Comment on FR Doc # 2026-08278
Independent Community Bankers of America (ICBA)SupportTrade association
Summary: The Independent Community Bankers of America (ICBA) supports the Bureau of the Fiscal Service's proposal to transition federal agency payments from paper checks to electronic delivery. They argue that this shift reduces fraud risk and operational burdens for community banks, while requesting specific clarifications to ensure practical implementation and fair treatment of bank accounts.
The Independent Community Bankers of America (ICBA) appreciates the opportunity to comment on the Bureau of the Fiscal Service’s proposed rule on how federal agencies send out payments. The proposal carries out Executive Order 14247, issued in 2025, which directs the federal government to stop issuing paper checks, to the extent the law allows, and to pay electronically instead.
ICBA supports the overall objectives of the proposal and respectfully requests the adoption of additional clarifications suggested in the attached letter. Paper checks continue to create fraud risk and operational burdens for community banks, and shifting federal payments to electronic delivery reduces that risk. ICBA supports the move away from paper checks, but the final rule should preserve workable exceptions, avoid disadvantaging bank accounts relative to nonbank options, and give agencies and recipients a practical path to implementation.