Washington, D.C ,March 26
In a sweeping move to enhance financial transparency and efficiency, President Donald J. Trump today signed an Executive Order aimed at cracking down on fraud, improving the government’s ability to track transactions, and transitioning away from outdated paper-based payments.
Ensuring Financial Integrity and Operational Efficiency
The Executive Order empowers the Department of the Treasury to strengthen fraud detection and ensure that all federal payments undergo pre-certification verification before disbursement. Key directives include:
• Requiring agencies to comply with Treasury’s disbursement requirements, including verifying payee information and ensuring funds come from appropriate sources.
• Enhancing Treasury’s ability to track transactions by requiring agencies to share relevant financial data.
• Consolidating federal financial systems to streamline reporting and improve oversight.
• Reducing the number of Non-Treasury Disbursing Offices (NTDOs) to centralize and manage payments more effectively.
President Trump emphasized that financial fraud threatens the integrity of federal programs, citing a Government Accountability Office (GAO) report estimating that up to $521 billion is lost annually due to fraud and inadequate financial tracking.
“The federal government must be held to the highest standard in managing taxpayer money,” President Trump stated. “This Executive Order ensures every dollar is accounted for and that waste, fraud, and abuse are eliminated.”
Phasing Out Paper Checks
As part of his push to modernize government payments, President Trump also ordered an end to paper check disbursements by September 30, 2025. The transition to electronic payments will affect all government transactions, including:
• Benefits, vendor payments, tax refunds, and intra-governmental transfers.
• Federal fee, fine, loan, and tax collections.
• The phasing out of physical lockbox services in favor of digital receipts.
Exceptions will be made for individuals without banking access, emergency payments, and certain law enforcement transactions. President Trump also clarified that this move does not establish a Central Bank Digital Currency (CBDC).
Defending Against Financial Fraud
The Executive Order comes amid rising concerns over check fraud and financial crime. Reports indicate that:
• Mail theft complaints have soared since 2020.
• Treasury checks are 16 times more likely to be lost or stolen compared to electronic transfers.
• Banks flagged 680,000 cases of check fraud in 2022, nearly double the number from 2021.
• Maintaining outdated paper check systems cost taxpayers over $657 million in 2024 alone.
By transitioning to electronic payments, the administration aims to cut costs, reduce fraud, and improve financial security across federal agencies.
Modernizing the Federal Government
President Trump framed the Executive Order as part of a broader effort to modernize government operations. He cited the creation of the Department of Government Efficiency, the 10-to-1 deregulation initiative, and the repeal of “harmful” executive actions from the Biden administration as key steps toward reducing bureaucracy and improving efficiency.
“Government needs to catch up with the technology revolution,” Trump said. “This is about making sure we’re running the country the way it should be run—effectively, transparently, and responsibly.”
This Executive Order marks one of the most significant financial modernization efforts in recent history, with implementation set to roll out over the next year.
