A new Executive Order signed by President Trump on March 25, 2025 requires every federal agency to stop issuing and accepting paper checks by September 30, 2025. From that date forward, tax refunds, Social Security, vendor payments, and even taxes or fees you send to the government must move through secure electronic channels (direct deposit, debit/credit card, digital wallets, real-time systems, EFTPS, etc.).
There are many reasons for the change:
- More security – Avoid the increase in mail fraud, especially after COVID.
- There has been a large number of fraud from USPS employees and other bad actors, such as
- IRS – U.S. Postal employee and two co-conspirators are arrested for $24 million stolen check scheme
- DOJ – Two Former Postal Workers Charged with Stealing U.S. Treasury Checks Valued at More Than $4 Million from Kennedy Airport Mail Facility
- CNBC – USPS worker stole $1.6 million in checks from mail, spent it on luxury hotels and ‘gentlemen’s clubs’
- There has been a large number of fraud from USPS employees and other bad actors, such as
- Quicker transactions – Direct deposits might take a few days versus several weeks
- Ensure that you are set up if you are receiving payments (i.e. Social security) or make sure that you select the appropriate reasons (i.e. taxes due or estimated, tax year, etc.) keeping a copy of the confirmation as you might need it.
- Cost savings to the Administration – Reduce millions of dollars spent each year in printing, postage, scanning, posting and managing documents.
The Executive Order includes granting certain exemptions such as individuals that do not have access to banking, were emergency payments would cause undue hardship, or for national security.
Need help transitioning? Reach out to our team to ensure you do not miss any of your payments or ensure any payments are posted to the appropriate account and tax period.
Whitehouse – Presidential action – Modernizing Payments To and From America’s Bank Account
