On March 25 President Trump issued an executive order could benefit importers, customs brokers, sureties, and others by mandating a transition to the electronic transfer of payments to and from the federal government, including duties, fees, refunds, and other trade-related payments.
The EO states that the continued use of paper-based payments by the federal government, including checks and money orders, imposes unnecessary costs, delays, and risks of fraud, lost payments, theft, and inefficiencies. It therefore mandates (with limited exceptions) a transition to electronic payments for all federal disbursements and receipts by digitizing payments to the extent permissible under applicable law.
- Effective Sept. 30, the Treasury Department will cease issuing paper checks for all federal disbursements, including intragovernmental payments, benefits payments, vendor payments, and tax refunds.
- All executive departments and agencies will transition to electronic funds transfer methods, including direct deposit, prepaid card accounts, and other digital payment options, and take all steps necessary to enroll recipients in EFT payments.
- As soon as practicable, all payments made to the federal government will be processed electronically.
- Treasury will support agencies’ transition to digital payment methods, including by providing access through its centralized payment systems to direct deposits, debit and credit card payments, digital wallets and real-time payment systems, and other modern electronic payment options.
Federal agencies must submit a plan for complying with these requirements within 90 days and Treasury will have to submit a progress report within 180 days.
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