A big change is coming for Social Security recipients this month

The federal government will stop issuing paper checks for most payments and will no longer accept paper checks as payment starting Sept. 30, a change that could affect hundreds of thousands of Americans who receive federal benefits.

The shift stems from an executive order signed by President Donald Trump in March directing the Treasury Secretary to cease issuing paper checks for all federal disbursements, including Social Security benefits, veteran benefits and IRS refund checks.

“Reducing paper checks has been a longstanding bipartisan goal that our administration is finally putting into action. Thanks to President Trump, this will help reduce fraud and theft. It will also remove delays that prevent hardworking Americans from receiving their vital payments,” said Treasury Secretary Scott Bessent.

While the change won’t affect the millions who already receive electronic payments, approximately 500,000 people still get paper Social Security checks monthly. The Treasury Department says these individuals have several options to switch to electronic payments:

• Call the federal agency that pays their benefits
• Enroll online at GoDirect.gov
• Contact the Electronic Payment Solution Center at 1-800-967-6857 (Monday-Friday, 9 a.m.-7 p.m. ET)

Those without bank accounts can sign up for a Direct Express Debit Mastercard, a Treasury-sponsored debit card for receiving monthly benefit payments electronically.

“Individuals without a bank account can sign up by calling Treasury’s Electronic Payment Solution Center at 800-967-6857 or by contacting their paying agency directly,” according to a Treasury press release.

The situation has created some confusion. In July, Sen. Elizabeth Warren announced that the Social Security Administration would not enforce the order for those unable to access direct deposit. However, in August, both the Treasury and Bureau of Fiscal Service warned Americans to sign up for direct deposit.

Trump’s order does allow for exceptions, including those without access to banking services, certain emergency payments, national security or law enforcement activities, and other circumstances determined by the Treasury Secretary.

The government expects significant savings from the switch. Trump cited costs of over $657 million in fiscal year 2024 for maintaining physical infrastructure and technology for digitizing paper records. Treasury data shows issuing a paper check costs about 50 cents compared to less than 15 cents for electronic transfers.

Officials also emphasize safety benefits. “With paper checks over 16 times more likely to get lost, stolen, altered, or delayed, we encourage those still receiving paper checks to make the switch today. Electronic payments such as direct deposit are safer than checks, allow quicker access to funds, and have less risk of fraud,” said Fiscal Service Chief Disbursing Officer Linda Chero.

Generative AI was used to produce an initial draft of this story. It was reviewed, edited and expanded by MLive staff.