The federal government is officially waving goodbye to paper checks. On March 25, President Trump issued an executive order aimed at modernizing how the U.S. government sends and receives payments.
Here’s a breakdown of what you need to know.
The administration’s goal here is to improve the speed, efficiency and accessibility of government payments made by federal agencies. This includes payments made to individuals and businesses for items such as tax refunds, Social Security benefits and government contracts. The order also applies to payments received by the federal government, like taxes and fees.
As outlined in the executive order, outdated systems and manual processes lead to delays, errors and unnecessary costs. By adopting digital payment tools, such as instant bank transfers and mobile payment technologies, the administration hopes to reduce fraud, improve the citizen experience and ensure Americans receive their tax refunds quickly and more securely.
Starting September 30, 2025, the Secretary of the Treasury will stop issuing paper checks for all federal disbursements, including tax refunds, benefits payments, etc.
However, effective immediately, federal agencies are expected to begin the process of streamlining online payment systems and adopt modern technologies that enable real-time, secure transactions.
There are a few exceptions and accommodations mentioned in the executive order where non-electronic payment options may be considered, but the majority, if not all, U.S. citizens and businesses will need to comply. Even if you’re not very tech savvy, there will be no alternative option when making or receiving payments from the federal government. As stated in the executive order, “As soon as practicable, and to the extent permitted by law, all payments made to the Federal Government shall be processed electronically…”
For businesses that send or receive payments from the government, like contractors, vendors, grant recipients and organizations that pay federal taxes or fees, keep an eye out for changes in invoicing and payment systems — they could be coming quickly.
As federal agencies begin rolling out updates, we suggest that those still using paper-based processes start transitioning now to avoid delays and ensure compliance.
You can review the entire executive order here. If you have questions, contact us here or call 800.899.4623.