How much federal money your state gets

Federal funding makes up 40% or more of overall revenue in nearly half of U.S. states, per the latest available data.

Why it matters: The Trump administration and congressional Republicans are looking for ways to cut federal spending, and some states may be more vulnerable than others to major decreases.

By the numbers: As of 2022, federal funding accounts for the greatest shares of state revenue in Louisiana (50.5%), Alaska (50.2%) and Arizona (49.7%).

It accounts for the smallest shares in North Dakota (22.2%), Hawai'i (25.9%) and Virginia (27.6%).

That's according to a Pew Charitable Trusts analysis of the latest available census data.

Stunning stat: Total federal grants exceeded $1 trillion in 2022 for the first time, per Pew.

Read more at AXIOS

Here’s the average tax refund so far, according to the IRS

The average tax refund for 2025 is higher than at the same point in 2024, according to the latest statistics from the Internal Revenue Service.

The average tax refund amount through March 28 is $3,170, a 4% increase from last year’s average of $3,050. The IRS has issued 61.6 million refunds compared to 60.9 million at the same point last year.

Overall, the IRS has received slightly fewer tax returns this year, 89.6 million compared to 90.3 million. It has processed 88.5 million, a decline of 0.3% from last year.

The total amount of refunds is 61.6 million, a 1.2% increase from 2024, with $195 billion in refunds issued. The vast majority of the refunds – 59 million – were issued via direct deposit. According to the IRS, it has issued $191 billion in refunds via direct deposit with the average amount of $3,236.

Read more at AL.COM

Have a tax law question?

Our #IRS Interactive Tax Assistant has answers.

Watch this short video to learn more:

https://youtu.be/y6HkaBkdKdU

Searching for your #IRS tax refund status? The “Where’s My Refund?” tool can tell you if your return has been received and when you can expect to get your refund. For more info: www.irs.gov/refunds

Jose L. Santiago

Public Affairs Specialist

Tax Outreach, Partnership and Education

Email: jose.l.santiago@irs.gov

Feds to collect personal info of people exchanging, sending money from U.S.-Mexico border

South Texas residents: If you plan to send money to relatives abroad or cash your paycheck, don't be surprised when you're now asked to give your social security number.

Beginning Monday, the Trump administration will require money exchanges like Casa de Cambio and Western Union along the U.S.-Mexico border to document every cash transaction between $200 and $10,000. That means customers will have to provide their social security number or other identification info. Someone who's not a U.S. citizen or resident must show a passport, green card or other official document.

The policy change is intended to combat the illicit activities, such as money laundering, of drug cartels and other criminals, according to the announcement from the U.S. Department of Treasury's Financial Crimes Enforcement Network.

"As part of a whole-of-government approach to combating the threat, Treasury remains focused on leveraging all our available tools and authorities to better identify and counter these criminal activities," Treasury Secretary Scott Bessent said at the time of the announcement last month.

Read more at KETR.ORG

Credit Unions Convert 64% of Members to Primary Accounts

Once perceived as technologically trailing larger financial institutions, credit unions are embracing digital innovation, positioning themselves for growth and engagement with a digitally native consumer base, according to a new report.

The “Credit Union Advantage: Seven Trends Driving Future Growth,” a collaboration between PYMNTS Intelligence and Velera, paints a picture of a sector adapting to the demands of members and small businesses. By investing in digital capabilities and focusing on areas like self-service and mobile engagement, credit unions are fortifying their existing member relationships and laying the groundwork to attract the coveted younger generation.

The report surveys credit union executives, consumers, and small to mid-sized businesses, revealing seven trends that underscore the sector’s dynamism. Credit unions, including smaller institutions, are demonstrating a shift toward innovation, a departure from previous perceptions.

Read more at PYMNTS.COM

Trump begins to eliminate paper payments: What are the options?

In a bold move to modernize the U.S. government's payment system, former President Donald Trump signed an executive order to eliminate the use of paper checks for all government payments, including Social Security benefits. This change, effective September 30, aims to enhance the security and efficiency of government transactions. The traditional method of using paper checks has been fraught with issues such as high printing and mailing costs, delivery delays, and vulnerability to theft and fraud. Since 2020, complaints about stolen checks have surged, prompting the government to seek more secure alternatives.

The transition to electronic payments offers two primary options for Social Security beneficiaries. The first is Direct Deposit, where funds are automatically deposited into an existing bank or credit union account. This method is not only the fastest but also the most convenient for those with bank accounts. The second option is the Direct Express® card, a prepaid debit card provided by the government for individuals without bank accounts. This card allows users to make purchases, pay bills, and withdraw cash from ATMs, offering flexibility and ease of use.

