Since the first Social Security check was mailed in January 1940, the program has been a cornerstone of financial security for millions of Americans.
Initially designed to provide for aging workers, it has expanded to include those with disabilities and survivors of deceased workers. As of July, nearly 70 million Americans receive Social Security benefits.
However, Social Security isn’t a static program. Adjustments and changes are made by the Social Security Administration (SSA) regularly, with some of these changes being influenced by the political landscape.
After Donald Trump’s second nonconsecutive term began, several shifts to Social Security were announced, one of which will significantly affect how recipients receive their benefits come September 30.
Trump’s Executive Order: Ending Paper Social Security Checks
A major change to Social Security, announced by President Trump via an executive order (EO) on March 25, mandates the end of paper check issuance for federal payments, including Social Security.
The compliance deadline for this change is set for September 30, meaning that, for the first time, paper Social Security checks will be discontinued.
Though most beneficiaries already receive their payments digitally, this change will impact the approximately 0.8% of Social Security recipients who still receive paper checks—roughly 500,000 individuals. The Social Security Administration has outlined several reasons for this shift:
- Cost Efficiency: Paper checks are more expensive to issue than electronic funds transfers (EFTs). While a paper check costs about $0.50 to process, an EFT costs less than $0.15, saving the government millions of dollars annually.
- Faster Payments: EFTs can be processed faster than paper checks, allowing for quicker access to benefits.
- Security: Paper checks are more prone to being lost or stolen, with the SSA stating they are 16 times more likely to be compromised than electronic payments.
Beneficiaries who still receive paper checks will need to set up direct deposit with a bank or credit union or use a Direct Express card, a prepaid debit card for receiving federal benefits.
Other Social Security Changes Under Trump’s Administration
While the end of paper checks is the most notable change under Trump’s administration, several other adjustments to Social Security have taken place during his term:
- Department of Government Efficiency (DOGE): Trump’s administration created DOGE to identify inefficiencies in government spending. This led to cost-saving measures, such as reducing the SSA workforce by 7,000 to 50,000 employees and closing some physical SSA locations.
- Leadership Change at the SSA: Trump nominated Frank Bisignano as the new SSA commissioner. Bisignano, who had previously been the CEO of fintech company Fiserv, was appointed to help lead the transition toward digital payments.
- Enhanced Fraud Prevention: In line with Trump’s focus on reducing fraud, the SSA introduced new methods for personal identification, including stricter rules for changing direct deposit information or applying for benefits. These changes are designed to minimize the risk of Social Security fraud and scams.
- Overpayment Recovery: Trump’s administration raised the Social Security overpayment recovery rate to 50%, up from the 10% rate set by the Biden administration. However, this is still lower than the 100% rate during Trump’s first term and under the Obama administration.
While the administration has made a series of changes, the shift from paper checks to digital payments stands as one of the most transformative changes for Social Security recipients.
The $23,760 Social Security Bonus Most Retirees Overlook
For those worried about retirement savings, there are lesser-known strategies within the Social Security program that can boost income. By taking advantage of these “Social Security secrets,” retirees could potentially increase their benefits by as much as $23,760 over their lifetimes, ensuring greater financial stability in retirement.
