The Social Security Administration plans to complete a full transition to electronic payments for all beneficiaries by the end of 2026, marking the final phase of a shift away from paper checks that began with Executive Order 14247 last year. According to the social security administration, the agency announced this goal on June 2, 2026, as it works to eliminate one of the last remaining payment methods that has served beneficiaries for decades.
The transition began on September 30, 2025, when federal law and Executive Order 14247 required federal benefits to be paid electronically. That initial deadline moved the vast majority of recipients to electronic methods, leaving only a small fraction still relying on paper checks. As of May 2026, fewer than 1% of Social Security beneficiaries—approximately 280,000 to 400,000 people—still receive paper checks, according to the agency.
The shift to electronic payments addresses both efficiency and cost concerns. According to the Department of the Treasury, the average cost to print and mail a paper check has increased to $3.07 per check, which is approximately 20 times more expensive than electronic funds transfers, which cost less than 15 cents. This difference could save the federal government millions of dollars annually, the social security administration stated in its June announcement.
Beyond cost savings, the agency cited security and reliability as key reasons for the transition. Paper checks are 16 times more likely to be lost, stolen, altered, or returned undeliverable than electronic payments, according to the SSA’s official blog post. Electronic payments ensure faster processing and more reliable delivery of benefits to the nation’s 70 million Social Security beneficiaries.
Beneficiaries still receiving paper checks have multiple options to switch to electronic payments. The SSA encourages recipients to create or sign in to their personal mySocial Security account and add their bank account information for direct deposit. For those without a traditional bank account, the Direct Express prepaid debit card program remains available through GoDirect.gov or by calling 1-800-967-6857. Beneficiaries who face genuine hardship—such as mental health concerns or living in remote areas without financial institution access—can request a waiver through the U.S. Treasury.
The push to electronic payments represents a significant modernization of federal payment systems. Executive Order 14247, titled “Modernizing Payments To and From America’s Bank Account,” was signed in March 2025 and mandates a government-wide transition to electronic disbursements. Social Security is among the first major federal programs to move toward full electronic-only payment delivery, with the agency’s June 2026 announcement signaling its commitment to completing the shift within the calendar year.
Sources
- Social Security Administration — official blog post announcing full transition to electronic payments, cost data, security benefits, and switching instructions
- Federal News Network — reporting on SSA’s goal to fully transition to electronic payments in 2026
- The Detroit News — confirmation of cost figures and Treasury data on per-check expenses
- USA Today — reporting on cost savings and transition timeline
- AARP — data on number of beneficiaries still receiving paper checks as of May 2026
- Yahoo News — reporting on beneficiary numbers and cost comparisons
