Beginning this year federal payment recipients will receive their government benefits through electronic funds transfer EFT what most of us call direct deposit. Although costcutting is the driving force behind the move to a virtually allelectronic federal payment system Michael Stegman believes the initiative has a far broader potential to bring poor Americans into the banking mainstream. In this book Stegman outlines how many families will enter the mainstream banking system through EFT ampapos99 as the program is called. He explains in careful detail the thinking behind the shift to EFT and the implementation of the program this year. He also argues that for maximum success EFT ampapos99 should be combined with a program of national Individual Development Accounts IDAs dedicated savings accounts for lowincome people that can be used for purchasing a first home acquiring more education or job training or starting a smallbusiness. Essentially EFT ampapos99 will bring people into the banking system and IDAs will give them an incentive to use the system to its fullest in order to make their money work for them and their children. There are other steps that the government can take to boost EFTampaposs ability to help public aid recipients achieve selfsufficiency. It can add a direct deposit option to state benefits payments programs give banks significant additional Community Reinvestment Act Credit for establishing accounts for EFT recipients and regulate fees for cashing government benefits and voluntary accounts so that people are not charged excessively for accessing their money. This book demonstrates that amp151 with careful planning and a relatively small investment amp151 the governmentampaposs EFT initiative can have a major payoff in real assets and improved prospects for those who have been for far too long on the fringes of the countryampaposs mainstream banking system. Brookings Metro Series