Documents › Executive orders › 14249
Executive Order 14249
Protecting America's Bank Account Against Fraud, Waste, and Abuse
Signed March 25, 2025, printed at 90 FR 14011. 7 sections of substance, 2,407 words.
This order tells agencies to tighten checks on payments. It aims to stop fraud and waste.
Sec. 1. Purpose
Promoting financial integrity and operational efficiency are critical responsibilities of the Federal Government. The Federal Government processes trillions of dollars annually in disbursements to individuals, businesses, and organizations, and in receipts from taxes, fees, and other payments to finance daily and long-term Government operations. These transactions flow into and out of the United States General Fund (General Fund), which might be thought of as America's bank account. In Fiscal Year 2024, $33.9 trillion flowed into the General Fund and $33.6 trillion flowed out of the account, including $5.87 trillion (less net interest) in benefits, grants, loans, vendor payments, and other disbursements. The Department of the Treasury is the largest financial payment manager of the Federal Government and is responsible for safeguarding the General Fund, but lacks sufficient controls to
Promoting financial integrity and operational efficiency are critical responsibilities of the Federal Government. The Federal Government processes trillions of dollars annually in disbursements to individuals, businesses, and organizations, and in receipts from taxes, fees, and other payments to finance daily and long-term Government operations. These transactions flow into and out of the United States General Fund (General Fund), which might be thought of as America's bank account. In Fiscal Year 2024, $33.9 trillion flowed into the General Fund and $33.6 trillion flowed out of the account, including $5.87 trillion (less net interest) in benefits, grants, loans, vendor payments, and other disbursements. The Department of the Treasury is the largest financial payment manager of the Federal Government and is responsible for safeguarding the General Fund, but lacks sufficient controls to
This sets out the case the order makes. It says trillions flow in and out each year. It puts inflows at $33.9 trillion in 2024. It puts outflows at $33.6 trillion. It says Treasury manages most of that. It says Treasury lacks the controls it needs.
Sec. 2. Policy
It is the policy of the United States to defend against financial fraud and improper payments, increase transparency and accountability around the Federal Government's operations and financial condition, increase efficiency, reduce costs, and enhance the security of Federal payments.
It is the policy of the United States to defend against financial fraud and improper payments, increase transparency and accountability around the Federal Government's operations and financial condition, increase efficiency, reduce costs, and enhance the security of Federal payments.
This states the policy. Financial fraud must be fought. Improper payments must be stopped. Government work must be more open. It must be easier to hold to account. That covers how money is handled. Efficiency must rise. Costs must fall. Federal payments must be made safer.
Sec. 3. Treasury Verification of Agency Payments Information
(a) The Secretary of the Treasury, in consultation with the Director of the Office of Management and Budget (OMB Director), shall update guidance and enhance systems to ensure that all payments made by the Department of the Treasury on behalf of agencies pursuant to the Secretary of the Treasury's disbursing authority, including 31 U.S.C. 3321, are subject to pre-certification verification processes established by the Secretary of the Treasury and conducted by agencies and the Department of the Treasury for the purposes of defending against financial fraud and improper payments, to the greatest extent permitted by law. Such guidance shall set forth guidelines for compliance with the Do Not Pay Working System as described in 31 U.S.C. 3351 et seq., and such other payment, account, and payee validation programs and services that the Secretary of the Treasury and the OMB Director determine
(a) The Secretary of the Treasury, in consultation with the Director of the Office of Management and Budget (OMB Director), shall update guidance and enhance systems to ensure that all payments made by the Department of the Treasury on behalf of agencies pursuant to the Secretary of the Treasury's disbursing authority, including 31 U.S.C. 3321, are subject to pre-certification verification processes established by the Secretary of the Treasury and conducted by agencies and the Department of the Treasury for the purposes of defending against financial fraud and improper payments, to the greatest extent permitted by law. Such guidance shall set forth guidelines for compliance with the Do Not Pay Working System as described in 31 U.S.C. 3351 et seq., and such other payment, account, and payee validation programs and services that the Secretary of the Treasury and the OMB Director determine
This is about checking payments. Treasury must update its guidance and systems. Payments must be verified before they are certified. Agencies and Treasury both do that checking. The aim is to catch fraud and error. A federal do not pay system is named. Other checks on payee and account may be added.
Sec. 4. Implementation and Compliance of Payment Verification
(a) Agency heads, through designated agency officials (Certifying Officers or COs), who are responsible for verifying that disbursements made by the Federal Government are legal, proper, and correct, and for performing the duties in 31 U.S.C. 3528, shall comply with the disbursement requirements and instructions, including pre-certification requirements, published by the Secretary of the Treasury. (b) The Secretary of the Treasury shall consider, as appropriate, issuing instructions to agencies to enforce the following pre-certification criteria for disbursement requests submitted by COs (Vouchers) before they are certified for payment by the CO: (i) Funds are available at the time the obligation is incurred. If an obligation is incurred when funds are not available, then the CO shall not certify the payment. [[Page 14013]] (ii) The amount of the payment and the name of the payee on the
(a) Agency heads, through designated agency officials (Certifying Officers or COs), who are responsible for verifying that disbursements made by the Federal Government are legal, proper, and correct, and for performing the duties in 31 U.S.C. 3528, shall comply with the disbursement requirements and instructions, including pre-certification requirements, published by the Secretary of the Treasury. (b) The Secretary of the Treasury shall consider, as appropriate, issuing instructions to agencies to enforce the following pre-certification criteria for disbursement requests submitted by COs (Vouchers) before they are certified for payment by the CO: (i) Funds are available at the time the obligation is incurred. If an obligation is incurred when funds are not available, then the CO shall not certify the payment. [[Page 14013]] (ii) The amount of the payment and the name of the payee on the
This is about the officers who sign off. They must follow Treasury rules. Treasury may set tests each payment must pass. One test is whether funds were available. If not, the officer may not certify. The amount and the payee must also be verified.
