(NewsNation) — The Social Security Administration will no longer issue paper checks for benefit payments starting September 30.
The switch to electronic payments marks the latest chapter in the agency’s “Digital First” initiative under the Trump administration. Roughly 72 million beneficiaries will receive more than $1.6 trillion in payments from the agency in 2025. Social Security Administration Commissioner Frank Bisignano told NewsNation the switch won’t impact too many Americans.
“This transition primarily affects a small group of beneficiaries who have not yet switched to electronic payment methods. Less than one percent of beneficiaries currently get paper checks,” Bisignano said.
According to the U.S. Department of the Treasury, issuing a paper check costs about 50 cents, while an electronic funds transfer costs less than 15 cents. While the switch could save the agency money, Bisignano said the primary goal of the switch is to combat fraud.
“This issue around checks is really not as much only in operational cost savings, we believe it eliminates fraud,” Bisignano said. “The fact of the matter is, people have continually called us every month about a check missing from their mailbox.”
The agency is encouraging anyone who hasn’t made the shift yet to either enroll in direct deposit or opt for the Direct Express card to continue receiving their monthly payments on time.
“The social security number is the number one identifier of a person that they use in their life,” Bisignano said. “We continue to drive a technological agenda, and we will increase technology spending in the agency to deliver better results for the American public.
