Agenda - Council - 09/13/2022 - Laserfiche WebLink

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percent of all households in the United States.174 As a result of the COVID-19 pandemic, new social distancing protocols have, in some instances, made it more difficult to perform financial transactions with paper instruments, like banknotes, coinage, paper checks, or money orders. Households constrained to these payment methods may face challenges receiving government assistance. Additionally, businesses have transitioned to cashless payments systems to promote contactless payments.175 As a result, unbanked individuals may face additional challenges conducting financial transactions. Treasury Response: Recognizing these challenges, Treasury is clarifying that recipients may use SLFRF funds to provide financial services that facilitate the delivery of federal, state, or local benefits (e.g., Child Tax Credit, Earned Income Tax Credit, tax refunds, or emergency housing or food assistance funds). The following includes a non -exhaustive list of uses to provide financial services to unbanked and underbanked households: • Provide low or no cost financial services, including in conjunction with administration of benefits, such as pre -paid debit cards, e.g., via Economic Impact Payment or General Purpose Reloadable pre -paid cards or for the development of public banking infrastructure that can support benefit delivery. • Provide transitional services to facilitate long-term access to banking and financial services. • Provide financial literacy programs and conduct community outreach and deploy engagement resources to increase awareness about low-cost, no -overdraft fee accounts, 174 Board of the Governors of the Federal Reserve System, Report on the Economic Well -Being of U.S. Households in 2018 - May 2019, https://www.federalreserve.gov/publications/2019-economic-well-being-of-us-households-in- 2018-banking-and-credit.htm. 175 Zaheer Allam, The Forceful Reevaluation of Cash -Based Transactions by COVID-19 and Its Opportunities to Transition to Cashless Systems in Digital Urban Networks. Surveying the Covid-19 Pandemic and its Implications (2020): 107-117. doi:10.1016/B978-0-12-824313-8.00008-5. 115