Treasury to End Paper Checks by September 30, 2025: Executive Order 14247

Executive Order 14247 Modernizes Federal Payments

The White House on March 25, 2025, issued Executive Order 14247, “Modernizing Payments To and From America’s Bank Account.” The executive order states that effective September 30, 2025, to the extent permitted by law, the Secretary of Treasury will cease issuing paper checks for all federal disbursements, which includes tax refunds.

In addition to establishing the September 30 deadline for stopping paper checks, the executive order also provides that payments to the federal government should be made electronically as soon as practicable. The executive order indicates that the purpose is to modernize and minimize the costs, delays, risks, and inefficiencies that paper-based payments entail. It notes that mail theft has increased in recent years, and Department of Treasury paper checks are significantly more likely to be reported lost or stolen, returned, or altered than electronic funds transfers (EFTs).

The executive order instructs Treasury to support the transition to digital payment methods, such as direct deposits, debt or credit card payments, digital wallets, and other electronic payment systems. Treasury is authorized to grant limited exceptions when electronic payment is not feasible, including for individuals who do not have access to bank services or electronic payments systems. Other potential exceptions include:

• Emergency payments when electronic disbursement would cause undue hardships

• National security and law enforcement-related activities when non-EFT transactions are necessary or desirable

• Other circumstances as determined by the Secretary of the Treasury

On August 14, 2025, Treasury issued a news release indicating that it will stop paper checks for most federal benefit items on September 30, 2025.

Insights

Treasury appears to be moving towards electronic payments, and away from issuing paper checks, effective September 30, 2025. The department recently requested public comments regarding the implementation of the executive order, but there has not been any indication that the September 30 deadline will be changed.

Taxpayers that typically receive paper checks for tax refunds should evaluate the potential electronic options to confirm that they can receive their refund in a timely manner.

Key Takeaways

• Paper checks for federal disbursements end September 30, 2025.

• Payments to and from the federal government are shifting to electronic methods.

• Exceptions will be limited and narrowly defined.

• Taxpayers relying on paper checks should prepare now for direct deposit or other EFTs.

Frequently Asked Questions (FAQ)

1. When will the Treasury stop issuing paper checks?
The Treasury will stop issuing most federal paper checks — including tax refunds and benefit payments — on September 30, 2025.

2. Which payments are affected?
All federal disbursements are included, such as tax refunds and benefit payments, unless a specific exception applies.

3. What are the electronic payment options?
Approved methods include direct deposit, debit or credit card payments, digital wallets, and other electronic funds transfers (EFTs).

4. Will there be exceptions?
Yes. Exceptions may be granted for:

• Emergency payments when EFT would cause undue hardship

• National security or law enforcement activities requiring non-EFT transactions

• Other circumstances as determined by the Secretary of the Treasury

5. How does this impact taxpayers waiting on refunds?
Taxpayers who usually receive refunds by check should set up direct deposit or another electronic option before the September 30, 2025 deadline to avoid payment delays.

6. Why is the government eliminating paper checks?
To reduce costs, minimize risks, and modernize payments. Paper checks are more likely to be lost, stolen, or altered compared to EFTs.

Source Acknowledgment

Some content borrowed with permission from BDO USA.