U.S. Government Phases Out Paper Checks Nationwide Programs/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ The federal government begins phasing out paper checks for Social Security, tax refunds, and other benefits. Officials say it will cut costs and prevent fraud, but advocates warn vulnerable Americans could be left behind.
Paper Checks Phase-Out Quick Looks
- Start date: Paper check phase-out began Tuesday under executive order
- Programs affected: Social Security, SSI, tax refunds, and other benefits
- Why change: Cited reasons include fraud prevention, efficiency, and cost savings
- Exceptions: Paper checks will still be issued in rare cases
- Who’s impacted: Nearly 400,000 beneficiaries, less than 1% of recipients
- Options offered: Direct deposit or Direct Express prepaid card
- Concerns raised: Advocates say marginalized groups may lose access
- Biggest risks: Unbanked, unhoused, or digitally disconnected individuals
- Advocates’ warning: Missing even one payment could be devastating
- Ongoing debate: Critics say paper checks should remain as an option
U.S. Government Phases Out Paper Checks Nationwide Programs
Deep Look
The U.S. government has officially begun phasing out paper checks for most federal programs, a move that could affect hundreds of thousands of Americans who still rely on mailed payments for survival.
The policy, initiated by a March executive order from President Donald Trump, aims to modernize federal payment systems by requiring electronic transfers for Social Security, Supplemental Security Income (SSI), tax refunds, and other benefit programs. Officials say the decision is intended to reduce fraud, speed up payment processing, and save taxpayer money.
Why End Paper Checks?
According to the Trump administration, mailed paper checks are expensive to print, mail, and process — and they are vulnerable to theft or fraud. By moving to electronic payments, officials argue the government will cut costs, improve efficiency, and secure the benefits pipeline.
Electronic transfers also reach recipients faster, reducing delays caused by postal backlogs or address changes. For millions who already use direct deposit, the change is seamless.
Who Still Relies on Paper Checks?
Despite the widespread shift to digital banking, around 400,000 Social Security and SSI recipients — less than 1% of the 70.6 million people receiving these benefits — still get paper checks. This includes retirees, disabled Americans, and children receiving survivor benefits.
For these individuals, the paper check is more than a payment method; it can also serve as proof of income when opening a bank account or applying for housing.
Concerns About Vulnerable Populations
Advocates warn that eliminating paper checks could disproportionately harm marginalized communities. Many affected individuals are unbanked, unhoused, or lack reliable internet access.
“A lot of claimants move around and don’t always get their mail,” explained Jennifer Burdick, a supervising attorney with Community Legal Services in Philadelphia. She said many of her clients only learned about the policy change from legal aid workers.
Kathleen Romig, director of Social Security and disability policy at the Center on Budget and Policy Priorities, emphasized that those most at risk are “often unbanked or unhoused, and lacking in the tools and skills they need to access digital services.” She noted that mental health challenges, mistrust of banks, and chronic poverty keep many out of the financial mainstream.
“This is a population that can’t afford to miss a payment,” Romig stressed. “It’s very important that the Trump administration manage the transition without interrupting benefits.”
Alternatives to Paper Checks
To replace paper checks, the government is offering two main options:
- Direct Deposit – Funds transferred directly to a recipient’s bank account.
- Direct Express Card – A prepaid debit card provided for people without bank accounts.
The Social Security Administration (SSA) clarified that it will continue issuing paper checks in rare cases where no other method is available.
“Where a beneficiary has no other means to receive payment, we will continue to issue paper checks,” the SSA said.
Critics Question the Need
Some advocacy groups argue the move is unnecessary given the small number of people still receiving checks.
Nancy Altman, president of Social Security Works, said: “If it’s not handled right, it will be devastating for people who are unaware of the change and have limited incomes. I think anyone should be able to get a paper check. And while less than 1% is getting a check, that’s still a lot of people.”
Critics point out that for those on the margins, even a brief disruption in benefits could lead to eviction, hunger, or inability to pay for medication.
Balancing Efficiency with Equity
The government’s shift reflects a broader trend toward digital-first services, but it highlights the risks of leaving behind people who lack access to modern technology. Advocates are calling on federal agencies to provide clear outreach, safeguards, and exceptions to prevent vulnerable recipients from slipping through the cracks.
As the policy takes effect, the real challenge will be ensuring that the drive for efficiency doesn’t deepen inequality — and that those who depend most on federal aid continue to receive it without interruption.
You must Register or Login to post a comment.