U.S. Ends Federal Paper Checks by Sept 30, 2025; Millions Shift to Digital

- Paper checks for Social Security and federal benefits to phase out entirely by late 2025. - Vulnerable populations to receive tailored support in transitioning to electronic payments. The U.S. government will phase out paper checks for Social Security and other federal benefits by September 30, 2025. This effort will modernize disbursement processes, reduce fraud risks, and cut administrative costs. President Donald Trump mandated the transition with an executive order on March 25, 2025, marking a significant step in the government's shift toward fully digital payment systems. According to the U.S. Treasury Department, processing a paper check costs approximately $0.50, while an electronic transaction costs less than $0.15. In addition, paper checks are more prone to theft, loss, or fraud. As a result, the government aims to eliminate these annual inefficiencies, with officials projecting the initiative will save millions of dollars each year. Although most beneficiaries already receive payments electronically, the transition primarily affects a smaller group that continues to rely on paper checks. This demographic consists largely of seniors, individuals with disabilities, and citizens without access to traditional banking services. To ensure these vulnerable populations do not experience payment interruptions, federal agencies are implementing special measures, including waivers and alternative payment methods. The government is making prepaid debit cards available, such as the Direct Express® card, and also encourages recipients to open bank accounts or opt for these debit card solutions. The Social Security Administration and the Department of Veterans Affairs are actively notifying affected recipients and offering guidance on how to transition to electronic payments, aiming to make the shift seamless and ensure continued access to benefits for all.