The Social Security Administration completes its transition to electronic-only payments in 2026, ending nearly a century of paper check distribution as federal law and Executive Order 14247 mandate the shift. Starting September 30, 2025, the SSA stopped issuing paper checks to its nearly 70 million recipients, and the agency confirmed in a June 2 blog post that it plans to finish the full transition by the end of this year.
The move aims to improve efficiency, reduce costs, and enhance security in federal payments. According to the Department of the Treasury, the average cost to print a check has increased to $3.07 per check, which is approximately 20 times more expensive than electronic payments. This shift could save the federal government millions annually.
Paper checks carry significant security risks. According to the SSA, paper checks are 16 times more likely to be lost, stolen, altered, or returned undeliverable than electronic payments. The transition to digital methods protects beneficiaries from fraud and ensures they receive their payments on time every month.
Social Security beneficiaries have two primary options for receiving payments electronically. Direct deposit into a bank account remains the most common choice, offering immediate access to funds. For those without traditional banking access, the Direct Express program provides payments deposited on a prepaid debit card by enrolling through GoDirect.gov or calling 1-800-967-6857.
Beneficiaries can set up direct deposit by creating or signing into their personal mySocial Security account and adding their bank account information, or by asking their financial institution to send their direct deposit information to Social Security electronically. The SSA recognizes that some beneficiaries may face challenges with the transition due to mental health concerns or living in remote locations without access to financial institutions, and those individuals can request a waiver through the U.S. Treasury.
Executive Order 14247, signed by President Trump on March 25, 2025, mandates the transition to electronic payments for all federal disbursements and receipts. The order represents a broader government-wide effort to defend against financial fraud and improper payments while increasing efficiency and reducing costs across federal agencies.
Sources
- Social Security Administration — Official blog post on full transition to electronic payments, cost savings, security benefits, and payment options
- CBS News — Reporting on nearly 70 million recipients affected by the transition starting September 30, 2025
- The Hill — Coverage of paper check elimination and security risks of paper payments
- Federal News Network — Reporting on SSA’s full transition to electronic payments in 2026
