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"The United States Postal Service (USPS) has taken the most dramatic step in a half-century to re-establish a postal banking system in America. In four pilot cities, customers can now cash payroll or business checks of up to $500 at post office locations, and have the money put onto a single-use gift card. It's the most far-reaching executive action that the Biden administration has taken since Inauguration Day."

"Should the U.S. Postal Service get into the banking business? U.S. Senators Kirsten Gillibrand (D-N.Y.) and Bernie Sanders believe it should, and have introduced the Postal Banking Act. The idea is that with 8.4 million unbanked American households, banks are doing a bad job of serving low-income people. If the U.S. Postal Service (USPS) began offering banking services, it may be able to reach these people."

"Before addressing how the Postal Service might be justifying its authority to launch the pilot program, it's helpful to consider what exactly is taking place. The pilot program only operates in four locations across four cities, and it offers a rather roundabout form of check cashing. Instead of receiving cash directly, customers can exchange a business or payroll check up to $500 for a single‐​use gift card after paying a flat fee of $5.95. This design may appear odd, but it was chosen quite carefully. Instead of "cashing checks," the Postal Service is "selling gift cards.""

"Originally, $6,000,000 was allocated for a new postal banking pilot program despite last year's test of the program only reaching 6 people. The spending was spelled out in an appropriations bill that called for a new pilot program that would feature surcharge‐​free ATMs, wire transfers, check cashing, and bill payment services at five rural and five non‐​rural United States Postal Service (USPS) locations. In other words, it would have doubled the footprint of last year's failed attempt to introduce postal banking."