On September 30, 2025, the Modernizing Payments To and From America’s Bank Account Executive Order went into effect, and check usage by the U.S. Department of the Treasury will decrease dramatically. Agencies are directed to transition to electronic funds transfers including direct deposit, prepaid cards, and other digital payment options, with only limited exemptions granted. The Executive Order also applies to payments made to the federal government.

Despite the disadvantages of cost and risk around checks, they still represent a sizable portion of government payments. But this mandate will put a major dent in the 36 million government checks still being processed, and more importantly, pave the way for more safe, efficient, and cost-effective digital faster payments solutions.

Click Read More below for the complete LinkedIn article from Reed Luhtanen, Executive Director & CEO, US Faster Payments Council.