By Matt Durr
mlive.com (TNS)
WASHINGTON — An executive order signed by President Donald Trump earlier this year is overhauling the way the government handles financial transactions. Starting Sept. 30, the secretary of the Treasury is ordered to cease issuing paper checks for all federal disbursements and will no longer accept paper checks as payment.
The order is inclusive of intragovernmental payments, benefits payments, vendor payments, and tax refunds.
“The continued use of paper-based payments by the federal government, including checks and money orders, flowing into and out of the United States General Fund, which might be thought of as America’s bank account, imposes unnecessary costs; delays; and risks of fraud, lost payments, theft, and inefficiencies.” reads a portion of the executive order.
Later in the order, Trump claimed the cost of maintaining the physical infrastructure and technology for digitizing paper records was over $657 million in fiscal year 2024.
All executive departments and agencies will transition to using electronic funds transfer (EFT) methods such as direct deposit, prepaid card accounts, and other digital payment options. The departments and agencies will also work with recipients to enroll them for EFT payments.
While paper checks are going away in most cases, the order does provide for some payment recipients to continue receiving paper checks in certain instances. The order allows for the secretary of the Treasury to review and revise procedures including exceptions for:
- Those who do not have access to banking services or electronic payment systems.
- Certain emergency payments where electronic disbursement would cause undue hardship.
- National security- or law enforcement-related activities where non-EFT transactions are necessary or desirable.
- Other circumstances as determined by the secretary of the Treasury, as reflected in regulations or other guidance.
The order calls for a significant public awareness campaign regarding the shift and for the Treasury to work with financial institutions, consumer groups and other organizations “to address financial access for unbanked and underbanked populations.”
©2025 Advance Local Media LLC. Visit mlive.com. Distributed by Tribune Content Agency, LLC.
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Tags: checkbook, checks, Income Taxes, IRS, paper checks, Taxes
