House Democrats Ask USPS & Federal Reserve to Provide Banking Services
Legislation to authorize postal banking never has advanced on Capitol Hill, and some lawmakers believe legislative support isn't even needed.
Two House Democrats are asking the Postal Service and the Federal Reserve to work together to provide financial services to the underbanked.
Reps. Frank Pascrell of New York and Alexandria Ocasio-Cortez of New York said in a letter to the two agencies that the recently FedNow service would provide an effective vehicle for postal banking.
The Fed’s FedNow system is designed to deliver faster payment services to customers, allowing them to send and receive payments within seconds.
The two lawmakers, who have been pushing postal banking, cite reports from the Postal Service’s Inspector General, who said that under current law, the Postal Service has the authority to expand financial services.
Those reports also said that such an expansion would raise revenue for the beleaguered Postal Service.
Legislation to authorize postal banking never has advanced on Capitol Hill, but the two House members said passage of such a measure is not needed.
The lawmakers said that the USPS is “afforded wide latitude” in federal law to partner with other executive branch agencies on improving its products and services.
Credit union trade groups have been vehemently opposed to postal banking for years, contending that credit unions could reach the underbanked if Congress permitted them to expand their fields of membership to better serve those people.