President Donald Trump signed an executive order on March 25, 2025, titled “Modernizing Payments To and From America’s Bank Account.” It mandates that all federal payments must be made electronically. The measure covers SSDI, SSI, retirement, and IRS tax refunds. It also includes payments to federal contractors.
The deadline to implement this change is September 30, 2025. Paper checks will no longer be sent starting in October 2025, and, as we said, disability payments (SSDI) are included. Recipients must receive payments via direct deposit, Direct Express card, or authorized digital wallets. This change affects multiple federal assistance programs.
SSDI payments for thousands of beneficiaries are suspended for one main reason
An estimated 456,000 to 494,000people receive benefits by physical check, not only from SSDI but also from other types of benefits. This figure represents approximately 0.7% of the total SSA beneficiaries. More than 68 million people rely on these monthly payments.
The transition seeks to modernize the fund distribution system inside the SSA and other federal agencies. Among the reasons, there’s how much does it cost: The annual expenditure of maintaining this infrastructure exceeds $657 million. This expense includes printing, mailing, and processing physical checks. The saved funds could be redirected to other programs.
The risk of fraud associated with physical checks with Social Security payments is significantly higher. Statistics indicate that they are up to 16 times more prone to theft or loss. Electronic transfers offer greater security measures. They also reduce the possibility of alteration or loss during postal transit.
The inefficiency of the paper check system is another factor that motivated the federal government to eliminate this way of payment. This method is slower and prone to administrative errors. Delays in postal delivery can cause inconvenience to recipients. Electronic payments are generally faster and more reliable.
Which SSA programs are affected by the measure
This measure primarily affects retirement payments, but also Social Security Disability Insurance (SSDI). It also includes Supplemental Security Income (SSI) and regular surviving relatives benefits. Payments to survivors of deceased beneficiaries fall into this category. It also covers federal tax refunds and payments to contractors.
SSDI is included because it shares payment channels with other federal benefits. Those who still receive physical checks will have their payments suspended starting in October 2025. The suspension will occur if they do not adopt an electronic method by the deadline. The executive order does not allow automatic exceptions.
Groups considered vulnerable could face greater difficulties. This includes older adults, people with disabilities, and residents of rural areas. It also affects those without bank accounts or with limited internet access. These beneficiaries could experience delays in receiving their funds.
Recipients still receiving paper checks must act before September 30, 2025. They have three main electronic payment options. The first is to sign up for direct deposit into a bank or credit union account. The second option is to apply for the Direct Express prepaid debit card.
The third option is to use other government-authorized digital wallets. Beneficiaries without bank access can request an exemption. They should contact the Department of the Treasury at 855-290-1545. They can also manage this process through their local SSA offices.
The Social Security Administration offers assistance with this transition. Beneficiaries can call 800-772-1213 for guidance. They can also visit a local SSA office, although some centers have reduced staff. Another option is to use the “My Social Security” online account.
A practical guide to meeting the deadline and continuing to receive SSDI payments
The steps for beneficiaries are clear and must be completed before the deadline. First, choose an electronic method: direct deposit, Direct Express card, or digital wallet. Second, those unable to access these methods must request an exemption. It is essential to complete this process in advance, before the deadline.
Third, confirm that the SSA has updated information: address, phone number, and bank details. Fourth, verify that the first electronic payment is received correctly in October 2025. If you experience any problems or delays, contact the SSA immediately. An appeals process may be initiated if payments are interrupted.