WASHINGTON, DC (LOOTPRESS) โ President Donald J. Trump has issued an executive order mandating the transition of all federal payments to electronic transactions, aiming to increase efficiency, reduce costs, and combat fraud.
Under the order, paper checks and money orders will be phased out by September 30, 2025, for all federal disbursements, including benefits, tax refunds, vendor payments, and intra-government transactions. Federal agencies are required to switch to direct deposit, prepaid cards, digital wallets, and other electronic payment methods.
The shift comes amid concerns over rising mail theft and fraud, with government-issued checks being 16 times more likely to be lost or stolen than electronic payments. In Fiscal Year 2024 alone, taxpayers spent over $657 million to maintain outdated paper payment systems.
Exceptions will be made for individuals without access to banking services, certain emergency payments, national security concerns, and other special circumstances.
The Department of the Treasury will oversee the transition, supporting agencies and ensuring public awareness. A compliance plan is due within 90 days, and a full implementation report will be submitted to the President within 180 days.
This initiative aims to streamline government financial operations, enhance security, and save taxpayer money while modernizing how the federal government handles payments.
