Fifth Third to Manage US Treasury's Federal Benefits Program Under 5-Year Deal

Fifth Third Bank has been designated as the new financial agent for the U.S. Treasury's Direct Express prepaid debit card program, a five-year agreement starting September 9, 2025. The program serves approximately 4.4 million recipients of federal benefits. Fifth Third will manage the program's operations, customer service, and card production. The bank's experience in managing large-scale financial programs makes it an ideal candidate for this role.

Fifth Third Bank has been designated as the new financial agent for the U.S. Treasury's Direct Express prepaid debit card program, a five-year agreement starting September 9, 2025. The program serves approximately 4.4 million recipients of federal benefits, including Social Security and Veterans benefits. Fifth Third will manage the program's operations, customer service, and card production. The bank's extensive experience in managing large-scale financial programs makes it an ideal candidate for this role.

Under the new agreement, Fifth Third will introduce innovative solutions to enhance the program's functionality. These include virtual cards, cardless ATM access, rent and bill payment services, and digital wallet integration. The bank's commitment to financial inclusion and innovation was highlighted by Bridgit Chayt, head of commercial payments at Fifth Third, who stated, "We're focused on delivering secure, high-quality financial services that make banking more accessible for millions of Americans" Fifth Third to Expand Federal Debit Card Program^[2].

The appointment of Fifth Third Bank replaces an earlier agreement with The Bank of New York Mellon Corp. (BNY). The Treasury Department's Bureau of the Fiscal Service cited BNY's "readiness challenges" as the reason for the change. Fifth Third Bank's appointment is seen as a step forward in modernizing the Direct Express program, which aims to provide a seamless and secure payment experience for federal benefit recipients Fifth Third wins Treasury contract; BNY gets dropped^[3].

The transition comes amidst a broader shift towards digital payments in the U.S. government. By the end of September 2025, the government plans to stop issuing paper checks for disbursements, moving entirely to electronic and real-time methods of payment. This modernization effort, valued at $175 billion, covers a wide range of federal benefits, reflecting a growing preference among consumers for instant payments Fifth Third Bank to Manage U.S. Treasury's Direct Express Federal Benefits Program^[1].

Fifth Third Bank will work with Money Network Financial as the program manager and continue to use Mastercard's network for the Direct Express program. The bank's previous experience managing large-scale financial programs, coupled with its innovative approach to digital solutions, positions it well to meet the evolving needs of the Direct Express program and its beneficiaries.

References:
Fifth Third Bank to Manage U.S. Treasury's Direct Express Federal Benefits Program^[1]: Cloonan, K. (2025). Fifth Third Bank to manage U.S. Treasury's Direct Express federal benefits program. [Marketscreener](https://www.marketscreener.com/news/fifth-third-bank-to-manage-u-s-treasury-s-direct-express-federal-benefits-program-ce7d59dcda80f420)
Fifth Third to Expand Federal Debit Card Program^[2]: PYMNTS. (2025). Fifth Third Bank expands federal debit card program. [PYMNTS](https://www.pymnts.com/disbursements/2025/fifth-third-expand-federal-debit-card-program/)
Fifth Third wins Treasury contract; BNY gets dropped^[3]: American Banker. (2025). Fifth Third wins Treasury contract; BNY Mellon gets dropped. [American Banker](https://www.americanbanker.com/news/fifth-third-wins-treasury-contract-bny-mellon-gets-dropped)