Nacha applauds the White House’s executive order to eliminate the use of paper checks for federal disbursements by Sept. 30, 2025, and for receipts as soon as practicable. Paper checks are slow, costly, and prone to theft and fraud, especially in comparison to Direct Deposit. 

Currently, the federal government uses Direct Deposit to pay 100% of its employees, 99% of Social Security benefits, 97% of veterans’ benefits, and 97% of tax refunds. In total, the U.S. Treasury originated 1.86 billion ACH payments in 2024 for both disbursements and receipts, moving $8.5 trillion through the ACH Network. 

Receiving a government-initiated Direct Deposit is a compelling reason for more Americans to open a bank account, especially when coupled with adoption of the BankOn certification for low- and no-cost accounts. 

Nacha has long supported the migration from paper checks to electronic payments. In 2023, Nacha Filed Comments supporting Treasury’s efforts to increase electronic disbursements. We look forward to working with the Treasury and agencies as they implement this order. In 2025, no one should be waiting on a paper check.