A big change is coming for those who receive government payments by paper check in the US. As part of a new policy announced by former President Donald Trump, paper checks will stop being sent from September 30. This update will affect thousands of Americans, especially those getting Social Security and tax refunds.
The goal is to make the payment system more modern, faster, and safer. Instead of paper checks, payments will now be made through direct deposit, debit cards, or digital wallets.
Why Is This Change Happening?
The White House says that switching from paper checks to digital payments is part of a plan to make things more efficient. Officials believe digital payments are less likely to be stolen or lost, and they are processed faster than traditional checks.
This change is expected to help the government reduce fraud and delays, while also saving money on printing and mailing costs.
Who Will Be Impacted by This?
The change will affect around 486,000 people who still receive paper Social Security checks every month. That’s a large number of seniors and low-income individuals who may not have made the switch to digital banking yet.
Additionally, 238,000 checks are sent every month to people getting Supplemental Security Income (SSI), which is a program for low-income Americans with disabilities.
Even people waiting for IRS tax refunds will be impacted. It’s reported that 3.5% of all tax refund checks are still issued on paper.
Exceptions for Those Without Bank Accounts
The government has said that there will be some exceptions. People who don’t have a bank account or can’t access a digital payment option will be offered other ways to receive their payments. Details on these exceptions are yet to be shared.
How Social Security Payments Are Scheduled
Social Security payments are usually issued based on a person’s birthdate. Here’s how it works:
Second Wednesday of the month: for people born between the 1st and 10th
Third Wednesday: for those born between the 11th and 20th
Fourth Wednesday: for those born between the 21st and 31st
For example, in April 2025, payments will be sent out on April 9, 16, and 23 depending on your birthdate.
What About the Amounts?
The average monthly Social Security benefit is now $1,976, which includes a $50 increase due to the latest Cost of Living Adjustment (COLA). However, this 2.5% increase is smaller compared to past years, which means the extra cash may not be very noticeable for many people.
Don’t Miss Out on IRS Refunds
The IRS has reminded people that the deadline to file taxes is April 15. Those who haven’t filed yet could miss out on tax refunds they are entitled to.
In fact, 1.1 million Americans haven’t filed their 2021 tax returns, and time is running out. People have three years from the filing deadline to claim refunds before they are no longer available.
