Modernizing Payments To and From America’s Bank Account

Objective: Transition to electronic payments for all Federal disbursements and receipts to increase efficiency, reduce costs, and enhance security.

Key Actions:

• Effective September 30, 2025, cease issuing paper checks for Federal disbursements, including benefits, vendor payments, and tax refunds, with some exceptions.
• Mandate all federal agencies to comply by transitioning to electronic funds transfer (EFT) methods such as direct deposit and digital payment options.
• Require that all payments to the Federal Government be processed electronically, barring specified exceptions.

Exception Policy:

• The Secretary of the Treasury may grant exceptions for:
  • Individuals lacking access to banking services.
  • Emergency payments causing undue hardship.
  • National security or law enforcement needs.
  • Other circumstances deemed appropriate.

Implementation & Support:

• Development of a public awareness campaign to assist Federal payment recipients with the transition to electronic payments.
• Collaboration with financial institutions to improve access for unbanked and underbanked populations.
• Protection of classified and personally identifiable information throughout the process.

Compliance & Reporting:

• Agency heads must submit a compliance plan within 90 days.
• The Secretary of the Treasury to report implementation progress within 180 days.

Legal Considerations:

• The order does not affect existing legal authorities or create enforceable rights against the U.S. or its agencies.