EDGAR HTML

United States

Securities and Exchange Commission

Washington, D.C. 20549

Form N-CSR

Certified Shareholder Report of Registered Management Investment Companies

811-3947

(Investment Company Act File Number)

Federated Hermes Short-Term Government Trust _______________________________________________________________

(Exact Name of Registrant as Specified in Charter)

Federated Hermes Funds

4000 Ericsson Drive

Warrendale, Pennsylvania 15086-7561

(Address of Principal Executive Offices)

(412) 288-1900

(Registrant's Telephone Number)

Peter J. Germain, Esquire

1001 Liberty Avenue

Pittsburgh, Pennsylvania 15222-3779

(Name and Address of Agent for Service)

(Notices should be sent to the Agent for Service)

Date of Fiscal Year End: 02/29/24

Date of Reporting Period: 02/29/24

Item 1.

Reports to Stockholders

Annual Shareholder Report

February 29, 2024

Share Class | Ticker

Institutional | FSGVX

Service | FSGIX

Federated Hermes Short-Term Government Fund

Fund Established 1984

A Portfolio of Federated Hermes Short-Term Government Trust

Dear Valued Shareholder,

We are pleased to present the Annual Shareholder Report for your fund covering the period from March 1, 2023 through February 29, 2024. This report includes Management’s Discussion of Fund Performance, a complete listing of your fund’s holdings, performance information and financial statements along with other important fund information.

As a global leader in active, responsible investment management, Federated Hermes is guided by our conviction that responsible investing is the best way to create wealth over the long term. The company provides capabilities across a wide range of asset classes to investors around the world.

In addition, FederatedHermes.com/us offers quick and easy access to valuable resources that include timely fund updates, economic and market insights from our investment strategists and financial planning tools. You can also access many of those insights by following us on Twitter (@FederatedHermes) and LinkedIn.

Thank you for investing with us. We hope you find this information useful and look forward to keeping you informed.

Sincerely,

J. Christopher Donahue, President

Not FDIC Insured ▪ May Lose Value ▪ No Bank Guarantee

Management’s Discussion of Fund Performance (unaudited)

The total return of Federated Hermes Short-Term Government Fund (the “Fund”), based on net asset value for the 12-month reporting period ended February 29, 2024, was 3.96% for the Institutional Shares and 3.70% for the Service Shares. The 3.96% total return of the Institutional Shares consisted of 4.06% in taxable dividends and -0.10% of price depreciation in the net asset value of the shares. The ICE BofA 1-3 Year US Treasury Index (BA1-3T),1 the Fund’s broad-based securities market index, returned 4.27% for the same period. The total return of the Morningstar Short Government Funds Average (MSGFA),2 a peer group average for the Fund, was 3.98% for the same period. The Fund’s and the MSGFA’s total returns for the most recently completed fiscal year reflected actual cash flows, transaction costs and expenses not reflected in the total return of the BA1-3T.

During the reporting period, the most significant factors affecting the Fund’s performance were: (a) duration3 and (b) security selection.

The following discussion will focus on the performance of the Fund’s Institutional Shares relative to the BA1-3T.

MARKET OVERVIEW

During the reporting period, economic growth was above expectations, supported by strong consumer spending. The consumer was aided by rising home prices, buoyant equity markets and a strong labor market, with the unemployment rate below 4%. Inflation continued its retreat from its post-pandemic peak as the economy came into better balance between supply and demand.

Non-economic events impacted the level of interest rates. In the first quarter of 2023, liquidity issues developed with a few West Coast banks. Liquidity that had flooded into these banks during the pandemic began to leave for other higher-yield cash alternatives. Interest rates declined in fear of greater issues spreading to more institutions. However, the Federal Reserve (the “Fed”) and other federal agencies stepped in to address the situation before it became a systemic issue for the markets. U.S. Treasury auctions were increased due to larger post-pandemic federal budget deficits. Yields spiked in the latter half of 2023 as the U.S. Treasury department significantly increased the supply of long-dated maturity auctions. Finally, another regional conflict with global ramifications erupted in October as Hamas militants attacked Israel causing a short-term spike in the price of oil.

Annual Shareholder Report

The Fed raised the federal funds target rate three times totaling 75 basis points and continued to shrink its balance sheet by allowing a portion of its U.S. Treasury notes and agency mortgage-backed securities (MBS)4 holdings to mature and not be reinvested in new securities. At its December meeting, the Fed forecasted inflation moving lower toward its long-run goal of 2%, and if these forecasts prove accurate, the Fed indicated that it would lower the federal funds target rate in response.

During the fiscal year, interest rates decreased across the Treasury yield curve.5 The 2-year U.S. Treasury yield fell 20 basis points.6

Duration

Duration positioning detracted from Fund gross performance relative to the BA1-3T during the reporting period. An underweight to U.S. Treasury securities relative to the BA1-3T was the main reason for the underperformance. U.S. Treasury futures7 employed for duration management detracted from Fund performance relative to the BA1-3T.

SECURITY SELECTION

The Fund had positions outside of the BA1-3T in agency callable securities and agency MBS. These securities offered higher relative yields than maturity-matched U.S. Treasuries. The yield difference between these securities decreased throughout the fiscal year. Security selection added to Fund performance versus the BA1-3T during the reporting period.

Please see the footnotes to the line graph under “Fund Performance and Growth of a $10,000 Investment” below for the definition of, and more information about, the BA1-3T.

Please see the footnotes to the line graph under “Fund Performance and Growth of a $10,000 Investment” below for the definition of, and more information about, the Morningstar peer group.

Duration is a measure of a security’s price sensitivity to changes in interest rates. Securities with longer durations are more sensitive to changes in interest rates than other securities of shorter durations.

The value of some mortgage-backed securities may be particularly sensitive to changes in the prevailing interest rates, and although the securities are generally supported by some form of government or private insurance, there is no assurance that private guarantors or insurers will meet their obligations.

The yield curve is a graph showing the comparative yields of securities in a particular class according to maturity. Securities on the long end of the yield curve have longer maturities.

Bond prices are sensitive to changes in interest rates, and a rise in interest rates can cause a decline in their prices.

The Fund’s use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional instruments.

Annual Shareholder Report

Performance data quoted represents past performance which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For current to the most recent month-end performance and after-tax returns, visit FederatedHermes.com/us or call 1-800-341-7400. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Mutual funds are not obligations of or guaranteed by any bank and are not federally insured.

The Fund’s performance assumes reinvestment of all dividends and distributions. The BA1-3T and the MSGFA have been adjusted to reflect reinvestment of dividends on securities in the index and average.

The BA1-3T is a subset of the ICE BofA US Treasury Index including all securities with a remaining term to final maturity less than three years. ICE BofA US Treasury Index tracks the performance of U.S. dollar denominated sovereign debt publicly issued by the U.S. government in its domestic market. The index is not adjusted to reflect sales loads, expenses or other fees that the Securities and Exchange Commission requires to be reflected in the Fund’s performance. The index is unmanaged and, unlike the Fund, is not affected by cash flows. It is not possible to invest directly in an index.

Morningstar figures represent the average of the total returns reported by all the funds designated by Morningstar as falling into the respective category indicated. They do not reflect sales charges. The Morningstar figures in the Growth of a $10,000 Investment line graph are based on historical return information published by Morningstar and reflect the return of the funds comprising the category in the year of publication. Because the funds designated by Morningstar as falling into the category can change over time, the Morningstar figures in the line graph may not match the Morningstar figures in the Average Annual Total Returns table, which reflect the return of the funds that currently comprise the category.

