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THE AMERICAN PAYMENT NETWORK ACT (APNA)

Establishing Nationwide Digital Payment Infrastructure for Every American

Revision 3.7

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: (i) Cash deposit and withdrawal services; (ii) In-person account onboarding assistance; (iii) Account access terminals; (iv) 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) and considering Banking Desert determinations, cost efficiency, and community needs.

(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:
  2. (A) Submission of proof of employment or income (including W-2 forms, 1099 forms, pay stubs, employer verification letters, or IRS filing documentation);
  3. (B) Parental or legal guardian consent; and

  4. (C) Designation of an APN Agent as account manager.

  5. Account Features and Oversight. Network Accounts for minors under age 16 shall include:

  6. (A) Joint Visibility: Parents or legal guardians shall have read-only access to view account balances, transaction history, and account activity unless a privacy exception applies under subsection (c);
  7. (B) Independent Access for Minor: The minor shall have independent ability to view balance, transaction history, and account statements through all standard access channels;
  8. (C) Transaction Limits: The Treasury shall establish age-appropriate withdrawal and transfer limits, which may be adjusted by parental or guardian authorization or through APN Agent discretion based on demonstrated financial responsibility; and

  9. (D) Direct Deposit Access: All Network Accounts for working minors shall support direct deposit from employers and payment of wages or compensation.

  10. Income Source Verification. APN Agents shall verify that income sources comply with applicable federal and state child labor laws and may refuse to process payments that appear to violate such 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 in:

  3. (A) Youth financial services and capability-building;
  4. (B) Trauma-informed practices; and

  5. (C) Coordination with child welfare systems and case management.

  6. Homeless Youth. Minors experiencing homelessness may access Network Accounts through simplified identity verification processes established by the Treasury, including:

  7. (A) Alternative documentation accepted by community-based APN Agents;
  8. (B) Verification through social services agencies, shelters, or educational institutions; and

  9. (C) Mailing address alternatives, including general delivery, designated social service agency addresses, or digital-only account access.

  10. 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 as specified in subsection (d).

(d) Privacy and Safety Protections.

  1. Confidential Account Access. For minors accessing accounts under subsection (c)(2), (c)(3), or (c)(4), APN Agents shall:
  2. (A) Provide account services without requiring parental or guardian notification;
  3. (B) Ensure that mailing addresses, email addresses, phone numbers, and other contact information remain confidential and are not disclosed to parents, guardians, or other third parties without the minor's explicit written consent;
  4. (C) Coordinate with appropriate social services agencies, child welfare systems, or domestic violence service providers only as authorized in writing by the minor or as required by court order; and

  5. (D) Flag accounts to prevent inadvertent disclosure through automatic notifications or family-linked services.

  6. Privacy Exception to Joint Visibility. Minors under age 16 with accounts established under subsection (b) may request termination of parental joint visibility if:

  7. (A) The minor provides credible evidence of financial abuse, coercion, or exploitation by the parent or guardian;
  8. (B) A court order, child protective services intervention, or documented safety plan supports independent account access; or

  9. (C) The APN Agent, in consultation with appropriate social services, determines that continued parental visibility creates a safety risk.

  10. Prohibition on Financial Abuse. No parent, guardian, employer, or other adult may:

  11. (A) Coerce a minor into transferring funds from their Network Account as a condition of continued employment, housing, or family support;
  12. (B) Access a minor's account credentials through fraud, manipulation, or intimidation; or
  13. (C) Require a minor to provide account access beyond the joint visibility provisions of subsection (b)(2)(A). APN Agents shall report suspected violations to appropriate state child welfare authorities and may freeze accounts pending investigation.

(e) Enhanced Security Features -- Voluntary Enrollment.

