Executive Order 14247Executive Order

Modernizing Payments To and From America's Bank Account

Donald J. Trump

Signed: Mar 25, 2025

Published: Mar 28, 2025

Financial ServicesTechnology & Innovation

Standard Summary

Comprehensive overview

This executive order, issued by the President on March 25, 2025, mandates a transition from paper-based payments (like checks and money orders) to electronic payment methods for all federal government disbursements and receipts. The order aims to reduce costs, increase efficiency, and enhance security by addressing issues like fraud, theft, and delays associated with paper payments. It explicitly states that this modernization does not establish a Central Bank Digital Currency (CBDC). The order requires full implementation by September 30, 2025, with exceptions for certain circumstances.

Key Points

1Phases out paper checks for federal disbursements (e.g., benefits, vendor payments, tax refunds) by September 30, 2025, requiring transition to electronic funds transfer (EFT) methods like direct deposit, prepaid cards, and digital wallets.
2Requires federal agencies to process payments to the government electronically, including fees, fines, loans, and taxes, and directs specific departments to eliminate reliance on physical lockbox services.
3Provides exceptions for individuals without access to banking services, emergency payments, national security activities, and other cases determined by the Treasury Secretary, with alternative payment options for those affected.
4Mandates a public awareness campaign and coordination with financial institutions to support unbanked and underbanked populations during the transition.
5Requires agencies to submit compliance plans within 90 days and the Treasury Secretary to report implementation progress within 180 days.

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