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THE AMERICAN PAYMENT NETWORK ACT (APNA)

Model Legislation

Published January 2026

SECTION 1. SHORT TITLE.

This Act may be cited as the "American Payment Network Act" or "APNA."

SECTION 2. PURPOSE AND FINDINGS.

(a) Purpose.

To establish a national, interoperable, utility-style payments network providing every American with access to secure, low-cost electronic accounts for receiving and sending funds; to modernize federal payment systems; and to ensure nationwide participation in the digital economy.

(b) Findings.

Congress finds that --

  1. Access to digital payment systems is essential to participation in modern economic life;

  2. According to the Federal Deposit Insurance Corporation's 2023 National Survey of Unbanked and Underbanked Households, approximately 5.6 million U.S. households (4.2 percent) remain unbanked, and an additional 19 million households (14.2 percent) are underbanked, with significantly higher rates among households including individuals with disabilities, low-income households, and certain racial and ethnic minority groups;

  3. The federal government already operates large-scale payment infrastructure (Treasury, Federal Reserve, USPS) that can be integrated into a single public network;

  4. A nationally interoperable payments network will promote financial inclusion, reduce transaction costs, improve efficiency of public transfers, and strengthen monetary transmission;

  5. Nationwide access requires technology-neutral design that supports smartphones, feature phones, web browsers, ATMs, and in-person services without creating barriers based on device ownership or technical capability; and

  6. The creation of the American Payment Network (APN) advances the nation's economic security and supports implementation of programs such as the American Prosperity Stability Payment (APSP).

SECTION 3. DEFINITIONS.

For purposes of this Act:

  1. American Payment Network (APN) means the nationwide electronic payment and settlement infrastructure established under this Act, providing real-time clearing and settlement among participating institutions.

  2. Network Account means a secure, fee-free digital account made available to every eligible individual and business through APN nodes.

  3. Participating Institution or APN Agent means any financial entity, credit union, fintech provider, or public node authorized by the Treasury to connect to the APN.

  4. Full-Service APN Agent means an APN Agent that provides direct cash handling services through physical locations (including banks with branches, credit unions, and designated USPS facilities).

  5. Digital APN Agent means an APN Agent that provides account services primarily through digital channels and satisfies cash access requirements through ATM networks, retail partnerships, or fee reimbursement mechanisms.

  6. Utility Framework means a governance model ensuring neutrality, interoperability, and non-discriminatory access, comparable to public utilities in communications or power transmission.

  7. Treasury Node means the Treasury Department's operational division responsible for network oversight, compliance, and settlement integrity.

  8. Banking Desert means a geographic area, as defined by the Secretary, with limited or no access to traditional banking services, considering factors including physical branch proximity, ATM availability, population density, and transportation access.

SECTION 4. ESTABLISHMENT OF THE AMERICAN PAYMENT NETWORK.

(a) Creation.

There is hereby established within the Department of the Treasury a public digital-payments infrastructure to be known as the American Payment Network (APN).

(b) Governance.

  1. The Secretary of the Treasury shall administer the Network through the Office of Digital Payment Infrastructure (ODPI).

  2. An Advisory Board of nine members -- representing Treasury, the Federal Reserve System, the U.S. Postal Service, community financial institutions, consumer protection agencies, and public representatives -- shall advise on standards, security, and access.

  3. The Network shall operate under a utility charter, guaranteeing neutrality, interoperability, transparency, and non-discriminatory access.

(c) Digital-First Rollout.

  1. The APN shall launch as a digital-first network, accessible through web portal, mobile application, and automated-teller-machine interfaces.

  2. Physical access points shall be added progressively as resources permit and as population needs warrant, prioritizing the U.S. Postal Service infrastructure before new construction.

  3. Digital infrastructure shall reach full national coverage before new purpose-built physical facilities are required.

(d) Physical Infrastructure Strategy.

  1. Priority One: U.S. Postal Service Integration

(A) The Secretary of the Treasury shall enter into agreements with the United States Postal Service to establish APN access points at post offices nationwide, prioritizing Banking Deserts, rural communities, and low-income urban neighborhoods.

