The Social Security Administration announced Tuesday that it plans to finish phasing out paper benefit checks during 2026, advancing a government-wide effort to shift federal payments entirely to electronic methods.

Officials are urging beneficiaries who still receive checks through the mail to switch immediately to either direct deposit or a government-backed prepaid debit card to prevent any interruption in future payments.

The initiative is part of a broader federal modernization effort launched through Executive Order 14247, titled “Modernizing Payments To and From America’s Bank Account,” which President Donald Trump signed on March 25, 2025.

Under the order, the Treasury Department was instructed to end the use of paper checks for nearly all federal payments by September 30, 2025. The directive applies to programs including Social Security benefits, Veterans Affairs payments, and federal tax refunds issued by the IRS.

Administration officials have argued that eliminating paper checks will reduce fraud, lower administrative expenses, and decrease problems associated with lost or undeliverable mail.

Although the September 2025 deadline formally ended routine issuance of federal paper checks, Social Security has continued serving a small group of recipients who have not yet transitioned to electronic payment methods while encouraging them to make the change.

According to agency data released last year, fewer than one percent of the approximately 70 million people receiving Social Security benefits were still being paid by paper check.

In a blog post published Tuesday, the agency cited Treasury Department statistics showing that producing and mailing a paper check costs an average of $3.07, approximately twenty times the cost of sending an electronic payment. The agency also noted that paper checks are sixteen times more likely to be lost, stolen, altered, or returned than digital transactions.

Federal officials have estimated that maintaining the infrastructure required to support paper payments cost taxpayers more than $657 million during fiscal year 2024.

Recipients who wish to enroll in direct deposit can do so through their online my Social Security account or by providing their banking information directly to the agency.

Individuals without traditional bank accounts can instead receive benefits through the Treasury Department’s Direct Express program by calling 1-800-967-6857 or visiting GoDirect.gov.

The government said exemptions remain available for certain beneficiaries who face significant barriers to electronic banking. Those living in remote locations, lacking banking access, or experiencing documented hardships may seek a waiver through the U.S. Treasury by calling 1-877-874-6347.

As of Tuesday, Social Security had not announced the exact date when the final paper benefit check will be issued, stating only that it expects all remaining beneficiaries to complete the transition sometime during 2026.

The move mirrors similar efforts across the federal government. In recent months, agencies including the Labor Department, Justice Department, and Internal Revenue Service have issued their own guidance outlining how they will comply with the Treasury’s mandate to eliminate paper payments.

{Matzav.com}