How Trump's Social Security change affects Texans
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More than 32,000 Texans 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 this week.
- 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: About 0.7% of Texans are still receiving paper Social Security checks, per Social Security Administration data.
- Most Americans opt for direct deposit, but there's still about 456,000 paper holdouts across the country.
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."
What's next: Social Security offers instructions on how to switch to direct deposit.