{"id":6110,"date":"2025-04-04T09:33:14","date_gmt":"2025-04-04T13:33:14","guid":{"rendered":"https:\/\/sharewatch.com\/wp\/2025\/04\/04\/what-to-know-about-trumps-order-to-phase-out-paper-checks\/"},"modified":"2025-04-04T09:33:14","modified_gmt":"2025-04-04T13:33:14","slug":"what-to-know-about-trumps-order-to-phase-out-paper-checks","status":"publish","type":"post","link":"https:\/\/sharewatch.com\/wp\/2025\/04\/04\/what-to-know-about-trumps-order-to-phase-out-paper-checks\/","title":{"rendered":"What to Know About Trump\u2019s Order to Phase Out Paper Checks"},"content":{"rendered":"
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Paper checks issued for tax refunds, Social Security payments and other government benefits have been dwindling and will soon be eliminated, potentially affecting hundreds of thousands of Americans.<\/p>\n

President Trump signed an executive order on March 25 directing the federal government to stop issuing paper checks as of Sept. 30. Instead, government agencies must make payments electronically, by direct deposit to a bank account, debit card or digital wallet.<\/p>\n

\u201cThis executive order will defend against financial fraud and improper payments, increase efficiency, reduce costs and enhance the security of federal payments,\u201d a White House spokeswoman, Liz Huston, said in an emailed statement.<\/p>\n

Most monthly Social Security payments and annual tax refunds are already paid by direct deposit, agency statistics show. Yet the administration said it was further \u201cphasing out\u201d paper to modernize how the government handled money. A fact sheet about the order said the government aimed to switch \u201cfrom old-fashioned paper-based payments to fast, secure electronic payments.\u201d<\/p>\n<\/div>\n<\/aside>\n<\/div>\n

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The order gives the Treasury Department just six months to carry out the mandate \u2014 \u201ca very aggressive time frame,\u201d Steve Kenneally, senior vice president of payments with the American Bankers Association, said on an ABA Banking Journal podcast. The order is nevertheless \u201cwelcome,\u201d the association said, because electronic payments are \u201ca much faster, cheaper and safer choice\u201d for consumers and the government.<\/p>\n

The Treasury Department did not respond to a request for comment.<\/p>\n

Jennifer Tescher, chief executive of the Financial Health Network, said that doing away with paper checks was the right thing to do but that \u201cconsumer awareness and help making the shift\u201d would be critical to making the change go smoothly.<\/p>\n

\u201cIt\u2019s all in the execution,\u201d she said.<\/p>\n

The White House fact sheet said the government planned a public awareness campaign to inform federal payment recipients of the change and to offer guidance.<\/p>\n

Kathleen Romig, director of Social Security and disability policy at the Center on Budget and Policy Priorities, said she agreed that direct deposit was a \u201cbest practice\u201d for secure payments. But, she said, newly announced verification requirements for creating online Social Security accounts could mean more people may need government help to set up the payments.<\/p>\n

That could be challenging, given that federal agencies like the Social Security Administration and the Internal Revenue Service are facing significant staff cuts under the Trump administration.<\/p>\n<\/div>\n<\/aside>\n<\/div>\n

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