  1. Optional Enhanced Security. Minors and their parents or guardians may voluntarily elect enhanced security features, including:
  2. (A) Multi-factor authentication for transactions above specified thresholds;
  3. (B) Merchant category restrictions (e.g., gambling, age-restricted purchases);
  4. (C) Daily or weekly spending limits beyond baseline protections;
  5. (D) Savings lock features preventing withdrawal for specified periods; or

  6. (E) Parental notification for transactions above specified amounts.

  7. Voluntary Nature. Enhanced security features under this subsection shall be entirely optional and may not be required as a condition of account opening or maintenance. Minors aged 16 and older may independently elect or terminate enhanced features without parental consent.

(f) Implementation Authority and Regulatory Framework.

  1. Treasury Regulations. The Secretary of the Treasury, in consultation with the Department of Health and Human Services, the Administration for Children and Families, and state child welfare agencies, shall issue regulations within 18 months of enactment establishing:
  2. (A) Age-appropriate identity verification procedures, including alternative documentation for vulnerable populations;
  3. (B) Training and certification requirements for APN Agents serving minors and vulnerable youth, including trauma-informed care and mandatory reporting obligations;
  4. (C) Coordination protocols with child protective services, foster care systems, homeless youth services, and domestic violence programs;
  5. (D) Specific transaction and withdrawal limits for accounts under subsection (b), with flexibility for adjustment based on demonstrated financial responsibility or parental authorization;
  6. (E) Privacy protection standards ensuring confidentiality for accounts under subsection (c);
  7. (F) Model account agreements, disclosures, and educational materials appropriate for minor account holders; and

  8. (G) Reporting requirements for APN Agents serving minors, including data on account uptake, usage patterns, and any suspected financial abuse or exploitation.

  9. Age Tier Framework. Treasury regulations shall establish age-tiered account features, restrictions, and protections for minors in the following categories:

  10. (A) Under age 13: Custodial accounts only, if established at all, with strict parental control and limited features;
  11. (B) Ages 13-15: Working minor accounts under subsection (b) with parental consent and joint visibility, or independent accounts under subsection (c) for special populations;
  12. (C) Ages 16-17: Full independent access under subsection (a), with optional enhanced security under subsection (e); and

  13. (D) Age 18 and older: Standard adult accounts with no restrictions.

  14. State Law Coordination. Nothing in this section shall preempt state laws providing greater protections or access rights for minors, and the Treasury shall coordinate with state banking regulators and child welfare agencies to ensure compliance with applicable state requirements.

  15. Review and Adjustment. The Treasury shall conduct a biennial review of minor account regulations and protections, soliciting input from youth advocacy organizations, child welfare experts, financial institutions, and youth account holders themselves, and shall adjust regulations as necessary to ensure appropriate protections while maximizing financial inclusion and capability-building.

(g) No Discrimination or Denial of Service.

  1. Nationwide Access Requirement. APN Agents shall not deny Network Account access to any minor who meets the eligibility requirements of this section based on income level, housing status, geographic location, or other discriminatory factors.

  2. Fee Prohibition. Consistent with Section 8 of this Act, no fees may be charged to minor account holders for standard account maintenance, transactions, cash deposits, cash withdrawals, or any services provided under this section.

(h) Parental Rights and Responsibilities.

Nothing in this section shall be construed to: 1. Diminish parental rights to provide financial education, guidance, and support to their minor children; 2. Prevent parents and guardians from establishing private savings accounts, investment accounts, or other financial products for their children outside the APN system; or 3. Create any duty or obligation for parents to monitor or supervise their children's Network Account activity beyond the joint visibility provided in subsection (b)(2)(A).

(i) 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 no restrictions, 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 account creation, whether established in-person, online, or by mail. Cards shall be provided at no cost.

(c) Technology-Neutral Access Standards.