Read more at MARKETS TODAY

Banks Remain Troublingly Vulnerable to Third-Party Cybersecurity Risk

Community and mid-sized banks are playing catch-up on cybersecurity. But the task is complicated by their simultaneous pursuit of digital transformation -- and by their dependence on third party vendors and partners to get there.

Executive Summary

The Jones Walker 2024 Community and Mid-Size Banks Cybersecurity Survey reveals a complex landscape where banks show some improvement in post-incident regulatory compliance but lag when it comes to crucial prevention and preparedness measures.

While 99% of surveyed banks report feeling prepared for cyberattacks, significant vulnerabilities persist, particularly in third-party vendor management and cybersecurity expertise utilization. Jones Walker’s research, based on responses from 125 bank executives, indicates that while the industry is making progress in some areas, many institutions are not fully leveraging available tools and expertise to protect against evolving threats.

Most concerning: Only 71% of banks hold third-party vendors accountable for contractual, legal, or regulatory liability, despite 99% relying on these vendors for cybersecurity support.

Read more at The Financial Brand

10 Facts About Credit Unions

If you’re looking for a new place for your checking and savings accounts, don’t limit your search to banks. You may discover credit unions have more to offer than you think.

Credit unions are not-for-profit organizations that operate on a philosophy of people helping people, says Christopher Roe, senior vice president for TruStage, a provider of insurance, investment and financial technology solutions for credit unions. Unlike banks, which are publicly owned by stockholders, credit unions are cooperatives and member-owned.

“I think a lot of people feel that credit unions are smaller because they are more member-focused, but credit unions can be just as powerful as banks,” says Jay Ferrans, president of JM Financial & Accounting Services in Southfield, Michigan.

It’s a common misconception about credit unions. “(People) don’t think of us as full-service,” says Jacqui Kearns, managing director at Strategic Resource Management, an advisory firm that works with financial institutions. However, many credit unions offer the same consumer products and loans as banks.

Read more at WTOP.COM

Elon Musk Wants To ‘Delete’ Agency That Returned $19B in Stolen Funds To Americans — Here’s Why

The transition from the Biden administration to the second Trump administration has been nothing short of unprecedented. As of April 10, President Donald Trump has signed a stunning 112 executive orders since he took office for the second time on Jan. 20, 2025, according to the National Archives, covering a variety of policies from paper straws to government finances.

One of those executive orders, signed by Trump on his very first day in office, established the Department of Government Efficiency (DOGE).

Headed by Elon Musk, the world’s richest man, DOGE has set out to eliminate so-called government waste, fraud and abuse. One of DOGE’s latest efforts has been to target the Consumer Financial Protection Bureau (CFPB).

Next, find out what Musk’s potential departure from DOGE could mean for its future.

Read more at GOBankingRates

FACT OF THE MATTER

4 million to 7 million

The number of homes needed to address the nation's housing shortage.

From our research

52% The share of Americans who said in late March that increasing tariffs on China would be bad for the U.S. About half as many (24%) said this would be good.

Used car stocks crash as demand flags and Goldman Sachs slashes autos outlook

The U.S. auto sector is taking a beating.

After CarMax (KMX) missed earnings expectations, its shares plunged nearly 20% Thursday afternoon, marking one of the company’s steepest single-day losses since early in the COVID-19 pandemic. As analysts flagged the mounting pressure on the used vehicle market, Carvana (CVNA) dropped 9%.

The drops came just as Goldman Sachs (GS) cut its 2025 forecast for U.S. auto sales by nearly a million units, citing softening demand and the rising cost burden from President Donald Trump’s proposed tariffs on Chinese imports. While the administration announced a 90-day pause on some duties, levies on autos, steel, and aluminum remain in place — spooking investors and sharply sending shares of Ford (F), GM (GM), and Stellantis (STLA) lower.

Goldman predicts new car prices to rise by $2,000-$4,000

Read more at QUARTZ

Credit card rewards are about to vanish, and guess who’s to blame?

This isn’t just about miles and points; it’s about economic freedom and financial choice

With summer vacations just around the corner, millions of Americans are getting ready to cash in their hard-earned credit card rewards: points, miles and cash back they’ve accumulated all year to help cover flights, hotel stays and rising costs at the gas pump. I would know, as I’m one of them.

But what if those rewards suddenly disappeared overnight?

That’s not a hypothetical. It’s the imminent consequence of a growing political movement – mainly flying under the national radar – to regulate how credit card transactions work through a wave of state-level price control laws.

You read that right: state lawmakers nationwide are quietly coordinating a backdoor campaign to cap interchange fees, also known as "swipe fees," that credit card networks collect from retailers each time you use your card. They say they’re doing it to help small businesses. But the actual result will be devastating: the collapse of rewards programs, higher banking fees and fewer financial tools for families already struggling with inflation.

