President Donald Trump signed two executive orders requiring the Treasury Department to expedite the modernization of the money movement system.
Electronic Payments: New Orders
The orders mandate the use of electronic payments "whenever possible" and assign full payment processing duties to the Treasury to prevent fraud and tighten control. While most federal payments are already processed via direct deposit, paper checks are still in use. The Trump administration is aiming to eliminate these outdated practices.
DOGE Gains Access to Treasury Database
Members of Elon Musk's Department of Government Efficiency (DOGE) gained full access to the Treasury's payment database, drawing criticism for potential privacy violations. However, supporters argue that this is necessary to trace financial leaks and corruption.
Treasury Layoffs: Plans and Implications
The Treasury Department is preparing significant workforce reductions as part of the downsizing efforts initiated by DOGE, leading to large-scale layoffs affecting approximately 100,000 employees. The RIF methods target less senior employees, primarily impacting those recently reinstated by court decisions.
Trump's modernization efforts aim to increase oversight and combat fraud in the payment systems, but they also raise concerns over data access and future Treasury layoffs.
