[Congressional Record Volume 141, Number 88 (Thursday, May 25, 1995)]
[Extensions of Remarks]
[Page E1130]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


        MANDATORY ELECTRONIC FUNDS TRANSFER EXPANSION ACT OF 1995

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                           HON. JIM LIGHTFOOT

                                of iowa

                    in the house of representatives

                         Wednesday, May 24, 1995
  Mr. LIGHTFOOT. Mr. Speaker, today I rise to introduce legislation 
which will save taxpayer money, reduce theft and fraud of Federal 
payments and make the Government run more efficiently. I am proud to 
join Representatives Steny Hoyer, Bill Clinger, Peter Visclosky, and 
Stephen Horn in introducing the Mandatory Electronic Funds Transfer 
Expansion Act of 1995.
  Under this legislation, recurring Federal payments such as Federal 
salaries and pensions would be issued by electronic funds transfer 
[EFT] instead of paper checks. The Department of the Treasury's 
Financial Management Service, the Federal Government's primary 
disburser, has testified that it costs the Federal Government 43 cents 
to issue a paper check. But an electronic funds transfer costs just 1.5 
cents, saving the Government over 41 cents for nearly every salary or 
retirement check it issues.
  The Government is already realizing savings from the use of EFT. Of 
the 841 million payments issued by FMS, 49 percent were disbursed 
electronically. But we can realize additional savings, while making 
salaries and benefits more convenient for recipients. The savings add 
up quickly, into the millions of dollars. The extensive use of EFT will 
reduce Federal spending and diminish the opportunity for theft and 
fraud.


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