- Details
- By Tribal Business News Staff
- Finance
The U.S. Department of the Treasury is requesting public comments by June 30 on a federal transition to electronic-only payments that will eliminate all government paper checks by September 30, 2025.
WHY IT MATTERS: The federal transition to electronic-only payments could disproportionately impact Tribal communities, where geographic isolation limits banking access and internet connectivity issues restrict digital payment options. With Native Americans experiencing higher unbanked rates than the general population, mandatory electronic payments may create new barriers to accessing federal benefits and services that many Tribal citizens rely on.
Executive Order 14247, issued March 25, directs the Treasury to cease issuing paper checks for all federal disbursements including Social Security, Veterans benefits, tax refunds, and Tribal program payments, according to a Federal Register notice published May 30. The order aims to reduce fraud, increase efficiency and cut costs.
The transition presents challenges for Tribal communities, where limited banking infrastructure often requires citizens to travel significant distances to reach bank branches or ATMs. Many reservations experience inadequate internet connectivity, limiting access to digital payment systems.
Native Americans experience higher rates of being unbanked or underbanked compared to the general population, according to Federal Deposit Insurance Corporation data. Cash-based transactions remain common in many Tribal communities due to cultural preferences and practical necessity.
Treasury's request for information seeks stakeholder input on implementation challenges, particularly for unbanked and underbanked populations. The department plans to develop a public awareness campaign and work with financial institutions to address financial access barriers.
The Native American Finance Officers Association has launched a survey for tribal communities to share insights on the executive order's potential impact, with responses due June 25, according to a NAFOA update. NAFOA has also created a template letter for tribal governments and organizations to submit Treasury comments.
The executive order allows limited exceptions where electronic payment methods are not feasible. Alternative payment options include direct deposit, prepaid card accounts, digital wallets and real-time payment systems.
Comments must be submitted electronically through the Federal eRulemaking Portal at regulations.gov by June 30, 2025.
