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The Critical Need to Modernize State & Local Payment Processing

State and local governments face an urgent imperative: the modernization of payment systems to ensure effective, timely, and compliant disbursement of public funds. Get the guide.

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There's a clear path forward for government grants professionals.

Multiple recent federal actions raise the risks inherent in outdated payment infrastructure. These actions nclude, but are not limited to:

• Modernizing Payments To and From America’s Bank Account (E.O. March 25, 2025): Aims to reducethe amount of paper money used to disburse funds.

• Improving Oversight of Federal Grantmaking (E.O., Aug 7, 2025): Requires rigorous evaluation of funding opportunities and award decisions, with political appointee involvement to ensure grants benefit Americans, avoid duplication, and align with administration priorities.

• Use of Appropriated Funds for Illegal Lobbying and Partisan Political Activity by Federal Grantees (Memo, Aug 28, 2025): Directs agencies and the Attorney General to curb the misuse of federal grantfunds for political lobbying.

• Pandemic Response Accountability Committee (PRAC): Continues to highlight waste, fraud, and abusein federal fund distribution.

• U.S. Treasury’s “Do Not Pay” Modernization: Streamlining validation and tightening payment timelines, requiring local systems to keep pace. Together, these developments elevate modernization from an operational necessity to a compliance imperative.

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