Notice2025-09766
Request for Information Related to the Executive Order, “Modernizing Payments To and From America's Bank Account”
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Published
May 30, 2025
Issuing agencies
Treasury Department
Abstract
The U.S. Department of the Treasury (Treasury) invites public input to inform its implementation of the President's Executive Order (E.O.) 14247 on "Modernizing Payments To and From America's Bank Account" issued on March 25, 2025, which, among other items, directs the Secretary of the Treasury to cease issuing paper checks and transition to the use of electronic payments for all Federal disbursements where feasible. This request for information (RFI) offers the opportunity for interested individuals and organizations to provide feedback on matters related to Treasury's implementation of E.O. 14247, in particular Treasury's efforts to advance a public awareness campaign that will help consumers, including unbanked and underbanked populations, transition to digital payments as contemplated by the E.O.
Full Text
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<title>Federal Register, Volume 90 Issue 103 (Friday, May 30, 2025)</title>
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[Federal Register Volume 90, Number 103 (Friday, May 30, 2025)]
[Notices]
[Pages 23108-23109]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-09766]
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DEPARTMENT OF THE TREASURY
Request for Information Related to the Executive Order,
``Modernizing Payments To and From America's Bank Account''
AGENCY: Departmental Offices, Department of the Treasury.
ACTION: Request for information (RFI).
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SUMMARY: The U.S. Department of the Treasury (Treasury) invites public
input to inform its implementation of the President's Executive Order
(E.O.) 14247 on ``Modernizing Payments To and From America's Bank
Account'' issued on March 25, 2025, which, among other items, directs
the Secretary of the Treasury to cease issuing paper checks and
transition to the use of electronic payments for all Federal
disbursements where feasible. This request for information (RFI) offers
the opportunity for interested individuals and organizations to provide
feedback on matters related to Treasury's implementation of E.O. 14247,
in particular Treasury's efforts to advance a public awareness campaign
that will help consumers, including unbanked and underbanked
populations, transition to digital payments as contemplated by the E.O.
DATES: Written comments and information are requested on or before June
30, 2025.
ADDRESSES: Please submit comments electronically through the Federal
eRulemaking Portal: <a href="https://www.regulations.gov">https://www.regulations.gov</a>, specifically at
<a href="https://www.regulations.gov/docket/TREAS-DO-2025-0004">https://www.regulations.gov/docket/TREAS-DO-2025-0004</a>.
In general, all comments will be available for inspection at
<a href="http://www.regulations.gov">www.regulations.gov</a>. Comments, including attachments and other
supporting materials, are part of the public record. Do not submit any
information in your comments or supporting materials that you consider
confidential or inappropriate for public disclosure.
FOR FURTHER INFORMATION CONTACT: Tyler Curtis, Director, Office of
Consumer Policy, (202)-717-3754, <a href="/cdn-cgi/l/email-protection#214249534852554e514944530f425453554852136155534440525453580f464e57"><span class="__cf_email__" data-cfemail="fe9d968c978d8a918e969b8cd09d8b8c8a978dccbe8a8c9b9f8d8b8c87d0999188">[email protected]</span></a>; Nora
Esposito, Senior Advisor, Office of Consumer Policy, (202)-604-9307,
<a href="/cdn-cgi/l/email-protection#acc2c3decd82c9dfdcc3dfc5d8c3ecd8dec9cddfd9ded582cbc3da"><span class="__cf_email__" data-cfemail="751b1a07145b1006051a061c011a35010710140600070c5b121a03">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
I. Background
The President's Executive Order on ``Modernizing Payments To and
From America's Bank Account'' (the E.O.) issued on March 25, 2025,
requires the transition to electronic payments for all Federal
disbursements and receipts by digitizing payments to the extent
permissible under applicable law.\1\ The policy's goals are to defend
against financial fraud and improper payments, increase efficiency,
reduce costs, and enhance the security of Federal payments. Effective
September 30, 2025, and to the extent permitted by law, the Federal
Government will cease issuing paper checks for all Federal
disbursements inclusive of intragovernmental payments, benefits
payments, vendor payments, and tax refunds, except as specified in the
E.O.
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\1\ Exec. Order No. 14247, 90 FR 14001 (March 28, 2025).
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As stated in the E.O.,
``the continued use of paper-based payments by the federal
government, including checks and money orders, flowing into and out of
the United States General Fund, which might be thought of as America's
bank account, imposes unnecessary costs; delays; and risks of fraud,
lost payments, theft, and inefficiencies. Mail theft complaints have
increased substantially since the COVID-19 pandemic. Historically,
Department of the Treasury checks are 16 times more likely to be
reported lost or stolen, returned undeliverable, or altered than an
electronic funds transfer (EFT). Maintaining the physical
infrastructure and specialized technology for digitizing paper records
cost the American taxpayer over $657 million in Fiscal Year 2024
alone.'' \2\
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\2\ Id. at 14001.
