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US federal disbursements for disaster relief start to flow via FedNow

September 19, 2025 //  by Finnovate

US government ‘disaster relief’ payments are starting to flow to individuals and businesses via Federal Reserve-developed instant payments platform FedNow in a move being promoted as a ‘game-changer’.   With effect from this month (September), FedNow participants ‘may start receiving a new type of government payment for their account holders — instant disaster relief disbursements’, according to an announcement. The move is described as the ‘latest example of Treasury’s use of the FedNow Service for certain government payments.’ The first financial institution to receive an instant disaster relief payment was CB&S Bank, a full-service community bank. Federal Reserve Financial Services chief payments executive Mark Gould said, “The ability to receive these types of federal agency disbursements instantly via the FedNow Service will be a game-changer for individuals and businesses, especially in disaster or emergency situations where speed really matters to the recipient,.”  “It will also be a key differentiator for financial institutions that enable access to these funds through their participation in the FedNow Service,” he added.

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Category: Essential Guidance

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