President Donald Trump, through an executive order issued on March 25, 2025, has announced that all federal departments and agencies must stop issuing paper checks by September 30, 2025. This change is part of the new policy titled “Modernizing Payments to and from the United States Bank Account.”
The main goal is to cut down costs, prevent fraud and theft, and ensure that people receive their payments faster and more securely through digital transfers.
Why the Government Is Stopping Paper Checks
The order points out that since the COVID-19 pandemic, there has been a rise in mail theft and delays. In fact, Treasury checks are 16 times more likely to be lost, stolen, or changed than digital payments.
Experts have supported this step, saying electronic payments are safer, quicker, and more cost-effective. The Treasury Department also agrees, saying it will improve security and reduce operational costs.
Paper Checks Cost More Than Digital Transfers
Reports show that it costs 2 to 4 times more to send a paper check than it does to complete a digital transaction, such as a direct deposit.
The U.S. Treasury Department, which sends out millions of checks every year (like tax refunds and Social Security payments), will now have to fully switch to digital payment methods. These include:
- Direct deposit
- Debit or credit cards
- Digital wallets
Only a few exceptions will be allowed — mainly for people who don’t have bank accounts.
Americans Are Already Using Fewer Checks
Back in 2011, the government stopped using checks for Social Security and Veterans Affairs benefits. Now, that push is expanding to all federal payments.
A 2024 survey showed that:
- 46% of Americans didn’t use paper checks at all in 2023
- Only 15% used them occasionally
- Among people over 55, about 22% still use checks monthly
Experts say older citizens might struggle with this change and are more vulnerable to scams, so extra support will be needed.
How to Switch from Paper Checks to Digital Payments
If you are still receiving tax refunds or benefits by paper check, here are the steps to move to digital payments:
1. Choose Direct Deposit When Filing Taxes
When filing your next tax return, select Direct Deposit and enter your correct bank details (account and routing number). This is the safest way to receive your money.
2. Amended Returns (Form 1040-X)
If you’re filing an amended return, you can choose Direct Deposit only for the refund from the amendment, not the original return.
3. Use IRS Tools
Use the “Where’s My Refund?” tool on the IRS website to track your refund.
Consider using IRS Free File (if you qualify) for safe and fast e-filing.
4. For Americans Living Abroad
You can still get direct deposits into a foreign bank account, as long as it is in a country supported by the U.S. government’s international payment system.
Note: It’s not recommended to use a third-party account for receiving refunds.