Summary
Makes the government stop using paper checks for payments and instead use electronic methods like direct deposit to save money and be safer.
What problem does this solve?
Using paper checks for government payments costs a lot of money, is slow, and leads to problems like lost mail and theft. This order fixes the problem by making all government payments happen electronically, which is faster, cheaper, and safer.
Who does this affect?
- Federal benefit recipients
- Taxpayers
- Government agencies
What does this order do?
Stops the use of paper checks for government payments
Requires the government to stop sending out paper checks for things like tax refunds and benefits starting September 30, 2025.
Requires all payments to the government to be electronic
Makes it so that all money paid to the government, like for taxes or fees, must be sent electronically as soon as possible.
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Exceptions and accommodations for the phase out of paper check disbursements and receipts
Creates exceptions for people who cannot use electronic payments
Allows for paper checks in special cases, like for people without bank accounts, in emergencies, or for national security reasons.
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Implementation and compliance of electronic transactions
Starts a campaign to tell people about the change
Directs the government to create a campaign to teach the public how to switch to and use digital payment options for receiving federal money.
Requires government agencies to create a plan for the switch
Orders all government agencies to submit a plan within 90 days showing how they will stop using paper transactions.
What is the real world impact?
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Saves taxpayer money and makes government work better
Stops using paper checks, which cost over $657 million in one year, and moves to faster, cheaper electronic payments. This reduces waste and speeds up how the government handles money.
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Reduces fraud and theft of government payments
Paper checks are much more likely to be lost or stolen than electronic payments. By ending paper checks, this order helps protect people's money from being taken by criminals.
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Could make it harder for people without bank accounts to get their money
While the order includes exceptions, moving completely to digital payments might create problems for people who do not have a bank account or easy access to electronic systems.
When does this start?
This order sets several deadlines for the government to switch to electronic payments.
Agency compliance plans due
Government agencies must submit their plans for ending paper transactions by June 23, 2025.
Treasury implementation report due
The Secretary of the Treasury must report on the progress of the switch to electronic payments by September 21, 2025.
End of paper check payments
The government will stop issuing paper checks for most payments on September 30, 2025.