U.S. Treasury to no longer send paper checks for federal payments

A recent executive order mandates that the U.S. Treasury no longer issue paper checks for federal disbursements—including tax refunds, Social Security benefits,, and vendor payments—as of September 30, 2025. The federal government will transition to making electronic payments instead.

Who is impacted?

Three main groups impacted are:

Social Security and other federal benefit recipients: This includes anyone currently receiving Social Security or veterans’ benefits.
Taxpayers receiving their refunds by check: This includes anyone who receives IRS tax refund(s) by check.
Government contractors: This includes businesses or individuals who are paid by the federal government for any contracts or grants.

According to the White House, the mandate is intended to prevent fraud and reduce costs. U.S. Treasury checks are 16 times more likely to be reported lost or stolen, returned undelivered, or altered than electronic payments.

What action is required—and when?

While some minimal exceptions will apply, the U.S. Treasury stopped issuing paper checks for federal disbursements on September 30, 2025. Action should be taken at your earliest convenience.

Individuals receiving federal payments

Sign up for direct deposit or other electronic payment method: If you receive payments by check, provide a bank account for direct deposit or enroll in an approved prepaid debit card program to access benefit payments without a bank account. You can do both online at Godirect.gov, the official website for enrolling in direct deposits for federal payments or call the Treasury Electronic Payment Solution Contact Center at 877-874-6347.

Businesses sending or receiving federal government payments

Enroll in electronic funds transfer systems: If your business receives federal payments via paper check, enroll through U.S. Treasury systems like sam.gov or asap.gov. If you’re already enrolled, ensure your account information is accurate in order to avoid delayed payments.
If you make payments by check to the federal government, shift to electronic payment channels instead.
Communicate with your finance teams: Alert your internal teams to the impending change so they can update systems and shift to reconciling payments electronically.

For more detailed information, read the full executive order here.