Starting September 30, the Trump administration will discontinue paper checks for Social Security beneficiaries, impacting over half a million recipients. Beneficiaries must transition to electronic payments via direct deposit or a Direct Express pre-paid debit card. This change aligns with a broader government initiative to modernize payment systems. The U.S. Treasury aims to reduce fraud risks associated with paper checks and save costs, as issuing checks is significantly more expensive than electronic payments. Exceptions to the rules will be considered for certain situations.
The Trump administration will soon stop sending out paper checks for Social Security beneficiaries, as part of an effort to fully modernize federal benefits payments.
Beneficiaries who have been getting paper checks must pick one of two alternatives: Have their benefit payments delivered electronically by direct deposit or receive them on a pre-paid debit card.
Going electronic will also save money. Issuing paper checks costs about 50 cents each, while sending funds electronically costs less than 15 cents.
Paper checks are increasingly the front door for fraud. Treasury is committed to raising awareness of the growing fraud risks associated with paper checks.
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