported timely.
(b) The registrant’s principal executive officer and principal financial officer are aware of no change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13. Exhibits.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
T. Rowe Price Government Money Fund, Inc.
| | |
| By | | /s/ David Oestreicher |
| | David Oestreicher |
| | Principal Executive Officer |
| |
| Date | | January 19, 2023 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| | |
| |
| By | | /s/ David Oestreicher |
| | David Oestreicher |
| | Principal Executive Officer |
| |
| Date | | January 19, 2023 |
| | |
| |
| By | | /s/ Alan S. Dupski |
| | Alan S. Dupski |
| | Principal Financial Officer |
| |
| Date | | January 19, 2023 |
