CUs Encouraged to Submit Comments as Treasury Considers Eliminating Paper Checks

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The U.S. Department of the Treasury is seeking public input as it prepares to implement Executive Order 14247, Modernizing Payments To and From America’s Bank Account, which would eliminate the issuance of paper checks for all federal disbursements “where feasible” and transition entirely to electronic payments.

This effort to modernize the federal payments infrastructure has significant implications for the financial services sector—particularly for credit unions and the members they serve.

The Request for Information (RFI), open until June 30, 2025, invites feedback on how the transition may impact operations, member engagement, and access—especially among unbanked and underbanked individuals.

What’s in the Executive Order

Signed on March 25, 2025, the Executive Order directs the Treasury to:

• Cease issuing paper checks in favor of digital payments wherever feasible.
• Develop a public awareness campaign to inform consumers about the shift.
• Prioritize inclusive access to digital disbursements, particularly for vulnerable populations.
  

According to the Treasury, the goal is to increase efficiency, reduce fraud, and improve the speed and security of federal payments. However, this modernization initiative raises important operational and equity questions for credit unions.

What This Means for Credit Unions

Cornerstone League is encouraging credit unions to weigh in:

• How might a digital-only federal disbursement policy affect members, particularly seniors, rural populations, or those without digital access?
• What support or resources would help credit unions ensure a smooth transition for members?
• Are there innovations or programs already in place that could help inform Treasury’s approach?

Equity and Accessibility at the Forefront

The Treasury is especially interested in feedback regarding unbanked and underbanked individuals who may depend on paper checks and lack access to digital tools or broadband connectivity. As longstanding champions of financial inclusion, credit unions are uniquely positioned to help identify challenges and shape the forthcoming public awareness campaign.

Submit Comments by June 30

Cornerstone League urges credit unions to submit their feedback by the June 30 deadline. Comments or questions can be directed to Suzanne Yashewski, regulatory compliance counsel at Cornerstone League. Credit unions are also encouraged to copy Yashewski on any comments submitted directly to the Treasury.

View the RFI here and submit comments here. For questions, please contact Suzanne Yashewski.