Modernizing Payments To and From America's Bank Account
1. Purpose
This order mandates a transition from paper check disbursements to electronic payments to enhance operational efficiency and minimize risks associated with traditional payment methods.
2. Key Actions And Directives
- Phase-out of Paper Checks: All federal disbursements will be transitioned to electronic formats by September 30, 2025.
- Support for Digital Payment Transition: Agencies must assist individuals in transitioning to electronic payments through public awareness campaigns.
- Compliance and Reporting: Heads of agencies must submit a compliance plan within 90 days and the Secretary of the Treasury must provide an implementation report within 180 days.
3. Important Points
- Broader Scope of Payments: All federal disbursements, including vendor payments and tax refunds, will transition to electronic forms, eliminating paper checks.
- Exceptions Allowed: Electronic payment mandates include exceptions for individuals without banking access, certain emergencies, and national security considerations.
- Financial Access Initiatives: Plans are in place to improve financial access for unbanked and underbanked populations, ensuring inclusivity in the digital shift.
- Centralized Payment Resources: Agencies will utilize centralized systems for various electronic payment methods, streamlining the transition process.
- Implementation Framework: The order ensures compliance with existing laws without creating enforceable rights against the government.
Disclaimer: ExecBrief's are AI generated, Please verify with the original source to confirm
Click here to provide feedback to help us improve your experience!
Comments