President Donald Trump has mandated the complete elimination of paper Treasury checks by September 30 through an executive order requiring all federal payments to transition to electronic formats. The sweeping change will apply to benefit distributions, tax refunds, vendor payments, and intergovernmental transactions as part of a broader initiative to modernize government disbursements and reduce financial fraud risks.
The administration cited alarming fraud statistics showing paper checks are sixteen times more likely to be lost, stolen, or altered compared to electronic transfers, with mail theft complaints having surged since the COVID-19 pandemic. Officials emphasized the substantial taxpayer savings from eliminating paper processing, noting the $657 million spent in 2024 alone to maintain outdated check infrastructure and physical payment systems.
Federal agencies have been instructed to implement electronic payment solutions including direct deposit and prepaid debit cards as primary disbursement methods moving forward. The Treasury Department will coordinate with key payment administrators including the Social Security Administration and IRS to ensure full compliance with the digital transition timeline. This policy aligns with Trump’s recent advocacy for financial modernization, including his endorsement of stablecoin development and calls for blockchain-based settlement systems to replace legacy payment rails.