Annual Shareholder Report

Portfolio of Investments Summary Tables (unaudited)

At February 29, 2024, the Fund’s portfolio composition1 was as follows:

Portfolio Composition	Percentage of Total Net Assets
U.S. Treasury Securities	54.9%
U.S. Government Agency Securities	23.5%
Mortgage-Backed Securities	13.5%
Collateralized Mortgage Obligations	3.1%
Derivative Contracts2,3	0.0%
Cash Equivalents4	4.5%
Other Assets and Liabilities—Net5	0.5%
TOTAL	100%

1	See the Fund’s Prospectus and Statement of Additional Information for a description of the principal types of securities and derivative contracts in which the Fund invests.
2	Based upon net unrealized appreciation (depreciation) or value of the derivative contracts as applicable. Derivative contracts may consist of futures, forwards, options and swaps. The impact of a derivative contract on the Fund’s performance may be larger than its unrealized appreciation (depreciation) or value may indicate. In many cases, the notional value or amount of a derivative contract may provide a better indication of the contract’s significance to the portfolio. More complete information regarding the Fund’s direct investments in derivative contracts, including unrealized appreciation (depreciation), value and notional values or amounts of such contracts, can be found in the table at the end of the Portfolio of Investments included in this Report.
3	Represents less than 0.1%.
4	Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements.
5	Assets, other than investments in securities and derivative contracts, less liabilities. See Statement of Assets and Liabilities.

Annual Shareholder Report

At February 29, 2024, the Fund’s effective maturity1 schedule was as follows:

Securities With an Effective Maturity of:	Percentage of Total Net Assets
1-3 Years	78.4%
Greater than 3 Years	16.6%
Derivative Contracts2,3	0.0%
Cash Equivalent4	4.5%
Other Assets and Liabilities—Net5	0.5%
Total	100%

1	For callable investments, “effective maturity” is the unexpired period until the earliest date the investment is subject to prepayment or repurchase by the issuer (and market conditions indicate that the issuer will prepay or repurchase the investment). For all other investments “effective maturity” is the unexpired period until final maturity.
2	Based upon net unrealized appreciation (depreciation) or value of the derivative contracts as applicable. Derivative contracts may consist of futures, forwards, options and swaps. The impact of a derivative contract on the Fund’s performance may be larger than its unrealized appreciation (depreciation) or value may indicate. In many cases, the notional value or amount of a derivative contract may provide a better indication of the contract’s significance to the portfolio. More complete information regarding the Fund’s direct investments in derivative contracts, including unrealized appreciation (depreciation), value and notional values or amounts of such contracts, can be found in the table at the end of the Portfolio of Investments included in this Report.
3	Represents less than 0.1%.
4	Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements.
5	Assets, other than investments in securities and derivative contracts, less liabilities. See Statement of Assets and Liabilities.

Annual Shareholder Report

Portfolio of Investments

February 29, 2024

Principal Amount or Shares		Value
	U.S. TREASURIES— 54.9%
	U.S. Treasury Notes— 54.9%
$5,000,000	3.500%, 9/15/2025	$ 4,903,766
4,000,000	3.875%, 4/30/2025	3,951,102
5,000,000	4.000%, 2/15/2026	4,940,248
2,000,000	4.125%, 2/15/2027	1,983,594
3,500,000	4.125%, 6/15/2026	3,467,837
3,000,000	4.250%, 1/31/2026	2,977,495
4,000,000	4.375%, 8/15/2026	3,986,228
4,000,000	4.625%, 2/28/2025	3,983,049
4,000,000	4.625%, 6/30/2025	3,987,085
4,000,000	4.625%, 9/15/2026	4,011,155
3,000,000	4.625%, 11/15/2026	3,011,138
	TOTAL U.S. TREASURIES (IDENTIFIED COST $41,278,750)	41,202,697
	GOVERNMENT AGENCIES— 23.5%
	Federal Home Loan Bank System— 6.4%
5,000,000	0.550%, 3/4/2025	4,781,174
	Federal Home Loan Mortgage Corporation— 11.8%
1,000,000	0.570%, 9/24/2025	933,297
4,500,000	0.600%, 10/15/2025	4,203,839
4,000,000	0.650%, 10/22/2025	3,737,863
	TOTAL	8,874,999
	Federal National Mortgage Association— 5.3%
4,000,000	5.200%, 2/17/2026	3,990,675
	TOTAL GOVERNMENT AGENCIES (IDENTIFIED COST $17,869,748)	17,646,848
	MORTGAGE-BACKED SECURITIES— 13.5%
	Federal Home Loan Mortgage Corporation— 3.7%
2,804,880	4.500%, 10/1/2038	2,743,924
	Federal National Mortgage Association— 9.8%
1,966,071	4.500%, 10/1/2037	1,924,573
1,645,342	5.000%, 3/1/2038	1,632,235
3,805,690	5.500%, 3/1/2038	3,815,058
	TOTAL	7,371,866
	TOTAL MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $10,134,662)	10,115,790

Annual Shareholder Report

Principal Amount or Shares			Value
		COLLATERALIZED MORTGAGE OBLIGATION— 3.1%
		Federal National Mortgage Association— 3.1%
$2,416,094	1	REMIC, Series 2020-27, Class FD, 5.886% (30-DAY AVERAGE SOFR +0.564%), 5/25/205 (IDENTIFIED COST $2,418,736)	$ 2,340,219
		INVESTMENT COMPANY— 4.5%
3,335,246		Federated Hermes Government Obligations Fund, Premier Shares, 5.23%2 (IDENTIFIED COST $3,335,246)	3,335,246
		TOTAL INVESTMENT IN SECURITIES—99.5% (IDENTIFIED COST $75,037,142)3	74,640,800
		OTHER ASSETS AND LIABILITIES - NET—0.5%4	403,390
		TOTAL NET ASSETS—100%	$75,044,190

At February 29, 2024, the Fund had the following outstanding futures contracts:

Description	Number of Contracts	Notional Value	Expiration Date	Value and Unrealized Appreciation
Long Futures:
United States Treasury Notes 2-Year Long Futures	51	$10,442,250	June 2024	$5,754

Net Unrealized Appreciation on Futures Contracts is included in “Other Assets and Liabilities—Net.”

Transactions with affiliated investment companies, which are funds managed by the Adviser or an affiliate of the Adviser, during the period ended February 29, 2024, were as follows:

	Federated Hermes Government Obligations Fund, Premier Shares
Value as of 2/28/2023	$5,005,923
Purchases at Cost	$36,214,535
Proceeds from Sales	$(37,885,212)
Change in Unrealized Appreciation/Depreciation	$—
Net Realized Gain/(Loss)	$—
Value as of 2/29/2024	$3,335,246
Shares Held as of 2/29/2024	3,335,246
Dividend Income	$142,110

1	Floating/variable note with current rate and current maturity or next reset date shown.
2	7-day net yield.
3	Also represents cost of investments for federal tax purposes.
4	Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities.

Annual Shareholder Report

Note: The categories of investments are shown as a percentage of total net assets at February 29, 2024.

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below:

Level 1—quoted prices in active markets for identical securities.

Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Also includes securities valued at amortized cost.

Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used, as of February 29, 2024, in valuing the Fund’s assets carried at fair value:

Valuation Inputs
	Level 1— Quoted Prices	Level 2— Other Significant Observable Inputs	Level 3— Significant Unobservable Inputs	Total
Debt Securities:
U.S. Treasuries	$—	$41,202,697	$—	$41,202,697
Government Agencies	—	17,646,848	—	17,646,848
Mortgage-Backed Securities	—	10,115,790	—	10,115,790
Collateralized Mortgage Obligation	—	2,340,219	—	2,340,219
Investment Company	3,335,246	—	—	3,335,246
TOTAL SECURITIES	$3,335,246	$71,305,554	$—	$74,640,800
Other Financial Instruments:1
Assets	$5,754	$—	$—	$5,754

1	Other financial instruments are futures contracts.

The following acronym(s) are used throughout this portfolio:
REMIC	—Real Estate Mortgage Investment Conduit
SOFR	—Secured Overnight Financing Rate

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Financial Highlights–Institutional Shares

(For a Share Outstanding Throughout Each Period)

	Year Ended February 28 or 29,
	2024	2023	2022	2021	2020
Net Asset Value, Beginning of Period	$9.63	$10.16	$10.40	$10.35	$10.16
Income From Investment Operations:
Net investment income (loss)1	0.38	0.25	0.05	0.08	0.22
Net realized and unrealized gain (loss)	(0.01)	(0.54)	(0.25)	0.06	0.19
Total From Investment Operations	0.37	(0.29)	(0.20)	0.14	0.41
Less Distributions:
Distributions from net investment income	(0.38)	(0.24)	(0.04)	(0.09)	(0.22)
Net Asset Value, End of Period	$9.62	$9.63	$10.16	$10.40	$10.35
Total Return2	3.96%	(2.88)%	(1.89)%	1.35%	4.11%
Ratios to Average Net Assets:
Net expenses3	0.36%	0.41%	0.44%	0.42%	0.45%
Net investment income	4.00%	2.58%	0.47%	0.81%	2.15%
Expense waiver/reimbursement4	0.31%	0.28%	0.30%	0.26%	0.21%
Supplemental Data:
Net assets, end of period (000 omitted)	$68,956	$93,119	$62,418	$79,451	$65,923
Portfolio turnover5	61%	220%	133%	99%	110%

1	Per share numbers have been calculated using the average shares method.
2	Based on net asset value.
3	Amount does not reflect net expenses incurred by investment companies in which the Fund may invest.
4	This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest.
5	Securities that mature are considered sales for purposes of this calculation.

