Major Changes Coming to Federal Payments

On March 25, 2025, Executive Order 14247 was signed into law. Starting September 30, 2025, the Federal government will change how it makes and receives payments. The government will transition away from paper payments like checks and money orders and shift almost entirely to modern, electronic payment methods. The goal is to increase efficiency, reduce costs, prevent fraud, and improve the security of payments involving the Federal government.

Key Changes

• End of Paper Checks:
  Soon, the Treasury will stop issuing paper checks for most Federal payments—including tax refunds, benefits like Social Security, vendor payments, and more—with only a few exceptions.
• Electronic-Only Payments:
  All Federal departments and agencies will use electronic payment methods, such as:
  • Direct deposit
  • Prepaid debit card accounts
  • Digital wallets and real-time payment systems
  • Other current electronic options
• Electronic Collection of Receipts:
  Fees, fines, loan payments, taxes, and other government receipts will also be collected electronically where possible.

Exceptions & Accommodations

Exceptions will be made for:

Those without access to banking or electronic payment services

• Certain emergency payments where digital options are impractical
• Situations involving national security or law enforcement
• Other special cases as determined by the Treasury

Alternative payment methods will be provided when necessary.

What Clients Should Do

• Update Payment Details:
  Ensure all accounts that deal with the Federal government have current, accurate electronic payment information on file. If you have not done so already, we recommend setting up an account with the IRS if you expect to owe taxes. Please note that you will need your bank routing and account numbers. You can register at https://www.irs.gov/payments.
• Prepare for Full Digitalization:
  If you, or your business use paper checks for government payments, transition to digital payment systems as soon as possible.

Support and Assistance

For guidance about these upcoming changes or to discuss digital payment options, please contact our office or your Acuity team member.