Starting October 2025, thousands of SSDI (Social Security Disability Insurance) recipients could face suspended payments if they continue receiving benefits by paper check.
This change comes under a new federal mandate requiring all government disbursements to be made electronically.
If you rely on SSDI, SSI, or other Social Security benefits, now is the time to act and switch to digital payment methods to avoid losing access.
Why Are SSDI Payments Being Suspended?
On March 25, 2025, President Donald Trump signed the executive order titled “Modernizing Payments To and From America’s Bank Account.”
This directive mandates that all federal payments, including SSDI, SSI, retirement, and tax refunds, be delivered through electronic methods only. The order aims to eliminate paper checks entirely by September 30, 2025.
From October 2025, the SSA (Social Security Administration) will stop sending paper checks and begin suspending payments for recipients who haven’t switched to one of the approved digital methods.
Who Will Be Affected?
Approximately 456,000 to 494,000 beneficiaries, or about 0.7% of all SSA recipients, still receive physical checks. This group is at immediate risk of payment interruption starting October.
There are over 68 million Americans receiving benefits through SSA programs — a large portion already receive direct deposit or use Direct Express. However, the vulnerable group still on paper checks includes:
- Elderly individuals
- People with disabilities
- Residents of rural areas
- Those without access to banks or internet
Reasons Behind the Transition
| Reason | Details |
|---|---|
| High Operational Cost | Over $657 million annually for printing, mailing, and processing checks |
| Fraud Risk | Paper checks are 16 times more likely to be lost or stolen |
| Administrative Delays | Slower than electronic payments, subject to postal issues |
| Efficiency Goal | Improve accuracy and speed of government disbursements |
SSA Programs Affected
This federal policy change affects several SSA and IRS-related payment programs:
- SSDI (Social Security Disability Insurance)
- SSI (Supplemental Security Income)
- Retirement benefits
- Survivor benefits
- Federal tax refunds
- Payments to government contractors
How to Prevent Suspension of Your SSDI Payments
To keep your SSDI payments active, recipients must switch to an electronic payment method by September 30, 2025. Options include:
- Direct Deposit: Have your payments sent to a bank or credit union account.
- Direct Express Card: A prepaid debit card option offered by the U.S. government, ideal for those without bank accounts.
- Digital Wallets: Approved government-authorized mobile wallets are also valid.
If none of these work for you, you may apply for an exemption by:
- Calling the Department of the Treasury at 855-290-1545
- Visiting your local SSA office
Steps to Stay Compliant Before the Deadline
- Choose your preferred electronic payment method
- Sign up or apply for the chosen method well before September 30, 2025
- Update your details with SSA – ensure your address, phone, and bank info are current
- Verify your first electronic payment in October 2025
- Contact SSA at 800-772-1213 for any assistance or issues
- Use your “My Social Security” account to manage this transition online
With the October 2025 deadline approaching, SSDI and other federal benefit recipients who still receive paper checks must take immediate action to avoid a suspension of payments.
The government’s push for modernization and security through electronic payments will benefit the system overall but requires individual responsibility to stay compliant.
Take the necessary steps now to ensure uninterrupted access to your benefits.
FAQs
What will happen if I don’t switch to electronic payment by September 30, 2025?
Your SSDI and other SSA payments will be suspended until you comply with the new payment regulations.
Can I still receive a paper check if I’m in a rural area without banking access?
You must request an exemption through the Department of the Treasury or SSA. Approval is not automatic.
What if my Direct Express card or bank information changes?
You should immediately update your details through SSA’s phone line or the My Social Security portal.