The 5 most federally dependent states — and the 5 least dependent

President Donald Trump and DOGE boss Elon Musk are on a mission to significantly cut federal spending by $1 trillion this year — laying off workers, canceling contracts, and slashing budgets across all departments.

While it seems unlikely they’ll meet their goal, the impact of their cuts is already being noticed. And some states are feeling the cuts especially hard.

WalletHub compiled a list of the most and least federally dependent states. It analyzed data to find both the state government’s and the state residents’ federal dependency, looking at the return on taxes paid to the federal government, share of federal jobs, and federal funding as a share of state revenue.

Read more at QUARTZ

Who Is the Paycheck-to-Paycheck Consumer in America?

A six-figure income, a house in a nice neighborhood, two cars in the garage and kids in private schools — yet still feeling panicked when an emergency expense hits. And while the Fed once held out $400 as the average emergency expense threshold, that unexpected expense is now more likely to be about three times as much.

For millions of Americans, this isn’t a hypothetical — it’s their reality.

Today, some 67% of Americans say they live paycheck to paycheck, according to a recent PYMNTS Intelligence study. The paycheck-to-paycheck lifestyle spans income brackets, education levels and professions. The every-other-week rhythm of waiting for the next paycheck has become America’s most common financial heartbeat.

Read more at PYMNTS.COM

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Our #IRS Interactive Tax Assistant has answers.

Watch this short video to learn more:

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• #IRS has information to help you understand why your tax refund may be less than expected. See: https://www.irs.gov/taxtopics/tc203

Jose L. Santiago

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Tax Outreach, Partnership and Education

Email: jose.l.santiago@irs.gov

Subprime Borrowers Seek Strategies to Improve Their Credit Scores

The pressures of mounting card debt, still-high interest rates and tightening underwriting threaten to expand the ranks of subprime borrowers — all the while making it harder for those consumers to improve their credit standings.

In the report “Subprime Borrowers Flock to Alternative Options Due to High Credit Card Denial Rates,” we found that borrowers with FICO scores of 620 or less have higher denial rates than seen with other cohorts of borrowers.

The Vicious Cycle

There’s a vicious cycle here, where banks, the traditional lenders, have found that traditional risk-scoring metrics are less adept at determining where or when to extend credit. 

Read more at PYMNTS.COM

Turning Digital Bill Presentment Into the Next Consumer Touchpoint

Payments innovation often steals the spotlight from its less flashy cousin, payment advances.

But beneath developments like artificial intelligence and real-time payments, bill presentment has quietly emerged as a critical component of financial institutions’ and billers’ strategies, playing an essential role in enhancing customer experience, streamlining operations and driving revenue growth.

“When you look at what bill presentment can do, it really can help financial institutions, their clients and direct clients be able to collect faster,” Norman Marraccini, senior vice president of products and services at FIS, told PYMNTS.

For years, bill presentment was an afterthought — a static process where customers received a paper invoice or a simple PDF via email. However, as digital transformation has accelerated, so too has the expectation for interactive, real-time and personalized billing experiences.

Read more at PYMNTS.COM

Survey: 91% of Americans Think Filing Taxes Should Be Free

In addition, two in three people describe tax preparation companies that advertise free tax filing services as "bait-and-switch" schemes, according to WalletHub's 2025 Tax Survey.

With Tax Day looming, Americans are growing frustrated over the costs of filing their taxes, tax fairness, and high inflation. In fact, a new survey from WalletHub found that 91% of Americans think filing taxes should be free.

In addition, two in three people describe tax preparation companies that advertise free tax filing services as “bait-and-switch” schemes.

“Some are, some aren’t,” Robert Nassau, director of the Low Income Taxpayer Clinic and teaching professor at Syracuse University College of Law, said in WalletHub’s 2025 Tax Survey report. “There are definitely free tax filing services (I’ve helped people use them), but one has to be careful when using them not to be ‘tricked’ into paying for something they don’t need. And sometimes people expect more from the service than the service is willing to provide for free; to me, that’s not really what I would call bait and switch.”

Read more at CPA Practice Advisor

How Spending Priorities and Financial Health Guide Consumer Credit Card Choices

A new PYMNTS Intelligence and Elan Credit Card study explores why consumers choose specific credit cards, finding that financial stability significantly influences preferences. While one-third of consumers opened a new card last year, their motivations varied - stable consumers prioritized rewards, while others focused on credit-building. Personal recommendations proved more influential than advertising, with general-purpose cards dominating overall choice at 66%. The research particularly highlights how spending patterns and financial circumstances shape whether consumers opt for rewards-focused cards or keep them for emergencies.

