Summary
The U.S. government is gradually stopping the use of paper checks for most benefit programs, moving to electronic payments instead. This shift affects Social Security, Supplemental Security Income, and tax refunds. While electronic payments are intended to reduce fraud and save costs, some individuals without access to digital services may face challenges.
Key Facts
- The phase-out of paper checks began with an executive order from President Trump.
- Social Security, Supplemental Security Income, and tax refunds are the main programs affected.
- About 400,000 recipients still receive paper checks, which is less than 1% of all Social Security beneficiaries.
- Direct deposit or Direct Express cards will replace paper checks for those without bank accounts.
- The Social Security Administration will continue to issue paper checks if no other payment methods are available.
- Advocates are concerned that people lacking internet access or banking might struggle with the change.
- The move aims to reduce fraud, speed up processing, and cut costs.
- Vulnerable populations, such as those without stable housing, could be most impacted by the transition.
