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Social Security

Government Suddenly Reverses Course on Social Security Payments for 2025 – Here’s How Your Check Will Be Affected

by G3 News
07/22/2025 08:20

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Beneficiaries of the Social Security program are in for yet another change once September ends and this time it is the method through which they receive their monthly benefits that will be impacted. In March, an executive order was issued by President Donald Trump stating that the use of paper based payments will be phased out for all transaction to and from what is considered as “America’s bank account”.

This shift comes as no surprise when considering how the world at large has been steadily walking the path to complete digitization for years now. However, in the context of Social Security beneficiaries, this shift could cause unnecessary inconvenience to an already vulnerable group of people. Here is all you need to know about when this digital mandate comes into effect and how it will impact Social Security beneficiaries.

All federal payments are going digital soon

In the March 25th executive order titled, “Modernizing Payments To and From America’s Bank Account”, President Trump states that the use of paper based payment forms will be phased out in lieu of digital or electronic payments. The reason behind this decision to phase out paper payment forms entirely is both a pursuit of increased efficiency, as well as a means to reduce any potential for theft or fraud since mailed checks “imposes unnecessary costs; delays; and risks of fraud, lost payments, theft, and inefficiencies.” The order also notes that, “historically, Department of the Treasury checks are 16 times more likely to be reported lost or stolen, returned undeliverable, or altered than an electronic funds transfer (EFT).”

Furthermore, by shifting away from paper checks to electronic payment methods, general costs can also be brought down significantly, with the order further stating that “maintaining the physical infrastructure and specialized technology for digitizing paper records cost the American taxpayer over $657 million in Fiscal Year 2024 alone.”

Subsequently, as of September 30th, 2025, the use of paper checks will cease for all federal disbursements and payments, and instead, the following payment methods will be adopted:

(i)    direct deposits;

(ii)   debit and credit card payments;

(iii)  digital wallets and real-time payment systems; and

(iv)   other modern electronic payment options.

“Electronic payments are safer, faster, and more cost-effective,” a spokesperson for the Treasury stated. “This transition is long overdue and ensures taxpayers aren’t footing the bill for outdated systems.”

Impact on Social Security beneficiaries

Less than 1% of Social Security recipients currently receive their monthly benefits in the form of a paper check, however, even though this cohort makes up such a small percentage of the total beneficiaries, it does still amount to around half a million individuals. Beneficiaries of Social Security are a vulnerable group — comprised of senior citizens, disabled individuals, or those who live in rural areas, amongst others — and as such, shifting to electronic payments may not be a feasible option for some.

The Social Security Administration has listed either Direct Deposit or Direct Express Card as payment options for those who currently receive paper checks. Critics, however, are of the opinion that “digitizing benefits may leave behind vulnerable populations, particularly seniors without internet access, cognitive challenges, or those in remote areas without banking options.”

Whilst both the Social Security Administration and the Treasury have assured that help will be provided for those who need it during the transition, there still remains the potential for risk in other ways. For instance, even though digital platforms increase efficiency, it opens up a new risk for digital fraud or other cyber crimes if the platform is not secured well enough. Additionally, unbanked individuals will not have access to digital banking platforms, or low-income individuals or rural area dwellers may not be able to visit a bank branch with ease.

In this regard, however, the executive order does note that exceptions will be made in cases where electronic payment methods are not feasible.

Disclaimer: This is a journalistic article and may contain inaccuracies. Our content is based on information gathered from official sources and reputable media outlets. For more details, please refer to our Disclaimer Page.

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