As part of a major modernization effort across the federal government, the U.S. Department of the Treasury is seeking public feedback on a critical transition that will impact how federal payments, including tax refunds, are issued. We want to make sure our members have the opportunity to weigh in on this important policy.

On March 25, 2025, the President signed an Executive Order titled “Modernizing Payments To and From America’s Bank Account.” This directive sets in motion the government-wide shift away from paper-based payments such as checks and money orders toward digital payment systems.

What’s Changing?

Beginning September 30, 2025, and to the extent allowed by law, the federal government will stop issuing paper checks for most types of payments, including:

• Tax refunds
• Social Security and other benefits
• Vendor and contractor payments
• Intragovernmental transfers

While limited exceptions will be considered, this policy aims to increase security, reduce fraud, and cut costs. The Executive Order asserts that, “Historically, Department of the Treasury checks are 16 times more likely to be reported lost or stolen, returned undeliverable, or altered than an electronic funds transfer (EFT). Maintaining the physical infrastructure and specialized technology for digitizing paper records cost the American taxpayer over $657 million in Fiscal Year 2024 alone.”

Why It Matters

The move to digital payments has clear benefits, but it also raises important questions about access, especially for unbanked and underbanked individuals. The Treasury is seeking recommendations and information to ensure a successful transition.

To that end, the Treasury Department has issued a Request for Information (RFI) seeking public input on:

• Paper Check Usage for Government Collections and Disbursements
• Recommendations for Public Awareness Campaigns and Stakeholder Outreach
• Preferred EFT Methods
• General Comments Related to the E.O. “Modernizing Payments To and From America's Bank Account”

Share Your Perspective

If you or your organization work with individuals who receive federal payments, are impacted by financial access issues, or have insights into digital payment adoption, now is the time to share your perspective.

We encourage our members and stakeholders to respond to the Treasury to ensure responsiveness to the needs of Colorado communities.

📢  Please use this link to read the official notice and find instructions for submitting your comments.  📅 Comments are due by June 30, 2025