Hundreds of thousands of Americans will face a change in Social Security payments this month as the Social Security Administration makes the transition to fully digital payments.
After President Donald Trump signed an executive order to modernize SSA payments, the vast majority of recipients will no longer be able to get paid via paper check beginning September 30.
Newsweek reached out to the SSA for comment via email.
Why It Matters
Around 70 million people earn Social Security payments each month, including millions of retired workers, Americans with disabilities, and survivors of deceased workers.
The Trump administration has overseen various changes to the SSA, including a reduction of 7,000 positions within the agency and the closure of some physical offices.
File photo of a U.S. Social Security Administration building in Burbank, California.
File photo of a U.S. Social Security Administration building in Burbank, California.
VALERIE MACON/AFP via Getty Images
What To Know
Trump signed an executive order in March to “modernize payments” for Social Security benefits, and the changes will go into effect on September 30.
While the majority of Social Security beneficiaries already receive digital payments, around 0.8 percent of recipients still receive paper checks. That means more than 500,000 beneficiaries will need to update their payment method.
“For the majority already using electronic payments, nothing changes. But for the small group still relying on paper checks, the impact is significant,” Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek. “Many of these individuals don’t have bank accounts, don’t use the internet, and will need hands-on help making the switch.”
The SSA previously stated that the shift is underway as paper checks are more expensive, costing the U.S. government around $0.50 to issue, whereas an electronic fund transfer (EFT) costs less than $0.15.
The SSA said the switch is likely to reduce payment costs by more than $2 million annually.
EFTs are also a faster way to make payments to recipients and are generally considered safer than paper checks, which the SSA stated are 16 times more likely to be lost or stolen than electronic payments.
The roughly 500,000 recipients impacted by the September 30 switch will need to set up a direct deposit with their bank, or they can opt to use a Direct Express card, a prepaid debit card where federal benefits will be deposited.
The SSA did stipulate some exceptions to the rule, including for individuals aged 90 and above, those with mental impairments, or people living in remote areas with no access to banking. Those recipients will need to apply for a waiver to continue receiving their Social Security payments in the form of a check.
What People Are Saying
A Social Security spokesperson previously told Newsweek: “In March 2025, President Trump issued Executive Order 14247, which mandates the transition to electronic payments for all Federal disbursements by September 30, 2025. Less than one percent of Social Security Administration beneficiaries currently receive paper checks. SSA is proactively contacting those beneficiaries to alert them about the change and the process to enroll in direct deposit or receive Direct Express cards.”
Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: “The change to no longer issuing paper checks is largely seen as a positive by the administration, and for good cause.
“The vast majority of recipients have switched to direct deposit for receiving their funds already, and even those who opt to not do so will still have the option of receiving a physical debit-like card with their monthly payment on it moving forward. This should be more efficient in delivering funds to recipients, while also cutting down on fraud, which usually is easier to accomplish with paper checks than other payment means.”
What Happens Next
The deadline to switch your Social Security payment method to direct deposit or opt for a prepaid debit card is September 30.
“The administration’s argument is that this shift reduces fraud, speeds up payments, and minimizes errors,” Thompson said. “It also increases the probability that the correct beneficiaries are receiving their money.”