diff --git a/Gemfile b/Gemfile
index 8e1618e3..f52bd5bc 100644
--- a/Gemfile
+++ b/Gemfile
@@ -19,7 +19,7 @@ gem 'ipaddress'
 gem 'jaro_winkler', '~> 1.5.5'
 gem 'jquery-rails'
 gem 'jquery-ui-rails'
-gem 'jwt', '~> 1.5', '>= 1.5.4'
+gem 'jwt', '~> 2.5'
 gem 'lograge', '>=0.11.2'
 gem 'mutex_m' # Deprecation warning.
 gem 'netaddr', '~> 1.5', '>= 1.5.1'
diff --git a/Gemfile.lock b/Gemfile.lock
index d2086ede..4f0099b4 100644
--- a/Gemfile.lock
+++ b/Gemfile.lock
@@ -213,7 +213,8 @@ GEM
     json (2.18.1)
     jsonpath (0.5.8)
       multi_json
-    jwt (1.5.6)
+    jwt (2.10.2)
+      base64
     language_server-protocol (3.17.0.5)
     lint_roller (1.1.0)
     listen (3.10.0)
@@ -542,7 +543,7 @@ DEPENDENCIES
   jaro_winkler (~> 1.5.5)
   jquery-rails
   jquery-ui-rails
-  jwt (~> 1.5, >= 1.5.4)
+  jwt (~> 2.5)
   listen (~> 3.2)
   lograge (>= 0.11.2)
   mutex_m
diff --git a/app/controllers/concerns/alma_jwt_validator.rb b/app/controllers/concerns/alma_jwt_validator.rb
new file mode 100644
index 00000000..efee3ba5
--- /dev/null
+++ b/app/controllers/concerns/alma_jwt_validator.rb
@@ -0,0 +1,49 @@
+require 'jwt'
+require 'net/http'
+require 'json'
+
+module AlmaJwtValidator
+  JWKS_URL = 'https://api-na.hosted.exlibrisgroup.com/auth/01UCS_BER/jwks.json'.freeze
+  EXPECTED_ISS = 'https://api-na.hosted.exlibrisgroup.com/auth/01UCS_BER'.freeze
+
+  module_function
+
+  def jwk_set
+    Rails.cache.fetch('jwks_set', expires_in: 4.hour) do
+      jwks_raw = Net::HTTP.get(URI(JWKS_URL))
+      jwks_keys = JSON.parse(jwks_raw)['keys']
+      JWT::JWK::Set.new(jwks_keys)
+    end
+  end
+
+  # rubocop:disable Metrics/MethodLength
+  def decode_and_verify_jwt(token)
+    # Decode header to get the 'kid'
+    header = JWT.decode(token, nil, false).last
+    kid = header['kid']
+
+    # Find the key from the JWK set
+    jwk = jwk_set.keys.find { |key| key.kid == kid }
+    raise JWT::VerificationError, 'Key not found in JWKS' unless jwk
+
+    public_key = jwk.public_key
+
+    options = {
+      algorithm: 'RS256',
+      verify_expiration: true,
+      verify_aud: false,
+      verify_iss: true,
+      iss: EXPECTED_ISS
+    }
+
+    # Returns [payload, header] array if valid
+    JWT.decode(token, public_key, true, options)
+  rescue JWT::ExpiredSignature
+    raise JWT::VerificationError, 'Token has expired'
+  rescue JWT::InvalidIssuerError
+    raise JWT::VerificationError, 'Token issuer mismatch'
+  rescue JWT::DecodeError => e
+    raise JWT::VerificationError, "Invalid JWT: #{e.message}"
+  end
+  # rubocop:enable Metrics/MethodLength
+end
diff --git a/app/controllers/fees_controller.rb b/app/controllers/fees_controller.rb
index 6309ffa9..4eabf0bc 100644
--- a/app/controllers/fees_controller.rb
+++ b/app/controllers/fees_controller.rb
@@ -5,16 +5,24 @@ class FeesController < ApplicationController
   # This will be needed for transaction_complete since Paypal will hit that
   protect_from_forgery with: :null_session
 
+  # rubocop:disable Metrics/MethodLength
   def index
     @jwt = params.require(:jwt)
-    decoded_token = JWT.decode @jwt, nil, false
-    @alma_id = decoded_token.first['userName']
-    @fees = FeesPayment.new(alma_id: @alma_id)
+    payload = AlmaJwtValidator.decode_and_verify_jwt(@jwt)
+    @alma_id = payload.first['userName']
+    begin
+      @fees = FeesPayment.new(alma_id: @alma_id)
+    rescue StandardError => e
+      Rails.logger.warn "FeesPayment failed: #{e.message}"
+      redirect_to(action: :transaction_error) and return
+    end
   rescue ActionController::ParameterMissing
     redirect_to 'https://www.lib.berkeley.edu/find/borrow-renew?section=pay-fees', allow_other_host: true
-  rescue JWT::DecodeError
+  rescue JWT::DecodeError => e
+    Rails.logger.warn "JWT verification failed: #{e.message}"
     redirect_to(action: :transaction_error)
   end
+  # rubocop:enable Metrics/MethodLength
 
