What You Need to Know About the New Executive Order Ending Paper Checks for Federal Payments
03/28/2025
By: Fidelity Bank
On March 25, 2025, an Executive Order was signed directing federal agencies to stop using paper checks for payments by September 30, 2025. This includes payments that customers receive from government agencies, as well as payments the government sends out to vendors. But what does this mean for you, and how can you prepare? Let’s break it down.
What is Changing?
The new Executive Order affects all paper checks issued by the federal government, including but not limited to payments from:
- Internal Revenue Service (IRS)
- Social Security Administration (SSA)
- Supplemental Security Income (SSI)
- Veterans Affairs (VA) - compensation, pension, and education payments
- Railroad Retirement Board (RRB)
- Office of Personnel Management (OPM)
This change covers a wide range of payments, including federal benefit payments, tax refunds, government-to-government payments, and payments to vendors. Instead of paper checks, the federal government will use electronic payment methods, such as:
- Direct deposits
- Prepaid card accounts
- Electronic Funds Transfers (EFTs)
- Debit and credit card payments
- Digital wallets and real-time payment systems
There are some exceptions to the rule for individuals who don’t have access to electronic payments or banking services, and for certain emergency situations (like FEMA checks) or national security concerns. However, by and large, the government is moving away from paper checks altogether.
Who Will Be Affected?
The majority of recipients of federal benefits have already made the switch to electronic payments. In fact, between 96% and 99% of people receiving federal benefits, such as Social Security or tax refunds, are already getting their payments electronically.
Federal law has required all federal benefit payments to be made electronically since 1999 (31 CFR Part 208), but there have been some exceptions. Some people, particularly those who were vocal with their representatives, were still able to receive paper checks. This new Executive Order aims to phase out those exceptions and ensure that all federal payments are made electronically.
Even if you don’t receive federal benefits, you could be impacted. For example, anyone applying for a U.S. passport will need to be prepared to pay via debit or credit card, or through other electronic means, rather than using a paper check.
How You Can Prepare for the Change
If you’re still receiving paper checks from the federal government, it’s important to prepare for the upcoming changes. Here’s how you can make the transition:
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Update Your Payment Information: If you haven’t already, you’ll need to provide your bank’s routing number and your account number to the federal agencies that send you payments. This will ensure your funds are directly deposited into your account, rather than being sent by paper check.
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Sign Up for Direct Deposit: To make this process even easier, you can sign up for direct deposit and paperless payments. Visit Go Direct to quickly set up your electronic payments.
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Switch to a More Convenient Payment Method: If you prefer, you can choose to receive payments via a prepaid card, debit card, or through other electronic payment systems.
Making these changes now will help ensure there’s no disruption in receiving your payments when the new order takes effect. If you need assistance or have any questions, feel free to reach out to us—we’re here to help!
Additional Resources
- Executive Order: For full details on the order, refer to the official document.
- Fact Sheet: Learn more about how this will impact both federal agencies and recipients by reading the fact sheet.