“Financial Capability Month,” an Obama administration effort affirming a national commitment to “equipping individuals with the knowledge and protections necessary to secure a stable financial future for themselves and their families,” has just come to an end.
A fundamental element of financial capability is financial access. And, as the issuers of benefits to millions of Americans without a traditional bank account, federal and state governments provide this point of access through a range of products and tools. For its part, the Department of the Treasury unveiled a new application for people using the Direct Express card — the government-issued MasterCard debit card used to distribute social security to the 5.5 million recipients without a bank account. The app allows users to check their balances, view transactions, and find ATMs using their smartphones.
Arkansas, however, opted out of the festivities.
The very same day as the Treasury’s announcement, the Arkansas legislature moved to establish unprecedented restrictions on its state’s own government-issued benefit card, which is used to disburse cash assistance under the Temporary Assistance for Needy Families program. Under an amendment to HB 1017, Arkansas’ TANF households wouldno longer be able to withdraw cash with their Electronic Benefit Transfer card at any ATM. Instead, they would only be permitted to use their EBT cards to pay directly for a short list of necessities, including food, housing, clothing, utilities, and childcare.
[For more of this story, written by Aleta Sprague, go to https://psmag.com/government-a...c290c37e1#.9o9a68gii]
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