In a major reversal, the Social Security Administration (SSA) has decided not to fully eliminate paper checks for benefit payments by September 30, 2025.
This shift back follows legislative pressure and aims to protect vulnerable populations who still rely on mailed checks for receiving Social Security, SSDI, and SSI payments.
Why the SSA Wanted to End Paper Checks
In March 2025, a presidential executive order mandated all federal benefit payments transition to electronic methods—such as direct deposit, prepaid debit cards, or digital wallets—by the end of 2025.
The Treasury cited cost savings (50¢ per paper check vs. 15¢ per electronic transfer) and a 160% surge in mail theft complaints between March 2020 and February 2021 as key reasons.
What Has SSA Decided?
On July 14, 2025, SSA initially announced it would phase out paper checks by September 30. However, after a meeting between Senator Elizabeth Warren and SSA Commissioner Frank Bisignano on July 23, that decision was reversed.
Now, paper checks will continue to be issued in limited cases—particularly for beneficiaries without access to digital banking or facing undue hardship.
Who Is Affected?
| Group | Estimated Size | Implications |
|---|---|---|
| Total SSA & SSI beneficiaries | ~74 million | Standard electronic payments |
| Paper check users | <1% (~600,000 people) | Continue receiving mailed checks |
| Unbanked individuals | ~4–6% of households | May qualify for waiver to maintain paper checks |
| Rural / underserved communities | N/A | May face access challenges to electronic payments |
Less than 1% of current benefit recipients still receive paper checks, an estimated 600,000 people—many in rural areas, low-income households, or with limited internet access .
Next Steps for SSA and Beneficiaries
The SSA will now:
- Continue to offer paper checks as an option of last resort, ensuring beneficiaries without digital access are not left behind.
- Expand outreach to promote direct deposit and the Direct Express® prepaid debit card for those without bank accounts.
- Assist individuals in enrolling in electronic payment options via mailers, phone, and field office support .
Legal protections remain the same—benefits paid via direct deposit are still accorded strong creditor protections (Section 207 of the Social Security Act, Consumer Credit Protection Act), which may not apply when depositing paper checks .
Key Timeline
| Date/Event | Details |
|---|---|
| March 2025 | Executive order mandates end of paper checks by Sept 30, 2025 |
| July 14, 2025 | SSA announces phase-out of paper checks |
| July 23, 2025 | Meeting between Warren & Bisignano results in reversal |
| Sept 30, 2025 | SSA originally planned full transition to electronic only |
| Ongoing | SSA continues limited paper check issuance under exception cases |
What You Should Do
If you currently receive paper checks:
- Do nothing—you will continue to receive checks unless you opt to switch.
- Consider enrolling in direct deposit or obtaining a Direct Express card for faster, safer payments.
- If you prefer checks but lack digital access, ensure SSA knows your preferences.
The Social Security Administration has walked back its plan to eliminate paper checks by September 2025. Now, beneficiaries who lack access to online banking or face hardship will still receive paper checks.
SSA remains committed to encouraging electronic payments for speed and security, while offering support to ease the transition.
Whether you stick with checks or switch to direct deposit or Direct Express, the choice remains yours to ensure your benefits arrive safely and on time.
FAQs
Will paper checks really still be available?
Yes. SSA reversed the phase-out and will continue mailing paper checks for individuals without banking access or who face hardship.
Why does SSA prefer electronic payments?
Electronic transfers cost significantly less, reduce fraud risks, and enjoy stronger creditor protections not available with paper checks .
What if I don’t have a bank account?
You can use the Direct Express prepaid debit card, or continue receiving paper checks if you qualify for an exemption .