In a significant move towards modernization, the Social Security Administration has confirmed a substantial change in its payment methods set to take effect on September 30, 2025. This change involves transitioning from issuing paper checks to adopting electronic payments. Starting September 30, paper checks will no longer be used for disbursements, including government benefits, supplier payments, and tax refunds.

All executive departments and agencies are required to transition to modern electronic funds transfer (EFT) methods, such as direct deposit, debit or credit card payments, digital wallets, and real-time transfers. This substantial change will impact approximately 456,000 Americans receiving their Social Security payments via paper checks. These individuals represent about 0.7% of the total 68.2 million Social Security beneficiaries across the United States.