Modernizing Payments To and From America’s Bank Account Executive Orders

By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered:

Section 1. Purpose. 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. Mail theft complaints have increased substantially since the COVID-19 pandemic. Historically, Department of the Treasury checks are 16 times more likely to be reported lost or stolen, returned undeliverable, or altered than an electronic funds transfer (EFT). Maintaining the physical infrastructure and specialized technology for digitizing paper records cost the American taxpayer over $657 million in Fiscal Year 2024 alone.

This order promotes operational efficiency by mandating the transition to electronic payments for all Federal disbursements and receipts by digitizing payments to the extent permissible under applicable law (but not, for avoidance of doubt, to establish a Central Bank Digital Currency).

Sec. 2. Policy. It is the policy of the United States to defend against financial fraud and improper payments, increase efficiency, reduce costs, and enhance the security of Federal payments.

Sec. 3. Phase Out of Paper Check Disbursements and Receipts. (a) Effective September 30, 2025, and to the extent permitted by law, the Secretary of the Treasury shall cease issuing paper checks for all Federal disbursements inclusive of intragovernmental payments, benefits payments, vendor payments, and tax refunds, except as specified in section 4 of this order.

(b) All executive departments and agencies (agencies) shall comply with this directive by transitioning to EFT methods, including direct deposit, prepaid card accounts, and other digital payment options, and take all steps necessary to enroll recipients in EFT payments, except as specified in section 4 of this order.

(c) As soon as practicable, and to the extent permitted by law, all payments made to the Federal Government shall be processed electronically, except as specified in section 4 of this order.

(d) The Secretary of State, the Secretary of the Treasury, the Secretary of Health and Human Services, the Secretary of Education, the Secretary of Veterans Affairs, and the Secretary of Homeland Security shall take appropriate action to eliminate the need for the Department of the Treasury’s physical lockbox services and expedite requirements to receive the payment of Federal receipts, including fees, fines, loans, and taxes, through electronic means except as specified in section 4 of this order.

(e) The Secretary of the Treasury shall support agencies’ transition to digital payment methods, including by providing access through the Department of the Treasury’s centralized payment systems to:

Sec. 4. Exceptions and Accommodations for the Phase Out of Paper Check Disbursements and Receipts. (a) The Secretary of the Treasury, shall review and, as appropriate, revise procedures for granting limited exceptions where electronic payment and collection methods are not feasible, including exceptions for:

(i) individuals who do not have access to banking services or electronic payment systems;

(ii) certain emergency payments where electronic disbursement would cause undue hardship, as contemplated in 31 C.F.R. Part 208;

(iii) national security- or law enforcement-related activities where non-EFT transactions are necessary or desirable; and

(iv) other circumstances as determined by the Secretary of the Treasury, as reflected in regulations or other guidance.

(b) Individuals or entities qualifying for an exception under this section or other applicable law shall be provided alternative payment options.

Sec. 5. Implementation and Compliance of Electronic Transactions. (a) The Secretary of the Treasury, in coordination with the heads of agencies, shall develop and implement a comprehensive public awareness campaign to inform Federal payment recipients of the transition to electronic payments, including guidance on accessing and setting up digital payment options.

(b) Agencies shall coordinate with the Department of the Treasury to facilitate a smooth transition to digital payments, ensuring that affected individuals and entities receive adequate support.

(c) The Secretary of the Treasury shall work with financial institutions, consumer groups, and other stakeholders to address financial access for unbanked and underbanked populations.

(d) The Secretary of the Treasury and the heads of agencies shall take all necessary steps to protect classified information and systems, as well as personally identifiable information and tax return information, through the implementation of this order.

Sec. 6. Reporting Requirements. (a) The heads of agencies shall submit a compliance plan to the Director of the Office of Management and Budget within 90 days of the date of this order detailing their strategy for eliminating paper-based transactions.

(b) The Secretary of the Treasury shall submit an implementation report to the President through the Assistant to the President for Economic Policy within 180 days of the date of this order detailing progress on the matters set forth in this order.

Sec. 7. General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect:

(i) the authority granted by law to an executive department or agency, or the head thereof; or

(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.

(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.

(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

I do not understand why anyone receiving social security checks does not have a bank account. How do those people cash checks? Banks offer bonus for opening accounts with regular direct deposits.

Individual need not pay for internet services, since the funds will be deposited to their bank accounts. They can write free checks issued by bank or visit bank to cash out. They visit bank anyway to cash paper checks.

I do not understand why anyone receiving social security checks does not have a bank account.

In the United States, all retail-level banking institutions are privately owned. There is no mandatory service ("must serve") requirement on these institutions. Contrast that with the legacy telephone service, where the phone companies are required to provide service in accordance with franchise agreements with local and State governments.

Banks and credit unions can terminate you at their whim. That's the crux of the complaints by people de-banked without warning or reason.

Because someone can be blocked from having banking services, governments use state-issued debit cards for certain types of disbursements. For example, SNAP ("food stamp") benefits use this means. I've also seen people on unemployment "paid" using debit cards.

People who have been de-banked and issued paper checks can cash them at private check-cashing services, for a fee.

This problem has been a can of worms since the 1960s.

Does this mean I won't be able to get my Income Tax refund check any more?
I have always received a paper refund check.

I hate electronic Banking, it is very unsafe. I was talked into using electronic banking one time by my old bank. Not less then 3 months later someone hacked in to my checking account and almost wiped it out over a weekend. The bank apologized and replaced the money and I removed electronic banking from my account.

> I have always received a paper refund check.<

Until you don’t. I’m still waiting for two packages from Christmas 2023 to arrive via USPS. They were clearly marked Raycon Earbuds on the outside of the boxes. Do you think marking them US Treasury Dept, and sending them in May would have been more secure?

In all my life I have written checks to pay my bills, done all my banking at the bank. Not once have I ever had a bill payment not make it to whomever I was sending it to. Not once has my checking/savings account been “hacked”, until I signed up for electronic banking ... then BAMM! within 3 months someone got into my account and drained all by $500. And I had setup the electronic banking to View statements only ... no payments from it, no deposits to it.

Never had a problem receiving my Treasury refund check.

Now, with the box showing what is inside the box, that, I'm sure interested someone to "Misplace" it into their trunk.

I'm sure if you were to have contacted the Post Master General, it would have been taken care of immediately.

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