Notice2025-16426
Transition to Electronic Payments and Disbursements
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
August 27, 2025
Issuing agencies
Labor Department
Abstract
This notice is to inform the public that effective September 30, 2025, the Department of Labor (DOL) will no longer accept paper checks as a form of payment, and DOL will not issue paper checks as payments, as directed in President Trump's Executive Order 14247, Modernizing Payments To and From America's Bank Account (E.O. 14247), to the extent permitted by law. This change is intended to improve efficiency in processing payments and reduce administrative burdens. DOL is committed to assisting the public during this transition period and encourages any affected parties to reach out with questions or concerns.
Full Text
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<title>Federal Register, Volume 90 Issue 164 (Wednesday, August 27, 2025)</title>
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[Federal Register Volume 90, Number 164 (Wednesday, August 27, 2025)]
[Notices]
[Page 41843]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-16426]
[[Page 41843]]
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DEPARTMENT OF LABOR
Transition to Electronic Payments and Disbursements
AGENCY: Office of the Chief Financial Officer, Department of Labor.
ACTION: Notice.
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SUMMARY: This notice is to inform the public that effective September
30, 2025, the Department of Labor (DOL) will no longer accept paper
checks as a form of payment, and DOL will not issue paper checks as
payments, as directed in President Trump's Executive Order 14247,
Modernizing Payments To and From America's Bank Account (E.O. 14247),
to the extent permitted by law. This change is intended to improve
efficiency in processing payments and reduce administrative burdens.
DOL is committed to assisting the public during this transition period
and encourages any affected parties to reach out with questions or
concerns.
DATES: This change will be implemented beginning September 30, 2025.
FOR FURTHER INFORMATION CONTACT: Westley Everette, Associate Deputy
Chief Financial Officer, Office of the Chief Financial Officer, U.S.
Department of Labor, 200 Constitution Avenue NW, Room S-5526,
Washington, DC 20210; email: <a href="/cdn-cgi/l/email-protection#da9facbfa8bfaeaebff48dbfa9aeb6bfa39abeb5b6f4bdb5ac"><span class="__cf_email__" data-cfemail="b9fccfdccbdccdcddc97eedccacdd5dcc0f9ddd6d597ded6cf">[email protected]</span></a>; telephone (202)
693-6800. For persons with a hearing or speech disability who need
assistance to use the telephone system, please dial 711 to access
telecommunications relay services.
SUPPLEMENTARY INFORMATION:
I. Background
On March 25, 2025, President Trump issued E.O. 14247, Modernizing
Payments To and From America's Bank Account (90 FR 14001).\1\ E.O.
14247 ``promotes operational efficiency by mandating the transition to
electronic payments for all Federal disbursements and receipts by
digitizing payments to the extent permissible under appliable law . .
.'' and requires the U.S. Department of the Treasury to ``cease issuing
paper checks'' by September 30, 2025. It further requires all executive
departments and agencies to ``comply by transitioning to electronic
funds transfer [EFT] methods, including direct deposit, prepaid card
accounts, and other digital payment options, and take all steps
necessary to enroll recipients in EFT payments . . .'' The directives
included in E.O. 14247 were given to executive agencies to transition
to EFT methods and other digital payment options for payments made to
the Federal Government to facilitate electronic processing as
permissible and as soon as practicable.
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\1\ See E.O.14247, Modernizing Payments To and From America's
Bank Account (2025) at <a href="https://www.whitehouse.gov/presidential-actions/2025/03/modernizing-payments-to-and-from-americas-bank-account/">https://www.whitehouse.gov/presidential-actions/2025/03/modernizing-payments-to-and-from-americas-bank-account/</a>.
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Accordingly, to advance President Trump's directives in E.O. 14247
and to build upon the Department's ongoing technological efficiency
initiatives, DOL will no longer accept paper checks as a form of
payment, nor will DOL issue paper checks.
II. Impact of This Change
The transition from paper checks to electronic payments offers
several important advantages:
<bullet> Speed and Efficiency: Electronic Funds Transfers (EFTs)
are processed more quickly than paper checks, helping beneficiaries
receive their payments on time without delays.
<bullet> Cost Savings: According to the U.S. Department of the
Treasury, issuing a paper check costs about 50 cents, whereas an EFT
costs less than 15 cents. This shift could save the federal government
millions of dollars annually.
<bullet> Enhanced Security: Paper checks are 16 times more likely
to be lost or stolen compared to electronic payments, increasing the
risk of fraud. Electronic payments provide a safer, more secure way to
receive benefits.
By September 30, 2025, the Department of the Treasury will cease
issuing paper checks for all federal disbursements, to the extent
permitted by law. All federal agencies must transition to electronic
funds transfer (EFT) and actively enroll recipients in digital payment
methods. To ensure compliance and minimize disruptions, DOL is
proactively sending notices to people who currently receive paper
checks to explain the upcoming change and highlight the benefits of
switching to electronic payments.
For more information, please visit the E.O. resource hub at <a href="https://tfx.treasury.gov/eo-resources">https://tfx.treasury.gov/eo-resources</a>.
Authority: E.O. 14247, 90 FR 14001.
Dated: August 22, 2025.
Kevin Brown,
Acting Chief Financial Officer.
[FR Doc. 2025-16426 Filed 8-26-25; 8:45 am]
BILLING CODE 4510-7C-P
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