Connecting to FedNow through the Fiserv NOW^® Gateway to enable instant disaster relief payments can be an important differentiator

Natural disasters have been in the national spotlight in 2025. Notably, floods in Texas, tropical storm activity in Florida and catastrophic wildfires in California have dominated headlines. According to the Department of Homeland Security’s FY 2026 Budget Overview, The Federal Emergency Management Agency (FEMA) has been active in addressing these disasters and more, spending much of its $27 Billion 2025 budget in Q1 to Q3 of 2025. As disaster relief need has risen, the proposed budget for FEMA relief funds has risen to $31.8 Billion for 2026.

Now, those needed disaster relief payments will be reaching states, municipalities, businesses and households more promptly. The Federal Reserve recently announced the first FEMA disaster relief funds have been disbursed through the FedNow Service – an instant payments network. Through the Fiserv NOW Gateway, the FedNow issuing institution, New York-based Flagstar Bank, forwarded the funds to CB&S Bank, a community institution headquartered in Alabama, in September, 2025. 

This shift from the use of ACH payments to real-time government disbursements can make a big impact for people and small businesses suffering the effects of natural disasters. And it also illustrates how integration with FedNow through the Fiserv Now Gateway can help financial institutions better serve their communities in a crisis.
 

Meeting the need for faster payments

The FedNow Service has been enabling faster payments since 2023, and recently has grown significantly, supporting billions of transactions and hundreds of billions of dollars in payments volume in 2025. In September 2025, the FedNow Service also announced that it would support a higher transaction limit of $10 million, instead of its previous limit of $1 million. 

These moves are aimed at satisfying directives in the presidential executive order “Modernizing Payments to and From America’s Bank Account,” issued in March, 2025. The order addressed the need to shift to digital payments throughout the government. As the first Federal Reserve use case, sending FEMA payments through an instant payments network connects disaster relief victims with life-saving funds faster, while meeting this call for operational efficiency. 

In the near future, more government agencies are expected to shift to FedNow disbursements. The industry can anticipate seeing FedNow as the preferred payments rail for high-volume government disbursements, such as social security and tax rebates, in the future.
 

Meeting disaster relief needs for consumers and businesses

As of November 2025, fewer than 1,600 financial institutions participate in the FedNow Service, meaning that the vast majority of banks and credit unions are not positioned to accept FEMA or future government instant payments. 

Joining the FedNow Network to enable faster payment of government disbursements can benefit both financial institutions and their communities in important ways:

• Improves a financial institution’s offerings

• Drives deposits

• Demonstrates concern for and investment in the community

• Facilitates life-changing disaster relief to local residents

• Speeds up recovery time for families, businesses and the local economy

For CB&S Bank, the choice to lead the industry in accepting FEMA disbursements was a natural decision to serve its customers. Offering this relief to account holders in real-time can be an important differentiator for financial institutions, especially as the scope of natural disasters continue to rise.
 

NOW Gateway: Your connection to FedNow

The Fiserv NOW Gateway serves as the connection between CB&S Bank and the FedNow issuing institution, Flagstar Bank. Fiserv has enabled the first instant FEMA disbursements, and is positioned to enable all NOW Network participating financial institutions to receive FEMA funds for customers and members impacted by natural disasters. 

Financial institutions that have not yet connected to FedNow have an opportunity to advance in the payments arena, serving their accountholders by granting access to instant government payouts when it matters. Joining the FedNow Network positions your financial institution as a leader in providing essential support during crises. 

Contact Fiserv at fasterpayments@fiserv.com, or reach out to your Fiserv relationship manager, to learn how to get connected to FedNow through our NOW Network.