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ABA: The American Bankers Association
Banking Topic

Federal Electronic Payment Mandate

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Payments

On March 24, 2025, the White House issued an Executive Order Modernizing Payments To and From America’s Bank Account that would phase out paper checks in favor of electronic payments effective September 30, 2025. Agencies are directed to transition to electronic funds transfers (EFTs) including direct deposit, prepaid cards and other digital payment options. Only limited exemptions will be granted. The Executive Order also applies to payments made to the federal government.

Treasury issued a Request for Information in June 2025 seeking recommendations on making this migration successful. In response to the RFI, ABA made several recommendations to lay the groundwork for an efficient transition to electronic payments.

  1. Increase the number of consumers and businesses with bank accounts capable of sending and receiving electronic payments.
  2. Increase the number of consumers and businesses with bank accounts using faster, safer, and cheaper electronic payment services.
  3. Concentrate initial efforts on the largest federal payment flows.

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