RESTON, Virginia, July 2, 2025–Nacha submitted formal comments in support of Executive Order 14247, “Modernizing Payments To and From America’s Bank Account,” applauding the Treasury Department’s efforts to eliminate paper checks for federal disbursements and collections. The executive order, which directs a full transition to electronic payments by Sept. 30, 2025, for federal disbursements, aligns with long-standing Nacha priorities to enhance efficiency, security and inclusion in the payments system.

“The federal government has long been a leader in adopting electronic payments, and fully transitioning away from paper checks is a significant step that will benefit American consumers and businesses while saving the federal government money,” said Jane Larimer, President and CEO of Nacha. 

In 2024, the Treasury Department originated more than 1.86 billion ACH payments, moving more than $8.5 trillion through the ACH Network for purposes ranging from Social Security benefits and tax refunds to vendor and Medicare payments. The same year, the federal government issued approximately 36 million paper checks. Nacha’s comments noted that if the Treasury Department had used ACH payments instead of checks, “the direct savings to the federal government would have been over $68 million.”

In its comment letter, Nacha emphasized that transitioning away from checks is more a matter of policy choices and implementation than technical readiness. With the widespread availability of no-cost bank accounts, mobile and online banking, prepaid cards and payment apps, Nacha urged the Treasury Department to minimize hardship exceptions that result in the continued use of paper checks. Nacha also noted that any person, business or organization that writes a check to the federal government has a bank account from which an electronic payment can be made.

Other Nacha recommendations included:

• Expanding account validation to mitigate fraud and reduce improper payments.
• Leveraging existing banking information across federal agencies to streamline Direct Deposit enrollment.
• Shortening the Treasury’s ACH credit settlement times, bringing it in line with standard ACH timing in the private sector.

The full comments are available here. For more information on Direct Deposit and Direct Payment and the ACH Network, visit DirectDeposit.org and DirectPayment.org.