Comment on FR Doc # 2026-08278
Independent Community Bankers of America (ICBA)SupportAdvocacy
Summary: The Independent Community Bankers of America (ICBA) supports the proposed rule to transition federal payments from paper checks to electronic delivery to reduce fraud and operational burdens. They request specific clarifications to ensure fair competition between bank and nonbank payment endpoints, practical exceptions for those who still need checks, and efficient approval processes for small businesses.
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.