1. General-Purpose Credit Cards Grow As a Preference

Nearly 1 in 3 consumers opened a new credit card within the last 12 months, and 4 in 5 were already cardholders. First-time cardholders primarily chose general-purpose cards, which were the most popular choice overall with 66% choosing a general-purpose option.

Read more at The Financial Brand

Enabling organizations to streamline payment acceptance,

minimize processing costs, and reduce the risk of fraud

ABA, Associations: House bill to cap credit card rates would hurt consumers

A House bill that would cap credit cards’ annual percentage rate at 10% would severely restrict the availability of such credit to many consumers, the American Bankers Association and seven financial sector associations said today in a joint letter to the bill’s sponsors.

The 10% Credit Card Interest Rate Cap Act has been introduced in the House [H.R. 1944] by Reps. Alexandria Ocasio-Cortez (D-N.Y.) and Anna Paulina Luna (R-Fla.) and in the Senate [S. 381] by Sens. Bernie Sanders (I-Vt.) and Josh Hawley (R-Mo.). ABA had previously expressed concerns about the Senate version. In the joint letter, ABA joined with other associations in raising the same concerns about the House bill, saying it would harm the very people it seeks to protect.

“This bill would eliminate access to credit cards for millions of consumers and drive them to sources of credit which are far more costly and less regulated,” the associations said. “Many consumers who currently rely on credit cards would be forced to turn elsewhere for short-term financing needs, including pawn shops, auto title lenders or worse — such as loan sharks, unregulated online lenders and the black market. Many Americans already use payday loans which can charge annual interest rates of more than 300%, and this legislation would direct more consumers to use these sources of credit which are far more expensive than credit cards.”

Read more at American Bankers Association

CFPB Drops Challenge That Lease-to-Own Agreements Be Regulated As "Credit": Katten Muchin Rosenman LLP

On Thursday, the Consumer Financial Protection Bureau (CFPB) dropped its high-profile enforcement action against Acima in Utah federal district court. This is yet another CFPB matter that has hit the dust following the administration change in January. 

In the litigation, the CFPB had alleged that Acima’s lease-to-own (LTO) business should be regulated as “credit” under the Consumer Financial Protection Act (CFPA), the Electronic Fund Transfer Act (EFTA), and the Truth in Lending Act (TILA). The CFPB argued that the practical realities of how Acima’s LTO transactions allegedly functioned—despite the plain contract terms providing for lease transactions—was sufficient to justify regulating Acima as a credit provider. The CFPB was notably predicted to lose that lawsuit, especially because the outcome would have been contrary to another Utah district court’s decision in CFPB v. Snap Finance, LLC, 2024 WL 3625007 (D. Utah Aug. 1, 2024). The LTO industry nonetheless will be relieved by the CFPB’s voluntary dismissal of Acima.

Read more at JD Supra, LLC

Apps to use for international money transfers

Key takeaways

• International money transfer apps provide a convenient alternative to traditional banking, allowing users to send money across borders directly from their mobile devices.
• Consider the countries and currencies an app supports, the transfer limits and fees, the speed of the transaction and security features.
• Many apps support transfers to hundreds of countries, making it easier to send money anywhere in the world.

Using an app to make international money transfers has become a popular way to send funds directly from a mobile device. You no longer need to visit a bank or transfer location in person. With just a few taps on your mobile device, you can send money securely, often at lower fees and faster speeds than visiting a bank or transfer location. 

Read more at BANKRATE

Fintech vs. Traditional Banks: Who’s Winning the International Money Transfer Battle?

The rise in global migration is accompanied by an equal rise in international money transfers, as cross-border remittances become the norm with folks sending money back home.

The Allied Market Research indicates that the value of the international money transfer (or global remittance) market is expected to reach $1.33 trillion by 2032, and with a 1.6% increase in 2023, amounting to $857 billion, that looks achievable.

As expected, different players in the field are trying to take a share of this market, and FinTech solutions and traditional banks are right at the top.

Consumers are sometimes stuck on who to go with: who offers seamless international money transfers? Who is more affordable? Who can you rely on for very quick transfers?

Read more at DisruptionBanking

NY Fed: Consumers Feeling Gloomier About Financial Futures

New data shows growing financial pessimism among Americans, the latest sign of shaky consumer confidence.

