For more than a decade, the Direct Express® program has helped modernize the delivery of federal benefit payments, particularly for recipients without access to traditional banking. As the government continues to phase out paper checks, Direct Express® delivers measurable savings to taxpayers, meaningful financial relief to unbanked recipients, and greater operational efficiency for federal agencies.

Savings for the Federal Government

Paper checks cost more to issue than electronic payments. In Fiscal Year 2025, each paper check cost the government an average of $0.33 more than a Direct Express® payment. With approximately 51 million benefit payments made annually via Direct Express®, this translates to recurring taxpayer savings of about $16.9 million per year simply by avoiding paper checks.

Financial Relief for Unbanked Recipients

Roughly 66% of Direct Express® payments—about 33.66 million annually—go to unbanked individuals. If paid by check, many recipients would rely on check-cashing services, typically charging at least $4 per check. By using Direct Express®, unbanked recipients avoid these fees, resulting in conservative annual savings of $134.6 million, money that can instead be spent on basic necessities.

Impact of Executive Order 14247

Executive Order 14247, which mandates modernization of federal payments, has accelerated enrollment. Over the past five months, Direct Express® has added roughly 100,000 new enrollees, representing about 1.2 million additional electronic payments annually. This growth produces an estimated $396,000 in annual government savings and approximately $3.2 million in annual savings for recipients, with further gains expected as enrollment continues.

 Safety and Efficiency Benefits

Electronic payments are safer and more reliable than paper checks, which are vulnerable to loss, theft, fraud, and mail delays. Direct Express® reduces payment claims and administrative costs while providing secure, timely access to funds. Cardholder protections include FDIC insurance, Regulation E coverage for unauthorized transactions, and enhanced chip technology to reduce fraud risk.

 A Proven, Scalable Solution

Direct Express® delivers clear, measurable benefits:

  • Over $16 million annually in taxpayer savings
  • More than $134 million annually saved by unbanked recipients
  • Additional savings from reduced fraud and administrative costs
  • Growing impact as electronic enrollment expands

Together, these results demonstrate that Direct Express® is a fiscally responsible, socially beneficial, and operationally efficient alternative to paper checks, supporting both taxpayers and beneficiaries while modernizing federal benefit delivery.

SOURCE: DIRECT EXPRESS®