The Social Security Administration is transitioning away from paper checks to fully electronic payments this year, following an executive order signed by President Trump aimed at modernizing federal payments and reducing costs. This shift impacts not only Social Security benefits but also VA benefits and IRS tax refunds, as paper checks are 20 times more expensive to process—costing over $3 each—and are 16 times more likely to be lost, stolen, or misdirected compared to digital methods.

While less than one percent of beneficiaries (around 280,000 people) still receive physical checks, the agency strongly urges them to switch to a digital option as soon as possible to help save the government millions annually. Recipients can easily set up direct deposit online through the Social Security website or via their banking institution.

For those without a traditional bank account, the Direct Express program offers a prepaid debit card option, and individuals completely unable to make the transition can request a waiver by calling the Treasury Department at 1-877-874-6347.