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Financial Highlights–Service Shares

(For a Share Outstanding Throughout Each Period)

	Year Ended February 28 or 29,
	2024	2023	2022	2021	2020
Net Asset Value, Beginning of Period	$9.62	$10.15	$10.39	$10.33	$10.15
Income From Investment Operations:
Net investment income (loss)1	0.36	0.21	0.01	0.04	0.18
Net realized and unrealized gain (loss)	(0.01)	(0.54)	(0.24)	0.06	0.18
Total From Investment Operations	0.35	(0.33)	(0.23)	0.10	0.36
Less Distributions:
Distributions from net investment income	(0.36)	(0.20)	(0.01)	(0.04)	(0.18)
Net Asset Value, End of Period	$9.61	$9.62	$10.15	$10.39	$10.33
Total Return2	3.70%	(3.23)%	(2.26)%	1.00%	3.58%
Ratios to Average Net Assets:
Net expenses3	0.61%	0.78%	0.86%	0.86%	0.86%
Net investment income	3.75%	2.13%	0.05%	0.39%	1.73%
Expense waiver/reimbursement4	0.31%	0.28%	0.30%	0.26%	0.21%
Supplemental Data:
Net assets, end of period (000 omitted)	$6,089	$7,145	$6,514	$6,183	$7,567
Portfolio turnover5	61%	220%	133%	99%	110%

1	Per share numbers have been calculated using the average shares method.
2	Based on net asset value.
3	Amount does not reflect net expenses incurred by investment companies in which the Fund may invest.
4	This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest.
5	Securities that mature are considered sales for purposes of this calculation.

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Statement of Assets and Liabilities

February 29, 2024

Assets:
Investment in securities, at value including $3,335,246 of investments in affiliated holdings* (identified cost $75,037,142, including $3,335,246 of identified cost in affiliated holdings)	$74,640,800
Due from broker (Note 2)	61,200
Income receivable	438,304
Income receivable from affiliated holdings	11,752
Receivable for shares sold	7,076
Total Assets	75,159,132
Liabilities:
Payable for shares redeemed	41,610
Payable for variation margin on futures contracts	428
Income distribution payable	15,088
Payable for investment adviser fee (Note 5)	660
Payable for administrative fee (Note 5)	159
Payable for transfer agent fees	8,278
Payable for Directors’/Trustees’ fees (Note 5)	1,538
Payable for custodian fees	3,669
Payable for legal fees	3,324
Payable for portfolio accounting fees	16,990
Payable for other service fees (Notes 2 and 5)	1,301
Payable for share registration costs	19,249
Accrued expenses (Note 5)	2,648
Total Liabilities	114,942
Net assets for 7,804,379 shares outstanding	$75,044,190
Net Assets Consist of:
Paid-in capital	$92,935,073
Total distributable earnings (loss)	(17,890,883)
Total Net Assets	$75,044,190
Net Asset Value, Offering Price and Redemption Proceeds Per Share:
Institutional Shares:
Net asset value per share ($68,955,539 ÷ 7,170,846 shares outstanding), no par value, unlimited shares authorized	$9.62
Service Shares:
Net asset value per share ($6,088,651 ÷ 633,533 shares outstanding), no par value, unlimited shares authorized	$9.61

*	See information listed after the Fund’s Portfolio of Investments.

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Statement of Operations

Year Ended February 29, 2024

Investment Income:
Interest	$3,727,138
Dividends received from affiliated holdings*	142,110
TOTAL INCOME	3,869,248
Expenses:
Investment adviser fee (Note 5)	266,217
Administrative fee (Note 5)	69,530
Custodian fees	6,889
Transfer agent fees	50,306
Directors’/Trustees’ fees (Note 5)	7,653
Auditing fees	32,163
Legal fees	11,985
Portfolio accounting fees	63,559
Other service fees (Notes 2 and 5)	16,248
Share registration costs	38,430
Printing and postage	21,608
Commitment fee (Note 6)	9,969
Miscellaneous (Note 5)	21,292
TOTAL EXPENSES	615,849
Waiver and Reimbursements:
Waiver/reimbursement of investment adviser fee (Note 5)	(261,713)
Reimbursement of other operating expenses (Note 5)	(14,080)
TOTAL WAIVER AND REIMBURSEMENTS	(275,793)
Net expenses	340,056
Net investment income	3,529,192
Realized and Unrealized Gain (Loss) on Investments and Futures Contracts:
Net realized loss on investments	(1,073,922)
Net realized loss on futures contracts	(146,154)
Net change in unrealized depreciation of investments	1,207,537
Net change in unrealized depreciation of futures contracts	30,637
Net realized and unrealized gain (loss) on investments and futures contracts	18,098
Change in net assets resulting from operations	$3,547,290

*	See information listed after the Fund’s Portfolio of Investments.

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Statement of Changes in Net Assets

Year Ended February 28 or 29	2024	2023
Increase (Decrease) in Net Assets
Operations:
Net investment income	$3,529,192	$2,654,255
Net realized gain (loss)	(1,220,076)	(5,070,439)
Net change in unrealized appreciation/depreciation	1,238,174	(1,234,807)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS	3,547,290	(3,650,991)
Distributions to Shareholders:
Institutional Shares	(3,283,022)	(1,565,191)
Service Shares	(243,343)	(168,060)
Class Y Shares1	—	(906,292)
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS	(3,526,365)	(2,639,543)
Share Transactions:
Proceeds from sale of shares	8,932,408	139,087,679
Net asset value of shares issued to shareholders in payment of distributions declared	3,323,320	2,285,641
Cost of shares redeemed	(37,495,696)	(160,805,413)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS	(25,239,968)	(19,432,093)
Change in net assets	(25,219,043)	(25,722,627)
Net Assets:
Beginning of period	100,263,233	125,985,860
End of period	$75,044,190	$100,263,233

1	On November 1, 2022, Class Y Shares were converted into Institutional Shares.

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Notes to Financial Statements

February 29, 2024

1. ORGANIZATION

Federated Hermes Short-Term Government Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as a diversified, open-end management investment company. The Trust consists of one portfolio, Federated Hermes Short-Term Government Fund (the “Fund”). The Fund offers two classes of shares: Institutional Shares and Service Shares. All shares of the Fund have equal rights with respect to voting, except on class-specific matters. The investment objective of the Fund is to provide current income.

Effective November 1, 2022, the Fund’s existing Class Y Shares converted into the Fund’s existing Institutional Shares. Accordingly, on November 1, 2022, Class Y shareholders became shareholders in the Fund’s Institutional Shares and are subject to the eligible investor and minimum investment requirements for Institutional Shares as outlined in the Fund’s prospectus. There was no action required by shareholders to effect this re-designation and no disruption to accounts as a result of the conversion.

In addition, effective November 1, 2022, the Shareholder Services/Account Administration Services Fee was eliminated on the Fund’s Institutional Shares and the Rule 12b-1 Fee on the Fund’s Service Shares became dormant so that it will no longer be incurred or paid until such time as approved by the Fund’s Board of Trustees (the “Trustees”).

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with U.S. generally accepted accounting principles (GAAP).

Investment Valuation

In calculating its net asset value (NAV), the Fund generally values investments as follows:

■

Fixed-income securities are fair valued using price evaluations provided by a pricing service approved by Federated Investment Management Company (the “Adviser”).

