Trump's Social Security check change could affect half a million Americans
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Nearly half a million Americans will be affected by President Trump's order that will cease Social Security payments by paper check.
Why it matters: The switch risks disrupting the financial lives of some of the most vulnerable Americans, at a time when Social Security is cutting back services to help them.
Driving the news: The federal government must stop issuing paper checks by Sept. 30 in favor of direct deposit, prepaid cards, or "other digital payment options," per an order Trump signed yesterday.
- The move is part of a broader White House effort against what it considers government waste, fraud and abuse.
- The order includes language allowing for "limited exceptions," including for people without bank accounts.
By the numbers: Nearly 456,000 Americans are still receiving paper Social Security checks as of March, per Social Security Administration data.
- That's about 0.7% of the approximately 68.2 million total recipients.
What they're saying: "The continued use of paper-based payments ... imposes unnecessary costs; delays; and risks of fraud, lost payments, theft, and inefficiencies," per Trump's order.
- "Maintaining the physical infrastructure and specialized technology for digitizing paper records cost the American taxpayer over $657 million in Fiscal Year 2024 alone."
Between the lines: Social Security recipients are by definition on the older side, and some may struggle with any changes — particularly those who have long been able to switch to direct deposit but have not done so.
- The Social Security Administration is simultaneously rushing to cut phone services at the White House's request, Axios' Emily Peck reports.
- But over-the-phone help is exactly the kind of assistance many affected recipients may need before September's deadline.
What's next: Social Security offers instructions on how to switch to direct deposit.