  1. Multi-Device Access Guarantee The APN shall operate on a technology-neutral basis. Network Accounts shall be accessible through: (A) Smartphone applications (iOS, Android); (B) Web browsers on any internet-connected device; (C) Feature phones via SMS (Short Message Service) and USSD (Unstructured Supplementary Service Data) protocols; (D) ATM networks integrated with the APN; (E) Physical debit cards at point-of-sale terminals and ATMs; (F) APN Agents including banks, credit unions, and approved fintech providers; and (G) 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 (A) The Treasury shall ensure that all critical account functions are available via SMS commands on feature phones, including at minimum: (i) Balance inquiry; (ii) Recent transaction history (at least the most recent 5-10 transactions); (iii) Payment initiation to another APN account with confirmation; (iv) Account freeze or lock capability.

(B) The Secretary shall evaluate USSD protocols as a cost-free alternative or supplement to SMS access and may prioritize USSD implementation where technically feasible.

(C) Account holders may submit SMS message costs incurred through APN account management for reimbursement. The Secretary shall establish streamlined reimbursement procedures; if administrative burden is determined to exceed program benefit, the Secretary may explore alternative cost-mitigation mechanisms.

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

(B) Such coordination may include provision of technical guidance, security protocols, and user education materials.

(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, considering geographic distribution, transportation access, and population density.

(e) Tiered Security and Voluntary Safeguards.

  1. Baseline Security Requirements All APN accounts shall implement: (A) Password or personal identification number (PIN) authentication; (B) Account activity notifications via email or SMS; (C) Transaction history logging; (D) Immediate account freeze capability accessible via phone, web, or SMS.

  2. Optional Enhanced Security Account holders may voluntarily enable: (A) Two-factor authentication via email or SMS; (B) Transaction amount limits (daily, weekly, or monthly); (C) Geographic restrictions on account usage; (D) Merchant category restrictions; (E) Biometric authentication where device-capable.

  3. Accessibility-Preserving Security Security measures shall not create access barriers. The Treasury shall ensure: (A) Email-based authentication is accessible via public library computers and other public internet access points; (B) SMS-based authentication works on feature phones; (C) Password reset procedures are available via multiple pathways including phone, mail, and in-person service; (D) Two-factor authentication and other enhanced security measures are recommended but never mandatory for basic account access.

  4. Fraud Protection Standards (A) The APN shall implement real-time fraud monitoring and alert systems.

(B) Account holders shall not be liable for unauthorized transactions reported within 60 days of the transaction date.

(C) Dispute resolution processes shall be accessible via phone, mail, web, and in-person channels.

(D) The Secretary shall establish clear procedures for fraud investigation, temporary credit provision during disputes, and final resolution timelines.

(f) Cash Services and Physical Currency Access.

  1. Nationwide Cash Access Guarantee Every Network Account holder shall have the right to: (A) Deposit cash without fee; (B) Withdraw cash without fee; (C) Convert digital balances to physical currency without fee.

  2. APN Agent Cash Service Requirements

(A) Full-Service APN Agents (banks with physical branches, credit unions, and designated USPS facilities) shall provide direct cash handling services including deposits and withdrawals at their physical locations.

(B) Digital APN Agents (online-only banks, fintech providers, and other primarily digital financial service providers) shall ensure their account holders have fee-free cash access through one or more of the following mechanisms: (i) Participation in nationwide ATM networks with no fees assessed to account holders for standard deposits or withdrawals; (ii) Partnership agreements with Full-Service APN Agents, retail establishments, or other entities for in-person cash services; (iii) Automatic reimbursement of ATM fees incurred by account holders, as described in subsection (f)(4); or (iv) Other mechanisms approved by the Treasury that guarantee equivalent fee-free cash access meeting the geographic coverage standards of subsection (f)(5).

(C) The Treasury shall maintain a publicly accessible registry of cash access points for each APN Agent, organized by institution and geographic location, ensuring compliance with coverage standards.

  1. ATM Network Integration (A) The Treasury shall negotiate agreements with national and regional ATM networks (including but not limited to Allpoint, MoneyPass, and similar networks) to facilitate fee-free access for APN account holders.

