April 1, 2025 (The Edwardsville Intelligencer) –
An executive order signed by President Donald Trump aims to cease the distribution and receiving of paper checks from and to the federal government.
In an information document from the White House, Trump wants to "modernize how the government handles money, switching from old-fashioned paper-based payments to fast, secure electronic payments." The document also indicates Trump "is cracking down on waste, fraud, and abuse in government by modernizing outdated paper-based payment systems that impose unnecessary costs, delays, and security risks."
Here's a few of the stipulations that come with Trump's initiative:
— The Order mandates that, effective September 30, 2025, the Federal government will cease issuing paper checks for all disbursements, including intra-governmental 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.
The document also notes that a "comprehensive public awareness campaign" will spread the word about the shift to digital payments, and people without access to electronic banking or electronic payments.
Trump's order also lists these reasons behind the move to digital:
— Paper-based payments, such as checks and money orders, impose unnecessary costs, delays, and risks of fraud, lost payments, theft, and inefficiencies.
— Mail theft complaints have increased substantially since 2020.
— Historically, Treasury checks are 16 times more likely to be reported lost or stolen, returned undeliverable, or altered than an electronic funds transfer.
— Maintaining the physical infrastructure and specialized technology for digitizing paper records cost the American taxpayer over $657 million in fiscal year 2024 alone.
© 2025 Edwardsville Intelligencer (Edwardsville, Ill.). Visit www.theintelligencer.com. Distributed by Tribune Content Agency, LLC.
* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistribute or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.