Reminder: Government to Stop Paper Checks After September 30, 2025; No Firm Date for Required Electronic Payments

As a result of President Trump’s March 25, 2025, executive order (“the order”) titled “Modernizing Payments To and From America’s Bank Account,” the federal government will be required to disburse payments electronically, effective September 30, 2025. Electronic payments to the federal government are also required under the order, but no effective date has been announced. 

What Does the Executive Order Require? 

All federal departments and agencies are required to comply with the new requirement and must transition to electronic funds transfer (ETF) payment methods. This can include direct deposits, prepaid card accounts, or other “digital payment” options. The order specifically directs the secretary of the treasury to “cease issuing paper checks for all Federal disbursements,” including tax refunds. 

The order also requires agencies to receive payments electronically, including tax payments. However, the order does not give a firm date when taxpayers must begin making payments electronically. Instead, agencies are directed to implement the change “as soon as practicable.” To date, the Treasury has not announced a firm deadline for when electronic payments will be required of taxpayers. 

Exceptions 

The order has some exceptions for: 

• Individuals without access to banking services or electronic payment systems,  
• Certain emergency payments where the requirement would cause hardship,  
• National security/law enforcement related activities where non-EFT transactions are “desirable,” and 
• Other circumstances as determined by the Secretary of the Treasury.  

The Secretary of the Treasury is directed to work with financial institutions and other agency heads to facilitate the transition. Additionally, the secretary of the treasury is tasked with leading a public awareness campaign to educate the public about the changes and assist the public with setting up electronic payment options if necessary.  

While many taxpayers are already required to file their returns electronically, this is the first time many will be required to make payments electronically. Contact us below if you have questions about how this change may impact you.