Modernizing Payments To and From America's Bank Account, 14001-14003 [2025-05522]

Agencies

• Executive Office of the President

[Federal Register Volume 90, Number 59 (Friday, March 28, 2025)]
[Presidential Documents]
[Pages 14001-14003]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-05522]




                        Presidential Documents 



Federal Register / Vol. 90, No. 59 / Friday, March 28, 2025 / 
Presidential Documents

[[Page 14001]]


                Executive Order 14247 of March 25, 2025

                
Modernizing Payments To and From America's Bank 
                Account

                By the authority vested in me as President by the 
                Constitution and the laws of the United States of 
                America, it is hereby ordered:

                Section 1. Purpose.The continued use of paper-based 
                payments by the Federal Government, including checks 
                and money orders, flowing into and out of the United 
                States General Fund, which might be thought of as 
                America's bank account, imposes unnecessary costs; 
                delays; and risks of fraud, lost payments, theft, and 
                inefficiencies. Mail theft complaints have increased 
                substantially since the COVID-19 pandemic. 
                Historically, Department of the Treasury checks are 16 
                times more likely to be reported lost or stolen, 
                returned undeliverable, or altered than an electronic 
                funds transfer (EFT). Maintaining the physical 
                infrastructure and specialized technology for 
                digitizing paper records cost the American taxpayer 
                over $657 million in Fiscal Year 2024 alone.

                This order promotes operational efficiency by mandating 
                the transition to electronic payments for all Federal 
                disbursements and receipts by digitizing payments to 
                the extent permissible under applicable law (but not, 
                for avoidance of doubt, to establish a Central Bank 
                Digital Currency).

                Sec. 2. Policy. It is the policy of the United States 
                to defend against financial fraud and improper 
                payments, increase efficiency, reduce costs, and 
                enhance the security of Federal payments.

                Sec. 3. Phase Out of Paper Check Disbursements and 
                Receipts. (a) Effective September 30, 2025, and to the 
                extent permitted by law, the Secretary of the Treasury 
                shall cease issuing paper checks for all Federal 
                disbursements inclusive of intragovernmental payments, 
                benefits payments, vendor payments, and tax refunds, 
                except as specified in section 4 of this order.

                    (b) All executive departments and agencies 
                (agencies) shall comply with this directive by 
                transitioning to EFT methods, including direct deposit, 
                prepaid card accounts, and other digital payment 
                options, and take all steps necessary to enroll 
                recipients in EFT payments, except as specified in 
                section 4 of this order.
                    (c) As soon as practicable, and to the extent 
                permitted by law, all payments made to the Federal 
                Government shall be processed electronically, except as 
                specified in section 4 of this order.
                    (d) The Secretary of State, the Secretary of the 
                Treasury, the Secretary of Health and Human Services, 
                the Secretary of Education, the Secretary of Veterans 
                Affairs, and the Secretary of Homeland Security shall 
                take appropriate action to eliminate the need for the 
                Department of the Treasury's physical lockbox services 
                and expedite requirements to receive the payment of 
                Federal receipts, including fees, fines, loans, and 
                taxes, through electronic means except as specified in 
                section 4 of this order.
                    (e) The Secretary of the Treasury shall support 
                agencies' transition to digital payment methods, 
                including by providing access through the Department of 
                the Treasury's centralized payment systems to:

(i) direct deposits;

(ii) debit and credit card payments;

(iii) digital wallets and real-time payment systems; and

[[Page 14002]]

(iv) other modern electronic payment options.

                Sec. 4. Exceptions and Accommodations for the Phase Out 
                of Paper Check Disbursements and Receipts. (a) The 
                Secretary of the Treasury, shall review and, as 
                appropriate, revise procedures for granting limited 
                exceptions where electronic payment and collection 
                methods are not feasible, including exceptions for:

(i) individuals who do not have access to banking services or electronic 
payment systems;

(ii) certain emergency payments where electronic disbursement would cause 
undue hardship, as contemplated in 31 C.F.R. Part 208;

(iii) national security- or law enforcement-related activities where non-
EFT transactions are necessary or desirable; and

(iv) other circumstances as determined by the Secretary of the Treasury, as 
reflected in regulations or other guidance.

                    (b) Individuals or entities qualifying for an 
                exception under this section or other applicable law 
                shall be provided alternative payment options.

                Sec. 5. Implementation and Compliance of Electronic 
                Transactions. (a) The Secretary of the Treasury, in 
                coordination with the heads of agencies, shall develop 
                and implement a comprehensive public awareness campaign 
                to inform Federal payment recipients of the transition 
                to electronic payments, including guidance on accessing 
                and setting up digital payment options.

                    (b) Agencies shall coordinate with the Department 
                of the Treasury to facilitate a smooth transition to 
                digital payments, ensuring that affected individuals 
                and entities receive adequate support.
                    (c) The Secretary of the Treasury shall work with 
                financial institutions, consumer groups, and other 
                stakeholders to address financial access for unbanked 
                and underbanked populations.
                    (d) The Secretary of the Treasury and the heads of 
                agencies shall take all necessary steps to protect 
                classified information and systems, as well as 
                personally identifiable information and tax return 
                information, through the implementation of this order.

                Sec. 6. Reporting Requirements. (a) The heads of 
                agencies shall submit a compliance plan to the Director 
                of the Office of Management and Budget within 90 days 
                of the date of this order detailing their strategy for 
                eliminating paper-based transactions.

                    (b) The Secretary of the Treasury shall submit an 
                implementation report to the President through the 
                Assistant to the President for Economic Policy within 
                180 days of the date of this order detailing progress 
                on the matters set forth in this order.

                Sec. 7. General Provisions. (a) Nothing in this order 
                shall be construed to impair or otherwise affect:

(i) the authority granted by law to an executive department or agency, or 
the head thereof; or

(ii) the functions of the Director of the Office of Management and Budget 
relating to budgetary, administrative, or legislative proposals.

                    (b) This order shall be implemented consistent with 
                applicable law and subject to the availability of 
                appropriations.

[[Page 14003]]

                    (c) This order is not intended to, and does not, 
                create any right or benefit, substantive or procedural, 
                enforceable at law or in equity by any party against 
                the United States, its departments, agencies, or 
                entities, its officers, employees, or agents, or any 
                other person.
                
                
                    (Presidential Sig.)

                THE WHITE HOUSE,

                    March 25, 2025.

[FR Doc. 2025-05522
Filed 3-27-25; 8:45 am]
Billing code 3395-F4-P