For more than 80 years, Social Security has been the foundation of retirement income for millions of Americans. Each month, checks go out to retirees, people with disabilities, and survivors of workers who have passed away. But big changes are coming at the end of this month.
On September 30, a new policy from President Donald Trump will directly change how Social Security payments are sent. For some people, this will feel like a small adjustment. For others, especially those who still depend on paper checks, it could be a major disruption.
What change is Trump making to social security payments
Back in March, President Trump signed an executive order called “Modernizing Payments To and From America’s Bank Account.” The main goal of this order is to end the use of paper checks for federal payments, including Social Security.
Starting September 30, anyone still receiving a paper Social Security check will no longer get one in the mail. Instead, payments will only be sent in two ways:
- Direct deposit into a bank or credit union account.
- A Direct Express prepaid debit card, which works like a regular debit card for purchases and withdrawals.
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Who will be affected by the change
The vast majority of Social Security recipients already receive electronic payments. According to the Social Security Administration (SSA), more than 99% of people are already on direct deposit or Direct Express.
But there are still over 500,000 people—about 0.8% of beneficiaries—who get a paper check every month. For these individuals, September 30 is the deadline to switch.
If you are part of this group, your payments of $5,108 (the maximum benefit for high earners retiring at full age) or $1,415 (the average monthly benefit for many retirees) will not stop, but you will no longer receive them by mail.
Why the government is ending paper checks
The SSA has explained three main reasons why paper checks are going away:
- Lower cost – Paper checks cost the government about 50 cents each, while electronic payments cost less than 15 cents. Moving to digital payments will save millions of dollars each year.
- Faster delivery – Direct deposit means your money is in your account immediately, rather than waiting days for a check to arrive and clear.
- More security – Paper checks are 16 times more likely to be lost or stolen compared to electronic payments.
In short, the government saves money, you get your payment faster, and there is less risk of theft.
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What you need to do before september 30
If you are still getting a paper check, you have two options before the deadline:
- Set up direct deposit with your bank or credit union. You can do this online through your my Social Security account or by calling your financial institution.
- Sign up for a Direct Express card, a prepaid debit card backed by the Treasury Department. Your benefits will load automatically each month, and you can use it anywhere debit cards are accepted.
If you do not make the switch, your check will not come in the mail after September 30.
Other social security changes under Trump
This executive order is the most immediate change, but it is not the only shift under President Trump. His administration has also:
- Created the Department of Government Efficiency (DOGE) to cut costs, leading to fewer SSA workers and some office closures.
- Appointed Frank Bisignano as the new commissioner of the SSA, a leader with a background in financial technology.
- Increased the overpayment recovery rate. If you were overpaid in benefits, the SSA can now take back up to 50% of your monthly check, compared to only 10% during President Biden’s term.
These steps are meant to save money and modernize the system, but for some beneficiaries, they mean tighter rules and smaller payments.
