[Congressional Record Volume 140, Number 35 (Thursday, March 24, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: March 24, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                    USE OF ELECTRONIC FUND TRANSFER

                                 ______


                       HON. GEORGE (BUDDY) DARDEN

                               of georgia

                    in the house of representatives

                        Thursday, March 24, 1994

  Mr. DARDEN. Mr. Speaker, today the gentleman from Iowa, Mr. 
Lightfoot, the gentleman from Maryland, Mr. Hoyer, and I are 
introducing legislation that will save the American taxpayer millions 
of dollars each year. This legislation would move the financial 
operations of the Federal Government towards the 21st century by 
greatly increasing the use of electronic funds transfers. This bill 
would direct the Secretary of the Treasury to issue regulations 
establishing a presumption that direct deposit is to be used to make 
all recurring payments made by the Federal Government.
  Mr. Speaker, electronic funds transfer is a more efficient and safer 
method of payment than traditional paper checks. Use of the electronic 
funds transfer payment method by the Federal Government would have 
saved the American taxpayer over $130 million in administrative costs 
last year alone. It is extremely important that we continue to show the 
American people that we are seeking out ways to save money and 
eliminate unnecessary spending. This bill is part of that effort and is 
consistent with both the administration's ``reinventing government'' 
initiatives and the Congress' ongoing actions to reduce the cost of 
Government and cut the Federal deficit.
  Mr. Speaker, while strongly encouraging the use of electronic funds 
transfer by the Federal Government, this measure is sufficiently 
flexible to allow individuals and groups to receive other forms of 
payment if they request in writing. This flexibility allows for 
important exceptions for certain law enforcement and intelligence 
personnel. This flexibility also protects those individuals who feel 
they must, for whatever reason, receive Federal payments by methods 
other than electronic transfer.
  Mr. Speaker, reducing the Federal Government's budget deficit is an 
important part of maintain our Nation's economic health. The savings 
that this legislation would produce represent another step towards that 
goal.

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