Last week, the White House issued an Executive Order that’s been years in the making: the elimination of paper-based payments by the Federal Government. While this change is beginning at the highest level of government, it’s important to consider the future implications for local governments, too. 

Are billing and payments teams managing counties, cities, towns, and villages ready for the trickledown effect of this mandate? Is your team ready to embrace a fully digital, paperless future?  

Let’s start with an overview of the Executive Paperless Check Order and why the Federal Government has been working to make this change. Then we’ll dig into the possible implications for local governments in the coming years, and how billing and payment teams should evaluate and prepare. 

What Does the Executive Paperless Check Order Mean? 

Effective September 30, 2025, the Secretary of the Treasury will stop issuing paper checks for all Federal disbursements. This includes benefits payments, vendor payments, and tax refunds. The sweeping shift to digital aims to mitigate unnecessary costs, mail-related delays, risks of fraud, lost payments, theft, and inefficiencies.  

Check fraud is becoming more common, with banks issuing about 680,000 reports of check fraud in 2022 – nearly double the number from 2021. Historically, Department of the Treasury checks are 16 times more likely to be reported lost or stolen, returned undeliverable, or altered than an electronic funds transfer (EFT). 

Additionally, the White House reports that maintaining the physical infrastructure and specialized technology for digitizing paper records cost the American taxpayer over $657 million in 2024 alone. 

While this Executive Order only impacts Federal payments at this time, it does offer a glimpse into the future for local governments. Certainly, the same issues that drove the Federal mandate apply to local billing and payment teams. Rising mail theft and fraud present a challenge for all billing organizations and the American public at large has come to expect easy, digital experiences in every aspect of their lives. 

Are You Ready to Go 100% Paperless? 

Making the shift to 100% digital payments is the way of the future. This year’s State of Online Payments report shows that only 4% of Americans surveyed prefer to write checks for bill payments like utilities, tax, waste collection, and more. 

The best thing local governments can do is be proactive about these growing preferences, and that starts with evaluating your current digital payment offerings. 

Here are four critical things to consider when gauging your organization’s readiness to embrace a digital future.

Is your current solution prepared to handle a major shift to digital?

Actively driving your customers to digital payments requires a robust infrastructure and sufficient capacity to handle increased transaction volumes. Ensuring your system can support an increase in digital payments without disruptions is essential for a smooth transition.

Is your EBPP platform designed to drive customers to use digital options?

Digital options are only truly valuable if customers are using them. It’s critical that your payment solution be designed to drive all customers to the self-service routes that will save your organization time and money.

Are paperless billing options available through your payment system? Is it easy for customers to find and enroll?

According to the latest State of Online Payments report, 22% of Americans surveyed do not have the option to enroll in paperless billing. So, first and foremost, you must have this option available. Once paperless billing is enabled, make sure it’s easy for customers to find and enroll in – otherwise, even interested customers will be discouraged from going paperless.

Is your current system easy for everyone to use, regardless of their comfort level or access to technology?

Not everyone considers digital payments a convenient option. Some folks want the ease of digital but don’t have the knowledge or access to make the most of what’s available to them. Consider if everyone, no matter the makeup of your customer population, could easily navigate and use your current online payment solution. 

If the answer is no, this is the perfect time for local governments to consider the tools you’re using to empower staff, thrill customers, and make processes more efficient. 

What’s Next for Local Governments? 

If you’ve evaluated your current system and feel it can’t adequately support your team’s journey to going paperless, it’s time to consider what you need to reduce your intake of paper checks. 

From a high-level view, here’s how you’ll want to proceed: 

1. Find and implement an easy-to-use digital payment solution. 

2. Train your staff. 

3. Educate your customers. 

This might seem like an overwhelming undertaking. That’s why InvoiceCloud provides the essential support local governments need to make this transition seamless, from updating your payment processing systems to training and beyond. 

If you’re wondering whether now is the right time to make a change, connect with our team of product experts to see if InvoiceCloud is the right solution for your organization.