In September 2024, Hurricane Helene, a devastating tropical cyclone, caused widespread catastrophic damage across the Southeastern United States. It was the strongest hurricane on record to strike the Big Bend region of Florida, the deadliest Atlantic hurricane since Hurricane Maria in 2017, and the deadliest to strike the mainland U.S. since Hurricane Katrina.
Hurricane Katrina barreled into the Gulf Coast region of Louisiana and Mississippi, in August 2005. It displaced tens of thousands of Americans from their homes, damaging businesses and laying waste to whole communities
These two devastating storms shared many similarities, but the differing experiences of affected federal beneficiaries, illustrates the evolution of electronic payments from 2005 to 2024, particularly since 2008, when the Direct Express®program was launched.
During Hurricane Katrina and its aftermath, it is estimated up to 10,000 Americans did not receive their Social Security payments on time. For many, the payment delay lasted for weeks, as mail and check cashing systems were disrupted by widespread damage. Check delivery logistics were impeded by chaos. Federal benefit checks were ruined by flooding, stuck in damaged post offices, or delivered to homes that were abandoned. Agencies struggled to locate recipients who were in desperate need of their funds but had been evacuated to safety in new cities.
The figures of those affected are rough estimates, as non-electronic systems back then make data difficult to assemble, but the fact remains: a natural disaster prevented the delivery of lifeline payments to those Americans most affected by the storm and at a time when they needed them the most.
That was 2005. In 2024, Hurricane Helene wreaked havoc in affected communities, but it was a different story for federal beneficiaries. Widespread electronic delivery meant benefits could be delivered seamlessly either direct to banks accounts or via a Direct Express® card for those citizens that do not have traditional banks accounts. Direct Express® ensured that unbanked individuals were no more disadvantaged than those with bank accounts.
The experience of federal benefit recipients during these two hurricanes offers a “before-and-after” picture of how the nation’s disbursing system has become more resilient, reliable, and efficient in a relatively short period of time. Innovation in electronic payment disbursement now allows the millions Direct Express® cardholders to receive their federal benefit payments on time, every time – even during natural disasters like Category 5 hurricanes.
For more information on hurricane preparedness, the Federal Emergency Management Agency (FEMA) offers advice on financial and other forms of preparedness on ready.gov, including a recommendation that citizens reliant or in need of benefits sign up for direct deposit and have their payments deposited electronically.
SOURCE: Direct Express®
