President Donald Trump signed two executive actions on Tuesday directing the Treasury Department to modernize and centralize its payment systems to prevent fraud in the federal government’s financial transactions.
The first executive action mandates that the Treasury Department use electronic payments whenever possible, moving away from paper checks. This shift aims to streamline payments and reduce the risk of fraud and waste. The second executive order orders the federal government to cease issuing paper checks by the end of the fiscal year, September 30, 2025, and transition to direct deposit, prepaid accounts, and other digital payment options.
At a White House briefing, Trump stated, “We’re doing this, and we have other modernization programs going on. These are steps that should have taken place decades ago.”
Addressing Fraud and Waste in Federal Payments
The initiative is part of the Trump administration’s continued efforts to tackle fraud within the Treasury’s payment system. Notably, members of Elon Musk’s Department of Government Efficiency were granted access to Treasury’s payment database at the start of Trump’s presidency, though this has sparked privacy concerns and legal disputes.
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orders also direct agency heads to collaborate with the Treasury Department to ensure payments are directed to their intended recipients, introducing more rigorous controls to safeguard taxpayer funds.
Shift to Digital Payments
The vast majority of federal payments, including Social Security, food stamps, and tax refunds, are already made through electronic means, and the federal government has been pushing for years to transition fully to digital payment methods. The Treasury Department aims to increase the disbursement rate for non-tax-related payments to 98.4% by 2025.
Trump on Tariffs: “Customs Tariffs Will Create More Jobs”
In addition to the payment modernization efforts, President Trump emphasized the economic benefits of customs tariffs, suggesting that they would drive job creation and strengthen the economy. His administration continues to implement trade policies designed to boost domestic manufacturing and reduce reliance on imports.
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