Washington – An executive decree signed by President Donald Trump last month, the revision of how the government issues payments, including tax reimbursements. From September 30, the secretary of the Treasury is condemned to stop issuing paper checks for all federal disbursements and will no longer accept paper checks as payment.
The order includes intragogenemental payments, payments of services, supplier payments and tax reimbursements.
“The continuous use of paper payments by the federal government, including checks and mandates, flowing and leaving the United States General Fund, which could be considered as an American bank account, imposes unnecessary costs; delays; The risks of fraud, lost payments, theft and ineffectiveness. ” reads part of the decree.
Later in order, Trump said that the cost of maintaining physical infrastructure and technology for the scanning of paper records exceeded $ 657 million during the year 2024.
All executive departments and agencies will move to the use of electronic fund transfer methods (EFT) such as direct filing, prepaid card accounts and other digital payment options. The departments and agencies will also work with the beneficiaries to register them for the payments EFT.
Although paper checks disappear in most cases, the order provides that certain payment recipients continue to receive paper checks in some cases. The order allows the secretary of the Treasury to review and revise the procedures, including exceptions for:
- Those who do not have access to banking services or electronic payment systems.
- Certain emergency payments where electronic disbursement would cause industrial difficulties.
- Activities related to national security or the police when non-andft transactions are necessary or desirable.
- Other circumstances determined by the secretary of the Treasury, as reflected in regulations or other directives.
The order provides for an important public awareness campaign concerning change and so that the Treasury works with financial institutions, consumer groups and other organizations “to combat financial access for non-banished and sub-banking populations”.