(B) Digital APN Agents may satisfy cash access requirements through documented participation in approved ATM networks, provided: (i) No fees are charged to account holders for standard deposits or withdrawals; (ii) Network coverage meets or exceeds minimum accessibility standards established by the Secretary; and (iii) Real-time ATM availability and outage data is reported to the Treasury for public disclosure.

  1. ATM Fee Reimbursement Alternative (A) Digital APN Agents may satisfy cash access requirements through automatic reimbursement of ATM fees to account holders.

(B) Such reimbursement shall be automatic unless the account holder opts out.

(C) Transaction data used solely for reimbursement calculation shall not be retained beyond the period necessary for payment processing and shall be subject to strict privacy protections.

(D) The Secretary shall establish standards for reimbursement timing, ensuring that fees are reimbursed within a reasonable period not to exceed 5 business days.

  1. Retail Cash Handling Partnerships (A) Digital APN Agents may partner with retail establishments (including but not limited to pharmacy chains, grocery stores, and convenience stores) to provide fee-free cash deposit and withdrawal services to account holders.

(B) The Secretary shall establish standards for retail partnerships including security protocols, operating hours, transaction limits, and consumer protection requirements.

(C) Retail partnership arrangements must meet geographic coverage standards and provide reasonable access comparable to ATM network coverage.

  1. Geographic Coverage Requirements The Treasury shall ensure that, collectively, all APN Agents provide sufficient cash access points to meet the 90 percent geographic proximity standard established in subsection (d)(2), considering: (A) Full-Service Agent physical locations; (B) ATM network coverage and density; (C) Retail partnership locations; (D) Population density and public transportation access; (E) Special needs of rural, elderly, and underserved communities.

  2. Foreign Transaction Fees Fees may be assessed for ATM usage or cash services outside U.S. jurisdiction (all 50 states, U.S. territories including Puerto Rico, U.S. Virgin Islands, American Samoa, Guam, and Northern Mariana Islands, and the District of Columbia), subject to Treasury regulation and international reciprocity agreements.

(g) Inclusion Safeguards.

  1. The Treasury shall establish an Unbanked Access Program providing: (A) In-person onboarding assistance through APN Agents, USPS facilities, and designated public access points; (B) Alternative identity verification standards for individuals lacking conventional documentation; and (C) Financial-literacy and digital-access education grants for community organizations.

  2. The APN shall support alternative access methods for users without smartphones or broadband connectivity, as detailed in subsection (c).

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

  4. 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 and streamlined verification procedures, as further detailed in Section 4A.

  5. Public Access Point Registry (A) The Secretary shall establish and maintain a publicly accessible, searchable online registry of all APN access points, including: (i) Full-Service Agent locations; (ii) Digital Agent ATM network coverage; (iii) Retail partnership locations; (iv) USPS APN service locations; (v) Purpose-built APN service centers.

(B) The Secretary shall coordinate with major mapping service providers (including but not limited to Google Maps, Apple Maps, and other widely used navigation platforms) to ensure accurate, up-to-date location data is available to the public through commonly used digital mapping tools.

(C) The registry shall include information on services available at each location (cash deposits, withdrawals, in-person assistance, multilingual support) and real-time operational status where feasible.

(h) Reporting and Evaluation.

  1. The Treasury shall publish annual reports detailing: (A) Account uptake by income and geography; (B) Rates of unbanked participation; (C) Service availability metrics, including access point distribution and coverage gaps; (D) Cash access point availability by agent type and geographic region; (E) SMS/USSD usage statistics and feature phone access rates; and (F) Efficacy of inclusion programs and vulnerable population outreach.

  2. The Government Accountability Office shall audit inclusion outcomes, security measures, and fraud prevention effectiveness every three years.

