WASHINGTON, D.C. – Today, U.S. Senator Sherrod Brown (D-OH) hosted a roundtable discussion with Ohioans as he works to help Ohio families recover financially from the economic effects of the COVID-19 pandemic. Last weekend, Brown helped pass the COVID-19 American Rescue Plan, which included expanded tax credits that will put more money in the pockets of working Ohioans and $1,400 stimulus checks that will help Ohioans.

Now, Brown is pushing for action on his legislation, the Banking for All Act, which would allow Americans to set up a free bank account that could be used to receive expanded tax credits and any direct stimulus payments related to coronavirus relief.

“The pandemic has revealed a lot of problems our country has ignored for too long – health inequities but also economic ones. Right now, the less money you have, the more you pay to use it. 22 percent of families can’t get a basic bank account, and are forced to turn to shady payday lenders, or overcharging check cashers, or greedy money transmitters. We need to get everyone access to basic bank accounts that don’t come with abusive fees,” said Brown.

Brown was joined at the roundtable by representatives from Lorain County Urban League, Fayette County Community Action Commission, Step Forward Today, El Centro, Ohio Urban Resources System, Ohio Association of Community Action Agencies, LISC (Toledo), Community Development for All People, Western Ohio Community Action, Northwestern Ohio Community Action, United Way of Morrow County, Urban League of Southwest Ohio, Southeastern Ohio Legal Services, La Conexion, Salvation Army, Urban League of Dayton, Community Action, Toledo NAACP, VA Central OH Healthcare, APWU Local 170, Corporation for Ohio Appalachian Development and Highland County Community Action Agency.

Specifically Brown’s Banking for All Act would:

·       Allow everyone to set up a digital dollar wallet, called a “FedAccount,” a free bank account that can be used to receive money, make payments, and take out cash.

·       FedAccounts would be available at local banks, credit unions and Post Offices.

·       FedAccounts would have no account fees or minimum balance requirements.

·       Account holders would receive debit cards, online account access, automatic bill-pay, mobile banking, and ATM access at Post Offices.

·       FedAccounts can be used to make sure that everyone who is entitled to COVID-19-related relief receives it quickly and inexpensively. That means that people will not have to rely on costly check cashers or other alternative financial services.

According to the Federal Reserve’s May 2020 Report on the Economic Well-Being of U.S. Households in 2019, 22 percent of U.S. adults were unbanked or underbanked and used some form of alternative financial service during 2019 – such as a money order, check cashing service, pawn shop loan, auto title loan, payday loan, paycheck advance, or tax refund advance.

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