WASHINGTON–Effective Sept. 30, the U.S. Treasury will no longer the U.S. Treasury will no longer issue paper checks for disbursements, including tax refunds, vendor payments, benefit payments and intergovernmental transfers, following a new executive order signed by President Trump.

The order also covers the use of paper checks to pay the federal government, which are to be eliminated “as soon as practicable, and to the extent permitted by law,” and additionally directs the Treasury Department to develop a comprehensive public awareness campaign of the change, “including guidance on accessing and setting up digital payment options.”

‘Waste’ is Targeted

In a statement announcing the executive order, the White House said the move is being made to reduce on waste, fraud and abuse and to create greater efficiencies.

“Treasury checks are 16 times more likely to be reported lost or stolen, returned undeliverable, or altered than an electronic funds transfer,” the White House stated.

It further pointed to the rise in check fraud and said that maintaining the infrastructure for paper check processing cost $657 million in 2024.

Some Exceptions

The order does allow for some exceptions, including “for people without banking or electronic payment access, certain emergency payments, certain law enforcement activities, and other special cases qualifying for an exception under the order or other existing law.”