A new executive order signed by President Donald Trump is bringing a major shift to how the U.S. government handles financial transactions.

Starting September 30, 2025, the U.S. Department of the Treasury will stop issuing and accepting paper checks

for all federal disbursements and payments, including tax refunds and paper checks sent to the IRS.

What’s Changing?

This new rule applies to all federal financial transactions, including:

• Tax refunds
• Benefits payments
• Vendor payments
• Intragovernmental payments
• Paper check payments sent to the IRS

All executive departments and agencies will transition to using electronic funds transfer (EFT) methods such as:

• Direct deposit
• Prepaid debit cards
• Other secure digital payment platforms

The Treasury Department has been directed to enroll recipients in electronic payment systems and launch a

national awareness campaign to help with the transition.

Why Is This Happening?

The move to digital payments is designed to:

• Reduce delays in receiving funds.
• Lower costs for the government and taxpayers.
• Minimize fraud and theft.
• Increase efficiency and accuracy across agencies.

The order instructs the Secretary of the Treasury to take all appropriate actions to eliminate the issuance and

acceptance of paper checks starting September 30, 2025.

Are There Any Exceptions?

Yes. While the default will be digital, paper checks may still be used in the following situations:

• Individuals without access to banking services or electronic payment systems.
• Emergency hardship payments where electronic options aren’t feasible.
• National security or law enforcement-related activities.
• Other cases as determined by the Secretary of the Treasury.

What This Means for You

If you currently:

• Receive your IRS tax refund via check.
• Send paper check payments to the IRS or other agencies.
• Rely on federal benefits or vendor payments via check.

…you’ll need to switch to an electronic method before September 30, 2025, to avoid delays or rejected payments.

Key Takeaway:

Starting September 30, 2025, all federal disbursements must be made electronically. Paper checks will no longer be accepted or issued.

We’ll continue to monitor any updates or reversals to this order and will keep our clients informed as changes occur. 

For more background from the original source, view the official White House fact sheet here.