Preparing for the end of federal paper checks

Article | September 25, 2025

Authored by Weinlander Fitzhugh

Beginning September 30, 2025, federal agencies will generally stop issuing paper checks for most disbursements, as permitted by law, to comply with Executive Order (EO) 14247. That could include things like tax refunds, Social Security benefits, and vendor payments.

If you’re a taxpayer who still receives a paper refund check, a government contractor who gets paid by the federal government, or a business that pays taxes by check, this EO is worth your attention. 

Why this EO matters (and why it might not apply to everyone)

Executive Orders don’t create new laws – they direct federal agencies on how to carry out their existing authority. Some are ceremonial or symbolic; others trigger real operational changes. This one falls into the latter category, though how it plays out will vary by agency and circumstance.

• Refunds and other federal payments: agencies like the IRS and Social Security Administration are directed to stop issuing paper checks after September 30, 2025. Most people will need direct deposit or another electronic option. Exceptions exist (for example, if you don’t have access to a bank account), but those details will come through agency guidance.
• Payments to the federal government: the EO says taxes, fees, and other payments should be made electronically “as soon as practicable.” Unlike refunds, there’s no hard cutoff date yet. Paper checks may still be accepted in the near term, but the expectation is that electronic payments will eventually become standard.
• Government contractors: contractors should expect payments to move to electronic methods, subject to agency rules and contract terms. This may require updates to billing or compliance processes.

In other words, this isn’t a universal ban on checks overnight. But for anyone who interacts regularly with federal agencies, whether for refunds, benefits, or contracts, electronic transactions will become the default.

Practical implications

For most taxpayers and businesses, the shift to electronic payments is more of an administrative adjustment than a dramatic overhaul. 

If you expect a tax refund after September 30, 2025, plan to provide direct deposit information when you file. If you make payments to the IRS, start familiarizing yourself with systems like Direct Pay (good for one-off payments) or EFTPS (for businesses making recurring or scheduled payments). 

While electronic payments are generally more secure than paper checks, it’s still important to use secure connections, verify websites, save confirmation numbers, and monitor your accounts. 

A brief note on legal nuances

Because EOs don’t override laws passed by Congress, this one includes the qualifier “as permitted by law.” That means agencies like the IRS will implement the Order only within the limits of their legal authority. Exceptions will exist, particularly for individuals or organizations without reliable banking access. And guidance is still forthcoming. For now, assume electronic payments will become the norm, but check for updates from the IRS, Social Security, and other agencies you interact with. 

Put simply, this EO sets a direction, but the details will be worked out in regulations and agency processes. 

Preparing for the transition

If you’re a taxpayer, contractor, or organization that interacts with federal agencies, prepare for electronic payments to become the default. Paper checks may still exist in limited cases, but the clear direction is toward digital transactions. 

This isn’t a reason to panic, nor is it something to ignore. The best step is to prepare now: review your payment methods, make sure you can accept and send funds electronically, and watch for agency-specific guidance as the deadline approaches.