The United States Government Transitions to Electronic Payments

    On Tuesday, March 25th, 2025, President Donald Trump issued an executive order to discontinue all paper-based payments to and from the Federal Government by September 30th, 2025.

    There are a few contributing factors surrounding the move to digital payment methods. President Trump’s executive order aligns with the newly formed Department of Government Efficiency’s (DOGE) efforts to modernize Federal technology and software. The order also states that this initiative coincides with the United States’ policy to defend against fraud, promote operational efficiency, and cut costs where necessary.

    The order will go into effect on Tuesday, September 30th, 2025. By then, all federal disbursements and receipts must be transitioned to modern digitized payment methods. This means the federal government will cease issuing any checks including intragovernmental payments, benefits payments, vendor payments, and tax refunds. There are limited accommodations – read about the qualifying exceptions here. Some of the exceptions may be construed as vague, so additional clarity will be necessary as different government departments adapt to this executive order.

    All executive departments within the federal government must comply with the order. The heads of these agencies are currently working alongside the Secretary of the Treasury to create an implementation strategy and public awareness campaign to make the transition as seamless as possible. The Treasury Department is expected to support them by providing access to their centralized payment system. The Secretary of the Treasury will also work with financial institutions, consumer groups, and other stakeholders to ensure that people who are not yet affiliated with a bank or don’t have access to a bank, get the resources and guidance they need in order to comply.

    Right now, there is not much to prepare until we know more about the set up of digital payments. What we do know is that this will affect the distribution of tax refunds and balances owed to the government for tax returns on extension and next tax season. Taxpayers should be prepared to include bank information when filing their tax returns after September 30th, 2025. We’ll keep you posted as we learn more. In the meantime, feel free to contact the Cg Team with any questions. © 2025