US Bureau Fiscal Service News

Federal Government Ends Paper Checks September 2025

The Bureau of the Fiscal Service announced that effective September 30, 2025, the federal government will cease issuing paper checks for most federal payments. Recipients of federal benefit payments including Social Security and Veterans benefits who currently receive paper checks must switch to electronic payment methods such as direct deposit or the Treasury-sponsored Direct Express debit card by the deadline. Government vendors must update their SAM.gov registrations with valid bank account information to ensure uninterrupted electronic payment delivery. The Bureau cited that paper checks are over 16 times more likely to be lost, stolen, altered, or delayed compared to electronic payments.

Federal Checks Now Require Electronic Enrollment Under Executive Order 14247

Effective September 30, 2025, most federal payments previously made by paper check—including Social Security benefits, Veterans benefits, and other federal payments—must now be made electronically under Executive Order 14247. Recipients already enrolled in direct deposit or prepaid debit card receive require no action; however, those still receiving paper checks must enroll in an electronic payment method to avoid payment delays. Treasury's Electronic Payment Solution Center has processed over 184,000 new electronic enrollments since March 2025, and existing waiver procedures remain in effect while Fiscal Service reviews updated guidance.

Treasury Enables Instant Federal Agency Disbursements via FedNow Service

The Bureau of the Fiscal Service announced the expansion of the FedNow Service into Treasury's Digital Payout Program, enabling federal agencies to make instant payments to individuals 24/7. FEMA is already using FedNow for disaster recovery payments, delivering funds to affected individuals faster than traditional check-mailing. The Fiscal Service has enabled more than eight federal agencies to use instant payment capability since adding FedNow in July 2023, with plans to promote greater adoption among agency partners.