(B) USPS facilities designated as APN access points shall provide: cash deposit and withdrawal services; in-person account onboarding assistance; account access terminals; and multilingual support where community demographics warrant.

(C) The Secretary shall negotiate compensation arrangements with USPS that ensure cost recovery while maintaining service accessibility.

  1. Priority Two: Purpose-Built APN Service Centers

(A) Where USPS infrastructure is insufficient to meet access needs, the Secretary may establish APN service centers designed for high-traffic community access and minimal operating costs.

(B) The Secretary shall develop evaluation criteria for service center location and design, prioritizing co-location with existing public services (libraries, municipal offices, community centers).

(C) Service centers shall not compete with or duplicate existing bank branches; they serve only areas with demonstrated access gaps.

  1. Phased Buildout Timeline

(A) Phase 1 (Years 1-2): USPS partnership agreements and digital infrastructure deployment; (B) Phase 2 (Years 3-5): Targeted service center construction in remaining Banking Deserts where USPS coverage is insufficient; (C) Phase 3 (Years 5+): Ongoing maintenance, accessibility improvements, and coverage expansion as needed.

(e) Open-Network Participation.

  1. Any regulated financial institution, credit union, or approved fintech provider may serve as an APN Agent, offering front-end account services connected to the Treasury-operated APN backbone.

  2. The Treasury shall issue participation standards for cybersecurity, Know-Your-Customer compliance, and interoperability.

  3. Agents may collect a regulated service fee, negotiated and published annually by the Treasury and the Federal Reserve, comparable to utility-access fees under FedNow or ACH pricing schedules.

  4. No APN Agent may impose additional maintenance or overdraft fees on basic APN accounts.

(f) Scope of Service.

The APN shall:

  1. Provide digital payment accounts to every individual with a valid Social Security Number or Individual Taxpayer Identification Number;

  2. Support direct deposit of wages, benefits, refunds, and authorized public programs including the American Prosperity Stability Payment (APSP);

  3. Enable real-time person-to-person and business-to-business transfers;

  4. Maintain interoperability with private systems (ACH, FedNow, card networks) via open-API architecture; and

  5. Comply with all applicable anti-money-laundering and counter-terrorism-financing statutes.

SECTION 4A. ACCOUNTS FOR MINORS AND VULNERABLE POPULATIONS.

(a) Independent Youth Access.

  1. Age 16 and Older. Individuals aged 16 and older may independently open and manage Network Accounts through any APN Agent, subject to standard identity verification requirements established by the Treasury.

  2. Full Account Features. Youth aged 16 and older shall have access to all standard Network Account features, including direct deposit, peer-to-peer transfers, bill payment, and cash access through ATMs and Full-Service APN Agents.

  3. No Parental Consent Required. APN Agents shall not require parental or guardian consent for individuals aged 16 or older, except as specified in subsection (e) for enhanced security features.

(b) Working Minors Under Age 16.

  1. Eligibility. Minors under age 16 who receive documented wages, compensation, or other payments shall be eligible for Network Accounts upon: submission of proof of employment or income; parental or legal guardian consent; and designation of an APN Agent as account manager.

  2. Account Features and Oversight. Network Accounts for minors under age 16 shall include: joint visibility for parents or legal guardians (read-only access); independent access for the minor to view balance and transaction history; age-appropriate transaction limits; and direct deposit access from employers.

  3. Income Source Verification. APN Agents shall verify that income sources comply with applicable federal and state child labor laws.

  1. Emancipated Minors. Individuals under age 18 who provide proof of legal emancipation status under state law may open independent Network Accounts with full features, without parental or guardian consent.

  2. Foster Care Minors. Minors in foster care, regardless of age, may open independent Network Accounts without parental consent or notification, managed through designated APN Agents with specialized training.

  3. Homeless Youth. Minors experiencing homelessness may access Network Accounts through simplified identity verification processes, including alternative documentation and verification through social services agencies.

