If you’re still obtaining a paper check for your tax refund or Social Security benefits, you need to act quickly to alter your situation.
On March 29, 2025, the President, Donald Trump signed an executive order to the U.S. Department of the Treasury, instructing to get rid of paper checks for all federal payments by September 30, 2025. Among the payments are refunds from the IRS, Social Security payments, VA benefits, and other government disbursements.
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The new regulation will make the switch to delivery by electronic means in the future, and not any other way—only direct deposit or prepaid debit cards.
Perhaps the suddenness of this statement is disconcerting, however, the Treasury asserts that it is part of a broader initiative to modernize the government’s means of payment.
Why Is the Government No Longer Using Paper Checks?
According to a White House fact sheet, the objective is to make the process of payments to and from the government more efficient, less-expensive, and secure against fraud.
Paper checks are costlier, both in processing and in potential theft or misplacement. The Treasury, in 2024 alone, launched over 300,000 investigations of fraud incidents associated with checks stolen or changed maliciously.
Electronic payments are expected to be not only cheaper for the government, saving the millions of dollars annually but also reducing the occurrences of payment mistakes which are the root causes of delays.
Who Will Be Impacted By This Change?
Your move to electronic-only is only meant for a certain target audience:
- The people who receive Social Security benefits from the government and still get a paper check
- People whom the IRS sends out refund checks through the mail
- Ex-servicemen and those who are still dismissed from the federal government with disbursements on paper
- Any American who benefits from a program run by the federal administration and one of whose benefits is a physical check payment
If you are already a direct deposit customer or have a Direct Express debit card, you need not take any action.
However, if you are among the approximately 4 million Americans who are not yet using the electronic payment method, it’s time to get moving.
What If You Still Receive Paper Checks?
The Social Security Administration (SSA) is pressing the recipients to make the switch to direct deposit without any further delay. You can register or change your bank data by using:
- Your my Social Security account
- The official SSA direct deposit portal
- Your local SSA office or by calling 1-800-772-1213
The SSA, for those not having a bank account, encourages them to get a Direct Express® Debit Mastercard® that is accepted wherever Mastercard is used.
What If You Are Unbanked?
The Department of the Treasury stated that it would provide payments to those who do not have a bank account or access to traditional financial services. This might include, but is not limited to:
- Debit cards guaranteed by the government
- Use their community bank partner to access their
- More support for low-income and rural recipients
The department may give dispensation in an emergency situation or the payments required by law enforcement, but regular monthly benefits are ineligible for any form of waiver.
Will Tax Refunds be Handled Differently?
Even the IRS is going to be affected too. If you would like to get a refund on your 2025 return and you have not picked direct deposit, the agency will not send a check to your address after the deadline.
If you want to receive your tax refund early, you should ensure that you have the current direct deposit information at the time of filing the tax returns. The IRS is asking taxpayers to use the “Where’s My Refund?” tool in order to monitor the status and delivery of their refunds.
The online IRS resources where you can track the status of your tax refund are located here.
Could This Change Actually Be a Good Thing for You?
Despite the apparent inconvenience of the recent trend, a majority of the experts believe it to be a right decision.
Electronic payments are:
- Quicker — most of them come within 1–3 days
- More secure — less chance of theft or misdelivery of checks
- Easier to follow — the beneficiaries can check the payment status instantly
Mailing delays, losing envelopes or going to the bank to deposit paper checks are out of the picture for you.
The Treasury Department’s plan to stop releasing paper checks by September 2025 signals a big change in how the U.S. residents get money from the government. Although the transition will be hard for some, it can lead to people getting safer, quicker, and more efficient payments in millions.
Now is the right time to sign up for the direct deposit option or go to the debit card program in case you still get paper checks for your social security benefits or tax refunds.
For additional information and to update your payment details, go to ssa.gov or irs.gov.
