July 2, 2025
Timothy J. Clancy
Principal, Tax
Atlanta, GA
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In efforts to modernize the federal government’s financial operations, the current administration issued an executive order on March 25, 2025, aimed at eliminating paper-based payments and transitioning to fully electronic transactions. The executive order is meant to target inefficiencies, fraud risks and high costs associated with paper checks and money orders.
The directive mandates that by Sept. 30, 2025, nearly all federal payments, including Social Security benefits, tax refunds and vendor payments, must be made via electronic funds transfer (EFT). Similarly, payments made to the federal government, such as taxes and fees, must also be processed electronically.
The executive order also includes exceptions for individuals without access to digital banking and for certain emergency or law enforcement-related payments.
Treasury estimates that over $657 million was spent in fiscal year 2024 on outdated paper payment systems. The shift to digital payments is expected to reduce fraud, expedite transactions and save taxpayer dollars.
For questions or more information, contact your Windham Brannon advisor today, or reach out to Tim Clancy.