The Social Security Administration (SSA) has been ordered by President Donald Trump to set September 30, 2025, as the final date for issuing paper checks for all federal benefits, a move that affects agencies other than the SSA, such as the IRS and SNAP benefit programs.
This executive action impacts Social Security Disability Insurance (SSDI) recipients, as well as Social Security Retirement (SSR) and Supplemental Security Income (SSI) beneficiaries. The provision is part of a U.S. Treasury Department initiative aimed at modernizing public funding distribution systems by eliminating paper checks, which are risky, expensive, and slow to deliver.
Paper checks are being phased out: how it affects SSDI payments
According to Trump himself, this initiative seeks to reduce the operating costs associated with printing and mailing physical documents. At the same time, it seeks to minimize the security risks inherent in handling physical mail, such as theft, loss, or falsification of documents. The transition to electronic methods is presented as a crucial step to ensure the timely and secure delivery of funds.
The change impacts a minority of the more than 66 million beneficiaries who receive monthly payments. Official estimates indicate that less than 1% of recipients still rely on physical checks as their primary method of accessing their funds. These individuals should adopt an electronic alternative before the deadline to avoid interruptions.
According to SSA data, paper checks pose a disproportionate risk compared to other payment mechanisms. During 2024, thousands of incidents involving lost, stolen, or altered checks were documented. A lost payment can take several weeks to replace, causing significant harm to the beneficiary. Furthermore, the government costs around $1 to process a physical check, while an electronic transaction costs approximately ten cents.
What to do if you receive SSDI payments by check
Individuals currently receiving SSDI payments via paper check are part of the group required to transition. The SSDI program is intended for people with disabilities who have a history of contributing to the system. The average monthly payment amount is expected to be around $1,500 by 2025, after the cost-of-living adjustment (COLA) is applied.
To verify their current payment method, beneficiaries should check official SSA correspondence or access their account at www.ssa.gov/myaccount. If the platform indicates “check” as the payment method, they must change to an electronic option. Exceptions are minimal and typically involve beneficiaries abroad without access to the U.S. banking system.
Even if you become eligible for an exemption, you should check your www.ssa.gov/myaccount carefully. If you need to complete a specific procedure or process. The exceptions are minimal and usually involve beneficiaries abroad without access to the U.S. banking system or people in very remote geographical locations within the United States who have difficulty accessing banking services.
The SSA offers two electronic payment options for SSDI
The two main electronic options are direct deposit into a bank account or using a Direct Express Card. Direct deposit automatically sends funds to a checking or savings account at a financial institution, at no additional cost to the user. Funds are available on the same day as the payment, which is scheduled based on the recipient’s date of birth.
For those who don’t have or don’t want to use a bank account, the Direct Express Prepaid Debit Card is an alternative. The product is issued by Comerica Bank in partnership with the SSA. Payments are automatically loaded onto the card each month. While most basic services are free, certain transactions, such as out-of-network ATM withdrawals, may incur minor fees.