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:

  3. (A) Initial infrastructure development and deployment;
  4. (B) Ongoing network operations and maintenance;
  5. (C) APN Agent certification and oversight activities;
  6. (D) USPS partnership implementation and compensation;
  7. (E) Public outreach, financial literacy, and inclusion programs; and
  8. (F) 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:

  3. (A) Bear interest at a rate determined by the Secretary of the Treasury, reflecting the Treasury's cost of borrowing for comparable maturities;
  4. (B) Be repaid, with interest, exclusively from revenues credited to the Fund under subsection (c); and

  5. (C) Be fully repaid within fifteen years of the date of initial borrowing.

  6. 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.

  7. 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.

  8. 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:

  9. (A) Within 30 days of cumulative borrowing under this subsection exceeding $7,500,000,000 (fifty percent of authorized borrowing), including a report on expenditures to date, revised cost projections, and explanation of any variance from original estimates;
  10. (B) Within 30 days of cumulative borrowing exceeding $11,250,000,000 (seventy-five percent of authorized borrowing), including updated cost projections, assessment of whether additional borrowing authority may be required, and if so, a detailed explanation of circumstances necessitating additional capitalization; and

  11. (C) Not less than 180 days before the Secretary anticipates exhausting borrowing authority, if the Secretary determines that full utilization of the $15,000,000,000 authorization will be insufficient to complete network deployment.

  12. Cost Containment Assessment. Any notification under paragraph (5)(B) or (5)(C) shall include an assessment of cost containment measures undertaken or available, including scope adjustments, phased deployment alternatives, and partnership opportunities that could reduce federal capitalization requirements.

(c) Ongoing Revenue Sources.

  1. The following revenues shall be credited to the Fund:
  2. (A) Network transaction fees charged to participating financial institutions under subsection (d);
  3. (B) Interest earnings on Treasury Node settlement balances and Fund balances;
  4. (C) APN Agent certification fees established by the Secretary; and

  5. (D) Cost-sharing payments from state and local governments electing integration under Section 7.

  6. 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:

  3. (A) Be set at levels sufficient to fund ongoing network operations, maintenance, and improvement;
  4. (B) Provide for repayment of borrowing under subsection (b) within the required timeframe;
  5. (C) Not exceed 0.05 percent (five basis points) of transaction value; and

  6. (D) Be reviewed and adjusted annually as necessary to maintain Fund solvency.

  7. 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 under subsection (b) is fully repaid with interest, the Secretary shall allocate Fund revenues in the following priority:
  2. (A) First, to scheduled principal and interest payments on outstanding borrowing;
  3. (B) Second, to ongoing network operations and maintenance;
  4. (C) Third, to network improvements and expansion; and

  5. (D) Fourth, to reserves for contingencies and future capital needs.

  6. 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.

  7. Excess Revenues. If Fund balances exceed operating needs plus required reserves, the Secretary may:

  8. (A) Reduce transaction fees under subsection (d);
  9. (B) Expand network services or access points; or
  10. (C) 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:
  2. (A) Standard transactions between Network Accounts;
  3. (B) Account opening, maintenance, or closure;
  4. (C) Cash deposits within U.S. jurisdiction;
  5. (D) Cash withdrawals within U.S. jurisdiction;
  6. (E) Balance inquiries or transaction history access;
  7. (F) Direct deposit enrollment or receipt; or

  8. (G) Standard customer service and dispute resolution.

  9. Fees may be assessed for:

  10. (A) Expedited or premium services beyond standard offerings, if any are established;
  11. (B) Replacement of physical access cards beyond a reasonable annual limit established by the Secretary;
  12. (C) International transactions or cash access outside U.S. jurisdiction, subject to Treasury regulation; and
  13. (D) 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:
  2. (A) Opening and closing Fund balances;
  3. (B) Revenues by source;
  4. (C) Expenditures by category;
  5. (D) Outstanding borrowing balance and scheduled repayment;
  6. (E) Reserve adequacy assessment; and

  7. (F) Projected revenues and expenditures for the following fiscal year.

