U.S. Treasury to Stop Issuing Paper Checks Eventually
How Executive Order 14247 Will Change the Way Americans Receive Federal Payments, From Tax Refunds to Social Security Benefits
UPDATE: December 1, 2025
Government Softens Stance on “No Paper Checks” Deadline
Contrary to previous announcements regarding a strict deadline for the cessation of federal paper checks, the Social Security Administration (SSA) and the U.S. government have adopted a softer, more flexible approach. While the transition to electronic payments remains the primary goal, officials have confirmed that beneficiaries will not lose their benefits if they are unable to make the switch.
Key Changes to the Policy
In a move designed to protect vulnerable populations, the SSA has clarified that paper checks will still be permitted for individuals who have legitimate barriers to digital banking. Exceptions are now being made for:
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Seniors who struggle with technology.
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Rural residents with unreliable internet access or no nearby banking facilities.
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Unbanked individuals who lack smartphones or bank accounts.
What This Means for Beneficiaries
The government has acknowledged that a hard cutoff could cause panic or financial instability for those relying on traditional mail. Consequently, the transition will be gradual rather than sudden.
If you currently receive a paper check:
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If you can switch: The government still encourages you to switch to Direct Deposit (safest) or apply for the Direct Express® Card (works like a debit card).
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If you cannot switch: You can contact the U.S. Treasury’s payment center to explain your situation and request a waiver to continue receiving paper checks.
Original Post: September 10, 2025
Effective September 30, 2025, the U.S. Treasury will stop issuing paper checks for federal payments, including tax refunds. This change is mandated by Executive Order 14247, “Modernizing Payments To and From America’s Bank Account,” which aims to reduce the costs, delays, and security risks associated with paper-based transactions. Taxpayers who typically receive a paper check for their tax refund should prepare to switch to an electronic payment method, such as direct deposit, to ensure they receive their money without delay.
The Shift to Electronic Payments
The White House issued Executive Order 14247 on March 25, 2025, to usher in a new era of digital financial transactions with the federal government. The directive sets a clear deadline for the cessation of paper checks while also encouraging electronic payments to the government “as soon as practicable.” This move is a direct response to the rising inefficiencies and vulnerabilities of paper-based systems, including an increase in mail theft and a higher rate of lost or stolen checks.
Why the Change?
The federal government is modernizing its payment systems to create a more secure and efficient process. Paper checks are significantly more likely to be reported as lost, stolen, or altered compared to electronic funds transfers (EFTs). By transitioning to digital methods like direct deposit, the Treasury aims to mitigate these risks and reduce the administrative burden of managing paper-based payments.
New Ways to Receive Federal Payments
To support this transition, the Treasury is instructed to promote a variety of electronic payment options. These include direct deposits, debt or credit card payments, digital wallets, and other electronic payment systems.
While the primary goal is a full transition to electronic payments, the executive order does authorize limited exceptions. The Treasury may grant an exception if an electronic payment is not feasible, for example, for individuals who do not have access to banking services. Other potential exceptions include:
- Emergency payments when electronic disbursement would cause undue hardships;
- National security and law enforcement-related activities when non-EFT transactions are necessary or desirable; and
- Other circumstances as determined by the Secretary of the Treasury.
What to Do If You Currently Receive a Paper Check
With the September 30 deadline fast approaching, individuals who rely on paper checks for federal payments, such as a tax refund, should proactively explore their electronic options. Although the Treasury requested public comments on the implementation of the executive order, there has been no indication that the deadline will be postponed. To ensure a timely receipt of your funds, consider setting up direct deposit or another electronic payment system with the appropriate government agency as soon as possible using one of the following options:
- Call the Federal agency that pays your benefits and follow their instructions for enrolling in direct deposit. A list of the paying agencies’ contact information can be found here.
- Enrolling online at GoDirect.gov
- Call the Electronic Payment Solution Center at 800-967-6857, Monday – Friday 9:00 a.m.-7:00 p.m. ET
For Brady Ware clients: If your return is still on extension for 2024, please confirm that we have your current bank info on file so there are no delays in receiving your refund (if applicable). Please reach out to your engagement lead if you have questions or concerns.
Questions?
Kristin is a Brady Ware Shareholder with over a decade of experience, specializing in tax services for pass-through entities and complex individual tax situations. She serves clients across various industries, including real estate, wholesaling, and professional services. Kristin provides strategic guidance to help clients navigate their financial landscape confidently.