   def efee
     @jwt = params.require(:jwt)
diff --git a/spec/controllers/concerns/alma_jwt_validator_spec.rb b/spec/controllers/concerns/alma_jwt_validator_spec.rb
new file mode 100644
index 00000000..13599e22
--- /dev/null
+++ b/spec/controllers/concerns/alma_jwt_validator_spec.rb
@@ -0,0 +1,100 @@
+require 'rails_helper'
+require 'jwt'
+require 'json'
+require 'openssl'
+
+describe AlmaJwtValidator do
+  let(:alma_institution_code) { '01UCS_BER' }
+  let(:jwks_url) { "https://api-na.hosted.exlibrisgroup.com/auth/#{alma_institution_code}/jwks.json" }
+  let(:expected_iss) { "https://api-na.hosted.exlibrisgroup.com/auth/#{alma_institution_code}" }
+
+  # Generate an RSA key pair for testing
+  let(:rsa_key) { OpenSSL::PKey::RSA.new(2048) }
+  let(:kid) { 'test-key-id' }
+  let(:test_payload) { { 'userName' => '10335026', 'iss' => expected_iss } }
+
+  # Helper to create JWK from RSA public key
+  def create_jwk(public_key, kid)
+    n = Base64.urlsafe_encode64(public_key.n.to_s(2)).gsub(/=+$/, '')
+    e = Base64.urlsafe_encode64(public_key.e.to_s(2)).gsub(/=+$/, '')
+    {
+      'kty' => 'RSA',
+      'kid' => kid,
+      'use' => 'sig',
+      'alg' => 'RS256',
+      'n' => n,
+      'e' => e
+    }
+  end
+
+  # Helper to generate a valid JWT
+  def generate_jwt(payload, key, kid, algorithm = 'RS256')
+    header = { 'kid' => kid, 'alg' => algorithm }
+    JWT.encode(payload, key, algorithm, header)
+  end
+
+  before do
+    jwk = create_jwk(rsa_key.public_key, kid)
+
+    stub_request(:get, jwks_url)
+      .to_return(
+        status: 200,
+        body: { 'keys' => [jwk] }.to_json,
+        headers: { 'Content-Type' => 'application/json' }
+      )
+  end
+
+  describe '.decode_and_verify_jwt' do
+    context 'with a valid JWT' do
+      it 'returns the decoded payload' do
+        token = generate_jwt(test_payload, rsa_key, kid)
+        result = AlmaJwtValidator.decode_and_verify_jwt(token)
+
+        expect(result).to be_an(Array)
+        expect(result[0]['userName']).to eq('10335026')
+        expect(result[1]['kid']).to eq(kid)
+      end
+    end
+
+    context 'with an invalid signature' do
+      it 'raises JWT::VerificationError' do
+        # Generate a token with a different key
+        different_key = OpenSSL::PKey::RSA.new(2048)
+        token = generate_jwt(test_payload, different_key, kid)
+
+        expect do
+          AlmaJwtValidator.decode_and_verify_jwt(token)
+        end.to raise_error(JWT::VerificationError)
+      end
+    end
+
+    context 'with an unknown key id' do
+      it 'raises JWT::VerificationError' do
+        token = generate_jwt(test_payload, rsa_key, 'unknown-kid')
+
+        expect do
+          AlmaJwtValidator.decode_and_verify_jwt(token)
+        end.to raise_error(JWT::VerificationError)
+      end
+    end
+
+    context 'with a malformed JWT' do
+      it 'raises JWT::DecodeError' do
+        expect do
+          AlmaJwtValidator.decode_and_verify_jwt('not.a.jwt')
+        end.to raise_error(JWT::DecodeError)
+      end
+    end
+
+    context 'when JWKS endpoint is unreachable' do
+      it 'raises an error' do
+        stub_request(:get, jwks_url).to_return(status: 500)
+        token = generate_jwt(test_payload, rsa_key, kid)
+
+        expect do
+          AlmaJwtValidator.decode_and_verify_jwt(token)
+        end.to raise_error(StandardError)
+      end
+    end
+  end
+end
diff --git a/spec/request/fees_request_spec.rb b/spec/request/fees_request_spec.rb
index b54f9339..827f278c 100644
--- a/spec/request/fees_request_spec.rb
+++ b/spec/request/fees_request_spec.rb
@@ -9,7 +9,13 @@ def base_url_for(user_id = nil)
   let(:request_headers) { { 'Accept' => 'application/json', 'Authorization' => "apikey #{alma_api_key}" } }
 
   before do
-    allow(Rails.application.config).to receive(:alma_api_key).and_return(alma_api_key)
+    allow(AlmaJwtValidator).to receive(:decode_and_verify_jwt).and_return(
+      [{ 'userName' => '10335026' }]
+    )
+    allow(Rails.application.config).to receive_messages(
+      alma_api_key: alma_api_key,
+      alma_jwt_secret: 'fake-jwt-secret'
+    )
   end
 
   it 'redirects to the fallback URL if there is no jwt' do
@@ -18,7 +24,8 @@ def base_url_for(user_id = nil)
   end
 
   it 'redirects to error page if request has a non-existant alma id' do
-    stub_request(:get, "#{base_url_for}fees")
+    user_id = '10335026'
+    stub_request(:get, "#{base_url_for(user_id)}/fees")
       .with(headers: request_headers)
       .to_return(status: 404, body: '')
 
@@ -53,9 +60,10 @@ def base_url_for(user_id = nil)
   end
 
   it 'payments page redirects to index if no fee was selected for payment' do
-    post '/fees/payment', params: { jwt: File.read('spec/data/fees/alma-fees-jwt.txt') }
+    jwt = File.read('spec/data/fees/alma-fees-jwt.txt').strip
+    post '/fees/payment', params: { jwt: jwt }
     expect(response).to have_http_status(:found)
-    expect(response).to redirect_to("#{fees_path}?jwt=#{File.read('spec/data/fees/alma-fees-jwt.txt')}")
+    expect(response).to redirect_to("#{fees_path}?jwt=#{jwt}")
   end
 
   it 'successful transaction_complete returns status 200' do