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President Donald Trump has signed an executive order mandating a federal shift to digital payments by September, aiming to reduce $657 million in waste and minimize fraud risks.
Trump Signs Sweeping Order to Digitize All Federal Payments by September
U.S. President Donald Trump signed an executive order on March 25 at the White House mandating a government-wide shift to digital payments, ending nearly all paper-based disbursements by the close of Fiscal Year 2025. The order targets inefficiencies in the current system, citing rising costs, fraud, and delivery delays associated with physical checks and money orders.
“Historically, Department of the Treasury checks are 16 times more likely to be reported lost or stolen, returned undeliverable, or altered than an electronic funds transfer (EFT),” the order stated. Processing physical records cost taxpayers more than $657 million in Fiscal Year 2024 alone. According to the executive order’s fact sheet:
The Order mandates that, effective September 30, 2025, the federal government will cease issuing paper checks for all disbursements, including intragovernmental payments, benefits, vendor payments, and tax refunds.
The order further states: “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.” Agencies are instructed to enroll recipients in digital systems and reduce reliance on the Treasury’s lockbox services.
Certain exemptions will remain for individuals without access to banking, national security purposes, or emergency situations. Alternative payment methods will be provided for those who qualify. A nationwide awareness campaign is planned to educate payment recipients on digital transition procedures. Agencies must submit compliance plans within 90 days, and the Treasury Department is required to report back to the President within 180 days outlining implementation progress.
As a safeguard against public concern over digital currency policy, the order also makes clear:
This Executive Order does not establish a central bank digital currency (CBDC).
In January, President Trump signed an executive order barring federal agencies from developing or promoting central bank digital currencies. The order also rescinded previous efforts to explore digital asset regulations and the creation of a digital dollar. It created a working group to propose a federal regulatory framework for digital assets within 180 days. Several bills to ban CBDCs have also been introduced in Congress and state legislatures.