Since the first Social Security benefit check was mailed back in January 1940, the program has been a bedrock of financial stability for millions of Americans. Over the decades, its mission has expanded well beyond its original intent of supporting aging workers. Today, Social Security serves a diverse group, including retired workers, those with disabilities, and survivors of deceased workers. In July 2025 alone, nearly 70 million Americans received traditional Social Security payouts, according to reporting from The Motley Fool.
But even an institution as enduring as Social Security isn’t immune to change. Adjustments—some minor, some significant—are made on a near-annual basis by the Social Security Administration (SSA). Yet, this year, a change is coming that many experts say will alter the program forever. This shift comes courtesy of President Donald Trump, who, a little over seven months into his second nonconsecutive term, has already overseen a flurry of reforms to the country’s leading retirement program.
On March 25, 2025, President Trump signed an executive order titled “Modernizing Payments To and From America’s Bank Account.” This order sets September 30, 2025, as the deadline for the federal government to cease issuing paper checks for benefit payments—including Social Security. While the move affects several federal programs, Social Security is front and center due to its sheer scale and reach. As The Motley Fool notes, this executive order means paper Social Security checks are on the verge of extinction.
For most beneficiaries, this change will barely register. The vast majority already receive their benefits via direct deposit or prepaid debit cards. But for the roughly 0.8% of recipients—more than 500,000 people—who still rely on paper checks, the coming deadline is a seismic event. These individuals must now transition to either direct deposit through a bank or credit union, or opt for a Direct Express prepaid debit card, specifically designed for federal benefits.
The SSA has laid out three primary reasons for the transition. First, cost savings: issuing a paper check costs the federal government about $0.50, while an electronic fund transfer (EFT) costs less than $0.15. This difference, while seemingly small per transaction, adds up to more than $2 million in annual savings for Social Security alone. Second, EFTs are simply faster—no more waiting days for a check to arrive in the mail. And third, digital payments are significantly safer. The SSA highlights that paper checks are 16 times more likely to be lost or stolen than their electronic counterparts.
Of course, the move to digital payments is not just about efficiency. Security concerns have loomed large, especially as fraud attempts targeting seniors and vulnerable populations have grown more sophisticated. In line with this, the Trump administration has implemented additional changes aimed at reducing fraud. As of April 2025, most beneficiaries are no longer allowed to change their direct deposit information or apply for retirement or survivor benefits over the phone. Instead, these actions must be performed either in person at a Social Security office or online via a secure “my Social Security” account with two-factor authentication. The SSA says these steps are designed to cut down on scams and unauthorized account changes.
But the Trump administration’s Social Security reforms don’t stop at payment modernization and fraud prevention. On his very first day in office, President Trump signed an executive order creating the Department of Government Efficiency, or DOGE. The new office’s mandate: root out inefficiencies across federal agencies and save taxpayer money. Acting on DOGE’s recommendations, the SSA has downsized its workforce by 7,000 positions, bringing the total down to 50,000 employees. Several physical SSA locations have also been shuttered, all in an effort to reduce operating expenses.
Leadership at the SSA has also changed under Trump’s watch. Frank Bisignano, who previously served as CEO of the global financial technology firm Fiserv, was nominated and confirmed as the new SSA commissioner. Bisignano’s fintech background is seen as a strategic fit as the agency pivots toward fully digital payments. According to The Motley Fool, his appointment was part of a broader push to modernize the agency and streamline operations.
Another major shift under Trump has been the adjustment to the Social Security overpayment recovery rate. At the close of fiscal year 2023, an eye-popping $23 billion in Social Security overpayments remained uncollected. During the Biden administration, the garnishment rate for recovering these overpayments had been lowered to 10%. In April 2025, the Trump administration increased that rate to 50%. While this is a substantial hike, it is still more lenient than the 100% garnishment rate that was in place during Trump’s first term and under President Obama. The administration argues that this new rate strikes a balance between recouping taxpayer dollars and not unduly burdening beneficiaries.
Not all of these changes have been met with universal applause. Critics have raised concerns that the end of paper checks could disproportionately affect the most vulnerable Social Security recipients, particularly those without easy access to banking services or the internet. Some advocates warn that the transition period may be confusing or even disruptive for older Americans who are less comfortable with digital technology. On the other hand, supporters of the reforms point to the increased security, faster payments, and the significant cost savings for taxpayers. They argue that the modernization is overdue and necessary to keep the program sustainable for future generations.
It’s worth noting that while the Social Security Act itself requires a supermajority in the Senate to enact sweeping changes, the kinds of administrative and procedural adjustments seen under Trump’s executive orders can have a profound and lasting impact on how the program operates. As The Motley Fool observes, while many changes ebb and flow with the party in power, the end of paper checks is poised to be a permanent transformation.
With the September 30 deadline fast approaching, the SSA has ramped up outreach efforts to notify the remaining paper check recipients of the impending change. Beneficiaries are being encouraged to set up direct deposit or apply for a Direct Express card well before the cutoff to ensure there’s no interruption in their payments. For those with questions or concerns, SSA offices and online resources are available to guide them through the process.
As the country prepares to bid farewell to the era of Social Security paper checks, the move underscores a broader trend: the digital transformation of government services. Whether this transition proves smooth or bumpy for those affected remains to be seen, but one thing is clear—Social Security, even after 85 years, is still evolving.
