{"id":24126,"date":"2025-07-26T18:05:20","date_gmt":"2025-07-26T18:05:20","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/24126\/"},"modified":"2025-07-26T18:05:20","modified_gmt":"2025-07-26T18:05:20","slug":"social-security-makes-screeching-u-turn-on-controversial-policy","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/24126\/","title":{"rendered":"Social Security makes screeching U-turn on controversial policy"},"content":{"rendered":"

By TILLY ARMSTRONG DEPUTY CONSUMER EDITOR FOR DAILYMAIL.COM<\/a> <\/p>\n

Published: 19:37 EDT, 25 July 2025 | Updated: 09:39 EDT, 26 July 2025 <\/p>\n

Social Security will continue mailing paper checks \u2014 in a major U-turn from a previously announced plan<\/a>.\u00a0<\/p>\n

The agency had planned to halt checks after September 30 to cut costs and reduce fraud, shifting entirely to electronic payments.\u00a0<\/p>\n

Paper checks cost about 50 cents to issue, compared with 15 cents for direct deposits, officials said.\u00a0<\/p>\n

But the agency has now reversed course, saying that it will continue to issue paper checks for Americans who have no other means of getting payments, a spokesperson confirmed to DailyMail.com.\u00a0<\/p>\n

This includes both recipients of retirement and disability benefits.\u00a0<\/p>\n

Despite the about-face, the agency urged people to switch to direct deposit if they can.\u00a0\u00a0\u00a0<\/p>\n

‘We will continue to drive down paper check volume, which is less than 1 percent of total,’ the spokesperson said.<\/p>\n

The news comes as a grim new forecast this week warned Social\u00a0Security’s retirement fund is set to run short in just seven years<\/a> \u2014 which could end up meaning benefits will be slashed for millions of recipients.<\/p>\n

\"The <\/p>\n

The Social Security Administration said\u00a0it will continue to issue paper checks for beneficiaries who have no other means of getting payments<\/p>\n

The check U-turn came after pushback from Massachusetts Democratic Senator Elizabeth Warren.\u00a0<\/p>\n

Warren met with Social Security Commissioner Frank Bisignano on Wednesday and asked about the plan to discontinue paper checks, according to\u00a0CBS News<\/a>.\u00a0<\/a><\/p>\n

‘There are about 600,000 Americans who still receive their paper checks \u2014 it’s a small fraction of people who receive Social Security payments, but it’s a population that often needs checks through paper’ instead of through electronic deposit, Warren said.<\/p>\n

She added that Bisignano made a commitment that ‘no one would be left behind.’<\/p>\n

Millions of Americans are ‘unbanked,’ which means they do not have a traditional checking or savings account at a bank or credit union.\u00a0<\/p>\n

The reasons why can vary, from past money mistakes to losing a job or not having enough money to meet minimum balance requirements.\u00a0<\/p>\n

These people tend to rely on alternative banking services, such as check cashing establishments, in order to access vital funds.\u00a0<\/p>\n

But paper checks are also more than 16 times more likely to be reported stolen or lost compared to electronic transfers, according to government data.\u00a0There is also a higher chance that they will be\u00a0returned deliverable or altered.<\/p>\n

\"Checks <\/p>\n

Checks cost 50 cents each, the Social Security Administration said, compared with 15 cents for an electronic transfer<\/p>\n

\"The <\/p>\n

The policy reversal came after pushback from Massachusetts Democratic Senator Elizabeth Warren<\/p>\n

\"Social <\/p>\n

Social Security relies on its trust funds to provide monthly benefit checks to around 70 million\u00a0<\/p>\n

Americans who still receive paper checks but are able to switch can\u00a0provide a bank account or credit union for direct deposits or an approved pre-paid debit card.\u00a0\u00a0<\/p>\n

Registration can be completed at the government’s Go Direct website<\/a>.<\/p>\n

The policy reversal comes after latest forecasts painted a grim picture for the future of the program<\/a>.\u00a0\u00a0<\/p>\n

Social Security’s retirement fund is set to run short in just seven years\u00a0\u2014 which could end up slashing benefits for millions of Americans by thousands of dollars a year.<\/p>\n

According to latest projections, retirees could face automatic 24 percent benefit cuts as early as the end of 2032.\u00a0<\/p>\n

This means a couple who both worked would receive $18,100 less each year if they retire at the start of 2033.<\/p>\n

The new forecast <\/a>from the nonpartisan Committee for a Responsible Federal Budget (CRFB), released Thursday, moves up the insolvency date for both Social Security and Medicare trust funds.\u00a0<\/p>\n

A projection just last month had funds lasting until 2033, but that has already been revised.\u00a0<\/p>\n

A major factor is the\u00a0impact of President Donald Trump’s ‘Big, Beautiful Bill<\/a>‘, which experts warned would speed up the use of funds.\u00a0<\/p>\n

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