Trump Orders Major Digital Shift for US Bank Accounts
President Donald Trump signed an executive order mandating a move to digital payments for the federal government in September, aiming to save $657 million and reduce the risk of fraud in federal payments.
Trump Signs Order to Digitize All Federal Payments in September
On March 25, President Donald Trump signed an executive order at the White House requiring all federal government payments to be digital by the end of Fiscal Year 2025. The move is aimed at addressing the inefficiencies, high costs, and risk of fraud from the current paper payment system.
“History shows that Treasury checks are susceptible to loss or theft, and have an error rate 16 times higher than electronic funds transfer (EFT),” the order said. The continued use of paper payments has cost taxpayers more than $657 million in FY 2024 alone. The order details:
As of September 30, 2025, the federal government will stop issuing paper checks for all disbursements, including benefit payments, vendor payments, tax refunds, and intra-government payments.
The order requires all executive departments and agencies to adopt modern electronic funds transfer methods such as direct deposit, debit/credit card payments, digital wallets, and real-time transfers. At the same time, agencies are required to enroll payees in digital systems and reduce their reliance on Treasury lockbox services.
Exemptions and Safeguards in the Executive Order
Certain exemptions will be made for individuals without access to banking services, national security situations, or emergencies. Alternative payment methods will be provided to those who qualify. The government will also launch a nationwide awareness campaign to educate payees on how to go digital. Government agencies must submit a compliance plan within 90 days, and the Treasury Department will report progress to the President within 180 days.
To protect the public from concerns about digital currencies, the order also states that:
This order does not establish a central bank digital currency (CBDC).
In January, President Trump signed an executive order prohibiting federal agencies from developing or promoting CBDCs, while also repealing previous efforts to explore central bank digital currencies. A working group has been formed to propose a federal regulatory framework for digital assets within 180 days. Several bills banning CBDCs are currently being considered in Congress and state legislatures.