■

Shares of other mutual funds or non-exchange-traded investment companies are valued based upon their reported NAVs, or NAV per share practical expedient, as applicable.

■

Derivative contracts listed on exchanges are valued at their reported settlement or closing price, except that options are valued at the mean of closing bid and ask quotations.

■

Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Adviser.

■

For securities that are fair valued in accordance with procedures established by and under the general supervision of the Adviser, certain factors may be considered, such as: the last traded or purchase price of the security, information obtained by contacting the issuer or dealers, analysis of the issuer’s financial statements or other available documents, fundamental analytical data, the nature and duration of restrictions on disposition, the movement of the market in which the security is

Annual Shareholder Report

normally traded, public trading in similar securities or derivative contracts of the issuer or comparable issuers, movement of a relevant index, or other factors including but not limited to industry changes and relevant government actions.

If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, if the Fund cannot obtain price evaluations from a pricing service or from more than one dealer for an investment within a reasonable period of time as set forth in the Adviser’s valuation policies and procedures for the Fund, or if information furnished by a pricing service, in the opinion of the Adviser’s valuation committee (“Valuation Committee”), is deemed not representative of the fair value of such security, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could obtain the fair value assigned to an investment if it sold the investment at approximately the time at which the Fund determines its NAV per share, and the actual value obtained could be materially different.

Fair Valuation Procedures

Pursuant to Rule 2a-5 under the Act, the Trustees have designated the Adviser as the Fund’s valuation designee to perform any fair value determinations for securities and other assets held by the Fund. The Adviser is subject to the Trustees’ oversight and certain reporting and other requirements intended to provide the Trustees the information needed to oversee the Adviser’s fair value determinations.

The Adviser, acting through its Valuation Committee, is responsible for determining the fair value of investments for which market quotations are not readily available. The Valuation Committee is comprised of officers of the Adviser and certain of the Adviser’s affiliated companies and determines fair value and oversees the calculation of the NAV. The Valuation Committee is also authorized to use pricing services to provide fair value evaluations of the current value of certain investments for purposes of calculating the NAV. The Valuation Committee employs various methods for reviewing third-party pricing-service evaluations including periodic reviews of third-party pricing services’ policies, procedures and valuation methods (including key inputs, methods, models and assumptions), transactional back-testing, comparisons of evaluations of different pricing services, and review of price challenges by the Adviser based on recent market activity. In the event that market quotations and price evaluations are not available for an investment, the Valuation Committee determines the fair value of the investment in accordance with procedures adopted by the Adviser. The Trustees periodically review the fair valuations made by the Valuation Committee. The Trustees have also approved the Adviser’s fair valuation and significant events procedures as part of the Fund’s compliance program and will review any changes made to the procedures.

Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a “bid” evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and ask for the investment (a “mid” evaluation). The Fund normally uses bid evaluations for any U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally uses

Annual Shareholder Report

mid evaluations for any other types of fixed-income securities and any OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Adviser.

Repurchase Agreements

The Fund may invest in repurchase agreements for short-term liquidity purposes. It is the policy of the Fund to require the other party to a repurchase agreement to transfer to the Fund’s custodian or sub-custodian eligible securities or cash with a market value (after transaction costs) at least equal to the repurchase price to be paid under the repurchase agreement. The eligible securities are transferred to accounts with the custodian or sub-custodian in which the Fund holds a “securities entitlement” and exercises “control” as those terms are defined in the Uniform Commercial Code. The Fund has established procedures for monitoring the market value of the transferred securities and requiring the transfer of additional eligible securities if necessary to equal at least the repurchase price. These procedures also allow the other party to require securities to be transferred from the account to the extent that their market value exceeds the repurchase price or in exchange for other eligible securities of equivalent market value.

The insolvency of the other party or other failure to repurchase the securities may delay the disposition of the underlying securities or cause the Fund to receive less than the full repurchase price. Under the terms of the repurchase agreement, any amounts received by the Fund in excess of the repurchase price and related transaction costs must be remitted to the other party.

The Fund may enter into repurchase agreements in which eligible securities are transferred into joint trading accounts maintained by the custodian or sub-custodian for investment companies and other clients advised by the Fund’s Adviser and its affiliates. The Fund will participate on a pro rata basis with the other investment companies and clients in its share of the securities transferred under such repurchase agreements and in its share of proceeds from any repurchase or other disposition of such securities.

Investment Income, Gains and Losses, Expenses and Distributions

Investment transactions are accounted for on a trade-date basis. Realized gains and losses from investment transactions are recorded on an identified-cost basis. Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Distributions of net investment income, if any, are declared daily and paid monthly. Non-cash dividends included in dividend income, if any, are recorded at fair value. Amortization/accretion of premium and discount is included in investment income. Gains and losses realized on principal payment of mortgage-backed securities (paydown gains and losses) are classified as part of investment income. Investment income, realized and unrealized gains and losses, and certain fund-level expenses are allocated to each class based on relative average daily net assets, except that select classes will bear certain expenses unique to those classes. The detail of the total fund expense waiver and reimbursements of $275,793 is disclosed in Note 5. Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses.

Annual Shareholder Report

Other Service Fees

The Fund may pay other service fees up to 0.25% of the average daily net assets of the Fund’s Service Shares to financial intermediaries or to Federated Shareholder Services Company (FSSC) for providing services to shareholders and maintaining shareholder accounts. Subject to the terms described in the Expense Limitation note, FSSC may voluntarily reimburse the Fund for other service fees.

For the year ended February 29, 2024, other service fees for the Fund were as follows:

	Other Service Fees Incurred
Service Shares	$16,248

Federal Taxes

It is the Fund’s policy to comply with the Subchapter M provision of the Internal Revenue Code of 1986 (the “Code”) and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal income tax is necessary. As of and during the year ended February 29, 2024, the Fund did not have a liability for any uncertain tax positions. The Fund recognizes interest and penalties, if any, related to tax liabilities as income tax expense in the Statement of Operations. As of February 29, 2024, tax years 2021 through 2024 remain subject to examination by the Fund’s major tax jurisdictions, which include the United States of America and the Commonwealth of Massachusetts.

When-Issued and Delayed-Delivery Transactions

The Fund may engage in when-issued or delayed-delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed-delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.

Futures Contracts

The Fund purchases and sells financial futures contracts to seek to increase income and return and to manage duration and yield curve risks. Upon entering into a financial futures contract with a broker, the Fund is required to deposit with a broker, either U.S. government securities or a specified amount of cash, which is shown as due from broker in the Statement of Assets and Liabilities. Futures contracts are valued daily and unrealized gains or losses are recorded in a “variation margin” account. The Fund receives from or pays to the broker a specified amount of cash based upon changes in the variation margin account. When a contract is closed, the Fund recognizes a realized gain or loss. Futures contracts have market risks, including the risk that the change in the value of the contract may not correlate with the changes in the value of the underlying securities. There is minimal counterparty risk to the Fund since futures contracts are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures contracts, guarantees the futures contracts against default.

Futures contracts outstanding at period end are listed after the Fund’s Portfolio of Investments.

Annual Shareholder Report

The average notional value of long futures contracts held by the Fund throughout the period was $10,689,507. This is based on amounts held as of each month-end throughout the fiscal period.

Additional Disclosure Related to Derivative Instruments

Fair Value of Derivative Instruments
	Liabilities
	Statement of Assets and Liabilities Location	Fair Value
Derivatives not accounted for as hedging instruments under ASC Topic 815
Interest rate contracts	Payable for variation margin on futures contracts	$(5,754)*

*	Includes cumulative net appreciation of futures contracts as reported in the footnotes to the Portfolio of Investments. Only the current day’s variation margin is reported within the Statement of Assets and Liabilities.

The Effect of Derivative Instruments on the Statement of Operations for the Year Ended February 29, 2024

Amount of Realized Gain or (Loss) on Derivatives Recognized in Income
	Futures Contracts
Interest rate contracts	$(146,154)

Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income
	Futures Contracts
Interest rate contracts	$30,637

Other

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ materially from those estimated. The Fund applies investment company accounting and reporting guidance.

