League reminds Treasury not to leave people behind
Published by: Sean Brown
July 9, 2025 | Uncategorized
Putting people first is not just a moniker for the Credit Union Movement, but a commitment. That is why, regardless of the regulatory environment, the League will advocate to keep people front and center in its advocacy efforts. Recently, the League submitted a comment letter on the U.S. Department of the Treasury’s Request for Information (RFI) related to President Trump’s Executive Order (E.O.) 14247 on “Modernizing Payments To and From America’s Bank Account,” which directs the Secretary of the Treasury to cease issuing paper checks and transition to the use of electronic payments for all federal disbursements where feasible.
Simply put, the League cautioned the Treasury against seeking innovation for innovation’s sake, at the expense of some communities. Specifically, should the Treasury move to a digital-only payment system, those who cannot, or will not, deviate from paper checks will be left behind. The push forward into a faster, safer, and digital financial system is generally a positive development for the system. However, the need to preserve a physical form of payment is paramount to financial access. Whether it is a personal choice, a generational trend, a product of circumstance, or a business decision, the use of physical money will be necessary for a complete financial marketplace. While this E.O., and RFI, marks an important step forward in combating check fraud by acknowledging that using more secure electronic payments for disbursing funds can reduce the risk of financial institutions inadvertently clearing fraudulent government checks, it is not without predictable, even if unintended, consequences. The League will continue to monitor this RFI and the Treasury as it considers formal rulemaking.
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