Sec. 5. Core Financial System Consolidation
(a) Within 180 days of the date of this order, the OMB Director shall issue guidance that directs agencies described in 31 U.S.C. 901(b) (CFO Act agencies) to consolidate their core financial systems. (b) As soon as practicable, but not later than 180 days of the date of this order, the OMB Director, in consultation with the Secretary of the Treasury, shall issue guidance directing all non-CFO Act agencies to consolidate transactional financial management services under a single provider approved by the Department of the Treasury. (c) As soon as practicable, all heads of CFO Act agencies shall use standard financial management solutions available through the Financial Management [[Page 14014]] Marketplace, administered by the Financial Management Quality Service Management Office. (d) Agency heads shall ensure that core financial systems comply with Federal accounting and financial
(a) Within 180 days of the date of this order, the OMB Director shall issue guidance that directs agencies described in 31 U.S.C. 901(b) (CFO Act agencies) to consolidate their core financial systems. (b) As soon as practicable, but not later than 180 days of the date of this order, the OMB Director, in consultation with the Secretary of the Treasury, shall issue guidance directing all non-CFO Act agencies to consolidate transactional financial management services under a single provider approved by the Department of the Treasury. (c) As soon as practicable, all heads of CFO Act agencies shall use standard financial management solutions available through the Financial Management [[Page 14014]] Marketplace, administered by the Financial Management Quality Service Management Office. (d) Agency heads shall ensure that core financial systems comply with Federal accounting and financial
This pools money systems. Within 180 days the budget office must issue guidance. Large agencies must merge their core systems. Smaller ones must use one approved provider. Standard tools from a shared market are to be used. Systems must meet federal accounting rules.
Sec. 6. Reduction of NTDOs
(a) Within 30 days of the date of this order, the Secretary of the Treasury shall assess whether to maintain disbursing authority that it has delegated to agencies pursuant to 31 U.S.C. 3321(b) and issue notices to revoke such delegations, as appropriate, in accordance with applicable law. (b) The heads of agencies with disbursing authority under 31 U.S.C. 3321(c), including the Secretary of Defense, the Secretary of Homeland Security, and the Attorney General (but excluding, for the avoidance of doubt, the Supreme Court and other entities of the Federal Government outside the Executive Branch) will work with the Secretary of the Treasury to delegate the performance of their disbursing activities, other than with respect to classified payments, to the Department of the Treasury's Chief Disbursing Officer in accordance with applicable law. (c) Notwithstanding subsections (a) or (b) of
(a) Within 30 days of the date of this order, the Secretary of the Treasury shall assess whether to maintain disbursing authority that it has delegated to agencies pursuant to 31 U.S.C. 3321(b) and issue notices to revoke such delegations, as appropriate, in accordance with applicable law. (b) The heads of agencies with disbursing authority under 31 U.S.C. 3321(c), including the Secretary of Defense, the Secretary of Homeland Security, and the Attorney General (but excluding, for the avoidance of doubt, the Supreme Court and other entities of the Federal Government outside the Executive Branch) will work with the Secretary of the Treasury to delegate the performance of their disbursing activities, other than with respect to classified payments, to the Department of the Treasury's Chief Disbursing Officer in accordance with applicable law. (c) Notwithstanding subsections (a) or (b) of
This is about who may pay out money. Within 30 days Treasury must review powers it lent to agencies. It may take some of them back. Agencies that still hold that power must hand it over. Defense, Homeland Security and Justice are named. Secret payments are left out. Courts and Congress are not covered.
Sec. 7. Reporting and Implementation Requirements
(a) The heads of all agencies shall submit a compliance plan to the OMB Director within 90 days of the date of this order detailing their strategy for: (i) transitioning disbursing authority to the Department of the Treasury, as applicable and as contemplated by this order; (ii) updating and integrating systems with Department of the Treasury platforms; (iii) procedures to verify payment information as contemplated by this order; and (iv) transmitting information associated with improper payments to the Department of the Treasury in accordance with standards and reporting specifications established by the OMB Director in coordination with the Secretary of the Treasury as contemplated by this order. (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
(a) The heads of all agencies shall submit a compliance plan to the OMB Director within 90 days of the date of this order detailing their strategy for: (i) transitioning disbursing authority to the Department of the Treasury, as applicable and as contemplated by this order; (ii) updating and integrating systems with Department of the Treasury platforms; (iii) procedures to verify payment information as contemplated by this order; and (iv) transmitting information associated with improper payments to the Department of the Treasury in accordance with standards and reporting specifications established by the OMB Director in coordination with the Secretary of the Treasury as contemplated by this order. (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
This asks for plans in 90 days. Each agency must say how it will hand over payment work. It must say how it will link to Treasury systems. It must set out how it checks payment details. It must report improper payments to Treasury. Treasury itself must report in 180 days.
Sec. 8. 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. (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. 2025-05524 Filed 3-27-25; 8:45 am] Billing code 3395-F4-P </pre></body> </html>
(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. (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. 2025-05524 Filed 3-27-25; 8:45 am] Billing code 3395-F4-P </pre></body> </html>
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
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