The federal government is making a big push toward digital payments, thanks to a new executive order from President Trump. The order, announced Tuesday, directs the Treasury Department to phase out paper checks and move to electronic payments by September 30. This includes payments between government agencies, tax refunds, benefits, and vendor payments.
The White House says the move is meant to cut costs, speed up transactions, and reduce fraud. The order points out that paper checks and money orders come with unnecessary expenses, delays, and risks of loss or theft.
Federal agencies will now be expected to use direct deposit, prepaid cards, and other digital payment methods. However, there will be exceptions for people who don’t have access to banking services, emergencies, and situations involving national security or law enforcement.
Several key federal departments, including Treasury, State, Health and Human Services, and Veterans Affairs, are tasked with eliminating the need for physical check processing. Treasury will also launch a public awareness campaign to help people transition to electronic payments.
This move is part of a broader effort by the Trump administration to modernize government finances. A separate order issued Tuesday focuses on updating payment tracking systems and improving verification processes. It follows an earlier February order aimed at enhancing digital financial management across federal agencies.
While the shift to electronic payments is framed as a way to improve efficiency, it remains to be seen how smoothly the transition will go and whether legal challenges could slow things down.
Trump’s New Order Pushes Government to Embrace Electronic Payments
