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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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