Hundreds of thousands of Americans will see a change in their Social Security payments this month as the Social Security Administration (SSA) moves to fully digital payments.
After President Donald Trump signed an executive order to modernize SSA payments, most recipients will no longer receive paper checks starting September 30.
Newsweek reached out to the SSA for comment via email.
Why It Matters
About 70 million people get Social Security payments each month. This includes retired workers, Americans with disabilities, and survivors of deceased workers.
The Trump administration has made several changes to the SSA, including cutting 7,000 positions and closing some physical offices.
What To Know
Trump signed an executive order in March to “modernize payments” for Social Security benefits. These changes will begin on September 30.
Most Social Security recipients already get digital payments, but about 0.8 percent still receive paper checks. That means more than 500,000 people will need to update how they get paid.
Kevin Thompson, CEO of 9i Capital Group and host of the 9innings podcast, told Newsweek: “For the majority already using electronic payments, nothing changes. But for the small group still relying on paper checks, the impact is significant. Many of these individuals don’t have bank accounts, don’t use the internet, and will need hands-on help making the switch.”
The SSA said the move is already happening because paper checks are more expensive. Each paper check costs about $0.50 to send, while electronic payments cost less than $0.15. The agency estimates the change will save over $2 million each year.
Electronic payments are also faster and safer. Paper checks are 16 times more likely to be lost or stolen than electronic payments.
The roughly 500,000 people affected will need to set up direct deposit with a bank or use a Direct Express card, a prepaid debit card that receives federal benefits.
Some exceptions apply. People aged 90 and older, those with mental impairments, or people living far from banks can apply for a waiver to keep receiving paper checks.
What People Are Saying
A Social Security spokesperson told Newsweek: “In March 2025, President Trump issued Executive Order 14247, which mandates the transition to electronic payments for all Federal disbursements by September 30, 2025. Less than one percent of Social Security Administration beneficiaries currently receive paper checks. SSA is proactively contacting those beneficiaries to alert them about the change and the process to enroll in direct deposit or receive Direct Express cards.”
Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, said: “The change to no longer issuing paper checks is largely seen as a positive by the administration. The vast majority of recipients have already switched to direct deposit, and even those who don’t can still get a physical debit-like card for their monthly payment. This should make payments faster and reduce fraud, which is easier with paper checks.”
What Happens Next
The deadline to switch to direct deposit or a prepaid debit card is September 30.
Thompson added, “The administration says this shift reduces fraud, speeds up payments, and minimizes errors. It also makes it more likely that the right beneficiaries receive their money.”
