The Social Security Administration (SSA) will stop issuing paper checks at the end of this month, affecting hundreds of thousands of beneficiaries across the United States.
The shift comes months after President Donald Trump issued an executive order in March requiring all federal payments to be made electronically beginning September 30 via direct deposit and credit cards. The White House claims that paper-based payments are more expensive and prone to fraud, theft, errors, and delays.
“Less than one percent of Social Security Administration beneficiaries currently receive paper checks,” an SSA spokesperson told Fox Business via email. “… We will continue to issue paper checks to beneficiaries who have no other means of receiving payment.
As of September, more than 68 million Americans in all 50 states and territories received Social Security benefits. According to SSA data, approximately 390,000 people, or 0.6%, receive check payments.
The SSA is actively contacting those beneficiaries to inform them of the change and the process for transitioning to electronic payments by September 30, according to a spokesperson for FOX Business.
According to the White House, some exceptions will be made, such as in emergency situations or for those who do not have access to digital payment systems or banks.
Sending paper checks costs about 50 cents, compared to less than 15 cents for an electronic funds transfer. According to the Social Security Administration, paper checks are sixteen times more likely to be lost or stolen.
The White House estimates that maintaining the technology and infrastructure required to process paper records will cost American taxpayers more than $650 million in fiscal year 2024.
“Reducing paper checks has been a longstanding bipartisan goal that our administration is finally putting into action,” Treasury Secretary Scott Bessent stated last month. “Thanks to President Trump, this will help to reduce fraud and theft.” It will also eliminate the delays that keep hardworking Americans from receiving their necessary payments.”
Social Security recipients can update their payment information on the SSA’s website.
