Executive Order

Executive Order 14249 of March 25, 2025 Protecting America’s Bank Account Against Fraud, Waste, and Abuse

ActiveExecutive Orders

Published

March 25, 2025

Lineage

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Ingested

June 29, 2026

Summary

Executive Order 14249, issued by the President on March 25, 2025, aims to protect America's bank account against fraud, waste, and abuse by enhancing financial integrity and operational efficiency across the Federal Government. It directs the Department of the Treasury to implement enhanced pre-certification verification processes for agency payments and centralize disbursing functions by reducing Non-Treasury Disbursing Offices (NTDOs). Federal agencies are required to cooperate with Treasury on payment verification, consolidate core financial systems, and update privacy notices to facilitate data sharing for fraud prevention.

Key provisions

Executive Order 14249, issued on March 25, 2025, aims to enhance financial integrity, operational efficiency, and accountability across the Federal Government by combating fraud, waste, and abuse in financial transactions.

Purpose

The Federal Government manages trillions of dollars annually, flowing into and out of the United States General Fund, which the order refers to as "America's bank account."
The Department of the Treasury (Treasury), despite being the largest financial payment manager, lacks sufficient controls to track transactions through the General Fund, contributing to an estimated annual loss of $233-$521 billion due to fraud and improper payments.
The fragmentation of disbursing authority, particularly through Non-Treasury Disbursing Offices (NTDOs) which processed over $1.5 trillion in FY2024, leads to disjointed reporting, lack of traceability, and increased operational risks.
The order seeks to enable Treasury to conduct pre-disbursement fraud and improper payment screening, increase transparency by requiring detailed transaction information from agencies, and promote efficiency by centralizing disbursing functions and standardizing financial systems.

Policy

The overarching policy is to defend against financial fraud and improper payments, increase transparency and accountability in Federal financial operations, enhance efficiency, reduce costs, and improve the security of Federal payments.

Treasury Verification of Agency Payments Information

Directive & Compliance: The Secretary of the Treasury, in consultation with the OMB Director, must update guidance and enhance systems to ensure all payments made by Treasury on behalf of agencies are subject to pre-certification verification processes to prevent fraud and improper payments. This guidance must include compliance with the Do Not Pay Working System (31 U.S.C. 3351 et seq.) and other validation programs.
Compliance Requirement: Heads of all agencies must cooperate with the Treasury Secretary to fulfill their obligations regarding pre-certification and pre-award procedures for payment or award eligibility.
Compliance Requirement (90-day deadline): Within 90 days of March 25, 2025, agency heads must review and modify their Privacy Act of 1974 system of records notices to include a "routine use" allowing disclosure of records to Treasury for identifying, preventing, or recouping fraud and improper payments.
Directive: The Treasury Secretary, in consultation with the OMB Director, shall issue guidance to agency heads on the circumstances under which they may provide Treasury with access to data necessary for fraud detection, prevention, and payment information verification, while protecting sensitive data like health records.

Implementation and Compliance of Payment Verification

Compliance Requirement: Agency heads, through designated Certifying Officers (COs), must comply with disbursement requirements and pre-certification instructions published by the Treasury Secretary.
Directive: The Treasury Secretary will consider issuing instructions enforcing specific pre-certification criteria for disbursement requests (Vouchers), including verifying fund availability, correct payee information, proper identification numbers (SSN, TIN, EIN, ITIN, Payee ID), valid account numbers, and appropriate references for contracts or financial assistance awards.
Compliance Requirement: Agency heads must submit payment files (excluding same-day payments) to Treasury with sufficient lead time for fraud and improper payment screening, as determined by Treasury.
Directive: The Treasury Secretary shall establish a transparent process for agencies to request exemptions from some or all payment verification requirements for specific payments or categories.

