An executive order issued by President Donald J. Trump requires the federal government to stop issuing paper checks by Sept. 30 for all disbursements, including tax refunds. The order also requires that tax payments, fines, fees and other payments made to the federal government be processed electronically when permissible under federal law.

The order notes that exceptions will be made for people without access to banking or electronic payments, certain emergency payments, certain law enforcement activities and other special cases that qualify. A comprehensive public awareness campaign will be launched to inform federal payment recipients that they must shift to electronic options and provide guidance on setting up digital payments.

Fact Sheet, March 25, 2025: President Donald J. Trump Modernizes Payments to and from America’s Bank Account

PHASING OUT PAPER CHECKS: Today, President Donald J. Trump signed an Executive Order to modernize how the government handles money, switching from old-fashioned paper-based payments to fast, secure electronic payments.

• The Order mandates that, effective September 30, 2025, the Federal government will cease issuing paper checks for all disbursements, including intragovernmental payments, benefits, vendor payments, and tax refunds.
• All executive departments and agencies must transition to modern, electronic funds transfer (EFT) methods like direct deposit, debit/credit card payments, digital wallets, and real-time transfers.
• Payments made to the Federal government, such as fees, fines, loans, and taxes, must also be processed electronically where permissible under existing law.
• Treasury will phase out physical lockbox services and expedite electronic collection of Federal receipts.
• A comprehensive public awareness campaign will be launched to inform Federal payment recipients of the shift to electronic options and offer guidance on setting up digital payments.
• Exceptions will be made for people without banking or electronic payment access, certain emergency payments, certain law enforcement activities, and other special cases qualifying for an exception under the Order or other existing law.
• This Executive Order does not establish a Central Bank Digital Currency (CBDC)

US Tax Consultants will continue to monitor developments regarding the order and will keep you informed of any updates or changes that may affect our clients.