Trump’s DOGE Targeting Paper Checks?
- Is Elon Musk's DOGE targeting checks?
- Some cite Musk's desire to get involved in payments
- Many persons would be "left in the lurch" if checks were eliminated
In a recent post from Department of Government Efficiency (DOGE), the Elon Musk-led advisory group proposes another drastic change -- this time, eliminating paper checks.
According to DOGE, there were 116 million paper checks processed by the U.S. Treasury in 2024 -- with many coming from tax refunds.
Additionally, DOGE goes on to note a few key issues, including the fact that $25 billion in tax refunds were delayed or lost due to returned or expired checks in 2023 and the $2.40 cost to process checks through their lockbox network.
With DOGE's touted goal of efficiency, they report that eliminating checks could save at least $750 million per year.
Musk No Stranger to Payments
As a founding member of PayPal, Musk is no stranger to the payments industry. Musk has a strong affinity for all things digital -- including cryptocurrencies (the "DOGE" acronym is the same one of his favorite cryptocurrencies.)
Additionally, we saw the Musk's acquisition of Twitter -- now known as "X" -- and the possibility of the platform to integrate payments.
We are not insinuating that Musk is looking to profit from this endeavor and looking for the US Government to adopt X.com or DOGE coin as the method of payment. However, we can surmise that Musk will want to push the US Government and Treasury to adopt a digital payment method -- even if digital payments can indeed lead to increased fraud and security issues.
Will the US Treasury Eliminate Checks?
This is the real question that should be asked. And, the simple answer is that Musk can certainly try, but the odds are very much against him.
Why? Simply put, checks are ingrained into the system and still very much a major payment method. Moving away from checks entirely requires ALL vendors and individuals to utilize the same payment method. While many vendors already accept ACH payments, many individuals do not.
As noted in the comments:
- Elderly not knowing how to use other technologies/direct deposits
- The "underbank class" who don’t own accounts
- Public distrust in the government handling their bank account
Additionally, the IRS notes that two out of ten tax refunds are paid by check.
The bottom line: DOGE has made many controversial decisions in their first month of operation. However, eliminating paper checks in favor of direct deposit – or even crypto, as Musk’s followers are hoping – will be near-impossible in the next few years.