Annual Shareholder Report

3. SHARES OF BENEFICIAL INTEREST

The following tables summarize share activity:

	Year Ended 2/29/2024		Year Ended 2/28/2023
Institutional Shares:	Shares	Amount	Shares	Amount
Shares sold	913,083	$8,820,187	2,324,816	$23,087,349
Shares issued to shareholders in payment of distributions declared	319,761	3,080,120	147,262	1,432,950
Conversion of Class Y Shares to Institutional Shares1	—	—	7,131,896	68,844,194
Shares redeemed	(3,735,566)	(36,085,909)	(6,072,779)	(59,958,414)
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS	(2,502,722)	$(24,185,602)	3,531,195	$33,406,079
	Year Ended 2/29/2024		Year Ended 2/28/2023
Service Shares:	Shares	Amount	Shares	Amount
Shares sold	11,650	$112,221	235,950	$2,341,470
Shares issued to shareholders in payment of distributions declared	25,272	243,200	17,247	167,978
Shares redeemed	(146,053)	(1,409,787)	(152,215)	(1,478,597)
NET CHANGE RESULTING FROM SERVICE SHARE TRANSACTIONS	(109,131)	$(1,054,366)	100,982	$1,030,851
	Year Ended 2/29/2024		Year Ended 2/28/2023
Class Y Shares:	Shares	Amount	Shares	Amount
Shares sold	—	$—	11,645,536	$113,658,860
Shares issued to shareholders in payment of distributions declared	—	—	69,338	684,713
Conversion of Class Y Shares to Institutional Shares1	—	—	(7,131,896)	(68,844,194)
Shares redeemed	—	—	(10,197,851)	(99,368,402)
NET CHANGE RESULTING FROM CLASS Y SHARE TRANSACTIONS	—	$—	(5,614,873)	$(53,869,023)
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS	(2,611,853)	$(25,239,968)	(1,982,696)	$(19,432,093)

1	Effective November 1, 2022, the Class Y Shares were converted into Institutional Shares. Within the Statement of Changes in Net Assets, the conversion from Class Y Shares is within the Cost of shares redeemed and the conversion to Institutional Shares is within Proceeds from sale of shares.

4. FEDERAL TAX INFORMATION

The tax character of distributions as reported on the Statement of Changes in Net Assets for the years ended February 29, 2024 and February 28, 2023, was as follows:

	2024	2023
Ordinary income	$3,526,365	$2,639,543

Annual Shareholder Report

As of February 29, 2024, the components of distributable earnings on a tax-basis were as follows:

Undistributed ordinary income	$84,367
Net unrealized depreciation	$(396,342)
Capital loss carryforwards	$(17,578,908)
TOTAL	$(17,890,883)

At February 29, 2024, the cost of investments for federal tax purposes was $75,037,142. The net unrealized depreciation of investments for federal tax purposes was $396,342. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $70,972 and net unrealized depreciation from investments for those securities having an excess of cost over value of $467,314. The amounts presented are inclusive of derivative contracts. The difference between book-basis and tax-basis net unrealized depreciation is attributable to differing treatments for mark-to-market of futures contracts.

As of February 29, 2024, the Fund had a capital loss carryforward of $17,578,908 which will reduce the Fund’s taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Code, thereby reducing the amount of distributions to shareholders which would otherwise be necessary to relieve the Fund of any liability for federal income tax. Pursuant to the Code, these net capital losses retain their character as either short-term or long-term and do not expire.

The following schedule summarizes the Fund’s capital loss carryforwards:

Short-Term	Long-Term	Total
$16,317,591	$1,261,317	$17,578,908

5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

The advisory agreement between the Fund and the Adviser provides for an annual fee equal to 0.30% of the Fund’s average daily net assets. Subject to the terms described in the Expense Limitation note, the Adviser may voluntarily choose to waive any portion of its fee and/or reimburse certain operating expenses of the Fund for competitive reasons such as to maintain the Fund’s expense ratio, or as and when appropriate, to maintain positive or zero net yields. For the year ended February 29, 2024, the Adviser voluntarily waived $259,770 of its fee and voluntarily reimbursed $14,080 of other operating expenses.

The Adviser has agreed to reimburse the Fund for certain investment adviser fees as a result of transactions in other affiliated investment companies. For the year ended February 29, 2024, the Adviser reimbursed $1,943.

Annual Shareholder Report

Administrative Fee

Federated Administrative Services (FAS), under the Administrative Services Agreement, provides the Fund with administrative personnel and services. For purposes of determining the appropriate rate breakpoint, “Investment Complex” is defined as all of the Federated Hermes Funds subject to a fee under the Administrative Services Agreement. The fee paid to FAS is based on the average daily net assets of the Investment Complex as specified below:

Administrative Fee	Average Daily Net Assets of the Investment Complex
0.100%	on assets up to $50 billion
0.075%	on assets over $50 billion

Subject to the terms described in the Expense Limitation note, FAS may voluntarily choose to waive any portion of its fee. For the year ended February 29, 2024, the annualized fee paid to FAS was 0.078% of average daily net assets of the Fund.

In addition, FAS may charge certain out-of-pocket expenses to the Fund.

Distribution Services Fee

The Fund has adopted a Distribution Plan (the “Plan”) pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will compensate Federated Securities Corp. (FSC), the principal distributor, from the daily net assets of the Fund’s Service Shares to finance activities intended to result in the sale of these shares. The Plan provides that the Fund may incur distribution expenses of up to 0.25% of average daily net assets, annually, to compensate FSC. Subject to the terms described in the Expense Limitation note, FSC may voluntarily choose to waive any portion of its fee.

For the year ended February 29, 2024, the Fund’s Service Shares did not incur a distribution services fee; however, it may begin to incur this fee upon approval of the Trustees.

Other Service Fees

For the year ended February 29, 2024, FSSC did not receive or reimburse any of the other service fees disclosed in Note 2.

Expense Limitation

The Adviser and certain of its affiliates (which may include FSC, FAS and FSSC) on their own initiative have agreed to waive certain amounts of their respective fees and/or reimburse expenses. Total annual fund operating expenses (as shown in the financial highlights, excluding interest expense, extraordinary expenses and proxy-related expenses paid by the Fund, if any) paid by the Fund’s Institutional Shares and Service Shares (after the voluntary waivers and/or reimbursements) will not exceed 0.36% and 0.61% (the “Fee Limit”), respectively, up to but not including the later of (the “Termination Date”): (a) May 1, 2025, or (b) the date of the Fund’s next effective Prospectus. While the Adviser and its applicable affiliates currently do not anticipate terminating or increasing these arrangements prior to the Termination Date, these arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the agreement of the Trustees.

Annual Shareholder Report

Directors’/Trustees’ and Miscellaneous Fees

Certain Officers and Trustees of the Fund are Officers and Directors or Trustees of certain of the above companies. To efficiently facilitate payment, Independent Directors’/Trustees’ fees and certain expenses related to conducting meetings of the Directors/Trustees and other miscellaneous expenses are paid by an affiliate of the Adviser which in due course are reimbursed by the Fund. These expenses related to conducting meetings of the Directors/Trustees and other miscellaneous expenses may be included in Accrued and Miscellaneous Expenses on the Statement of Assets and Liabilities and Statement of Operations, respectively.

6. LINE OF CREDIT

The Fund participates with certain other Federated Hermes Funds, on a several basis, in an up to $500,000,000 unsecured, 364-day, committed, revolving line of credit (LOC) agreement dated June 21, 2023. The LOC was made available to temporarily finance the repurchase or redemption of shares of the Fund, failed trades, payment of dividends, settlement of trades and for other short-term, temporary or emergency general business purposes. The Fund cannot borrow under the LOC if an inter-fund loan is outstanding. The Fund’s ability to borrow under the LOC also is subject to the limitations of the Act and various conditions precedent that must be satisfied before the Fund can borrow. Loans under the LOC are charged interest at a fluctuating rate per annum equal to (a) the highest, on any day, of (i) the federal funds effective rate, (ii) the published secured overnight financing rate plus an assigned percentage, and (iii) 0.0%, plus (b) a margin. Any fund eligible to borrow under the LOC pays its pro rata share of a commitment fee based on the amount of the lenders’ commitment that has not been utilized, quarterly in arrears and at maturity. As of February 29, 2024, the Fund had no outstanding loans. During the year ended February 29, 2024, the Fund did not utilize the LOC.

