The U.S. Department of the Treasury issued a request for information (RFI) related to an executive order that seeks to transition federal disbursements to electronic payments.
The executive order (EO) in question is 14247, “Modernizing Payments to and From America’s Bank Account.” Beginning Sept. 30, all federal payments that are currently made by paper check —including Social Security benefits, tax refunds, and vendor payments — will be made electronically.
According to the Treasury, paper checks are increasingly becoming the front door for fraud. The Treasury is committed to raising awareness of the growing fraud risks associated with paper checks and providing Americans with the knowledge and tools to fight financial fraud and make informed financial decisions.
“Mail theft complaints have increased substantially since the COVID-19 pandemic. Historically, Department of the Treasury checks are 16 times more likely to be reported lost or stolen, returned undeliverable, or altered than an electronic funds transfer (EFT). Maintaining the physical infrastructure and specialized technology for digitizing paper records cost the American taxpayer over $657 million in Fiscal Year 2024 alone,” the executive order said.
The RFI offers the opportunity for interested individuals and organizations to provide feedback on the Treasury’s implementation of the executive order. It also offers the opportunity to make recommendations to increase public awareness to help consumers, including unbanked and underbanked populations, transition to digital payments.
Members of the public are encouraged to submit comments within 30 days. Comments responding to this request for information will be publicly viewable at www.regulations.gov.