President Trump signed an executive order titled “Modernizing Payments To and From America’s Bank Account” on March 25, 2025. Effective September 30, 2025, the Secretary of the Treasury is directed to cease issuing paper checks for all Federal disbursements, including tax refunds.
All payments made to the federal government shall be processed electronically as soon as practicable and to the extent permitted by law.
Direct deposits, debit and credit card payments, digital wallets and real-time payment systems, and other modern electronic payment options will be the primary payment methods under the modernized system.
Accommodations will be made for unbanked individuals, certain emergency payments where electronic disbursement would cause undue hardship, and other circumstances as determined by the Secretary of the Treasury.
Concerned about the shift to electronic payments for federal transactions? Frost Law can help you navigate these changes. Contact us today at (443) 743-3381 for guidance.