7. INTERFUND LENDING

Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the Fund, along with other funds advised by subsidiaries of Federated Hermes, Inc., may participate in an interfund lending program. This program provides an alternative credit facility allowing the Fund to borrow from other participating affiliated funds. As of February 29, 2024, there were no outstanding loans. During the year ended February 29, 2024, the program was not utilized.

8. INDEMNIFICATIONS

Under the Fund’s organizational documents, its Officers and Directors/Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Fund (other than liabilities arising out of their willful misfeasance, bad faith, gross negligence or reckless disregard of their duties to the Fund). In addition, in the normal course of business, the Fund provides certain indemnifications under arrangements with third parties. Typically, obligations to indemnify a third party arise in the context of an arrangement entered into by the Fund under which the Fund agrees to indemnify such third party for certain liabilities arising out of actions taken pursuant to the arrangement, provided the third party’s actions are not deemed to have breached an agreed-upon standard of care (such as willful misfeasance, bad faith, gross negligence or reckless disregard of their duties under the contract). The Fund’s maximum exposure under

Annual Shareholder Report

Report of Independent Registered Public Accounting Firm

TO THE SHAREHOLDERS AND BOARD OF TRUSTEES OF FEDERATED HERMES SHORT-TERM GOVERNMENT FUND:

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of Federated Hermes Short-Term Government Fund (the “Fund”) (the sole portfolio constituting Federated Hermes Short-Term Government Trust (the “Trust”)), including the portfolio of investments, as of February 29, 2024, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (the sole portfolio constituting Federated Hermes Short-Term Government Trust) at February 29, 2024, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Trust’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

Annual Shareholder Report

We conducted our audits in accordance with standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust’s internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of February 29, 2024, by correspondence with the custodian, brokers, and others; when replies were not received from brokers or others, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more Federated Hermes investment companies since 1979.

Boston, Massachusetts
April 23, 2024

Annual Shareholder Report

Shareholder Expense Example (unaudited)

As a shareholder of the Fund, you incur ongoing costs, including management fees and to the extent applicable, distribution (12b-1) fees and/or other service fees and other Fund expenses. This Example is intended to help you to 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. It is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from September 1, 2023 to February 29, 2024.

ACTUAL EXPENSES

The first section of the table below provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you incurred 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 in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses attributable to your investment during this period.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

The second section of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. Thus, you should not use the hypothetical account values and expenses to estimate the actual ending account balance or your expenses for the period. Rather, these figures are required to be provided to enable you to compare the ongoing costs of investing in the Fund with other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Annual Shareholder Report

Board of Trustees and Fund Officers

The Board of Trustees is responsible for managing the Fund’s business affairs and for exercising all the Fund’s powers except those reserved for the shareholders. The following tables give information about each Trustee and the senior officers of the Fund. Where required, the tables separately list Trustees who are “interested persons” of the Fund (i.e., “Interested” Trustees) and those who are not (i.e., “Independent” Trustees). Unless otherwise noted, the address of each person listed is 1001 Liberty Avenue, Pittsburgh, PA 15222-3779. The address of all Independent Trustees listed is 4000 Ericsson Drive, Warrendale, PA 15086-7561; Attention: Mutual Fund Board. As of December 31, 2023, the Fund comprised one portfolio(s), and the Federated Hermes Fund Family consisted of 33 investment companies (comprising 101 portfolios). Unless otherwise noted, each Officer is elected annually. Unless otherwise noted, each Trustee oversees all portfolios in the Federated Hermes Fund Family and serves for an indefinite term. The Fund’s Statement of Additional Information includes additional information about the Fund and the Trustees and is available, without charge and upon request, by calling 1-800-341-7400, Option #4.

Interested TRUSTEES Background

Name

Birth Date

Positions Held with Fund

Date Service Began

Principal Occupation(s) for Past Five Years,

Other Directorships Held and Previous Position(s)

J. Christopher Donahue*

Birth Date: April 11, 1949

President and Trustee

Indefinite Term

Began serving: July 1999

Principal Occupations: Principal Executive Officer and President of

certain of the Funds in the Federated Hermes Fund Family; Director or

Trustee of the Funds in the Federated Hermes Fund Family; President,

Chief Executive Officer and Director, Federated Hermes, Inc.;

Chairman and Trustee, Federated Investment Management Company;

Trustee, Federated Investment Counseling; Chairman and Director,

Federated Global Investment Management Corp.; Chairman and

Trustee, Federated Equity Management Company of Pennsylvania;

Trustee, Federated Shareholder Services Company; Director,

Federated Services Company.

Previous Positions: President, Federated Investment Counseling;

President and Chief Executive Officer, Federated Investment

Management Company, Federated Global Investment Management

Corp. and Passport Research, Ltd; Chairman, Passport Research, Ltd.

Annual Shareholder Report

Name

Birth Date

Positions Held with Fund

Date Service Began

Principal Occupation(s) for Past Five Years,

Other Directorships Held and Previous Position(s)

John B. Fisher*

Birth Date: May 16, 1956

Trustee

Indefinite Term

Began serving: May 2016

Principal Occupations: Principal Executive Officer and President of

certain of the Funds in the Federated Hermes Fund Family; Director or

Trustee of certain of the Funds in the Federated Hermes Fund Family;

Director and Vice President, Federated Hermes, Inc.; President,

Director/Trustee and CEO, Federated Advisory Services Company,

Federated Equity Management Company of Pennsylvania, Federated

Global Investment Management Corp., Federated Investment

Counseling, Federated Investment Management Company, and

Federated MDTA LLC; Director, Federated Investors Trust Company.

Previous Positions: President and Director of the Institutional Sales

Division of Federated Securities Corp.; President and CEO of Passport

Research, Ltd.; Director and President, Technology, Federated

Services Company.

Reasons for “interested” status: J. Christopher Donahue and John B. Fisher are interested due to their beneficial ownership of shares of Federated Hermes, Inc. and due to positions they hold with Federated Hermes, Inc. and its subsidiaries.

INDEPENDENT TRUSTEES Background

Name

Birth Date

Positions Held with Fund

Date Service Began

Principal Occupation(s) for Past Five Years,

Other Directorships Held, Previous Position(s) and Qualifications

G. Thomas Hough

Birth Date: February 28, 1955

Trustee

Indefinite Term

Began serving: August 2015

Principal Occupations: Director or Trustee and Chair of the Board of

Directors or Trustees of the Federated Hermes Fund Family; formerly,

Vice Chair, Ernst & Young LLP (public accounting firm) (Retired).

Other Directorships Held: Director, Chair of the Audit Committee,

Member of the Compensation Committee, Equifax, Inc.; Lead

Director, Member of the Audit and Nominating and Corporate

Governance Committees, Haverty Furniture Companies, Inc.; formerly,

Director, Member of Governance and Compensation Committees,

Publix Super Markets, Inc.

Qualifications: Mr. Hough has served in accounting, business

management and directorship positions throughout his career.

Mr. Hough most recently held the position of Americas Vice Chair of

Assurance with Ernst & Young LLP (public accounting firm). Mr. Hough

serves on the President’s Cabinet and Business School Board of

Visitors for the University of Alabama. Mr. Hough previously served on

the Business School Board of Visitors for Wake Forest University, and

he previously served as an Executive Committee member of the

United States Golf Association.

Annual Shareholder Report

Name

Birth Date

Positions Held with Fund

Date Service Began

Principal Occupation(s) for Past Five Years,

Other Directorships Held, Previous Position(s) and Qualifications

Maureen Lally-Green

Birth Date: July 5, 1949

Trustee

Indefinite Term

Began serving: August 2009

Principal Occupations: Director or Trustee of the Federated Hermes

Fund Family; Adjunct Professor of Law, Emerita, Duquesne University

School of Law; formerly, Dean of the Duquesne University School of

Law and Professor of Law and Interim Dean of the Duquesne

University School of Law; formerly, Associate General Secretary and

Director, Office of Church Relations, Diocese of Pittsburgh.

Other Directorships Held: Director, CNX Resources Corporation

(natural gas).

