(Nexstar) – If you’re expecting a government benefit check this week, it might be delivered differently than usual.
Earlier this year, an executive order from President Trump initiated changes aimed at modernizing how payments are made to American bank accounts. This essentially signals the end of paper checks and mail orders for most federal transactions, though there will be some exceptions.
The rationale behind this shift is that paper checks and mail orders are significantly more likely—about 16 times, in fact—to be lost, stolen, or altered.
As per Trump’s directive, acceptable digital payment options now include direct deposits, prepaid cards, digital wallets, and real-time payment systems, among other electronic methods.
This change will impact all sorts of federal expenditures, which encompass payments like benefits from the Social Security Administration and the Veterans Affairs Department.
Starting Tuesday, paper payments are expected to officially end.
If you haven’t transitioned to electronic benefits yet, you might need to log into your account to update your information. You can also consult your representative or reach out to your bank, which can assist in notifying Social Security about your direct deposit details. For those receiving VA benefits, updates can be made either online or by phone.
For individuals lacking access to banking services or online payment methods, there may still be a possibility to receive paper payments. Exceptions also include situations where electronic payments would create undue challenges, instances where non-digital payments are preferable, and other scenarios as deemed by the Treasury Secretary.
Interestingly, data from the Social Security Administration indicates that less than 1% of beneficiaries have already switched to receiving payments via direct deposit.
Additionally, it’s important to note that the order mandates all “federal receipt payments” be made electronically. This means that if you owe federal taxes, mailing a check or cash won’t be an option.
The IRS has announced a phased elimination of paper tax refund checks for individual taxpayers starting last Tuesday to comply with the new regulations. However, for now, taxpayers are advised to continue using the current forms and processes.
