U.S. phases out paper checks for Social Security and federal benefits; about 400,000 recipients affected
The Social Security Administration will stop issuing paper checks for Social Security and federal benefits on Sept. 30, 2025, a change initiated by a Trump executive order and justified by the agency as a cost- and security-saving measure (electronic transfers cost about $0.15 vs. $0.50 per check and paper is far more likely to be lost or stolen). The phase-out affects under 1% of roughly 70 million beneficiaries — about 400,000 recipients by one estimate (some counts cite up to 600,000) — raising concerns for unbanked, unhoused or digitally excluded people, though the SSA says exceptions will be made for those with no other means and points to alternatives like the Direct Express card.
Social Policy
Economy
Government/Regulatory
🔍 Key Facts
- The Social Security Administration (SSA) will stop issuing paper checks for Social Security and related federal benefit payments beginning Sept. 30, 2025.
- The change applies to nearly 70 million Social Security beneficiaries; the SSA says less than 1% currently receive paper checks.
- Estimates of how many people still get paper checks vary: PBS reports nearly 400,000 Social Security and SSI recipients, while the SSA (as cited in CBS reporting) referenced roughly 600,000.
- The SSA cites cost savings and security as reasons for the shift: paper checks cost about $0.50 each versus $0.15 for electronic transfers, and paper checks are reportedly about 16 times more likely to be lost or stolen.
- The phase-out was initiated by an executive order signed by President Donald Trump in March.
- Advocates and policy experts warn the move could harm unbanked, unhoused or digitally excluded populations; reasons some recipients remain unbanked include mental-health crises and inability to afford bank account minimums.
- The SSA says it will still issue paper checks when beneficiaries have no other means to receive payments and points to alternatives such as the Direct Express prepaid debit card.
📍 Contextual Background
- Social Security benefits are funded through mandatory spending, meaning the program's funding is provided without an annual expiration and does not require yearly appropriations to continue benefit payments.
- The Social Security Administration's contingency plans provide that in the event of a lapse in appropriations the agency will follow those plans and beneficiaries would continue receiving Social Security, Social Security Disability Insurance (SSDI), and Supplemental Security Income (SSI) payments.
- Recipients of Social Security benefits include retirees, disabled Americans, and dependents of deceased workers.
- Social Security benefit payments are distributed on a monthly schedule that is determined by the recipient's birth date (recipients are assigned different regular monthly payment dates based on the day of their birth month).
- A Social Security Administration contingency plan published on Sept. 24 indicated that about 45,000 SSA employees (roughly 90% of the agency's workforce) would remain on the job during a government shutdown, while roughly 6,200 employees would be furloughed.
- The Government Employee Fair Treatment Act of 2019 provides that government employees automatically receive back pay after a government shutdown.
- During a U.S. federal government shutdown, active-duty military personnel and deployed National Guard members must continue to perform their assigned duties but their pay is delayed until the shutdown ends.
📰 Sources (2)
What the government’s phase-out of paper checks means for you
New information:
- Confirms the phase-out was initiated by an executive order signed by President Donald Trump in March.
- Provides an estimated count: nearly 400,000 Social Security and SSI recipients still receive paper checks (under 1% of 70.6 million beneficiaries).
- Quotes advocates and policy experts expressing concerns about impacts on unbanked, unhoused, or digitally excluded populations and notes reasons some recipients remain unbanked (mental-health crises, inability to afford account minimums).
- Includes SSA's explicit reassurance that paper checks will still be issued when beneficiaries have no other means to receive payments and mentions the Direct Express card as an alternative.
Social Security to shift to fully electronic payments starting Sept. 30
New information:
- SSA will cease issuing paper checks starting September 30, 2025
- The change affects nearly 70 million Social Security recipients; SSA says less than 1% currently get paper checks and cites roughly 600,000 people who depend on the old system
- Agency cites cost savings and security: paper checks cost $0.50 each vs. $0.15 for electronic transfers; SSA says paper checks are 16 times more likely to be lost or stolen