President Donald J. Trump has signed an Executive Order aimed at strengthening financial integrity, transparency, and efficiency across the Federal Government. The directive empowers the Department of the Treasury to enhance its capacity to detect fraud, monitor financial transactions, and oversee government disbursements more effectively.
Under the Executive Order, all payments made by federal agencies must go through pre-certification verification to reduce the risk of fraud and improper payments. Treasury is instructed to update its guidance and improve systems across agencies, ensuring that payments are accurate and compliant.
Agency heads are required to adhere to Treasury’s disbursement requirements before funds can be released. These include confirming that sufficient funds are available before obligations are made, verifying payee details, using standardized reporting formats, and ensuring that funds come from appropriate sources. Other certification measures will also be implemented to bolster oversight.
To support these efforts, federal agencies must share relevant data with the Treasury, in accordance with applicable laws. This data-sharing will enable Treasury to better identify and prevent financial misconduct.
Additionally, agencies will be required to consolidate core financial systems, including those of non-CFO Act agencies, using standardized platforms. This consolidation will improve traceability, reporting accuracy, and overall financial management.
The plan also calls for a reduction in the number of Non-Treasury Disbursing Offices (NTDOs). These offices currently handle a significant portion of federal payments, but their decentralized nature hampers Treasury’s ability to maintain oversight. Treasury will develop and implement a strategy to centralize payment systems previously managed by NTDOs.
Responsible Management of Taxpayer Funds
President Trump has consistently emphasized the importance of safeguarding taxpayer dollars. Financial fraud not only compromises federal programs but also erodes public confidence in government operations.
According to the Government Accountability Office (GAO), the federal government loses an estimated $521 billion each year due to fraud, driven largely by outdated technology and poor data coordination.
While the Treasury is tasked with protecting the General Fund—often referred to as “America’s Bank Account”—current systems lack the necessary controls to fully monitor the flow of transactions. Disbursing authority remains fragmented, with NTDOs handling around 22% of all federal payments. This fragmentation results in duplicate reporting and weakens centralized oversight capabilities.
Another long-standing issue has been the federal government’s difficulty in accessing accurate data across agencies. These data gaps have allowed fraudulent and improper payments to slip through the cracks.
By transitioning to centralized financial systems and enforcing pre-certification and verification protocols, the federal government can significantly improve its ability to prevent fraud and ensure more efficient use of federal funds.
A Commitment to Reducing Waste, Fraud, and Abuse
Since taking office, President Trump has made eliminating waste, fraud, and abuse a top priority.
His administration launched a cost-efficiency initiative to hold federal contracts and grants to higher accountability standards. He also created the “Department of Government Efficiency” to evaluate how best to streamline federal operations, eliminate redundant programs, and reduce bureaucratic red tape.
In a broader regulatory reform effort, the President implemented a 10-to-1 deregulation policy—requiring that for every new federal regulation introduced, ten outdated or unnecessary ones be repealed.
Additionally, President Trump reduced the size and scope of certain government entities and rolled back numerous executive actions from the previous administration that were deemed counterproductive or inefficient.
Through these initiatives, the Trump Administration aims to reinforce fiscal responsibility, restore trust in government institutions, and ensure that federal resources are used effectively and transparently.
