Federal Register #FISCAL-2026-0001

Proposed Rule to Modernize Federal Agency Disbursements by Limiting Paper Checks

The Department of the Treasury, Bureau of the Fiscal Service, is proposing a regulatory change to modernize federal agency disbursements: - Government Buyer: - Department of the Treasury, Bureau of the Fiscal Service - Scope of Action: - Amends regulations to limit the use of paper checks for federal payments - Implements Executive Order 14247, requiring electronic funds transfers (EFT) for most disbursements - Notable Requirements: - Exceptions allowed only in limited circumstances, such as: - Hardship waivers - Recipients on Indian land without electronic infrastructure - Disaster areas - Urgent needs for goods and services - Responsibility for adjudicating hardship waivers shifts from Treasury to payment-authorizing agencies - New waiver categories added to address unique recipient needs - No specific products, OEMs, or vendors are involved, as this is a regulatory action, not a procurement for goods or services

Description

The Department of the Treasury, Bureau of the Fiscal Service, is proposing to amend its regulation to limit the circumstances under which federal agencies may issue paper check disbursements. This action is in response to Executive Order 14247, which directs the cessation of paper checks for federal disbursements to the extent permitted by law and calls for revised procedures for limited exceptions where electronic payments are not feasible. The proposed rule aims to modernize federal disbursement methods by reducing reliance on paper checks, thereby increasing efficiency, reducing costs, and enhancing payment security. Comments on the proposed rule must be received by June 15, 2026.

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