Executive Order 14247

Modernizing Payments To and From America's Bank Account

Signed March 25, 2025, printed at 90 FR 14001. 6 sections of substance, 1,051 words.

In plain English

This order ends paper checks from the government. Payments move to electronic form.

Sec. 1.

Purpose.The continued use of paper-based payments by the Federal Government, including checks and money orders, flowing into and out of the United States General Fund, which might be thought of as America's bank account, imposes unnecessary costs; delays; and risks of fraud, lost payments, theft, and inefficiencies. Mail theft complaints have increased substantially since the COVID-19 pandemic. 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. This order promotes operational efficiency by mandating the transition to electronic payments for all Federal disbursements and receipts by digitizing

In plain English

This sets out the case the order makes. It says paper checks cost money and invite fraud. It says mail theft has risen since the pandemic. It says a Treasury check is 16 times more likely to go astray. It puts the cost of paper handling at $657 million in 2024. It calls for a shift to electronic payment.

Sec. 2. Policy

It is the policy of the United States to defend against financial fraud and improper payments, increase efficiency, reduce costs, and enhance the security of Federal payments.

In plain English

This sets the policy. Payments must be safer and cost less. Fraud must be kept out.

Sec. 3. Phase Out of Paper Check Disbursements and Receipts

(a) Effective September 30, 2025, and to the extent permitted by law, the Secretary of the Treasury shall cease issuing paper checks for all Federal disbursements inclusive of intragovernmental payments, benefits payments, vendor payments, and tax refunds, except as specified in section 4 of this order. (b) All executive departments and agencies (agencies) shall comply with this directive by transitioning to EFT methods, including direct deposit, prepaid card accounts, and other digital payment options, and take all steps necessary to enroll recipients in EFT payments, except as specified in section 4 of this order. (c) As soon as practicable, and to the extent permitted by law, all payments made to the Federal Government shall be processed electronically, except as specified in section 4 of this order. (d) The Secretary of State, the Secretary of the Treasury, the Secretary of Health

In plain English

This phases out paper checks. The date is September 30, 2025. It covers benefits, vendors and tax refunds. Agencies must switch to electronic transfer. Direct deposit and prepaid cards are named. They must enroll people in those methods. Money paid to the government must go the same way.

Sec. 4.

Exceptions and Accommodations for the Phase Out of Paper Check Disbursements and Receipts. (a) The Secretary of the Treasury, shall review and, as appropriate, revise procedures for granting limited exceptions where electronic payment and collection methods are not feasible, including exceptions for: (i) individuals who do not have access to banking services or electronic payment systems; (ii) certain emergency payments where electronic disbursement would cause undue hardship, as contemplated in 31 C.F.R. Part 208; (iii) national security- or law enforcement-related activities where non- EFT transactions are necessary or desirable; and (iv) other circumstances as determined by the Secretary of the Treasury, as reflected in regulations or other guidance. (b) Individuals or entities qualifying for an exception under this section or other applicable law shall be provided alternative

In plain English

This lists the exceptions. Some people have no bank account. Some emergency payments would cause hardship. Some security work needs another method. Treasury may allow other cases. Those who qualify must be given another way to pay or be paid.

Sec. 5. Implementation and Compliance of Electronic Transactions

(a) The Secretary of the Treasury, in coordination with the heads of agencies, shall develop and implement a comprehensive public awareness campaign to inform Federal payment recipients of the transition to electronic payments, including guidance on accessing and setting up digital payment options. (b) Agencies shall coordinate with the Department of the Treasury to facilitate a smooth transition to digital payments, ensuring that affected individuals and entities receive adequate support. (c) The Secretary of the Treasury shall work with financial institutions, consumer groups, and other stakeholders to address financial access for unbanked and underbanked populations. (d) The Secretary of the Treasury and the heads of agencies shall take all necessary steps to protect classified information and systems, as well as personally identifiable information and tax return information, through

In plain English

This is about making the switch work. Treasury must run a public campaign. It must tell people how to set up digital payment. Agencies must help people through the change. Treasury must work with banks and consumer groups. It must address those without a bank account. Data and secret systems must be kept safe.

Sec. 6. Reporting Requirements

(a) The heads of agencies shall submit a compliance plan to the Director of the Office of Management and Budget within 90 days of the date of this order detailing their strategy for eliminating paper-based transactions. (b) The Secretary of the Treasury shall submit an implementation report to the President through the Assistant to the President for Economic Policy within 180 days of the date of this order detailing progress on the matters set forth in this order.

In plain English

This asks for reports. Each agency must file a plan in 90 days. The plan says how it will drop paper. It goes to the budget office. Treasury must report in 180 days. That report covers progress on the order.

Sec. 7. General Provisions

Every order carries this. It is not what the order does.

(a) Nothing in this order shall be construed to impair or otherwise affect: (i) the authority granted by law to an executive department or agency, or the head thereof; or (ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals. (b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations. [[Page 14003]] (c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person. <GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT> (Presidential Sig.) THE WHITE HOUSE, March 25, 2025. [FR Doc. 2025-05522 Filed 3-27-25; 8:45 am] Billing code 3395-F4-P </pre></body> </html>

In plain English

This is the closing clause that nearly every order carries. It says the order does not change what the law already allows. It also says no one can sue to enforce it.

How this order is quoted

Each section is quoted as the order prints it, under its own number and heading. Executive orders are United States government works and are not under copyright. Long sections are cut at a sentence and the whole order is a click away.