(Nexstar) – If you’re expecting a government benefit check this week, don’t be surprised if it arrives in a different way than you’re used to.
Earlier this year, President Trump signed an executive order aimed at modernizing how payments are made to American bank accounts. This effectively puts an end to paper checks and mail orders for most federal transactions—though there will be a few exceptions.
The reasoning behind this shift is that paper checks and mail orders are significantly more likely to encounter issues, being “16 times more likely” to be lost, stolen, or altered.
Under this new directive, acceptable digital payment methods now include direct deposits, prepaid cards, digital wallets, real-time payment systems, and other advanced electronic payment options.
These changes will affect “all federal spending,” encompassing various government payments, benefits, vendor transactions, and tax refunds. This means that benefits delivered by both the Social Security Administration and the Veterans Affairs Department will be included in this update.
Starting Tuesday, the use of paper payments is anticipated to officially come to a close.
If you haven’t switched to receiving your benefits electronically yet, you’ll need to log into your account and make the necessary updates. If you’re uncertain about how to do this, contacting your representative or your bank might help—they can provide direct deposit information to Social Security on your behalf. Options for updating VA benefits payment details are available both online and via phone.
It’s important to note that if you don’t have access to banking services or online payment systems, you might still qualify to receive paper payments. The order does outline some exceptions, including situations where electronic payments could pose significant challenges, and circumstances deemed necessary by the Treasury Secretary.
According to data from the Social Security Administration, less than 1% of beneficiaries have actually received their payments through direct deposits thus far.
Moreover, this order mandates that “federal receipt payments” must also be made electronically. This means that if you owe federal taxes, you won’t be able to settle that through a check or a cash envelope.
The IRS has announced they will start phasing out paper tax refund checks for individual taxpayers beginning Tuesday, in alignment with Trump’s orders. However, they advise taxpayers to “continue using existing forms and procedures” until more information is provided.
