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Bill

S 8225

Prohibits fees for any service rendered through a bank relating to the use of an electronic benefit transfer card issued by the state or certain departments or agencies thereof

2025 Regular Session Introduced by Brad Hoylman-Sigal and 1 co-sponsor

Bill S 8225 prohibits banks from charging fees for services related to electronic benefit transfer cards, ensuring low-income families access benefits without extra costs.

REFERRED TO BANKS
0
WeVote Research Nonpartisan
Bill Summary · S 8225

Summary of Bill S 8225

Bill Overview

  • Bill Number: S 8225
  • Title: Prohibits fees for any service rendered through a bank relating to the use of an electronic benefit transfer card issued by the state or certain departments or agencies thereof
  • Status: Referred to Banks Committee
  • Introduced On: May 23, 2025
  • Classification: Bill

Purpose and Intent

The primary purpose of Bill S 8225 is to eliminate any fees associated with services provided by banks when using electronic benefit transfer (EBT) cards. EBT cards are commonly used to distribute government benefits, such as food assistance and cash benefits, to eligible individuals and families. This legislation aims to ensure that recipients can access their benefits without incurring additional costs, thereby promoting financial equity and accessibility.

Key Provisions

  • Fee Prohibition: The bill explicitly prohibits banks from charging fees for any services rendered in connection with the use of EBT cards issued by the state or designated departments and agencies.
  • Scope of Services: While the bill does not specify the exact services covered, it generally includes any banking services that facilitate the use of EBT cards, such as withdrawals, balance inquiries, and transactions.

Impact

  • Beneficiaries: The legislation is expected to directly benefit low-income individuals and families who rely on EBT cards for essential services. By removing fees, recipients will have greater access to their benefits without the burden of additional financial charges.
  • Banks and Financial Institutions: Banks that currently charge fees for EBT-related services will need to adjust their practices to comply with the new law. This could lead to changes in their service offerings and revenue models.

Procedural Aspects

  • Legislative Action: As of May 23, 2025, the bill has been referred to the Banks Committee for further consideration. The timeline for subsequent actions, including hearings or votes, has not yet been established.

Related Legislation

Bill S 8225 is related to several prior-session bills, including:
- S 8616
- S 446
- S 2601

These related bills may provide context or additional legislative history regarding the regulation of fees associated with EBT cards.

Conclusion

Bill S 8225 represents a significant step towards ensuring that individuals who rely on government assistance can access their benefits without incurring fees. By prohibiting such charges, the bill aims to enhance the financial well-being of vulnerable populations and promote equitable access to essential services. Further developments will be monitored as the bill progresses through the legislative process.

Compiled from official sources — confirm details with the bill’s official record.

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