  4. Survivors of Domestic Abuse. Minors fleeing domestic violence or abuse may open independent Network Accounts through designated APN Agents without parental notification, with enhanced privacy protections.

(d) Privacy and Safety Protections.

  1. Confidential Account Access. For minors accessing accounts under subsection (c), APN Agents shall provide account services without requiring parental notification and ensure contact information remains confidential.

  2. Privacy Exception to Joint Visibility. Minors under age 16 may request termination of parental joint visibility upon credible evidence of financial abuse, coercion, or exploitation.

  3. Prohibition on Financial Abuse. No parent, guardian, employer, or other adult may coerce a minor into transferring funds or access account credentials through fraud or intimidation.

(e) Enhanced Security Features -- Voluntary Enrollment.

Minors and their parents or guardians may voluntarily elect enhanced security features, including multi-factor authentication, merchant category restrictions, spending limits, and parental notification for high-value transactions. Such features are entirely optional.

(f) Implementation Authority.

The Secretary of the Treasury, in consultation with the Department of Health and Human Services and state child welfare agencies, shall issue regulations within 18 months of enactment establishing age-appropriate procedures, training requirements, and privacy protections.

(g) Transition to Adult Accounts.

Upon reaching age 18, all Network Accounts established under this section shall automatically convert to standard adult accounts with full features, and all parental joint visibility or enhanced security features shall terminate unless the account holder independently elects to maintain such features.

SECTION 5. ACCOUNT ACCESS AND INCLUSION SERVICES.

(a) Nationwide Eligibility.

Every lawful U.S. resident is entitled to hold one primary Network Account through the APN. Eligibility shall not depend on income, employment status, or credit history.

(b) Account Features.

  1. No minimum-balance requirement.
  2. No maintenance or overdraft fees.
  3. Instant payment capability.
  4. Federal Deposit Insurance Corporation or equivalent federal insurance on deposits up to statutory limits.
  5. Optional debit-card and mobile-wallet functionality.
  6. Physical debit cards shall be offered to all account holders at no cost.

(c) Technology-Neutral Access Standards.

  1. Multi-Device Access Guarantee. Network Accounts shall be accessible through: smartphone applications; web browsers; feature phones via SMS and USSD protocols; ATM networks; physical debit cards; APN Agents; and U.S. Postal Service facilities and other designated public access points.

  2. No Smartphone Requirement. No person shall be denied access to core APN services due to lack of smartphone ownership, broadband connectivity, or computing device ownership.

  3. SMS/USSD Functionality. The Treasury shall ensure that all critical account functions are available via SMS commands on feature phones, including balance inquiry, transaction history, payment initiation, and account freeze capability.

  4. Public Internet Access Integration. The Treasury shall coordinate with public libraries, community centers, and other public internet access points to ensure availability of secure APN web portal access.

(d) Access Channels.

  1. Network Accounts may be accessed through any of the methods described in subsection (c).

  2. The Secretary of the Treasury shall ensure that at least 90 percent of the U.S. population has an in-person or digital access point within reasonable proximity.

(e) Tiered Security and Voluntary Safeguards.

  1. Baseline Security Requirements. All APN accounts shall implement password or PIN authentication, account activity notifications, transaction history logging, and immediate account freeze capability.

  2. Optional Enhanced Security. Account holders may voluntarily enable two-factor authentication, transaction limits, geographic restrictions, merchant category restrictions, and biometric authentication.

  3. Accessibility-Preserving Security. Security measures shall not create access barriers; enhanced security measures are recommended but never mandatory for basic account access.

  4. Fraud Protection Standards. Account holders shall not be liable for unauthorized transactions reported within 60 days of the transaction date.

(f) Cash Services and Physical Currency Access.

  1. Nationwide Cash Access Guarantee. Every Network Account holder shall have the right to deposit cash, withdraw cash, and convert digital balances to physical currency without fee.

