No More Paper Checks

As of September 30, 2025, the U.S. Department of the Treasury will cease issuing paper checks for most federal payments, a shift mandated by Executive Order signed March 25, 2025. 

Under the directive, all executive departments and agencies are required to convert to electronic funds transfer (EFT) methods—such as direct deposit, prepaid card accounts, digital wallets, or real‑time transfers—for benefit disbursements, vendor payments, intragovernmental transfers, and tax refunds. 

The rationale underpinning the change centers on efficiency, cost savings, and fraud risk reduction. According to the administration, paper checks are far more likely to be lost, stolen, or delayed.

The executive order provides for limited exceptions. Individuals without access to banking or electronic payment systems, certain emergency payments, and specialized law enforcement or security contexts may receive alternative non‑digital disbursements.