In a move to change how the U.S. government and its people do business, an order was signed in March 2025 that would be the biggest change to how the federal government pays people in many years. This order, made by President Donald Trump, would end all paper check payments from the Department of the Treasury and the IRS by September 30, 2025.
It would be the last time people got tax refunds paper checks from the government, and the first time all money paid by the government would be paid electronically. What the order says: A total change to electronic payments.
Tax refunds: What you get if you overpay your taxes
The order affects millions of Americans who deal with the government on money matters. Most of the time, it means no more paper checks for:
- Tax Refunds: The familiar experience of receiving a physical check in the mail after overpaying taxes will become a thing of the past.
- Federal Benefits: All recurring payments, such as Social Security benefits, veterans’ assistance, and subsidy programs, will transition exclusively to electronic methods.
- Payments to the Government: The order also streamlines how citizens pay money to the government, eliminating paper check options for settling tax liabilities or other federal debts.
The government has three big reasons for this change
Make it harder for people to steal, cheat, or make mistakes in payments: Paper checks are easy to steal from your mailbox, alter, or fake. Data shows that checks paid by the government are more likely to be cheated than electronic payments, which are encrypted and easy to trace. This makes paying electronically much safer. Make it faster and easier for people to get paid: Electronic payments are faster. Checks mailed to you can take weeks to arrive and clear.
Electronic payments go to your account in just a few days. Speed makes it easier for people to get money like a tax refund when they need it. Save money: It costs a lot of money to print and mail paper checks every year. The government wants to cut costs by paying electronically.
The September 30 deadline is not for everyone
The people who do not have a bank: About 4 to 6% of homes do not have a bank account. They will get a government paid pre-paid card. It is like the card the government gives to people who get Social Security if they do not have a bank account.
Emergency situations are also exceptions: After natural disasters or emergencies, the government may temporarily allow paper checks, so people will not have trouble.
Recipients living abroad: The IRS does not pay into foreign bank accounts, so people in other countries are special cases.
Most Americans will not have any trouble with this change if they plan ahead. To make sure you will get your money without delay, you should do the following:
Get direct deposit: The most important thing to do is tell the government your bank information. On your yearly tax return (Form 1040), tell the government your bank’s routing number and your account number. If you have already filed your taxes, you can go to the IRS’s website and update your information.
Or call the IRS at their help line. Get direct deposit or a prepaid card if you get Social Security or other benefits: Call Social Security online or by phone and tell the agency you want direct deposit or a prepaid card called a Direct Express card.
If you do not have a bank account, you are not going to get a paper check. Call the Department of the Treasury or the IRS and learn about and sign up for a prepaid card. Many credit unions and small banks have low cost and no minimum account that will get you into a bank account.
Use the tool to check: The IRS’s “Where’s My Refund” website is the best tool to check where your refund is and how you are getting paid.
