Trump signs executive orders to protect government payments

President Trump has signed two executive orders that aim to better protect the money that the government is spending and cut out fraud by using electronic payments over checks and centralizing payments in the U.S. Treasury.

“Many of these things should’ve taken place decades ago — or longer,” Mr. Trump said when he signed the orders surrounded by U.S. ambassadors at the White House for a separate event.

One order mandated that all federal payments switch to electronic transactions to cut out “unnecessary costs, delays, and risks of fraud, lost payments, theft, and inefficiencies.”

By Sept. 30, the federal government has to cease issuing paper checks for all disbursements, including intra-governmental payments, benefits, vendor payments and tax refunds.

Treasury checks are 16 times more likely to be reported lost, stolen, undeliverable or returned, according to the White House. 

The cost of maintaining the physical infrastructure and technology used for digitizing paper records is high for American taxpayers — over $657 million in 2024, according to a White House fact sheet.

“President Trump is cracking down on waste, fraud, and abuse in government by modernizing outdated paper-based payment systems that impose unnecessary costs, delays, and security risks,” it said.

The second order aimed to promote “financial integrity, transparency, and efficiency” by strengthening the Treasury Department.

It directed Treasury to update guidance and systems across the federal government to make sure all payments made on behalf of agencies get properly vetted for fraud. 

“The Federal Government’s longstanding challenges when it comes to accessing accurate data across agencies has prevented it from more fully safeguarding taxpayer dollars against fraud and improper payments,” a White House fact sheet said. “Transitioning to centralized systems and ensuring basic pre-certification and verification measures before funds are disbursed will enhance security and improve efficiency in managing Federal funds.”