EDD Announces Expanded Benefits Payment Capabilities

The Employment Development Department (EDD) has announced another significant step in its ongoing march to overhaul the state’s benefits system, this time with direct-deposit functionality.

The agency announced this week that recipients of unemployment, disability, or paid family leave benefit payments can now opt for direct deposits in addition to mailed prepaid debit cards and checks.

Direct deposit will allow faster access to funds compared to by-mail options.

“We have been focused on improving our benefit systems as part of our ongoing effort to modernize and improve the customer experience for all Californians,” EDD Director Nancy Farias said in the press release. “Direct deposit offers our customers the safest and most convenient means of receiving the benefit payments that they need.”

The change is part of the agency’s ongoing, multifaceted effort — known as EDDNext — to streamline the customer experience. Money Network will provide the payment services, having taken over for Bank of America earlier this year.

In May, officials reported that the influx of benefits seekers and fraudulent claims during the pandemic pressure-tested the existing system and made the case for substantial systematic change.

These changes have included updated claims applications, call center upgrades, and partnerships with private-sector companies including Amazon Web Services and Salesforce.

Vendors got a sneak peek in late May at a developing opportunity to overhaul the agency’s decades-old claims management system. That request for proposals has not yet been published.