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EO 14249Executive OrderTrump 47 · R Quiet signal

Executive Order 14249

Protecting America's Bank Account Against Fraud, Waste, and Abuse

This executive order centralizes federal payment controls under the Department of the Treasury to combat fraud and improper payments estimated at $233–521 billion annually. It mandates pre-certification verification for all Treasury-disbursed payments, consolidates core financial systems across agencies, and phases out Non-Treasury Disbursing Offices (NTDOs) that currently handle about 22% of federal disbursements. Agencies must comply with new data-sharing requirements, system integrations, and delegated disbursing authority to Treasury within specified timeframes.

Federal Register Open PDF 90 FR 14011

Impact dates

  1. Agency heads delegate disbursing activities to Treasury Chief Disbursing Officer

  2. CFO Act agencies begin using standard financial management solutions via Financial Management Marketplace

  3. NTDO agencies decommission internal payment systems and transition to Treasury systems

  4. OMB Director issues guidance for non-CFO Act agency transactional financial management consolidation

  5. Treasury submits implementation report to President through Assistant for Economic Policy

  6. Agency heads review/modify Privacy Act system of records notices for Treasury data sharing

  7. Agency heads submit compliance plans to OMB Director

  8. Treasury assessment of NTDO delegations and revocation notices

Key directives

  • Treasury to establish pre-certification verification for all agency payments with specific criteria (funds availability, payee verification, valid TIN/SSN/EIN/ITIN, non-deceased payees, valid bank accounts, contract/award referencing)
  • OMB Director to issue guidance directing CFO Act agencies to consolidate core financial systems within 180 days
  • OMB Director to issue guidance directing non-CFO Act agencies to consolidate transactional financial management services within 180 days
  • Treasury to assess and revoke NTDO delegations within 30 days
  • Agency heads with 31 U.S.C. 3321(c) authority to delegate disbursing to Treasury Chief Disbursing Officer (excluding classified payments)
  • Agency heads to decommission internal payment systems and use Treasury disbursement systems
  • Agency heads to submit compliance plans within 90 days
  • Treasury to submit implementation report within 180 days
  • Treasury to develop centralized payment management plan for former NTDO payments
  • Treasury to establish NTDO transition plan including staffing, systems, and legal modifications

Who is ordered

Timeline

Immediate

  • Order takes effect March 25, 2025
  • Secretary of Treasury begins assessment of NTDO delegations

Near term (90d)

  • Within 30 days: Treasury assessment of NTDO delegations and revocation notices (by April 24, 2025)
  • Within 90 days: Agency heads review/modify Privacy Act system of records notices (by June 23, 2025)
  • Within 90 days: Agency heads submit compliance plans to OMB Director (by June 23, 2025)
  • As soon as practicable: CFO Act agencies begin using standard financial management solutions
  • Agency heads work with Treasury to delegate disbursing activities (Sec. 6(b))

Long term

  • Within 180 days: OMB Director issues guidance for CFO Act agency core financial system consolidation (by September 21, 2025)
  • Within 180 days: OMB Director issues guidance for non-CFO Act agencies to consolidate transactional financial management services (by September 21, 2025)
  • Within 180 days: Treasury submits implementation report to President (by September 21, 2025)
  • Ongoing: NTDO decommissioning of internal payment systems and transition to Treasury systems
  • Ongoing: Development of centralized payment management plan and NTDO transition plans

Risks & tensions

  • Implementation complexity: Consolidating 181 million NTDO payments ($1.5 trillion) risks payment disruption if transition is mishandled
  • Privacy concerns: Expanded data sharing between agencies and Treasury for fraud detection may face legal challenges under Privacy Act; health records explicitly excluded
  • Exemption process in Sec. 4(e) could create loopholes weakening enforcement if broadly applied
  • Classified payment carve-out preserves national security flexibility but maintains fragmented oversight for sensitive disbursements
  • 'As soon as practicable' language for CFO Act agency system adoption lacks hard deadline, creating compliance uncertainty
  • Sec. 8(b) 'subject to availability of appropriations' may limit implementation if Congress does not fund system consolidation
  • Potential tension: Agencies may resist ceding disbursing authority due to operational autonomy loss; Treasury retains discretion to delegate back for 'significant Government priorities'
Executive Order 14249: Protecting America's Bank Account Against Fraud, Waste, and Abuse · Executive Orders