Read more at FOX BUSINESS

Trillion-Dollar Transitions: The Two Key Demographics Driving Economic Change

Two of Bank of America's latest research reports reveals a massive economic shift as younger generations and women gain unprecedented financial influence. By 2035, Gen Z will control $74 trillion in global income, while women are positioned to receive much of a $124 trillion wealth transfer. This demographic transformation brings distinct consumption patterns and priorities, from digital-first preferences to sustainability-focused spending.

Executive Summary

By 2035, Gen Z won’t just be the largest generation globally at roughly 30% of the population, they’ll also control an astonishing $74 trillion in income — up from just $9 trillion in 2023. Simultaneously, women’s economic influence is surging as workforce participation rises and the "Great Wealth Transfer" redirects trillions of dollars into their hands. These twin demographic shifts herald a fundamental restructuring of consumer markets and investment priorities.

The impact extends far beyond simple demographics — it represents a fundamental realignment of global economic power with implications for every industry from technology and retail to housing and healthcare.

Read more at The Financial Brand

Only 43 Percent of Installment Loan Licenses Remain in Illinois After Statewide Rate Cap Took Effect, As Numbers Continue to Drop Year-over-Year

-Number of Installment Lender Licenses Experienced Another Sharp Decline, Falling 13.4 Percent in the Past Year-

ARLINGTON, Va. (March 27, 2025)—Four years after Illinois implemented an “all in” 36 percent annual percentage rate cap, installment lender licenses have dropped every year since the legislation was signed with only 461 active installment lender licenses in the state as of January 1, 2025. In 2024, there was a drop of 13.4 percent, which came on top of a 9 percent decline in 2023. Prior to the rate cap taking effect, there were 1,065 active installment lender licenses on January 1, 2021, marking a total decrease of 57 percent under the rate cap law.

Data on the number of lender licenses was provided by the Illinois Department of Financial and Professional Regulation in response to a Freedom of Information Act Request by the Online Lenders Alliance.

“With every passing year, we see the continued negative outcomes from Illinois’ rate cap as credit tightens and lender licenses reach new all-time lows,” said Andrew Duke, CEO of the Online Lenders Alliance.

Read more at Online Lenders Alliance

Capital One merger with Discover just cleared a major hurdle

There could very soon be a new biggest credit card company in the United States.

Capital One (COF) received approval from the Federal Reserve’s Board of Governors and the Office of the Comptroller of the Currency to acquire and merge with Discover Financial Services (DFS), the agencies announced Friday.

To get full approval, Capital One must provide the OCC with a plan “to address the underlying root causes of any outstanding enforcement actions against Discover Bank and plans for remediation of harm.”

The all-stock deal, first announced over a year ago, would give Capital One a major leg up against competing credit card-issuing banks such as JPMorgan Chase (JPM), Bank of America (BAC) and Citigroup (C), which don’t process transactions themselves.

Read more at CNN

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Border businesses cry foul over dragnet-like money transfer rules

Last month, the federal government issued a new rule mandating money service businesses in 30 different ZIP codes in the Southwest report all transactions over $200 to the federal government.

The Financial Crimes Enforcement Network says the rule was enacted to uncover evidence of money laundering and other financial transactions by Mexican drug cartels.

But in a lawsuit filed on Tuesday in San Diego federal court, a small money transferring business in San Diego claimed that the order will not only burden them with mountains of unnecessary paperwork but also force them to surveil their customers without the government providing any probable cause to suspect them of any wrongdoing. 

“Esperanza wants to keep her private life private. She has a right as an American to her privacy. Esperanza fears that if the government can see her private financial transactions, it can see her familial and personal affiliations, her interests, and can even profile her beliefs and thoughts,” wrote Esperanza Gomez Escobar, the owner of Novedades y Servicios, in her complaint.

Read more at TUSCON SENTINEL

China releases guidelines to facilitate cross-border flows of financial data

BEIJING (Reuters) - China has released guidelines to facilitate more efficient and standardised cross-border flows of Chinese and foreign financial institutions' data, the central bank announced on Thursday.

The guidelines, jointly released by six government agencies including the People's Bank of China, further clarify the circumstances of data outflows and the list of data items that can flow across borders, the statement said.

Report Finds Digital Banking Performance Levels Out Across U.S. Institutions

A new report from Alkami Technology and Cornerstone Advisors shows that digital banking performance among U.S. financial institutions is becoming more uniform, signaling a shift in how banks and credit unions compete in the digital space.

The 2025 Digital Banking Performance Metrics Report, released Tuesday, is based on self-reported 2024 data from banks and credit unions averaging $4.7 billion in assets. Now in its sixth year, the report replaces earlier performance tier rankings with a percentile-based system that reflects a narrowing gap in digital capabilities across institutions.

Read more at MONITOR DAILY

Inquire: dan@afspassociation.com