Treasury Department Considers SAFE-T Proposal

Washington, D.C.—The U.S. Treasury Department is considering a policy to create an opt-out account, into which federal income tax refunds would be direct deposited.  In an interview for an article today in the Wall Street Journal, Michael Barr, Assistant Secretary for the Treasury Department described the proposal, which was developed by Melissa Koide at the New America Foundation to increase access to banking services and jumpstart savings by millions of lower income tax filers.  

"Today, families are struggling to meet daily expenses and save for unexpected emergencies, such as a job loss," says Melissa Koide, deputy director of New America Foundation's Asset Building Program. "This game changing policy would instantly "bank" millions of working Americans who currently lack access to reasonably priced transaction and savings accounts."  

If created, SAFE-T accounts would benefit as many as 60 million tax filers, who could receive the low or no cost account, which translates into as much as $70 billion in tax refunds that would be deposited at financial institutions. 

Melissa Koide is available for comment on the SAFE-T proposal.

Please contact Kate Brown with requests at 202-596-3365 or brown@newamerica.net.

About the New America Foundation
The New America Foundation is a nonprofit, nonpartisan public policy institute that invests in new thinkers and new ideas to address the next generation of challenges facing the United States. 

Learn More About: Melissa Koide
Related Programs: Asset Building Program, Financial Services and Education Project
Topics: Ownership & Assets