Millions of Americans are facing a whirlwind of changes and rumors regarding government payments in 2025. From the Social Security Administration’s (SSA) push for electronic payments to persistent myths about new federal stimulus checks, and from state-level rebate programs to expanding tax credits, navigating the landscape of government payouts has rarely been more complicated—or more important.
Let’s start with Social Security, a lifeline for retirees and many others. According to official notices from the SSA, most beneficiaries will soon need to receive their payments electronically instead of by paper check. But let’s clear up a common misconception right away: the SSA is not eliminating paper checks for absolutely everyone. In fact, as reported by official SSA policies, “the check option will remain for those who have no other way to get their money.” This means less than one percent of Social Security recipients—about 500,000 to 680,000 people—are expected to be affected by the shift. The agency has been reaching out to this group, offering guidance to prevent any disruption in payments.
The transition isn’t happening overnight. The SSA and the U.S. Department of the Treasury, which handles most federal disbursements, are coordinating a gradual, supported move to electronic payments. The goal? To make payments faster and safer. But there’s a catch: if beneficiaries don’t make the switch or don’t properly transition, their payments could be suspended until the situation is sorted out. That’s a strong incentive to act sooner rather than later.
For those wondering how to make the switch, the SSA recommends signing up for direct deposit through your bank or credit union by logging into your my Social Security account at ssa.gov, calling 1-800-772-1213, or visiting a local SSA office. Don’t have a bank account? The Direct Express Debit Mastercard is a solid alternative—just enroll at godirect.gov or by calling 1-800-333-1795. The SSA is urging everyone to complete the transition by September 30, 2025, to avoid any hiccups.
Meanwhile, questions about Social Security benefits themselves continue. As of September 19, 2025, Americans can claim Social Security starting at age 62, but there’s a trade-off. If you claim early, your monthly check will be smaller—$2,831 per month in 2025 if you’ve worked 35 years at the maximum taxable earnings. That’s about a third less than if you wait until your full retirement age (FRA), which is 67 for those born in 1960 or later. Waiting until FRA bumps your benefit up to $4,018 per month. As the SSA explains, “You will not get less because you waited longer, nor will you get penalized for earning more money.” The choice, as always, depends on personal needs and life expectancy.
While Social Security is changing, rumors have been swirling about new federal stimulus checks in 2025. According to the IRS and multiple news outlets, these rumors—often citing amounts like $1,390, $1,700, or $2,000—are false. There has been no official confirmation from Congress or the IRS supporting the idea of a new, fourth stimulus check this year. The IRS has even issued warnings about scams and impersonators trying to trick people into revealing personal or financial information under the guise of new stimulus payments.
There is, however, legislation in the works: the American Worker Rebat Act of 2025, introduced by Missouri Senator Josh Hawley. This bill proposes sending checks between $600 and $2,400 to American taxpayer families. But as of now, it has not passed Congress. So, for the time being, any claims about imminent federal stimulus checks remain just that—claims, not reality.
It’s worth remembering the history of stimulus payments. The first three rounds of checks were tied to COVID-19 relief, with the last round offering $1,400 per eligible individual. The deadline to claim the third stimulus check was April 15, 2025. Missed that deadline? Unfortunately, there are no extensions or appeals, and any unclaimed payments revert to the U.S. Treasury. The IRS recommends working directly with them or a reputable tax professional to resolve any missing payments or to claim the Recovery Rebate Credit on your tax return if eligible.
Adding to the confusion, former President Donald Trump floated the idea of a “DOGE dividend”—a $5,000 stimulus check funded by government efficiency savings. Trump described it as “using part of the 20% of the savings identified by Musk’s Department of Government Efficiency (DOGE) and giving it back to taxpayers.” But as of September 2025, there have been no further details or confirmations about this proposal.
While federal payments remain uncertain, several states are stepping up with their own relief programs. New York, for instance, is rolling out tax rebates worth up to $1,500 as part of the state’s School Tax Relief (STAR) program. According to state officials, approximately three million New Yorkers are expected to benefit this year, with the state set to release about $2.2 billion in property tax rebates. The STAR program comes in two flavors: Basic STAR, for residents with income under $500,000 (credit) or $250,000 (exemption), and Enhanced STAR, for homeowners aged 65 and above with income under $107,300.
New York isn’t stopping there. The state is expanding its Child Tax Credit and providing one-time inflation relief rebates and payments for parents who have recently welcomed a new baby. These moves are aimed at easing the financial burden on families in what is consistently ranked as one of the most expensive places to live in the country.
Neighboring New Jersey is also distributing payouts—up to $1,750—through the Affordable New Jersey Communities for Homeowners and Renters (ANCHOR) program. Meanwhile, states like Pennsylvania, Georgia, and Colorado have sent inflation relief or rebate checks in 2025, each with their own eligibility rules and payment amounts.
For those keeping track of their federal and state tax refunds, the IRS offers the “Where’s My Refund?” tool, which allows taxpayers to check the status of their refund within 24 hours after e-filing. Refunds are typically deposited within 21 days if banking information is provided, or mailed as a paper check within six to eight weeks. Most states have similar online portals for tracking state tax refunds.
Finally, a word of caution: penalties for failing to file federal taxes can be steep, including interest, fines, and in extreme cases, legal action. While most states require residents to pay state income tax, there are a few exceptions—Alaska, Florida, Nevada, South Dakota, Texas, Washington, Wyoming, Tennessee, and New Hampshire don’t impose state income tax, but residents may still be eligible for other forms of state relief.
With so many moving parts—federal changes, state-level programs, and persistent scams—Americans are wise to stay vigilant, consult official sources, and avoid misinformation. The landscape of government payments in 2025 is complex, but with careful attention and timely action, most people can navigate it successfully and claim the benefits to which they’re entitled.
