Treasury’s Bureau of the Fiscal Service Selects BNY to Manage Direct Express Program for Federal Benefits

November 21, 2024

The U.S. Department of the Treasury's Bureau of the Fiscal Service (Fiscal Service) today announced the selection of The Bank of New York Mellon Corporation ("BNY"), (NYSE: BK), a global financial services company, as the financial agent for the Direct Express® program.

Fiscal Service selected BNY as the new financial agent for the program after conducting a competitive selection process and evaluating proposals from multiple financial institutions. Based on this review, Fiscal Service determined that BNY's expansive suite of features and customer service options will enable an evolution in the Direct Express program by providing enhanced efficiency and services tailored to the program's customer base. With the new financial agent, customers will enjoy rent and other bill payment solutions, virtual cards, cardless ATM access, chat and text customer service, online dispute filing, in-person identity authentication options, and more.

"Since 2008, the Direct Express program has paid federal beneficiaries seamlessly, inclusively, and securely, while sparing taxpayers and customers the costs and risk associated with cashing paper checks," said Tim Gribben, Fiscal Service's Commissioner. "This new agreement will further our goals of delivering a modern customer experience and strengthening Treasury's commitment to paying the right person, in the right amount, at the right time."

The new agreement is for five years, beginning January 3, 2025, with cardholder transition phased to minimize impact and ensure excellent customer support. Customer migration communication is not expected to begin sooner than spring of 2025. The current program financial agent will continue to service existing cardholders until cardholders register for a new account.

The Direct Express program currently serves approximately 3.4 million Americans-the majority of whom do not have a bank account-with a prepaid debit card to receive their monthly federal benefits. Around 95% of Supplemental Security Income payments are now disbursed electronically, compared to just 53% when the program began in 2008.

Direct Express is safer, more convenient, and more reliable than a check when receiving federal benefits. Also, as a prepaid account, it provides consumer protections available to prepaid account owners, including for fraud and loss. The debit card can be used online or at any retail locations where Mastercard is accepted.

Fiscal Service will continue to empower Direct Express cardholders with low- to no-cost access to financial resources and education through the Financial Education Center. In service of this goal, more educational resources from BNY's service providers will be introduced in 2025.

For more information on the Direct Express program, please visit usdirectexpress.com. For media inquiries, please e-mail [email protected].