The change in presidential administration has created havoc in many areas of public service, but one that has been especially affected by rumors and threats is Social Security and the payments that they distribute to the 70 million beneficiaries they cater to.
While everyone is aware of the fact that Social Security distributes retirement benefits, there are five separate types of payments that the Social Security Administration (SSA) distributes, each with their own beneficiaries and schedules. Most beneficiaries receive their payments directly in their bank account, as this ensures they are paid on time and there are fewer errors both in mail distribution and payment amounts, but there are still some that prefer checks in the mail.
The new Social Security rule that will affect some beneficiaries
While benefits will continue to be distributed the same way they have been for decades, at least for now, the new Trump Administration does not seem fond of paper checks. So much so that, on March 25, 2025, Donald Trump signed an executive order that would eliminate them as a federal payment method starting on September 30, 2025.
From that day onward, there will be no more federal checks being sent by mail to beneficiaries, but it will not affect just Social Security recipients, it will also apply to tax refunds, payments to suppliers and more payments that citizens may receive from the state.
The decision has been made with the thought that electronic methods, be it direct deposit, prepaid cards or other digital methods are more secure than checks. According to reports from the White House after the measure was announced, checks are expensive, slow and more prone to fraud. Data seems to back up their calculations, reports from 2024 stated that maintaining the check system cost more than $657 million. Plus, physical checks are 16 times more problematic than electronic transfers as they tend to get lost, stolen or ruined by weather conditions that make it inadmissible in the bank.
The savings on paper, ink, and shipping alone will make this measure profitable for the government, but it is a sad reality that electronic methods do not work for everyone and there is a very valid reason that around 456,000 Social Security beneficiaries (0.7% of the total) continue to receive their payments by mail.
It is not a huge number, after all almost all of us prefer to have the money wired to our accounts where there is less risk of delays or issues, but these are some of the most vulnerable and poor people in society and are those who have no access to physical banks (thee are many banking deserts in the country) or the internet, leaving them without a way to receive their benefits.
This is where the exception to the rule comes in. If accessing banking services is not an option, you are facing an emergency, or electronic payments would create significant difficulties, the Secretary of the Treasury can grant permission to continue using checks. However, you must provide evidence that you qualify.
This exception is designed for those in remote areas without internet access or individuals who struggle with technology, such as older adults. However, approval is not automatic, those who need this option must formally request it.
Of you are one of those beneficiaries who receives their Social Security checks in the mail, the most important thing to do now is to not ignore any notifications that you are sent. If you do not understand something, contact the SSA to get clarity on the issue and if you feel like you need an exemption, bring it up with the Administration and prepare documentation that proves it.