Paper Checks Ending for Federal Benefits on Sept. 30

September 18, 2025

The federal government will cease issuing paper checks for Social Security, veterans' benefits, tax refunds, and other programs starting September 30, 2023, as mandated by Executive Order 14247. Approximately 5 million Americans, including seniors and people with disabilities, will need to transition to electronic payments through either direct deposit or the Direct Express debit card system. Treasury Secretary Scott Bessent stated that this transition will reduce fraud, theft, and payment delays, while critics warn the deadline could create challenges for vulnerable populations.

Who is affected

More than 5 million Americans who still receive paper checks
Seniors and elderly individuals
People with disabilities
Those without bank accounts
Immigrants
Recipients of Social Security, veterans' benefits, and tax refunds

What action is being taken

The federal government is transitioning from paper checks to electronic payments for federal benefits
The Treasury Department is offering enrollment through GoDirect.gov and a toll-free number (1-800-967-6857)
The Social Security Administration is contacting beneficiaries who still receive paper checks
Limited waivers are being processed for those who qualify for exemptions
The Direct Express debit card is being offered as an alternative for those without bank accounts

Why it matters

Electronic transfers cost less than 15 cents compared to about 50 cents for paper checks
Check fraud cases increased to nearly 680,000 in 2022, almost double from the previous year
The change aims to reduce fraud, theft, and payment delays
Vulnerable populations may face challenges navigating the transition process
Some people may struggle with the enrollment process, as former Social Security Administration official Kathleen Romig experienced

What's next

No explicit next steps stated in the article

Read full article from source: The Washington Informer