Maine delegation: Delay needed on Treasury ban of paper checks

Photo / Adobe Stock An executive order set to take effect Sept. 30 requires the Treasury Department to stop issuing paper checks for all payments across the federal government, including Social Security payments.

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By Renee Cordes

With less than a week to go until the federal government stops using paper checks to make payments, Maine’s congressional delegation is urging the Trump administration to delay implementation of the executive order.

The order requires the Treasury Department to stop using paper checks by Sept. 30 for all payments across the federal government — including Social Security benefits, vendor payments and tax refunds.

In a joint letter to Treasury Secretary Scott Bessent and Office of Management and Budget Director Russell Vought, all four members of Maine’s congressional delegation voice concerns about the ban’s impact on older and disabled Americans, small business owners and farmers and the domestic forest products industry.

“Not only do paper checks support our domestic pulp and paper industry, many individuals and businesses do not have access to digital financial services and rely solely on paper checks,” the lawmakers write in their two-page missive, joined by U.S. Sen. Jeanne Shaheen, D-N.H.

The letter notes that more than 120,000 veterans and survivors receive their disability compensation, survivor benefits and other compensation through paper checks, and that rural Americans and those living on Tribal lands have geographic and digital infrastructure challenges that prevent them from using traditional and technology-based financial services.

For those and other reasons, the lawmakers are urging the administration to extend the implementation timeline and "conduct frequent outreach" to individuals and businesses regarding the transition.

Maine Bankers Association

Jim Roche, president of the Maine Bankers Association, said while the Westbrook-trade trade group does not have an official position on the executive order, check fraud is a growing concern nationwide.

“Checks are stolen and illegally altered by nefarious actors causing significant harm to consumers,” he told Mainebiz.

“At the same time, easy access to the internet and related technology in rural areas can be challenging. Although a waiver option is available for people to continue to receive paper checks, perhaps the implementation of the president’s executive order should be delayed as concerns over the ease with obtaining a waiver are addressed.”

The Maine Credit Union League does not have a position on the issue and declined to comment, according to a spokeswoman.

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