Modernizing Payments To and From America's Bank Account

What it means

Mandates the transition from paper checks to electronic payments for all federal transactions by September 30, 2025. The Treasury will stop issuing paper checks and provide digital alternatives, with limited exceptions for people without banking access or in emergency situations.

Expected impact

• Enhanced security for government payments, reducing fraud and theft risks (paper checks are 16 times more likely to be reported lost or stolen)
• Significant cost savings for taxpayers (paper processing cost $657 million in 2024 alone)
• Improved efficiency with faster payment processing and reduced delays
• Temporary adjustment challenges for individuals without banking access, though exceptions and alternatives will be provided
• Public awareness campaigns to help citizens transition to digital payment methods