The U.S. Department of the Treasury has confirmed that starting October 1, 2025, all federal benefit payments—including Social Security—must be made electronically. This sweeping change follows Executive Order 14247, signed by former President Donald Trump, and forms part of a nationwide effort to modernize federal payment systems and reduce financial fraud.
The policy impacts millions of Americans, particularly seniors and individuals with disabilities, who still rely on traditional paper checks for their monthly benefits. Government officials are now urging all recipients to enroll in electronic payment methods by September 30, 2025, or risk delayed benefit delivery.
Why the change is happening now
The primary driver behind this policy is the rising threat of check fraud and identity theft. According to the Financial Crimes Enforcement Network (FinCEN), check fraud cases surged by over 84% in 2023 compared to the previous year. Paper checks are more vulnerable to being stolen, altered, or lost, prompting authorities to act quickly to protect federal beneficiaries.
In addition to improving security, the shift is also expected to save the government over $100 million annually in administrative costs. Currently, it costs about $1.05 more to issue a paper check than an electronic deposit. With more than 70 million federal benefit payments made each month, the savings from going paperless are substantial.
Who will be affected?
This policy applies broadly to recipients across multiple federal programs, including:
| Affected Program | Type of Benefit |
|---|---|
| Social Security (RSDI, SSI) | Monthly income for retirees, disabled individuals, survivors |
| Veterans Affairs (VA) Benefits | Disability or retirement payments for veterans |
| Railroad Retirement Benefits | Income for retired or surviving railroad workers |
| IRS Tax Refunds | Refunds from federal income tax returns |
While over 98% of Social Security recipients already receive their payments through direct deposit or government-issued debit cards, approximately 2 million Americans still receive paper checks—a group the federal government is now targeting for mandatory enrollment.
Secure electronic options available for all
The Treasury has made two primary electronic payment options available to all benefit recipients:
| Electronic Payment Method | Description |
|---|---|
| Direct Deposit | Transfers funds directly to a recipient’s bank or credit union account |
| Direct Express® Card | A prepaid debit card issued by the U.S. Treasury for those without a bank account |
Both options are FDIC-insured, secure, and compliant with federal standards. The Direct Express® card allows users to make purchases, withdraw cash, check balances, and access funds with no monthly fee, making it ideal for unbanked individuals.
How to enroll in electronic payments
The Social Security Administration (SSA) and U.S. Treasury have streamlined the transition process, offering three easy ways to enroll:
- Online: Visit GoDirect.gov to set up direct deposit or request a Direct Express® card.
- Phone: Call the Go Direct helpline at 1-877-874-6347 to sign up over the phone.
- Mail: Download, complete, and mail the Direct Deposit Enrollment Form to the Treasury’s provided address.
To complete the switch, recipients will need the following:
- Social Security number
- Bank account number and routing number (for direct deposit)
- Recent benefit payment details
What happens if you don’t switch in time?
Officials warn that recipients who do not make the transition by the September 30, 2025 deadline may face delays or disruptions in receiving their benefits. While rare exceptions may be granted for individuals with severe disabilities or no banking access, the majority of recipients are expected to comply.
Government outreach efforts have already begun, with SSA offices, nonprofits, and public service announcements helping to spread awareness. With only a few months remaining, eligible recipients are being strongly encouraged to act now to avoid last-minute complications.
Government modernization meets beneficiary protection
Federal agencies emphasize that this shift is about enhancing the security and efficiency of benefit delivery—not creating unnecessary hardship. By eliminating paper checks, the government aims to:
- Reduce fraud and theft
- Deliver payments more quickly and reliably
- Save taxpayer dollars through reduced administrative costs
This policy not only impacts Social Security beneficiaries, but also those receiving VA, Railroad, and IRS payments, marking one of the most comprehensive federal payment reforms in recent decades.
Take action before the September 30 deadline
To ensure continued access to essential benefits, all recipients still using paper checks should:
- Choose a payment method (Direct Deposit or Direct Express®)
- Complete enrollment through GoDirect.gov, phone, or mail
- Keep personal and financial information up to date with SSA
The move to mandatory electronic payments represents a significant change in how federal benefits are distributed—but with timely action, recipients can ensure their payments continue without disruption.