[VT Washington, D.C. ] March 25, 2025 — President Donald J. Trump has issued a sweeping Executive Order to enhance the financial integrity and transparency of the U.S. Federal Government’s disbursement processes. The order outlines major reforms that aim to consolidate core financial systems, streamline payment verification procedures, and reduce the use of Non-Treasury Disbursing Offices (NTDOs), in an effort to combat fraud, reduce improper payments, and improve operational efficiency.
In Fiscal Year 2024, the U.S. General Fund processed approximately $33.6 trillion in outflows, including $5.87 trillion in benefits, grants, and vendor payments. Despite this volume, current systems lack comprehensive oversight and standardization. The Government Accountability Office estimates annual fraud-related losses between $233 and $521 billion.
Under the new order, the U.S. Department of the Treasury, in consultation with the Office of Management and Budget (OMB), will lead efforts to modernize and centralize payment operations. Agencies are now required to implement pre-certification verification processes before disbursements are made, ensuring the accuracy of payee identity, payment amount, and account validity.
The Executive Order directs all federal agencies to submit updated compliance plans within 90 days. These plans must detail strategies for transferring disbursing authority to the Treasury, integrating systems, verifying payment data, and reporting improper payments. Treasury will review and potentially revoke existing payment delegation authorities and issue guidance for transitioning payment operations back under centralized control.
Within 180 days, the OMB will issue additional guidance mandating the consolidation of core financial systems across all CFO Act agencies, with non-CFO agencies directed to adopt shared service providers approved by the Treasury.
Exceptions may be made for classified transactions, but agencies such as the Department of Defense, Department of Homeland Security, and Department of Justice are expected to coordinate closely with Treasury to transition disbursement responsibilities.
A progress report will be submitted to the President within 180 days, detailing implementation milestones and ensuring compliance with data privacy laws, classified information protection, and taxpayer confidentiality.
This initiative is part of a broader federal commitment to bolster public trust by safeguarding taxpayer dollars and promoting accountability in the U.S. government’s financial operations.
