Employees display blank U.S. Treasury checks prior to operating the printer at the U.S. Treasury printing facility in Philadelphia.
The government intends to eliminate paper checks for most individuals receiving Social Security benefits and other federal payments this month.
This shift is part of a Presidential Order signed by President Donald Trump in March, which mandates the transition to electronic payments by September 30th.
The Trump administration argues that this initiative is designed to curb fraud and cut costs.
The executive order states that Treasury checks have a higher likelihood of being lost, stolen, or unnecessarily returned compared to electronic fund transfers.
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This modification could potentially save the federal government millions annually. Labor Department statistics show that issuing a paper check costs around 50 cents, whereas electronic fund transfers are below 15 cents.
Most recipients have already transitioned to electronic payment systems, according to the Social Security and Veterans Affairs Bureau. A spokesperson for Social Security indicated that less than 1% of beneficiaries still receive paper checks. Furthermore, over 97% of Veterans Affairs benefits are distributed electronically, a figure that continues to rise yearly, as noted by executive director Pete Kasperowicz.
Important information for recipients
Beneficiaries who have already moved to electronic payments need not take any action.
If individuals are still receiving paper checks, they can set up direct deposits by contacting the relevant federal agency. They can also register online at goddirect.gov or reach the Electronic Payment Solutions Center at 800-967-6857, as per the Treasury Department.
For beneficiaries without a bank account, resources are available at FDIC: GetBanked or mycreditunion.gov.
Alternatively, individuals might opt for a government-sponsored debit card for their monthly benefits. To enroll, they can contact the Electronic Payment Solutions Center or reach out to the payment administrator.
Some recipients might still be receiving paper checks after a designated date.
A spokesperson for Social Security stated, “We will continue issuing paper checks if beneficiaries lack alternative means of receiving payments.”
As Kasperowicz pointed out, the Department of Veterans Affairs must provide paper checks to veterans upon request under federal law.
The shift away from paper checks could pose challenges for certain individuals, particularly those who are homeless, disabled, unbanked, or unfamiliar with electronic payment systems, remarks Tracey Gronniger, managing director of Justice’s Economic Security, a national organization focused on combating senior poverty.
Additionally, there may be complications in payments for beneficiaries needing to follow a waiver process to continue receiving paper checks, as Gronniger explained.
The Treasury has outlined various exemptions, including those living in remote areas lacking the necessary infrastructure for electronic payments, individuals over 90 years old, or those with mental disabilities. According to Treasury officials, the agency is in the process of reviewing and updating exemption guidelines based on feedback.
Beneficiaries not accustomed to electronic payments may also be more vulnerable to phishing and other fraudulent activities, Gronniger cautioned.
Before reacting to any requests, the Treasury advises contacting a verified government agency to confirm legitimacy.
