Fall is a critical time of year for those receiving federal benefits, primarily because Social Security’s cost-of-living increases are typically announced in October. Before that, you might notice another change in your payments.
In late September, some recipients’ Social Security and Department of Veterans Affairs benefits will be changed as a result of President Donald Trump’s March executive order.
The order requires “payments to and from America’s bank account” to be modernized. To reduce the number of paper checks and money orders lost, stolen, returned undeliverable, or altered — which is “16 times more likely” than with electronically-disbursed funds, according to the order — benefits will be disbursed electronically, with few exceptions.
The decree governs “all Federal disbursements inclusive of intragovernmental payments, benefits payments, vendor payments, and tax refunds.” This includes any benefits issued by the Social Security Administration and the Department of Veterans Affairs.
According to Trump’s order, acceptable digital payment methods include direct deposit, prepaid cards, digital wallets, real-time payment systems, and “other modern electronic payment options.”
With a few exceptions, paper payments will no longer be accepted after September 30.
If you do not already receive benefit payments electronically, you must log into your account to update your Social Security direct deposit information, speak with a representative, or contact your bank.
The latter can transmit your direct deposit information to Social Security on your behalf. You can also update your payment information for VA benefits online or by phone.
If you do not have access to banking or online payment systems, you may still be able to accept paper payments.
Other exceptions listed in Trump’s order include “emergency payments where electronic disbursement would cause undue hardship,” transactions in which non-electronic payments are “necessary or desirable,” and other situations determined by the Treasury Secretary.
The Social Security Administration and the Department of Veterans Affairs did not respond to Nexstar’s request for more information. According to data from the former, more than 99 percent of beneficiaries already receive payments through direct deposits.
It is also worth noting that the order requires “the payment of Federal receipts” to be done electronically as well. That means that if you owe federal taxes, you may not be able to pay them with a check or an envelope containing cash and coins. The same can be said about federal student loan payments.