Core Financial System Consolidation

Directive (180-day deadline): Within 180 days of March 25, 2025, the OMB Director must issue guidance directing CFO Act agencies (31 U.S.C. 901(b)) to consolidate their core financial systems.
Directive (180-day deadline): As soon as practicable, but no later than 180 days of March 25, 2025, the OMB Director, in consultation with the Treasury Secretary, must direct all non-CFO Act agencies to consolidate transactional financial management services under a single Treasury-approved provider.
Compliance Requirement: All heads of CFO Act agencies must use standard financial management solutions available through the Financial Management Marketplace, and all agency core financial systems must comply with Federal accounting and financial reporting standards and Treasury guidance.

Reduction of Non-Treasury Disbursing Offices (NTDOs)

Directive (30-day deadline): Within 30 days of March 25, 2025, the Treasury Secretary must assess and issue notices to revoke delegated disbursing authority (31 U.S.C

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Purpose

The Federal Government manages trillions of dollars annually, flowing into and out of the United States General Fund, which the order refers to as "America's bank account."

The Department of the Treasury (Treasury), despite being the largest financial payment manager, lacks sufficient controls to track transactions through the General Fund, contributing to an estimated annual loss of $233-$521 billion due to fraud and improper payments.

The fragmentation of disbursing authority, particularly through Non-Treasury Disbursing Offices (NTDOs) which processed over $1.5 trillion in FY2024, leads to disjointed reporting, lack of traceability, and increased operational risks.

The order seeks to enable Treasury to conduct pre-disbursement fraud and improper payment screening, increase transparency by requiring detailed transaction information from agencies, and promote efficiency by centralizing disbursing functions and standardizing financial systems.

Treasury Verification of Agency Payments Information

Directive & Compliance: The Secretary of the Treasury, in consultation with the OMB Director, must update guidance and enhance systems to ensure all payments made by Treasury on behalf of agencies are subject to pre-certification verification processes to prevent fraud and improper payments. This guidance must include compliance with the Do Not Pay Working System (31 U.S.C. 3351 et seq.) and other validation programs.

Compliance Requirement: Heads of all agencies must cooperate with the Treasury Secretary to fulfill their obligations regarding pre-certification and pre-award procedures for payment or award eligibility.

Compliance Requirement (90-day deadline): Within 90 days of March 25, 2025, agency heads must review and modify their Privacy Act of 1974 system of records notices to include a "routine use" allowing disclosure of records to Treasury for identifying, preventing, or recouping fraud and improper payments.

Directive: The Treasury Secretary, in consultation with the OMB Director, shall issue guidance to agency heads on the circumstances under which they may provide Treasury with access to data necessary for fraud detection, prevention, and payment information verification, while protecting sensitive data like health records.

Implementation and Compliance of Payment Verification

Compliance Requirement: Agency heads, through designated Certifying Officers (COs), must comply with disbursement requirements and pre-certification instructions published by the Treasury Secretary.

Directive: The Treasury Secretary will consider issuing instructions enforcing specific pre-certification criteria for disbursement requests (Vouchers), including verifying fund availability, correct payee information, proper identification numbers (SSN, TIN, EIN, ITIN, Payee ID), valid account numbers, and appropriate references for contracts or financial assistance awards.

Compliance Requirement: Agency heads must submit payment files (excluding same-day payments) to Treasury with sufficient lead time for fraud and improper payment screening, as determined by Treasury.

Directive: The Treasury Secretary shall establish a transparent process for agencies to request exemptions from some or all payment verification requirements for specific payments or categories.

Core Financial System Consolidation

Directive (180-day deadline): Within 180 days of March 25, 2025, the OMB Director must issue guidance directing CFO Act agencies (31 U.S.C. 901(b)) to consolidate their core financial systems.

Directive (180-day deadline): As soon as practicable, but no later than 180 days of March 25, 2025, the OMB Director, in consultation with the Treasury Secretary, must direct all non-CFO Act agencies to consolidate transactional financial management services under a single Treasury-approved provider.

Compliance Requirement: All heads of CFO Act agencies must use standard financial management solutions available through the Financial Management Marketplace, and all agency core financial systems must comply with Federal accounting and financial reporting standards and Treasury guidance.