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6d ago

SSA Reverses Plan to End Paper Checks

The reversal ensures continued access to benefits for unbanked recipients unable to receive electronic deposits.

An opened envelope with the return address showing the U.S. Department of the Treasury lies on top of a An opened envelope with the return address showing the U.S. Department of the Treasury lies on top of a United States government Treasury Check. The distinctive green checks feature an engraving of the Statue of Liberty and the Treasury Seal. The government checks are used to disburse income tax refunds as well as Social Security and Medicare benefits.. The distinctive green checks feature an engraving of the Statue of Liberty and the Treasury Seal. The government checks are used to disburse income tax refunds as well as Social Security and Medicare benefits.
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Overview

  • The SSA has rescinded its decision to phase out paper checks by September 30, 2025, preserving limited issuance for beneficiaries without bank accounts.
  • The proposal to eliminate Treasury checks was driven by President Trump’s March Executive Order 14247 mandating electronic federal benefit disbursements.
  • Fewer than 1% of the 74 million Social Security beneficiaries—about 600,000 people—still rely on mailed checks due to lack of electronic access.
  • Electronic payments cost roughly $0.35 less per transaction and offer stronger fraud protection and creditor safeguards than paper checks.
  • The agency will intensify outreach to promote direct deposit and Treasury-approved prepaid debit cards as cost-effective, secure alternatives.