A major shift is coming to how Americans send money to and receive payments from the federal government. On March 25, 2025, President Donald J. Trump signed an Executive Order directing all federal agencies to phase out paper-based payments and adopt modern, secure electronic systems.
Beginning September 30, 2025, the federal government will require most payments to and from federal agencies to be made electronically. This includes eliminating paper checks for tax refunds, Social Security, and vendor payments, as well as requiring electronic payment of taxes, fees, fines, and other government obligations.
Agencies across the federal government are required to adopt secure, digital methods such as direct deposit, credit or debit card transfers, digital wallets, and real-time payment systems. The Treasury will discontinue physical lockbox services.
For taxpayers, the shift to electronic funds transfer (EFT) brings several advantages: faster access to refunds, enhanced security, and fewer delays caused by lost, stolen, or misdelivered checks. With no need to wait for mail delivery or check clearance, funds will be deposited directly into bank accounts—often within days of processing.
Likewise, when making payments to the IRS or other federal agencies, money will be withdrawn more quickly, which could impact personal or business cash flow if not carefully monitored. In addition to faster processing and reduced delays, digital transactions are more cost-effective, more reliable, and far less vulnerable to fraud than traditional paper-based systems.
While this change will be seamless for many, it’s important to note that not everyone has easy access to digital banking or is comfortable with new technology. The federal government will allow exceptions in limited cases, but for most taxpayers, electronic payments will become the new normal. To learn more about the directive, read the Executive Order and the accompanying White House Fact Sheet.
By moving away from paper checks, the government is cutting waste, reducing fraud, and delivering faster, more reliable service—giving agencies quicker access to incoming funds and ensuring refunds reach recipients with greater speed and security. Contact your Stephano Slack tax manager or partner at 610-687-1600 or TaxInfo@StephanoSlack.com to learn more.
Author Jackie Himes, CPA, partner, is a trusted authority in serving high-net-worth individuals and closely held businesses. She provides strategic financial guidance that fuels growth and sustainability. Jackie’s extensive experience in private equity enables her to navigate complex investment structures and maximize tax efficiencies, consistently delivering tailored solutions for her client’s success. She can be contacted at 610-710-4057 or Jhimes@stephanoslack.com.
Disclaimer: This content is for informational purposes only and doesn’t constitute professional advice.
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