  2. APN Agent Cash Service Requirements. Full-Service APN Agents shall provide direct cash handling services at physical locations. Digital APN Agents shall ensure fee-free cash access through ATM networks, retail partnerships, or fee reimbursement mechanisms.

  3. Geographic Coverage Requirements. The Treasury shall ensure that all APN Agents collectively provide sufficient cash access points to meet the 90 percent geographic proximity standard.

(g) Inclusion Safeguards.

  1. The Treasury shall establish an Unbanked Access Program providing in-person onboarding assistance, alternative identity verification standards, and financial-literacy education grants.

  2. No lawful resident shall be denied participation due to lack of digital access, documentation, or technical ability.

  3. Homeless individuals, minors in foster care, survivors of domestic abuse, and other vulnerable populations shall be eligible for independent Network Accounts with appropriate privacy protections.

  4. Public Access Point Registry. The Secretary shall establish and maintain a publicly accessible, searchable online registry of all APN access points.

SECTION 6. TREASURY AND FEDERAL RESERVE COORDINATION.

  1. The Federal Reserve System shall provide settlement and liquidity services to the APN Treasury Node.

  2. The Secretary of the Treasury and the Chair of the Federal Reserve shall jointly issue operating regulations within 12 months of enactment.

  3. The APN may utilize existing FedNow or successor real-time payment infrastructure for initial rollout.

SECTION 7. STATE AND LOCAL PARTNERSHIPS.

  1. State governments may elect to integrate tax refund, benefit, and payroll systems into the APN on a cost-reimbursement basis.

  2. Local governments may operate APN access points through libraries, municipal offices, or other public facilities.

  3. States may receive federal grants for outreach and digital inclusion.

SECTION 8. CAPITALIZATION, FUNDING, AND USER FEES.

(a) Establishment of the American Payment Network Fund.

  1. There is hereby established in the Treasury of the United States a fund to be known as the American Payment Network Fund (the "Fund").

  2. The Fund shall be available to the Secretary, without further appropriation, to carry out the purposes of this Act, including: initial infrastructure development and deployment; ongoing network operations and maintenance; APN Agent certification and oversight activities; USPS partnership implementation and compensation; public outreach, financial literacy, and inclusion programs; and repayment of borrowing under subsection (b).

(b) Initial Capitalization -- Treasury Borrowing Authority.

  1. Authorization. The Secretary of the Treasury is authorized to borrow from the Treasury General Fund such sums as are necessary for initial capitalization of the American Payment Network, not to exceed $15,000,000,000 (fifteen billion dollars) in aggregate principal.

  2. Terms. Borrowing under this subsection shall: bear interest at a rate determined by the Secretary of the Treasury, reflecting the Treasury's cost of borrowing for comparable maturities; be repaid, with interest, exclusively from revenues credited to the Fund under subsection (c); and be fully repaid within fifteen years of the date of initial borrowing.

  3. Drawdown Schedule. The Secretary shall draw upon borrowing authority under this subsection only as necessary to meet capitalization needs, and shall minimize interest costs by timing drawdowns to coincide with actual infrastructure expenditures.

  4. No Appropriations Dependency. Initial capitalization under this subsection shall not be subject to annual appropriations, continuing resolutions, or other Congressional budgetary actions following enactment of this Act.

  5. Borrowing Threshold Notifications. The Secretary shall notify the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives: within 30 days of cumulative borrowing exceeding $7,500,000,000 (fifty percent of authorized borrowing); within 30 days of cumulative borrowing exceeding $11,250,000,000 (seventy-five percent of authorized borrowing); and not less than 180 days before the Secretary anticipates exhausting borrowing authority if the full authorization will be insufficient.

  6. Cost Containment Assessment. Any notification under paragraph (5) shall include an assessment of cost containment measures undertaken or available.

(c) Ongoing Revenue Sources.

  1. The following revenues shall be credited to the Fund: network transaction fees charged to participating financial institutions; interest earnings on Treasury Node settlement balances and Fund balances; APN Agent certification fees; and cost-sharing payments from state and local governments.

