Starting September 30, 2025, the U.S. Department of the Treasury will stop mailing paper checks for all federal benefits, including Veterans Affairs benefits, Social Security payments, and other federal programs. This transition affects millions of Americans and is part of the government’s ongoing effort to make benefit payments faster, safer, and more efficient. Anyone still receiving paper checks should take immediate steps to avoid disruptions in their payments.

👉 Read the official press release here.

Why Paper Checks Are Being Phased Out

The Treasury is eliminating paper checks to improve efficiency and security. Electronic payments protect recipients from lost, stolen, or delayed checks. They also save taxpayer money because printing and mailing checks cost millions each year. Digital payments streamline operations and ensure federal agencies deliver benefits on time.

Who Is Affected

This change impacts all federal benefit recipients, not just veterans. Beneficiaries include:

• Veterans receiving VA benefits
• Individuals receiving Social Security
• Recipients of other federal assistance programs

Although over 97% of federal benefits are already paid electronically, those still relying on paper checks must transition to electronic payment methods to avoid delays.

How to Receive Benefits Electronically

Recipients can choose between two options:

• Direct Deposit: The Treasury transfers funds directly to a bank or credit union account, ensuring speed, convenience, and security.
  
• Direct Express® Prepaid Card: Individuals without a bank account can receive benefits automatically on a prepaid card each month.

Enroll at GoDirect.gov  or call the Electronic Payment Solution Center at 1-800-333-1795.

Exemptions and Special Assistance

Some individuals may qualify for exemptions due to hardship, such as advanced age, disability, or other challenges. Beneficiaries who believe they may qualify should contact the Electronic Payment Solution Center to request guidance or a waiver. Early action is recommended as processing these exemptions may take time.

What If You Don’t Have a Bank Account?

Individuals with credit issues that prevent them from opening a traditional bank account can still access their benefits. A credit counselor can provide guidance on second-chance banking options and non-traditional accounts, helping ensure you can receive benefits electronically and securely. Seeking assistance from a credit counselor allows beneficiaries to participate in the electronic payment system even if past credit challenges exist, avoiding any disruption in payments.

Important Dates to Remember

• September 30, 2025: Last day paper checks will be issued
• October 1, 2025: All federal benefits will transition to electronic payments

Beneficiaries should ensure their bank accounts or Direct Express® cards are active and properly set up before these dates to avoid delays.

Final Thoughts

The shift to electronic payments represents a major step forward in efficiency, security, and convenience for all federal benefit recipients. By enrolling in direct deposit or the Direct Express® card and consulting a credit counselor if banking challenges exist, beneficiaries can ensure uninterrupted access to their funds.

Being proactive now will make this transition smooth and stress-free. For official guidance, visit the Treasury press release.