(WDNews) — The federal government on Tuesday began phasing out paper checks for most programs, a move ordered by President Donald Trump in March through executive order.
The change affects recipients of Social Security, Supplemental Security Income (SSI) and tax refunds. Instead of paper checks, beneficiaries will now receive payments through direct deposit or a Direct Express card, which is intended for those without a bank account.
The Trump administration says the shift to electronic payments is aimed at cutting costs, reducing fraud and speeding up processing. But advocates warn the transition could leave behind vulnerable Americans who lack access to digital services.
“A lot of claimants move around and don’t always get their mail,” said Jennifer Burdick, a divisional supervising attorney in the SSI Unit at Community Legal Services in Philadelphia. “The folks I represent who get paper checks mostly learned from me about this transition.”
Nearly 400,000 Social Security and SSI recipients — less than 1% of the 70.6 million people receiving benefits — still get their payments by paper check. Burdick said the change could make it harder for some new beneficiaries to open bank accounts, which often require a paper check for verification.
The Social Security Administration said it will continue to issue paper checks in cases where no other options are available. “Where a beneficiary has no other means to receive payment, we will continue to issue paper checks,” the agency said in a statement.
Advocates remain concerned that those most at risk — people who are unbanked, unhoused or living with mental health challenges — may struggle the most.
“This is a population that can’t afford to miss a payment, so it’s very important that the Trump administration manage the transition without interrupting their benefits,” said Kathleen Romig, director of Social Security and disability policy at the Center on Budget and Policy Priorities.
Nancy Altman, president of the advocacy group Social Security Works, called the phase-out unnecessary. “If it’s not handled right, it will be devastating for people who are unaware of the change and have limited incomes,” she said. “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.”