  8. The Government Accountability Office shall include in its triennial audit under Section 10 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: (A) Account uptake and activation rates; (B) Transaction volume and types; (C) Average transfer cost; (D) Service availability metrics by access channel; (E) Cash access point distribution and coverage; (F) Feature phone and SMS/USSD usage statistics; (G) Security incidents and fraud prevention effectiveness; and (H) Progress toward nationwide access goals.

Section 11. Severability.

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

Appendix A -- Implementation Questions for Policy Development

A. Governance and Long-Term Structure

  1. Should the APN remain fully within Treasury or evolve into an independent public corporation similar to FDIC or FHFA?
  2. What mechanisms should exist for Congressional oversight without political interference in day-to-day operations?

B. Privacy, Security, and Data Management

  1. What statutory limits on data sharing between Treasury, IRS, and participating institutions are needed to preserve civil liberties?
  2. Should cybersecurity standards mirror FedNow protocols, adopt bespoke federal-cloud architecture, or exceed current industry standards?
  3. What audit trail and data retention requirements balance fraud prevention with privacy protection?
  4. How should the APN handle law enforcement data requests? What judicial oversight is required?

C. Physical Infrastructure and USPS Integration

  1. What specific compensation structure for USPS ensures sustainability without imposing excessive costs on the APN system?
  2. Should USPS employees receive specialized training and compensation for APN services, or should APN-specific staff be stationed at postal facilities?
  3. What minimum service standards (hours, staffing, language access) should apply to USPS-based APN access points?

D. Access Technology and Feature Phones

  1. How should SMS reimbursement be administered to minimize burden while ensuring fairness? Should there be caps or automatic approval thresholds?
  2. Should USSD be prioritized over SMS given its cost-free nature, and what technical barriers exist to USSD implementation in the U.S. market?
  3. What happens to feature phone access if carriers phase out 3G networks? What contingency plans are needed?

E. Cash Access and Agent Networks

  1. What minimum ATM network size or coverage standards should Digital APN Agents meet (e.g., "40,000+ ATMs nationwide")?
  2. Should automatic ATM fee reimbursement by Digital Agents be subject to transaction limits or caps to prevent abuse?
  3. What standards should govern retail cash-handling partnerships (security, liability, training, insurance)?
  4. How should disputes between account holders and retail partners or ATMs be resolved?

F. International and Cross-Border

  1. Whether and when to enable remittance corridors to Mexico, Central America, Caribbean, and other regions within APN infrastructure?
  2. How should foreign transaction fees be structured to balance cost recovery with accessibility for diaspora populations?
  3. Should APN accounts be available to non-residents (e.g., workers with ITINs, students, temporary visa holders)?

G. Interoperability and Private Sector Coordination

  1. Should private payment networks be required by statute to connect to APN, or only incentivized?
  2. What happens if major card networks (Visa, Mastercard) refuse interoperability? What enforcement mechanisms exist?
  3. How should APN coordinate with emerging payment technologies (cryptocurrency exchanges, stablecoins, central bank digital currencies)?

H. State Integration and Revenue Systems

  1. Could APN infrastructure support state-level sales tax collection or rebates at point of sale?
  2. Should states be allowed to add additional features or services to APN accounts for their residents?
  3. What happens if states want to operate parallel payment systems rather than integrate with APN?

I. Financial Inclusion Metrics and Success Criteria

  1. How should success be measured beyond simple account numbers (usage frequency, savings behavior, credit access improvement)?
  2. What benchmarks indicate that Banking Deserts have been adequately served?
  3. Should there be penalties or incentives tied to achieving specific inclusion targets by specific dates?

J. Emergency Operations and Resilience

  1. [Resolved in Section 8(h)] Emergency operational authority established. The American Payment Network Fund provides dedicated funding that continues operations during government shutdowns, appropriations lapses, or debt ceiling crises without interruption.
  2. What redundancy and backup systems are required to ensure continuous operation?
  3. [Resolved in Section 8(h)] Emergency authority to maintain operations during appropriations lapses established through Section 8(h), which authorizes the Secretary to take necessary actions to maintain continuous network operations during any period of general government disruption.

