The U.S. Treasury Department is moving to phase out paper checks, following an executive order signed by President Donald Trump.
The directive, reported by CNBC, instructs all federal agencies to switch to electronic payment systems as part of a broader plan to modernize the government’s financial operations and cut costs tied to paper-based transactions.
President Trump recently announced that paper Social Security checks will be discontinued, except for people without access to bank accounts.
This plan has now been extended to include all types of federal payments, aiming to save government resources and promote efficiency. The shift reflects the administration’s push for more secure and technologically advanced payment solutions.
The White House stated that switching to electronic payments is a key step in modernizing how the government manages money.
Electronic transactions are faster, safer, and more efficient, helping to reduce risks like fraud, lost or stolen checks, and other delays common with traditional paper payments.
The Treasury has until September 30, 2025, to fully eliminate paper checks for tax refunds and the roughly 456,000 Social Security checks still mailed each month.
Under the executive order, all federal agencies must use electronic payment methods, such as direct deposits, digital wallets, debit or credit cards, and real-time transfers.
According to Kiplinger, Treasury Secretary Scott Bessent is expected to propose exceptions for individuals without banking access, especially in cases of emergency payments.
He is also tasked with submitting a detailed transition plan within 180 days to ensure the move to electronic payments is inclusive and smooth.
Banking professionals have welcomed the decision, citing the growing issue of check fraud.
Rob Nichols, President and CEO of the American Bankers Association, expressed support for the executive order, saying, “We applaud President Trump’s executive order requiring the federal government to cease issuing paper checks for all disbursements, including government benefits and tax refunds.”
This reflects the financial sector’s strong backing for the shift toward electronic transactions.
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