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Trump order pushes federal government toward electronic payment methods
- On March 25, 2025, President Donald Trump signed an executive order mandating a transition to electronic payments for all Federal disbursements and receipts, aiming to modernize the government's payment systems.
- The shift from paper-based payments, including checks and money orders, is driven by the fact that it imposes unnecessary costs, estimated at over $657 million in Fiscal Year 2024 for maintaining infrastructure and technology, and creates risks of fraud, including increased mail theft since the COVID-19 pandemic.
- The order requires executive departments and agencies to comply by transitioning to Electronic Funds Transfer methods such as direct deposit, prepaid cards, and digital payment options, with the Secretary of the Treasury supporting this transition and ceasing the issuance of paper checks by September 30, 2025, to the extent permitted by law.
- President Trump stated the shift to electronic payments should have occurred "25, 30 years ago," while Secretary Scott Bessent posted on X, "Thank you, Trump, for this crucial order to help us root out fraud, waste, and abuse at the Treasury Department. We are full steam ahead at the Treasury."
- While aiming to improve operational efficiency, cut costs, and reduce fraud, the order acknowledges exceptions for individuals lacking access to banking services or electronic systems, emergency situations, and cases involving national security or law enforcement, requiring agencies to submit compliance plans and the Treasury Secretary to launch a public awareness campaign and provide implementation reports.
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'Cracking Down on Waste, Fraud, and Abuse': President Donald Trump Is Canceling Paper Checks. Here's What We Know.
President Donald Trump signed an executive order directing the Treasury to go digital first. Here's what we know, and how it will affect your tax refund.
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Trump order pushes federal government toward electronic payment methods
The federal government will shift from paper-based payments to electronic methods, part of what the White House said in a Tuesday executive order is an attempt to cut costs and reduce fraud. President Donald Trump’s EO on “modernizing payments to and from America’s bank account” requires the Treasury Department to phase out paper check disbursements and receipts by Sept. 30. That includes intragovernmental payments, benefits payments, vendor pay…
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Total News Sources25
Leaning Left1Leaning Right2Center3Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 17%
C 50%
R 33%
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