  2. Revenues credited to the Fund shall be available without fiscal year limitation.

(d) Network Transaction Fees.

  1. The Secretary, in consultation with the Board of Governors of the Federal Reserve System, shall establish transaction fees charged to participating financial institutions for use of APN infrastructure.

  2. Transaction fees shall: be set at levels sufficient to fund ongoing network operations, maintenance, and improvement; provide for repayment of borrowing within the required timeframe; not exceed 0.05 percent (five basis points) of transaction value; and be reviewed and adjusted annually as necessary to maintain Fund solvency.

  3. The Secretary shall publish a fee schedule annually, with at least 90 days notice before any fee increases take effect.

(e) Repayment Priority and Fund Management.

  1. Repayment Priority. Until all borrowing is fully repaid with interest, the Secretary shall allocate Fund revenues in the following priority: first, to scheduled principal and interest payments; second, to ongoing network operations and maintenance; third, to network improvements and expansion; and fourth, to reserves for contingencies and future capital needs.

  2. Reserve Requirement. Following full repayment of initial borrowing, the Secretary shall maintain in the Fund a reserve equal to not less than six months of projected operating costs.

  3. Excess Revenues. If Fund balances exceed operating needs plus required reserves, the Secretary may reduce transaction fees, expand network services, or transfer excess funds to the Treasury General Fund.

(f) Prohibition on User Fees.

  1. No fees may be charged directly to individual account holders for: standard transactions between Network Accounts; account opening, maintenance, or closure; cash deposits or withdrawals within U.S. jurisdiction; balance inquiries or transaction history access; direct deposit enrollment or receipt; or standard customer service and dispute resolution.

  2. Fees may be assessed for: expedited or premium services beyond standard offerings; replacement of physical access cards beyond a reasonable annual limit; international transactions or cash access outside U.S. jurisdiction; and services requested by businesses or institutions beyond individual account features.

(g) Annual Reporting on Fund Status.

  1. The Secretary shall include in the annual report required under Section 10 a detailed accounting of Fund status, including: opening and closing Fund balances; revenues by source; expenditures by category; outstanding borrowing balance and scheduled repayment; reserve adequacy assessment; and projected revenues and expenditures for the following fiscal year.

  2. The Government Accountability Office shall include in its triennial audit an assessment of Fund management, fee adequacy, and long-term financial sustainability.

(h) Emergency Operational Authority.

  1. In the event of a government shutdown, appropriations lapse, or debt ceiling crisis affecting general Treasury operations, the American Payment Network shall continue operations using Fund balances without interruption.

  2. The Secretary is authorized to take such actions as necessary to maintain continuous network operations during any period of general government disruption, including temporary suspension of non-essential expenditures and prioritization of core payment processing functions.

SECTION 9. IMPLEMENTATION TIMELINE.

  1. Pilot programs shall begin within 18 months of enactment in at least five states representing diverse geographies and demographics.

  2. Nationwide digital rollout shall occur within five years of enactment.

  3. USPS partnership agreements shall be executed within 24 months of enactment, with initial USPS access points operational within 36 months.

  4. The Secretary of the Treasury shall submit annual progress reports to Congress detailing implementation status, coverage metrics, and any obstacles to achieving nationwide access.

SECTION 10. OVERSIGHT AND REPORTING.

  1. The Government Accountability Office shall audit the APN every three years.

  2. The Treasury Inspector General shall conduct periodic cybersecurity and privacy reviews.

  3. Public quarterly reports shall disclose: account uptake and activation rates; transaction volume and types; average transfer cost; service availability metrics by access channel; cash access point distribution and coverage; feature phone and SMS/USSD usage statistics; security incidents and fraud prevention effectiveness; and progress toward nationwide access goals.

SECTION 11. SEVERABILITY.

If any provision of this Act is held invalid, the remainder shall remain in effect.

Prepared by: Albert E. Ramos Director, The American Policy Architecture Institute

Contact: info@policyarchitecture.org Website: www.policyarchitecture.org