In a major reform signed by President Donald Trump, the U.S. Treasury will cease the issuance of all paper checks, including tax returns, by September 30, 2025. This means taxpayers will need to adjust to receiving their refunds through digital means like direct deposit, debit cards or other online payment platforms. Failure to adapt could result in delayed or lost refunds.
Complete digitization has been introduced to augment the efficiency, affordability, and security of government payments. The Trump administration aims to tackle government waste and fraudulent practices by modernizing obsolete paper-based systems, which currently induce unnecessary costs, delays, and risks.
From a pragmatic and budgetary viewpoint, this transformation to digital payment platforms is a sensible move. Sending funds digitally is both quicker and cheaper than the traditional method of printing and mailing checks. Additionally, the costs of maintaining and digitizing paper-based systems reportedly crossed $657 million in 2024.
On the security front, it is noteworthy that U.S Treasury checks are 16 times more susceptible to being lost, stolen, or tampered with compared to digital transfers. Furthermore, there has been a surge in check fraud, as revealed by a 2025 survey by the Association for Financial Professionals, which ascertained that 63% of businesses experienced check fraud in 2024. Thus, transitioning to digital refunds is expected to mitigate these risks dramatically.
From fall 2025 onwards, all tax refunds will be disbursed using Electronic Funds Transfer (EFT) methods such as direct deposit, prepaid debit cards, and digital wallets. Paper refund checks will only be issued in specific exceptional cases.
Moreover, the initiative includes plans to phase out incoming paper payments. Consequently, those who are paying taxes, fees, or fines by check, will need to switch to a card or digital wallet-based payment system starting later this year, unless they qualify for a limited exception as stated in the executive order.
Taxpayers who fit the exception criteria will need to apply for an exception through the Treasury. Guidelines on how to undertake this have yet to be released as of the time of writing.
The termination of paper refund checks symbolizes a significant transition in how Americans receive funds from their government. Individuals who depend on such checks for their refunds should take measures now to update their payment method prior to the Treasury's September 2025 deadline. Timely adaptation will guarantee that future refunds are received promptly, securely, and without any complications.