Under a new executive order from President Trump, effective Sept. 30, the U.S. Treasury will no longer issue paper checks for disbursements, including tax refunds, vendor payments, benefit payments and intergovernmental transfers.
The order also covers the use of paper checks to pay the federal government “as soon as practicable, and to the extent permitted by law.” In addition, it directs the Treasury Department to develop a comprehensive public awareness campaign of the change, “including guidance on accessing and setting up digital payment options.”
In a statement, American Bankers Association President and CEO Rob Nichols said the association welcomed the order. He noted that despite a continued decline in business and consumer use of checks, check fraud has continued to rise.
“That is why ABA and banks across the country launched the #PracticeSafeChecks campaign last October to educate consumers, including encouraging them to use digital banking options to send money whenever possible,” Nichols said. “The bottom line: Electronic payments are a much faster, cheaper and safer choice for consumers and the federal government.”
The move was billed as a crackdown on waste, fraud and abuse, as well as a step toward greater efficiency. According to the order, “Treasury checks are 16 times more likely to be reported lost or stolen, returned undeliverable, or altered than an electronic funds transfer.” The White House also noted the rise in check fraud and added that maintaining the infrastructure for paper check processing cost $657 million in 2024.
The order directed the treasury secretary to make exceptions “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.”
