Changes to Social Security Benefits Under Executive Order

Social Security undergoes adjustments about every year. Recently, an executive order from President Trump has directly affected how over 390,800 beneficiaries receive their monthly payments.

Moreover, it’s worth noting that it will be a few weeks before the Social Security Administration (SSA) discloses several changes scheduled for 2026.

For many, Social Security forms the financial foundation for over 53 million retirees. The average monthly benefit sits at around $2,008.31 as of August, which, while modest, plays a crucial role in alleviating senior poverty—many depend on it for 80% to 90% of their monthly expenses.

However, for decades, the program has limited traditional benefits primarily to retired workers, individuals with disabilities, and survivors. The SSA frequently adjusts these benefits, with changes coming year over year.

It’s important to realize that the SSA isn’t the only entity influencing Social Security. Significant changes will officially take effect on September 30, thanks to an executive order signed by Trump in March.

This particular executive order, titled “Modernization Payments from an American Bank Account,” aims to eliminate federal paper checks starting on that date—something Social Security has been providing since January 1940.

While this transition affects only a small fraction—about 0.6% of beneficiaries—who still receive paper checks, it’s part of a broader move to modernize payment methods. Digital payments, including direct deposits, have been available since 1975, and by 2025, it’s expected that over 99% of beneficiaries will be getting their payments electronically.

As it stands now, around 390,800 beneficiaries still rely on paper checks, and one might wonder why this shift is happening. Part of it, I think, relates to Trump’s ongoing crusade against perceived fraud and waste in government spending, particularly in Washington, D.C.

There are benefits to this switch—mainly speed and security. Paper checks can, unfortunately, be lost in the mail, with estimates suggesting they are 16 times more susceptible to theft. On the other hand, electronic payments clear much quicker.

The financial aspects also merit attention. Issuing paper checks costs the government about $0.50 per check, while electronic funds transfers (EFTs) cost less than $0.15. Given that over 500,000 beneficiaries were still receiving paper checks earlier this year, this change could save the Social Security program more than $2 million annually.

For beneficiaries, aside from emergencies or those lacking access to digital systems, there are two primary methods to receive future payments. The easiest option is to set up direct deposits if one has a bank account. This can be done directly with the SSA or online with some basic authentication. There’s also an automatic registration option to have your bank send deposit details to the SSA.

For individuals who don’t have a traditional bank account, the alternative is a Direct Express card—a prepaid debit card that accepts federal deposits.

In addition to Trump’s significant changes, there could be various updates announced by the SSA following the October 15 deadline, set to kick in January 2026.

One of the most notable upcoming changes people are watching for is the annual cost-of-living adjustment (COLA). Some independent estimates forecast increases between 2.7% to 2.8%, which would represent the fifth consecutive year where COLAs exceed 2.5%—a level last observed between 1988 and 1997.

There’s also potentially substantial news for higher-income beneficiaries who receive maximum payments upon reaching full retirement age.

With improvements in the national wage index, the maximum taxable revenue cap related to payroll taxes has increased. As of 2025, all earnings, excluding investment income, from $0.01 to $176,100 will incur a 12.4% payroll tax, which is vital for funding Social Security. This cap is likely to rise in 2026, meaning increased payroll taxes for some. Similarly, the maximum Social Security payments at full retirement age—which stands at $4,018 a month in 2025—should see a boost.

Social Security is under constant evolution, and both Trump’s executive order and potential SSA announcements reflect that ongoing change.

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