K. Youth and Special Populations

  1. [Resolved in Section 4A] Comprehensive framework for minor accounts established, including independent access for ages 16+, working minors under 16 with parental oversight, and special provisions for foster youth, homeless youth, and abuse survivors.
  2. How should APN serve individuals with cognitive disabilities, guardianship situations, or power-of-attorney arrangements?
  3. What additional protections are needed for elderly populations vulnerable to scams and fraud?

L. Future Evolution and Technology Adaptation

  1. How should APN governance structure enable rapid adaptation to new payment technologies without requiring new legislation?
  2. What process should exist for adding new access channels or services beyond those specified in the initial Act?
  3. Should there be a periodic review (e.g., every 10 years) to assess whether APN should be sunset, expanded, or restructured?

Revision History

Revision 3.7 (Current) - Converted Section-level headings from ALL CAPS to Title Case per APAI Document Production Standards Rev 1.6 Section 2.2 heading conventions (ALL CAPS reserved for Title-level headings) - Converted Appendix A heading from ALL CAPS to Title Case for consistency - No changes to statutory provisions, policy substance, or appendix content

Revision 3.6 - Aligned document structure to APAI Document Production Standards Rev 1.5 - Replaced table-format revision history at top of document with standard format at end per Section 1.3 - Replaced "Model Legislation Draft" header with descriptive subtitle per Section 2.2 - Replaced "End of Draft" closing with standard footer attribution - No changes to policy substance, statutory provisions, or appendix content

Revision 3.5 - Replaced Section 8 with self-capitalizing infrastructure model: established Treasury borrowing authority ($15B cap) and American Payment Network Fund to eliminate appropriations dependency - Added borrowing threshold notifications for Congressional oversight of potential cost overruns - Resolved Appendix A Questions 29 and 31: emergency operational authority (Section 8(h)) addresses government shutdown operations and appropriations lapse continuity

Revision 3.4 - Updated companion legislation terminology: changed "American Prosperity Dividend" to "American Prosperity Stability Payment (APSP)" to align with APSA Rev 3.0 terminology overhaul

Revision 3.3 - Encoding quality control corrections: fixed mojibake artifacts throughout document - Completed style compliance: replaced remaining "universal" terminology with "nationwide" in subsection headers and text - Updated Congressional Finding on unbanked population: incorporated 2023 FDIC survey data (5.6 million unbanked + 19 million underbanked households)

Revision 3.2 - Replaced "universal" terminology with "nationwide" throughout all sections for political clarity and coalition-building

Revision 3.1 - Added Section 4A on Accounts for Minors and Vulnerable Populations: comprehensive framework for youth access (16+, working minors under 16, foster youth, homeless youth); coordinates with AEPA Section 7

Revision 3.0 - Changed to American Payment Network (singular): cleaner branding following "internet" principle - Added public access point registry requirement for transparency and discoverability - Prioritized USPS-first physical infrastructure strategy leveraging existing postal infrastructure - Added voluntary security framework with tiered safeguards balancing fraud protection with accessibility - Established technology-neutral access principle guaranteeing multiple access pathways - Elevated and expanded feature phone access via SMS/USSD ensuring no smartphone requirement - Added tiered cash services model (Full-Service vs Digital Agents) enabling online-only participation - Reframed APN as digital-first utility network prioritizing efficiency and scalability - Added APN Agent framework for existing institutions to serve as access points - Introduced regulated service-fee model mirroring FedNow/ACH pricing structures - Added Inclusion Safeguards section and dual access paths (digital and in-person) - Clarified Treasury/Fed governance roles and simplified physical rollout sequence

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Prepared by Albert Ramos for The American Policy Architecture Institute