Qualifications: Judge Lally-Green has served in various legal and

business roles and directorship positions throughout her career. Judge

Lally-Green previously held the position of Dean of the School of Law

of Duquesne University (as well as Interim Dean). Judge Lally-Green

previously served as Director of the Office of Church Relations and

later as Associate General Secretary for the Diocese of Pittsburgh, a

member of the Superior Court of Pennsylvania and as a Professor of

Law, Duquesne University School of Law. Judge Lally-Green was

appointed by the Supreme Court of Pennsylvania and previously

served on the Supreme Court’s Board of Continuing Judicial

Education and the Supreme Court’s Appellate Court Procedural Rules

Committee. Judge Lally-Green was then appointed by the Supreme

Court of Pennsylvania and currently serves on the Judicial Ethics

Advisory Board. Judge Lally-Green also currently holds the positions

on not for profit or for profit boards of directors as follows: Director

and Chair, UPMC Mercy Hospital; Regent, Saint Vincent Seminary;

Member, Pennsylvania State Board of Education (public); Director,

Catholic Charities, Pittsburgh; and Director, CNX Resources

Corporation (natural gas). Judge Lally-Green has held the positions of:

Director, Auberle; Director, Epilepsy Foundation of Western and

Central Pennsylvania; Director, Ireland Institute of Pittsburgh; Director,

Saint Thomas More Society; Director and Chair, Catholic High Schools

of the Diocese of Pittsburgh, Inc.; Director, Pennsylvania Bar Institute;

Director, Saint Vincent College; Director and Chair, North Catholic

High School, Inc.; Director and Vice Chair, Our Campaign for the

Church Alive!, Inc.; and Director and Vice Chair, Saint

Francis University.

Annual Shareholder Report

Name Birth Date Positions Held with Fund Date Service Began	Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications
Thomas M. O’Neill Birth Date: June 14, 1951 Trustee Indefinite Term Began serving: August 2006	Principal Occupations: Director or Trustee and Chair of the Audit Committee of the Federated Hermes Fund Family; Sole Proprietor, Navigator Management Company (investment and strategic consulting). Other Directorships Held: None. Qualifications: Mr. O’Neill has served in several business, mutual fund and financial management roles and directorship positions throughout his career. Mr. O’Neill serves as Director, Medicines for Humanity. Mr. O’Neill previously served as Chief Executive Officer and President, Managing Director and Chief Investment Officer, Fleet Investment Advisors; President and Chief Executive Officer, Aeltus Investment Management, Inc.; General Partner, Hellman, Jordan Management Co., Boston, MA; Chief Investment Officer, The Putnam Companies, Boston, MA; Credit Analyst and Lending Officer, Fleet Bank; Director and Consultant, EZE Castle Software (investment order management software); Director, Midway Pacific (lumber); and Director, The Golisano Children’s Museum of Naples, Florida.
Madelyn A. Reilly Birth Date: February 2, 1956 Trustee Indefinite Term Began serving: November 2020	Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; formerly, Senior Vice President for Legal Affairs, General Counsel and Secretary of Board of Directors, Duquesne University (Retired). Other Directorships Held: None. Qualifications: Ms. Reilly has served in various business and legal management roles throughout her career. Ms. Reilly previously served as Senior Vice President for Legal Affairs, General Counsel and Secretary of Board of Directors and Director of Risk Management and Associate General Counsel, Duquesne University. Prior to her work at Duquesne University, Ms. Reilly served as Assistant General Counsel of Compliance and Enterprise Risk as well as Senior Counsel of Environment, Health and Safety, PPG Industries. Ms. Reilly currently serves as a member of the Board of Directors of UPMC Mercy Hospital, and as a member of the Board of Directors of Catholic Charities, Pittsburgh.

Annual Shareholder Report

Name Birth Date Positions Held with Fund Date Service Began	Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications
P. Jerome Richey Birth Date: February 23, 1949 Trustee Indefinite Term Began serving: October 2013	Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; Retired; formerly, Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh and Executive Vice President and Chief Legal Officer, CONSOL Energy Inc. (now split into two separate publicly traded companies known as CONSOL Energy Inc. and CNX Resources Corp.). Other Directorships Held: None. Qualifications: Mr. Richey has served in several business and legal management roles and directorship positions throughout his career. Mr. Richey most recently held the positions of Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh. Mr. Richey previously served as Chairman of the Board, Epilepsy Foundation of Western Pennsylvania and Chairman of the Board, World Affairs Council of Pittsburgh. Mr. Richey previously served as Chief Legal Officer and Executive Vice President, CONSOL Energy Inc. and CNX Gas Company; and Board Member, Ethics Counsel and Shareholder, Buchanan Ingersoll & Rooney PC (a law firm).
John S. Walsh Birth Date: November 28, 1957 Trustee Indefinite Term Began serving: August 1999	Principal Occupations: Director or Trustee of the Federated Hermes Fund Family; President and Director, Heat Wagon, Inc. (manufacturer of construction temporary heaters); President and Director, Manufacturers Products, Inc. (distributor of portable construction heaters); President, Portable Heater Parts, a division of Manufacturers Products, Inc. Other Directorships Held: None. Qualifications: Mr. Walsh has served in several business management roles and directorship positions throughout his career. Mr. Walsh previously served as Vice President, Walsh & Kelly, Inc. (paving contractors).

Annual Shareholder Report

OFFICERS

Name Birth Date Positions Held with Fund Date Service Began	Principal Occupation(s) for Past Five Years and Previous Position(s)
Jeremy D. Boughton Birth Date: September 29, 1976 TREASURER Officer since: March 2024	Principal Occupations: Principal Financial Officer and Treasurer of the Federated Hermes Fund Family; Senior Vice President, Federated Administrative Services, Federated Administrative Services, Inc., Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company and Federated MDTA, LLC. Formerly, Controller, Federated Hermes, Inc. and Financial and Operations Principal for Federated Securities Corp. Mr. Boughton has received the Certified Public Accountant designation. Previous Positions: Senior Vice President and Assistant Treasurer, Federated Investors Management Company; Treasurer, Federated Investors Trust Company; Assistant Treasurer, Federated Administrative Services, Federated Administrative Services, Inc., Federated Securities Corp., Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company, Federated MDTA, LLC and Federated Hermes (UK) LLP, as well as other subsidiaries of Federated Hermes, Inc.
Peter J. Germain Birth Date: September 3, 1959 CHIEF LEGAL OFFICER, SECRETARY and EXECUTIVE VICE PRESIDENT Officer since: January 2005	Principal Occupations: Mr. Germain is Chief Legal Officer, Secretary and Executive Vice President of the Federated Hermes Fund Family. He is General Counsel, Chief Legal Officer, Secretary and Executive Vice President, Federated Hermes, Inc.; Trustee and Senior Vice President, Federated Investors Management Company; Trustee and President, Federated Administrative Services; Director and President, Federated Administrative Services, Inc.; Director and Vice President, Federated Securities Corp.; Director and Secretary, Federated Private Asset Management, Inc.; Secretary, Federated Shareholder Services Company; and Secretary, Retirement Plan Service Company of America. Mr. Germain joined Federated Hermes, Inc. in 1984 and is a member of the Pennsylvania Bar Association. Previous Positions: Deputy General Counsel, Special Counsel, Managing Director of Mutual Fund Services, Federated Hermes, Inc.; Senior Vice President, Federated Services Company; and Senior Corporate Counsel, Federated Hermes, Inc.
Stephen Van Meter Birth Date: June 5, 1975 CHIEF COMPLIANCE OFFICER AND SENIOR VICE PRESIDENT Officer since: July 2015	Principal Occupations: Senior Vice President and Chief Compliance Officer of the Federated Hermes Fund Family; Vice President and Chief Compliance Officer of Federated Hermes, Inc. and Chief Compliance Officer of certain of its subsidiaries. Mr. Van Meter joined Federated Hermes, Inc. in October 2011. He holds FINRA licenses under Series 3, 7, 24 and 66. Previous Positions: Mr. Van Meter previously held the position of Compliance Operating Officer, Federated Hermes, Inc. Prior to joining Federated Hermes, Inc., Mr. Van Meter served at the United States Securities and Exchange Commission in the positions of Senior Counsel, Office of Chief Counsel, Division of Investment Management and Senior Counsel, Division of Enforcement.

