By fall 2025, all federal agencies will switch to electronic funds transfers
The federal government is putting paper checks on notice. In an Executive Order (EO) signed on March 25, President Trump directed the Department of the Treasury to stop issuing — and accepting — paper checks for nearly all transactions, including tax refunds, installment payments and vendor disbursements.
The shift is part of a broader push to modernize how money flows in and out of what the EO terms “America’s bank account.”
By Sept. 30, 2025, federal agencies will be required to switch to electronic funds transfers (EFT), such as direct deposit, digital wallets, debit cards and other real-time payment methods.
The aim? Increased efficiency, lower costs, and fewer headaches from mail theft, fraud and lost payments. (According to the White House, Treasury checks are 16 times more likely to go missing than EFTs — and digitizing payments could save taxpayers over $650 million a year.)
There are carve-outs for those without access to banking services or in emergency or national security contexts, but the message is clear: the federal government is going digital, and it expects the same from anyone sending or receiving money.
What this means for taxpayers:
- If you’re on an IRS installment plan for income or estate taxes, now’s the time to double-check your EFT setup.
- Work with your IRS contact to confirm the correct procedures.
- Make sure your financial institution can process electronic payments to the IRS — and confirm the timeline for completing transfers.
Executive Order 14,247 is available here, and a White House fact sheet is available here.
[View source.]
