(NEXSTAR) — Fall ushers in significant changes for those receiving federal benefits as Social Security’s cost-of-living adjustments are usually revealed in October. However, before that notice, you might observe another modification to your payments.
In late September, modifications will occur in how benefits from Social Security and the Department of Veterans Affairs are distributed for certain recipients, following an executive order signed in March by President Donald Trump.
The order mandates modernization of “payments to and from America’s bank account.” To cut down on the number of paper checks and money orders that get lost, stolen, undelivered, or altered—issues that are “16 times more likely” than with electronic funds, as outlined in the order—benefits will primarily be distributed electronically, with limited exceptions.
This order affects “all Federal disbursements,” encompassing intragovernmental payments, benefit distributions, vendor payments, and tax refunds. This includes benefits disbursed by both the Social Security Administration and the Department of Veterans Affairs.
Trump’s order specifies digital payment methods such as direct deposit, prepaid cards, digital wallets, real-time payment systems, and “other modern electronic payment options.”
Paper payments are set to end on Sept. 30, with a few exceptions.
If you haven’t yet transitioned to receiving electronic benefit payments, you’ll need to log into your account to update your Social Security direct deposit details, contact a representative, or consult your bank. Your bank can forward your direct deposit information to Social Security on your behalf. For VA benefits, you can update your payment preferences online or by phone.
You may still be able to receive paper payments if you do not have access to banking services or online payment systems. Other exceptions outlined in Trump’s order include “emergency payments where electronic disbursement would cause undue hardship,” transactions in which non-electronic payments are “necessary or desirable,” and other situations as determined by the Treasury Secretary.
The Social Security Administration and the Department of Veterans Affairs did not respond to Nexstar’s request for additional information. Data from the former shows more than 99 percent of beneficiaries already receive payments via direct deposit.
It’s also worth noting that the order calls for “the payment of Federal receipts” to be made electronically as well. That means if you owe federal taxes, you may not be able to send it in as a check or an envelope of cash and coins. The same could be said for federal student loan payments.
