Removing Barriers Blog

Economic Impact Payments from Treasury
Posted April 06, 2020 by dyi

Today, staff from the Treasury Department and the Federal Reserve conducted a webinar where the main topic was the disbursement of Economic Impact Payments (EIP). All credit unions were invited directly by the Fed and recordings of the webinar are available here (registration required).

Below is information that was communicated on the webinar: 

  • Disbursement of the funds will start either later this week or next week with the first round of payments going to the largest number of recipients.
  • Treasury is strongly encouraging payment by ACH and these payments will look like a tax refund check.
  • ACH will be based on information provided on 2018 or 2019 tax filings where electronic payment was chosen as the method of refund.
  • It seems payment will be made by check where Treasury doesn’t have information to make electronic payments.
  • There will be a portal where recipients can sign up to receive payment electronically.
  • Federal beneficiaries with direct express (debit cards) will receive payments to these cards. 
  • Payments will be subject to debt collection actions similar to tax refunds and subject to federal garnishment.

Some details for the payment process might change as the Treasury Department staff continue to plan the disbursement process.  CUNA will provide updates as more information becomes available