Modernizing Payments To and From America's Bank Account
Requires Federal Agencies to Stop Paper Checks by September 2025
What it does
Agencies must transition all federal payments and receipts to electronic methods and end paper checks by September 30, 2025.
Real-world impact
- Most federal benefit recipients and vendors will receive electronic payments, not paper checks.
- Agencies must create enrollment and outreach programs for unbanked and underbanked people.
- Treasury will centralize digital payment systems and eliminate physical lockbox services.
Topics
Summary
This order requires the federal government to move all payments from paper checks and money orders to electronic methods and stop issuing paper checks by September 30, 2025. It directs agencies to use direct deposit, prepaid cards, digital wallets, real-time payments, and centralized Treasury systems, while providing exceptions for people without bank access, emergencies, or national security needs.
The goal is to reduce costs, prevent fraud and mail theft, speed transactions, and improve payment security for taxpayers, recipients, and vendors.
Questions, answered
Ask questions about this executive order and its implications. Try:
- “What agencies are affected by this order?”
- “How does this order change existing policy?”
- “What are the practical implications of this order?”