August 2025 brings a major update for anyone still receiving federal paper checks for benefits, tax refunds, or payroll.
Starting September 30, 2025, the U.S. Treasury will cease issuing paper checks for most federal payments—ushering in a full transition to electronic payments. This update affects programs like Social Security, Veterans benefits, and IRS refunds.
Why the Shift Is Happening
The move to digital payments stems from an executive order aimed at modernizing federal disbursements. The goals are clear: cut fraud, slash costs, and eliminate mail delays.
Treasury officials highlight that paper checks are up to 16 times more likely to be lost, stolen, or intercepted than electronic funds transfers (EFTs). Plus, maintaining the paper-based system cost taxpayers over $650 million in FY 2024.
Who’s Impacted and What You Need to Do
If you’re among the majority already using direct deposit, no action is needed. But if you still get paper checks, it’s time to switch to electronic methods. You have several secure options:
- Enroll in direct deposit via GoDirect.gov or your paying agency.
- Call the Electronic Payment Solution Center at 800-967-6857.
- Sign up for the Direct Express prepaid debit card if you don’t have a bank account.
The deadline is September 30, and after that date, paper checks will no longer be issued—except in rare cases of verified financial hardship.
Transition Timeline at a Glance
| Date | Event |
|---|---|
| March 25, 2025 | Executive order issued mandating change |
| August 2025 | Public awareness campaigns in full swing |
| September 30, 2025 | Last day for federal paper check issuance |
| October 1, 2025 | All payments go electronic by default |
The government is actively guiding recipients through this change, offering support including setting up bank accounts through FDIC.gov/GetBanked or accessing a Direct Express card.
Why You Should Act Now
Modernizing payments brings tangible advantages. Electronic transfers are faster, often arriving days sooner than paper checks. They’re more secure, with significantly reduced risk of theft or interference.
They also offer legal protection, such as the two-month creditor freeze that deposits via direct deposit provide—protection paper checks do not. But delays in transitioning can disrupt your regular benefits or refunds.
The Treasury’s decision to discontinue paper checks by September 30, 2025 marks a major modernization milestone for federal payments.
With fraud and delays mitigated, and efficiency improved, the shift brings real benefits—but only if you act in time.
If you’re still receiving paper checks, enroll in direct deposit or choose the Direct Express card today to ensure uninterrupted access to your federal benefits and refunds.
FAQs
Will I still get paper checks after September 30?
Only if you qualify for a formal hardship exception—otherwise, all payments will move to electronic disbursement.
What if I don’t have a bank account?
You can enroll in the Direct Express prepaid debit card, which allows electronic payments without opening a traditional bank account.
Is it safe to give my bank details online?
Yes. GoDirect.gov and official agency portals use secure systems—avoid phishing by verifying contact methods before responding.