Annual Shareholder Report

Evaluation and Approval of Advisory Contract–May 2023

Federated Hermes Short-Term Government Fund (the “Fund”)

At its meetings in May 2023 (the “May Meetings”), the Fund’s Board of Trustees (the “Board”), including those Trustees who are not “interested persons” of the Fund, as defined in the Investment Company Act of 1940 (the “Independent Trustees”), reviewed and unanimously approved the continuation of the investment advisory contract between the Fund and Federated Investment Management Company (the “Adviser”) (the “Contract”) for an additional one-year term. The Board’s determination to approve the continuation of the Contract reflects the exercise of its business judgment after considering all of the information and factors believed to be relevant and appropriate on whether to approve the continuation of the existing arrangement. The information, factors and conclusions that formed the basis for the Board’s approval are summarized below.

Information Received and Review Process

At the request of the Independent Trustees, the Fund’s Chief Compliance Officer (the “CCO”) furnished to the Board in advance of its May Meetings an independent written evaluation of the Fund’s management fee (the “CCO Fee Evaluation Report”). The Board considered the CCO Fee Evaluation Report, along with other information, in evaluating the reasonableness of the Fund’s management fee and in determining to approve the continuation of the Contract. The CCO, in preparing the CCO Fee Evaluation Report, has the authority to retain consultants, experts or staff as reasonably necessary to assist in the performance of his duties, reports directly to the Board, and can be terminated only with the approval of a majority of the Independent Trustees. At the request of the Independent Trustees, the CCO Fee Evaluation Report followed the same general approach and covered the same topics as that of the report that had previously been delivered by the CCO in his capacity as “Senior Officer” prior to the elimination of the Senior Officer position in December 2017.

In addition to the extensive materials that comprise and accompany the CCO Fee Evaluation Report, the Board considered information specifically prepared in connection with the approval of the continuation of the Contract that was presented at the May Meetings. In this regard, in the months preceding the May Meetings, the Board requested and reviewed written responses and supporting materials prepared by the Adviser and its affiliates (collectively, “Federated Hermes”) in response to requests posed to Federated Hermes by independent legal counsel on behalf of the Independent Trustees encompassing a wide variety of topics, including those summarized below. The Board also considered such additional matters as the Independent Trustees deemed

Annual Shareholder Report

reasonably necessary to evaluate the Contract, which included detailed information about the Fund and Federated Hermes furnished to the Board at its meetings throughout the year and in between regularly scheduled meetings on particular matters as the need arose.

The Board’s consideration of the Contract included review of materials and information covering the following matters, among others: the nature, quality and extent of the advisory and other services provided to the Fund by Federated Hermes; Federated Hermes’ business and operations; the Adviser’s investment philosophy, personnel and processes; the Fund’s investment objectives and strategies; the Fund’s short-term and long-term performance (in absolute terms, both on a gross basis and net of expenses, and relative to the Fund’s particular investment program and a group of its peer funds and/or its benchmark, as appropriate); the Fund’s fees and expenses, including the advisory fee and the overall expense structure of the Fund (both in absolute terms and relative to a group of its peer funds), with due regard for contractual or voluntary expense limitations (if any); the financial condition of Federated Hermes; the Adviser’s profitability with respect to managing the Fund; distribution and sales activity for the Fund; and the use and allocation of brokerage commissions derived from trading the Fund’s portfolio securities (if any).

The Board also considered judicial decisions concerning allegedly excessive investment advisory fees charged to other registered funds in evaluating the Contract. Using these judicial decisions as a guide, the Board observed that the following factors may be relevant to an adviser’s fiduciary duty with respect to its receipt of compensation from a fund: (1) the nature and quality of the services provided by the adviser to the fund and its shareholders, including the performance of the fund, its benchmark and comparable funds; (2) the adviser’s cost of providing the services and the profitability to the adviser of providing advisory services to the fund; (3) the extent to which the adviser may realize “economies of scale” as the fund grows larger and, if such economies of scale exist, whether they have been appropriately shared with the fund and its shareholders or the family of funds; (4) any “fall-out” benefits that accrue to the adviser because of its relationship with the fund, including research services received from brokers that execute fund trades and any fees paid to affiliates of the adviser for services rendered to the fund; (5) comparative fee and expense structures, including a comparison of management fees paid to the adviser with those paid by similar funds managed by the same adviser or other advisers as well as management fees charged to institutional and other advisory clients of the same adviser for what might be viewed as like services; and (6) the extent of care, conscientiousness and independence with which the fund’s board members perform their duties and their expertise, including whether they are fully informed about all facts the board deems relevant to its consideration of the adviser’s services and fees. The Board noted that the Securities and Exchange Commission (“SEC”) disclosure requirements

Annual Shareholder Report

regarding the basis for a fund board’s approval of the fund’s investment advisory contract generally align with the factors listed above. The Board was guided by these factors in its evaluation of the Contract to the extent it considered them to be appropriate and relevant, as discussed further below. The Board considered and weighed these factors in light of its substantial accumulated experience in governing the Fund and working with Federated Hermes on matters relating to the oversight of the other funds advised by Federated Hermes (each, a “Federated Hermes Fund” and, collectively, the “Federated Hermes Funds”).

In addition, the Board considered the preferences and expectations of Fund shareholders and the potential disruptions of the Fund’s operations and various risks, uncertainties and other effects that could occur as a result of a decision to terminate or not renew the Contract. In particular, the Board recognized that many shareholders likely have invested in the Fund based on the strength of Federated Hermes’ industry standing and reputation and with the expectation that Federated Hermes will have a continuing role in providing advisory services to the Fund. Thus, the Board observed that there are a range of investment options available to the Fund’s shareholders and such shareholders in the marketplace, having had the opportunity to consider other investment options, have effectively selected Federated Hermes by virtue of investing in the Fund.

In determining to approve the continuation of the Contract, the members of the Board reviewed and evaluated information and factors they believed to be relevant and appropriate through the exercise of their reasonable business judgment. While individual members of the Board may have weighed certain factors differently, the Board’s determination to approve the continuation of the Contract was based on a comprehensive consideration of all information provided to the Board throughout the year and specifically with respect to the continuation of the Contract. The Board recognized that its evaluation process is evolutionary and that the factors considered and emphasis placed on relevant factors may change in recognition of changing circumstances in the registered fund marketplace. The Independent Trustees were assisted throughout the evaluation process by independent legal counsel. In connection with their deliberations at the May Meetings, the Independent Trustees met separately in executive session with their independent legal counsel and without management present to review the relevant materials and consider their responsibilities under applicable laws. In addition, senior management representatives of Federated Hermes also met with the Independent Trustees and their independent legal counsel to discuss the materials and presentations furnished to the Board at the May Meetings. The Board considered the approval of the Contract for the Fund as part of its consideration of agreements for funds across the family of Federated Hermes Funds, but its approvals were made on a fund-by-fund basis.

Annual Shareholder Report

	Beginning Account Value 9/1/2023	Ending Account Value 2/29/2024	Expenses Paid During Period1
Actual:
Institutional Shares	$1,000	$1,023.70	$1.81
Service Shares	$1,000	$1,022.50	$3.07
Hypothetical (assuming a 5% return before expenses):
Institutional Shares	$1,000	$1,023.07	$1.81
Service Shares	$1,000	$1,021.83	$3.07

Management’s Discussion of Fund Performance	1
Portfolio of Investments Summary Tables	5
Portfolio of Investments	7
Financial Highlights	10
Statement of Assets and Liabilities	12
Statement of Operations	13
Statement of Changes in Net Assets	14
Notes to Financial Statements	15
Report of Independent Registered Public Accounting Firm	25
Shareholder Expense Example	27
Board of Trustees and Fund Officers	29
Evaluation and Approval of Advisory Contract	36
Liquidity Risk Management Program– Annual Evaluation of Adequacy and Effectiveness	46
Voting Proxies on Fund Portfolio Securities	48
Quarterly Portfolio Schedule	48

	1 Year	5 Years	10 Years
Institutional Shares	3.96%	0.89%	0.61%
Service Shares	3.70%	0.52%	0.25%
BA1-3T	4.27%	1.22%	1.02%
MSGFA	3.98%	0.83%	0.83%