The February installment of the Federal Reserve Bank of New York’s Survey of Consumer Expectations, released Monday (March 10), shows that while households’ medium and long-term inflation expectations were unchanged, consumers were less optimistic about their future financial situations.

According to the bank’s Center for Macroeconomic Data, this was accompanied by marked declines in expectations about unemployment, delinquency and credit access.

“Perceptions about households’ current financial situations compared to a year ago were mostly unchanged, but year-ahead expectations about households’ financial situations deteriorated considerably,” the NY Fed said in a news release.

Read more at PYMNTS.COM

Five Reasons to Modernize Your Payments Ecosystem in 2025: by Megan Carswell 

The payments industry is evolving at an unprecedented pace. While new technologies emerge to improve efficiency and security, many businesses still rely on outdated systems that are costly, cumbersome and prone to errors. But these legacy systems are more than an inconvenience — they’re a risk to your financial health and ability to operate competitively.

Modernizing your payments ecosystem empowers your business to run smarter, faster and with greater confidence. In this article, we’ll walk through five reasons why upgrading your accounts payable processes and systems should be at the top of your priority list for 2025.

1. Reduce Errors and Improve Accuracy

Manual processes in outdated payment systems create opportunities for mistakes that cost your business time and money. From duplicate payments to data entry errors, these issues can disrupt operations and erode trust with vendors and partners.

Read more at REPAY

Alternative Payment Methods: Bridging the Financial Gap in Unbanked Regions of The World

Financial exclusion remains a significant challenge globally, with millions lacking access to traditional banking services. In these underserved areas, alternative payment solutions have emerged as critical tools for economic participation, providing pathways to financial inclusion that traditional infrastructure cannot.

The limitations of cash dependency, vulnerability to theft, lack of security, and inefficient financial management, have driven innovation in payment methods. Mobile money services, digital wallets, prepaid cards, and cryptocurrencies now offer practical alternatives for those without conventional bank accounts, particularly in regions where banking facilities are scarce or financial literacy is limited.

Mobile money has proven particularly transformative. Platforms like M-Pesa in Kenya, GCash in the Philippines, and bKash in Bangladesh leverage widespread mobile phone adoption to deliver financial services. Users can deposit funds with local agents, transfer money, make payments, and even access credit, all through basic mobile phones. This accessibility has revolutionized financial interactions in communities where banking infrastructure is virtually nonexistent.

Read more at The Yucatan Times

Almost 40% of Americans receive financial help from family to buy a house: Survey

The Brief

• Nearly 40% of U.S. adults receive financial assistance from parents or grandparents to purchase a home, according to a February 2025 survey.
• Common forms of help included gifting money for a deposit, offering loans with repayment agreements, or providing free rent while saving for a deposit.
• The survey found that financial support is critical for many buyers, with 45% of Americans saying they couldn't afford a home without help from family.

As house prices have climbed to record levels in the last few decades, it’s become harder for prospective home buyers to be able to afford to buy a home.

And, according to a new study, this means nearly 40% of Americans are turning to the bank of parents and grandparents to afford a mortgage.

Read more at FOX6

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Federal Reserve Identifies Top Fair Lending Violations: Ballard Spahr LLP

In the latest edition of its Consumer Compliance Outlook, the Federal Reserve (Fed) identified the four most significant fair lending violations that it found in examining state member banks in 2022. These are violations that were typically identified in examinations as matters requiring attention or as matters requiring immediate attention.

Fair Lending Risk Assessment. The Fed cited the failure to conduct a rigorous and separate fair lending risk assessment as the most significant violation observed by examiners.

“An institution’s overall fair lending risk management program should be commensurate with the size, complexity, and fair lending risk profile of its lending,” the Fed stated. “Supervisors expect institutions with heightened fair lending risk to conduct a fair lending risk assessment to ensure the risk is being appropriately measured and mitigated.”

Read more at JD Supra, LLC

Reasons for Credit Unions to Consider Green Lending

Solar lending opportunities around the country are simply becoming too big for credit unions to ignore.

Today’s market conditions have created a landscape that is flourishing with energy efficiency opportunities, prompting a growing number of credit unions to give the green light to solar lending. Not only is solar predicted to enjoy sustained growth through 2030, as reported by pv magazine USA, but ever-increasing electricity rates, tax incentives and growing eco-awareness have boosted consumer demand for green energy solutions, increasing the need for more lending options.

At the same time, amid predictions that interest rates will remain high, Americans will likely continue to defer new-home purchases in favor of existing home renovations – with solar representing one of the most common additions.

Read more at CUTIMES