PRESSLEY HIGHLIGHTS IMPORTANCE OF FEDNOW TO ENSURE WORKERS' IMMEDIATE ACCESS TO PAYCHECKS

The following information was released by the office of Massachusetts Rep. Ayanna Pressley:

"Bills don't stop. People work hard on their jobs. They earn a paycheck, and they deserve to be able to access it quickly."

"There is an affordability crisis, and there is also a payroll timing issue that can actually be fixed right now. And that is exactly why FedNow payment service is so important."

WASHINGTON At a House Financial Services Committee Hearing, Congresswoman Ayanna Pressley (MA-07) highlighted the importance of FedNow, a real-time payment system at the Federal Reserve that she championed to ensure customers can access their paychecks faster and keep up with their bills. Additionally, Congresswoman Pressley emphasized how FedNow can help small community banks compete with FinTech platforms and update their technology systems to serve their customers.

Since 2019, Congresswoman Pressley and her colleagues have championed the Payments Modernization Act, legislation to make consumers' funds deposited in their bank accounts immediately available for withdrawal. Following the introduction of this legislation, the Federal Reserve announced in August 2019 that it would move forward on setting up a real-time payments system. The lawmakers have since updated the bill, following the Federal Reserve's progress on developing its real-time payments system, FedNow.

A transcript of the Congresswoman's line of questioning is available below, and the video is available here.

Transcript: Pressley Highlights Importance of FedNow to Ensure Workers' Immediate Access to Paychecks

House Financial Services Committee

March 25, 2026

REP. PRESSLEY: Thank you, Mr. Chair. I'm going to date myself a little bit here. When I was growing upmay she rest in peace, my mother used to sing a song that went like this"ain't nothing going on, but the rent."

Bills don't stop. People work hard on their jobs. They earn a paycheck, and they deserve to be able to access it quickly.

We know that workers are struggling to make ends meet, especially now, and especially until pay day, those checks, hit.

And so consequently, many end up using FinTech apps like Klarna or Affirm to pay for their gas, their groceries, and utility bills.

It's no doubt that everyday workers and familiesthey want services that work for them, technology that helps them get paid faster instead of waiting until payday. Businesses want it too. It's how you can retain your workforce.

There is an affordability crisis, and there is also a payroll timing issue that can actually be fixed right now. And that is exactly why FedNow payment service is so important.

FedNow is an instant payment service offered by the Federal Reserve, and I've really enjoyed working closely with Chairman Hill and Senator Van Hollen in the Senate to get that service created years ago.

FedNow can help households get their money in real time. FedNow can also help small community banks that have fewer resources and technological infrastructure compete with these FinTech platforms to offer households their money when they need it, while still complying with regulations.

Ms. Parkhill, how does something like FedNow help smaller community banks and credit unions compete while still serving their customers safely?

MS. PARKHILL: It allows them to offer more products and services to their members that meet the needs of exactly what you had mentioned, that the payments and moving money quickly.

REP. PRESSLEY: Okay. And making customers aware of the fraud risk compliance services that FedNow providesthat's one way that we can be helpful. But what else can Congress and regulators be doing to support small community banks and credit unions as they access the benefits from FedNow?

MS. PARKHILL: I think providing opportunities for them to, I guess, resources so that they know what tools are available and really listening to their members to be able to provide the services that they're asking for.

REP. PRESSLEY: Alright, thank you. Mr. Guynn, as a director of the Federal Reserve and someone who does have experience in the private sector before coming to the Fed, what steps is the Federal Reserve taking to increase the number of financial institutions that are signing up for the FedNow service?

MR. GUYNN: So I think there's a process to sign up for it, I don't think that's the roadblock at all. I'm not sure there's anything to improve it, other than to continue inviting institutions to sign up for it.

REP. PRESSLEY: Okay. Well, you know, I think the bottom line is, is that we need to be able to meet the urgent needs of families while also supporting our smaller community banks and credit unions, customers that deserve and need those financial systems that work for them.

We should be leveraging the tools that are available to us, like FedNow, to responsibly leverage technology, meet customers where they are, and you know, again, it can help these smaller banks and credit unions comply with regulations and still compete with those new financial platforms in order to retain their customers.

So I look forward to continuing to work together with you [and] my colleagues across the aisle to do this essential work and to make sure folks are aware of this tool that's available and leverage it accordingly.

I yield back.