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Further, check fraud is becoming more common, with banks issuing
about 680,000 reports of check fraud in 2022--nearly double the number
of check fraud reports from 2021. Digital payments are more efficient,
less costly, and less vulnerable to fraud.
Among other taskings, the E.O. directs Treasury, in coordination
with other agencies, ``to develop and implement a comprehensive public
awareness campaign to inform Federal payment recipients of the
transition to electronic payments, including guidance on assessing and
setting up digital payment options.'' \3\ The E.O. also directs
Treasury to work with financial institutions, consumer groups, and
other stakeholders to address financial access for unbanked and
underbanked populations. This RFI will help Treasury seek stakeholder
input on these directives. Additionally, the E.O. directs Treasury to
review and, as appropriate, revise procedures for granting limited
exceptions where electronic payment and collection methods are not
feasible.
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\3\ 90 FR 14002.
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Treasury is therefore seeking information and recommendations from
all interested parties on matters related to the implementation of E.O.
14247, in particular Treasury's efforts to advance a public awareness
campaign that will help consumers, including unbanked and underbanked
populations, transition to digital payments as contemplated by the E.O.
II. Request for Information
Treasury welcomes input on any matter that commenters believe is
relevant to Treasury's role in implementing the President's Executive
Order on ``Modernizing Payments To and From America's Bank Account.''
Commenters are invited to respond to any or all of the following
questions, and to provide any other comments relevant to this work.
A. Paper Check Usage for Government Collections and Disbursements
1. What are some of the factors causing individuals and
organizations to continue to use paper checks to receive or make
payments to the Federal Government?
2. What barriers exist for transitioning individuals and
organizations to electronic funds transfer (EFT) options?
a. Are there particular barriers preventing unbanked and
underserved individuals from adopting EFT options?
b. Are there particular barriers preventing individuals who own
bank accounts or small businesses from adopting EFT options?
c. Are there cases where Federal agencies do not currently provide
EFT options or where information regarding EFT options is not readily
available?
d. What alternatives to EFT payments should Federal agencies
consider in the limited cases where electronic methods are not
feasible?
2. Have there been successful campaigns in the private sector or in
other areas to transition individuals from paper checks to EFT options
that could inform Federal efforts?
a. Why do you think that these campaigns were successful?
b. What strategies would you recommend to Treasury?
B. Public Awareness Campaign and Stakeholder Outreach
1. What information should a public awareness campaign include and
what
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support or tools are needed to help people transition from using paper
checks to EFT options for Federal payments?
2. As Treasury coordinates with other Federal Government agencies
on this public awareness campaign, what are the most effective
communication channels for Federal agencies to reach program
participants and other payees? Are there external entities or
organizations in the private or nonprofit sectors that Federal agencies
should partner with to increase awareness among beneficiaries and
payees?
3. What are the best communication channels for the Federal
Government to gather information from individuals who currently rely on
paper checks?
4. How should Federal agencies inform the public about different
EFT payment options when they choose how to make government payments?
C. Preferred EFT Methods
The E.O. discusses transitioning government payments to EFT
methods, including direct deposit, debit and credit card payments,
prepaid card accounts (such as Direct Express), digital wallets and
real-time payment systems, and other digital payment options.
1. Which electronic payment methods are typically used to make or
receive payments by the general public, unbanked individuals, and
individuals who rely on paper checks from the Federal Government? Why
do individuals choose these payment methods?
2. What EFT options, including those listed in the E.O., do you
think the Federal Government should offer for incoming and outgoing
payments, and why?
a. What are some potential risks or considerations related to
offering certain EFT methods that Treasury should be aware of?
b. Are there administrative, regulatory, or statutory barriers
related to offering certain types of EFT methods?
c. How can the government prevent fraud and make payments securely
using these EFT options?
3. What types of organizations or partnerships could be leveraged
to provide access to EFT payments for individuals or businesses that do
not have bank accounts?
4. Are there additional financial products or services available to
facilitate EFT methods of payment not listed in the E.O. that the
public should be aware of?
D. General Comments Related to the E.O. ``Modernizing Payments To and
From America's Bank Account''
1. Are there any other issues related to the implementation of this
E.O. that you would like to raise?
Tyler Curtis,
Director, Office of Consumer Policy.
[FR Doc. 2025-09766 Filed 5-29-25; 8:45 am]
BILLING CODE 4810-AK-P
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