Executive Orders reform federal payment systems and processes

The Trump Administration announced two Executive Orders (EOs) aimed at reforming federal disbursements. The changes to federal payments removes paper checks to instead use electronic funds transfer (EFT) methods, and also streamlines the financial systems used by Non-Treasury Disbursing Offices (NTDOs).

• “Modernizing Payments to and from America’s Bank Account” orders federal government entities to cease issuing paper checks for all disbursements – including intragovernmental payments, benefits, vendor payments, and tax refunds – by Sept. 30, 2025. Agencies will transition to EFT methods, with exceptions for those without access to financial institution or electronic payment entity, as well as some emergency payments or law enforcement activities.
• “Protecting America’s Bank Account Against Fraud, Waste, and Abuse” requests the Secretary of the Treasury and the OMB Director to assess and consolidate NTDOs by using a single provider to manage transactional financial management services.  The EO directs implementation of these changes no later than 180 days from issuance of the order. It also outlines additional directives revising rules and procedures to detect fraud, deter improper payments, and improve payment verification.

America’s Credit Unions continues to monitor and report on EOs issued by the White House. Stay tuned for more information.