diff --git a/core/src/main/java/google/registry/persistence/transaction/TransactionManagerFactory.java b/core/src/main/java/google/registry/persistence/transaction/TransactionManagerFactory.java
index 694d68474..d58e12f09 100644
--- a/core/src/main/java/google/registry/persistence/transaction/TransactionManagerFactory.java
+++ b/core/src/main/java/google/registry/persistence/transaction/TransactionManagerFactory.java
@@ -17,16 +17,23 @@ package google.registry.persistence.transaction;
 import com.google.appengine.api.utils.SystemProperty;
 import com.google.appengine.api.utils.SystemProperty.Environment.Value;
 import com.google.common.annotations.VisibleForTesting;
+import com.google.common.base.Suppliers;
 import google.registry.model.ofy.DatastoreTransactionManager;
 import google.registry.persistence.DaggerPersistenceComponent;
 import google.registry.tools.RegistryToolEnvironment;
+import google.registry.util.NonFinalForTesting;
+import java.util.function.Supplier;
 
 /** Factory class to create {@link TransactionManager} instance. */
 // TODO: Rename this to PersistenceFactory and move to persistence package.
 public class TransactionManagerFactory {
 
   private static final TransactionManager TM = createTransactionManager();
-  @VisibleForTesting static JpaTransactionManager jpaTm = createJpaTransactionManager();
+
+  /** Supplier for jpaTm so that it is initialized only once, upon first usage. */
+  @NonFinalForTesting
+  private static Supplier<JpaTransactionManager> jpaTm =
+      Suppliers.memoize(TransactionManagerFactory::createJpaTransactionManager);
 
   private TransactionManagerFactory() {}
 
@@ -68,6 +75,11 @@ public class TransactionManagerFactory {
 
   /** Returns {@link JpaTransactionManager} instance. */
   public static JpaTransactionManager jpaTm() {
-    return jpaTm;
+    return jpaTm.get();
+  }
+
+  @VisibleForTesting
+  static void setJpaTmForTesting(JpaTransactionManager newJpaTm) {
+    jpaTm = Suppliers.ofInstance(newJpaTm);
   }
 }
diff --git a/core/src/main/java/google/registry/tools/RegistryCli.java b/core/src/main/java/google/registry/tools/RegistryCli.java
index 0a3542f2e..717da183c 100644
--- a/core/src/main/java/google/registry/tools/RegistryCli.java
+++ b/core/src/main/java/google/registry/tools/RegistryCli.java
@@ -237,7 +237,7 @@ final class RegistryCli implements AutoCloseable, CommandRunner {
       // Enable Cloud SQL for command that needs remote API as they will very likely use
       // Cloud SQL after the database migration. Note that the DB password is stored in Datastore
       // and it is already initialized above.
-      RegistryToolEnvironment.get().enableJpaTm();
+      RegistryToolEnvironment.enableJpaTm();
     }
 
     command.run();
diff --git a/core/src/test/java/google/registry/persistence/transaction/JpaTransactionManagerRule.java b/core/src/test/java/google/registry/persistence/transaction/JpaTransactionManagerRule.java
index 1ed2330cf..ae99e72ec 100644
--- a/core/src/test/java/google/registry/persistence/transaction/JpaTransactionManagerRule.java
+++ b/core/src/test/java/google/registry/persistence/transaction/JpaTransactionManagerRule.java
@@ -132,13 +132,13 @@ abstract class JpaTransactionManagerRule extends ExternalResource {
             properties,
             extraEntityClasses);
     JpaTransactionManagerImpl txnManager = new JpaTransactionManagerImpl(emf, clock);
-    cachedTm = TransactionManagerFactory.jpaTm;
-    TransactionManagerFactory.jpaTm = txnManager;
+    cachedTm = TransactionManagerFactory.jpaTm();
+    TransactionManagerFactory.setJpaTmForTesting(txnManager);
   }
 
   @Override
   public void after() {
-    TransactionManagerFactory.jpaTm = cachedTm;
+    TransactionManagerFactory.setJpaTmForTesting(cachedTm);
     if (emf != null) {
       emf.close();
       emf = null;