The U.S. government is making a big change in how it sends out money. On March 25, 2025, President Donald Trump signed an order called “Modernizing Payments To and From America’s Bank Account.”
This new rule says that all federal payments—like Social Security Disability Insurance (SSDI), SSI, retirement benefits, tax refunds, and contractor payments—must be made electronically starting October 2025.
That means if you’re still getting a paper check, you need to switch to direct deposit or another electronic method before September 30, 2025. If you don’t, your payments will be stopped.
Why the Change Is Happening
There are a few important reasons behind this move. First, it saves money. The U.S. government spends over $657 million every year just to print, mail, and process checks. That money can be used for other helpful programs instead.
Second, paper checks are not safe. They’re 16 times more likely to be stolen, lost, or altered. On the other hand, electronic payments are faster and much more secure. They go straight into your bank account or debit card, avoiding delays in the mail or any errors.
Third, paper checks are slower and can cause delays in payments. Electronic methods reduce mistakes, improve efficiency, and make sure you get your money on time.
Who Is Affected?
This change affects anyone getting benefits from the Social Security Administration (SSA), including:
-SSDI (Social Security Disability Insurance)
–SSI (Supplemental Security Income)
-Retirement benefits
-Survivor benefits
-IRS tax refunds
-Payments to federal contractors
Right now, around 456,000 to 494,000 people still get paper checks. That’s just about 0.7% of the 68 million total beneficiaries. But this small group includes vulnerable people—seniors, disabled citizens, those in rural areas, and people without bank accounts or internet access. These individuals are at risk of payment disruptions if they don’t act now.
What You Must Do Before September 30, 2025
To keep receiving your payments, you have three choices:
Option 1: Sign up for direct deposit into your bank or credit union account.
Option 2: Apply for a Direct Express prepaid debit card. This is a government-approved card for people who don’t have a bank account.
Option 3: Use a government-approved digital wallet or payment service.
If you can’t use any of these options due to serious hardship, you can request an exemption. To do this, call the Treasury Department at 855-290-1545, or visit your local SSA office for help.
Where to Get Help
Need assistance? Contact the Social Security Administration by:
-Calling 800-772-1213
-Visiting your local SSA office (some may have reduced staff)
-Logging into your “My Social Security” account online
The SSA is offering support to make sure everyone can switch to electronic payments in time.
Quick Guide to Stay on Track
Here are the steps to avoid missing your SSDI payments:
1. Choose how you want to get your money: direct deposit, Direct Express card, or a digital wallet.
2. If none of these work for you, request an exemption by calling the Treasury.
3. Make sure the SSA has your correct phone number, address, and payment info.
4. Check that your October 2025 payment arrives electronically. If not, contact the SSA right away.
5. If your payment is delayed or suspended, you can file an appeal.