Federal Government Will Stop Issuing Paper Checks
Last updated August 25, 2025
Starting September 30, 2025, the U.S. Treasury will stop issuing paper checks for most federal benefits, including Social Security, VA payments, and tax refunds. Instead, all government agencies will switch to electronic payments via direct deposit to bank accounts, digital wallets, or government-issued prepaid debit cards.
In March, President Trump signed an executive order directing the Treasury to “cease issuing paper checks for all Federal disbursements” except for people who don’t have access to banking services. The change to digital payments was necessary, the order stated, to reduce “unnecessary costs; delays; and risk of fraud, lost payments, theft and inefficiencies.”
Going paperless should save the federal government millions of dollars a year. Issuing a paper check costs about 50 cents, whereas an Electronic Funds Transfer (EFT) costs less than 15 cents, according to the Department of the Treasury.
If you already receive your government benefits electronically there’s no action required. Most Americans have already made the switch: For example, fewer than one percent of all Social Security beneficiaries get paper checks, according to a blog post from the Social Security Administration (SSA).
EFT payments are more secure than sending paper checks via mail. They’re also more efficient and dependable.
“Direct deposit eliminates the risk of mail delays, and lost, stolen, or damaged checks,” said Greg McBride, chief financial analyst at Bankrate.com. “It’s automatically deposited into your account, the funds are immediately available, and there’s no waiting by the mailbox for that check to arrive.”
Consumer advocates acknowledge the security and reliability benefits of electronic payments, but they don’t want the federal government to eliminate all paper checks.
In a letter sent to Treasury Secretary Scott Bessent in July, six consumer groups (including the Consumer Federation of America, Consumer Reports, and the National Consumer Law Center), said Treasury “must ensure that people have the right to pay or receive funds by check.”
“Many people will never be able to use electronic payments,” they wrote. And they urged treasury to offer a choice of Treasury-sponsored, fee-free accounts at insured depository institutions designed for receiving payments.
Options for Those Still Receiving Paper Checks
If you’ve been receiving a paper check for any federal benefit, you need to enroll in direct deposit. A Treasury news release outlined three options:
- Call the Federal agency that pays your benefits and follow its instructions for enrolling in direct deposit. Use this link to access a list of phone numbers for contacting those agencies.
- Enroll online at GoDirect.gov.
- Call the Electronic Payment Solution Center at 800-967-6857, Monday to Friday, 9 a.m. to 7 p.m. ET.
Note: Social Security beneficiaries can update their payment information online by using their personal my Social Security account.
Options for the Unbanked
Direct deposit won’t work for those who don’t have checking or savings accounts—about 5.6 million Americans, according to a 2023 report from the Federal Deposit Insurance Corporation (FDIC).
If you want to open an account, the FDIC’s GetBanked! website can help you find financial institutions that require a small deposit or no deposit to open one. McBride recommends doing that.
“It’s pretty difficult to build wealth safely if you're not part of the financial system,” he said. “And for most people, that starts with a bank account.”
For those who don’t want a bank account, the government will direct deposit funds to a Direct Express prepaid debit card. To apply for the card, call the Treasury’s Electronic Payment Solution Center at 800-967-6857 or contact the government agency making the payment by using this link.
“This is a great solution for those who don’t have a checking account or can’t get one,” McBride said. “You get all the conveniences of having that money deposited automatically and immediately available, even if you don't have an account for direct deposit.
To avoid any delayed payments, you need to apply for the card now. If you wait until late September, McBride cautioned, there’s going to be a delay in getting your first payment.
Once you have the Direct Express card, McBride told Checkbook, your government benefits are loaded automatically onto the card at the same time direct deposits are made. And the funds are immediately available.
You can withdraw those funds for free from a network of 75,000 ATMs across the country. Using an out-of-network machine will incur a fee. There’s also a $1.50 charge for transferring money loaded on the card to a bank account. So, if you have a bank account, use direct deposit and not the Direct Express card.
Contributing editor Herb Weisbaum (“The ConsumerMan”) is an Emmy award-winning broadcaster and one of America's top consumer experts. He has been protecting consumers for more than 40 years, having covered the consumer beat for CBS News, The Today Show, and NBCNews.com. You can also find him on Facebook, Blue Sky, X, Instagram, and at ConsumerMan.com.