Many Americans are just now realizing something major has changed with their federal payments. Social Security checks, VA benefits, SSDI, SSI, railroad retirement, and even IRS tax refunds are no longer being mailed as paper checks.

This change did not happen overnight. It comes from a presidential executive order signed in March 2025 and fully enforced starting October 1, 2025. Since then, the federal government has eliminated paper checks for nearly all federal payments.

As we move into the 2026 tax filing season, this change is about to catch millions of people off guard—especially those who still expect tax refund checks to arrive in the mail.

This article explains what changed, who is affected, what your options are, and what you must do now to avoid payment delays.

What Is the Executive Order on Federal Electronic Payments?

In March 2025, the President signed an executive order requiring all federal payments to be issued electronically instead of by paper check. The goal was to reduce fraud, lower costs, speed up payments, and modernize government systems.

The order became fully effective on October 1, 2025, and it applies to all federal benefit and refund payments.

Official Treasury guidance:
https://fiscal.treasury.gov/eft/

Which Federal Payments Are Affected?

If you receive money from the federal government, this change applies to you. This includes:

Social Security retirement benefits
Social Security Disability Insurance (SSDI)
Supplemental Security Income (SSI)
Survivors and spousal benefits
Veterans Affairs (VA) benefits
Railroad Retirement Board (RRB) benefits
IRS tax refunds
Any other federal payment

Paper checks are no longer the default payment method for any of these programs.

Social Security Administration official site:
https://www.ssa.gov/

Veterans Affairs official site:
https://www.va.gov/

Railroad Retirement Board official site:
https://www.rrb.gov/

Internal Revenue Service official site:
https://www.irs.gov/

When Did This Actually Start?

March 2025 – Executive order signed
October 1, 2025 – Mandatory electronic payments begin
Early 2026 – Tax filing season brings renewed attention

This means the system has already been in place for months. If you were receiving paper checks before October 2025, your agency should have contacted you to switch.

Are Paper Checks Completely Eliminated?

Yes. Paper checks are no longer issued unless you qualify for a rare hardship exemption.

If you are still receiving paper checks, one of two things is happening:

You were approved for a specific exemption, or
There was an error, and you must contact your agency immediately

Treasury payment rules:
https://fiscal.treasury.gov/payments.html

Your Three Payment Options Now

1. Direct Deposit (Recommended)

Your benefits or tax refund are deposited directly into your checking or savings account.

Fastest and most secure option.
Social Security direct deposit info:
https://www.ssa.gov/deposit/

IRS refund direct deposit info:
https://www.irs.gov/refunds

2. Direct Express Debit Card

A prepaid debit card designed for federal benefits. No bank account required.

No monthly maintenance fee
Free basic transactions
Cash withdrawals available

Direct Express official site:
https://www.usdirectexpress.com/

3. Hardship Exemption (Very Limited)

Paper checks are allowed only if you can prove electronic payments cause a substantial hardship.

Approval is difficult and requires documentation.

Treasury exemption rules:
https://fiscal.treasury.gov/eft/faq.html

Why This Matters So Much for Tax Refunds in 2026

Millions of Americans still expect IRS refund checks by mail. That will not happen anymore.

If you file a tax return and expect a refund:

You must provide direct deposit or electronic payment information
If you do not, your refund will be delayed

IRS refund processing info:
https://www.irs.gov/refunds/when-is-my-refund

Who Is Most Affected by This Change?

Seniors without bank accounts
People in rural areas with limited banking access
Individuals with disabilities
Unbanked households
People experiencing homelessness
Tax filers who rely on paper refunds

Despite concerns, most recipients have already transitioned successfully.

What You Should Do Right Now

If You Already Get Electronic Payments

You do not need to do anything.

If You Still Receive Paper Checks

Contact your benefit agency immediately.

Social Security contact:
https://www.ssa.gov/contact/

VA contact:
https://www.va.gov/contact-us/

RRB contact:
https://www.rrb.gov/Contact

If You Are Filing Taxes and Expect a Refund

You must provide:

Bank routing number
Bank account number
Account type (checking or savings)

If you do not have a bank account:

Open a low-fee or credit union account
Use a prepaid debit card that accepts direct deposit
Use a tax preparer refund account (check fees carefully)

IRS payment options:
https://www.irs.gov/payments

Security and Trust Concerns Explained

Electronic payments are more secure than paper checks.
Bank accounts are insured up to $250,000 by the FDIC.

FDIC coverage info:
https://www.fdic.gov/resources/deposit-insurance/

Direct Express also includes federal consumer protections.

The Bigger Picture

This executive order is part of a long-term shift toward digital government services, similar to SNAP EBT cards and electronic tax refunds.

For most people, electronic payments are faster, safer, and more reliable. However, agencies must continue helping vulnerable populations adapt.

Frequently Asked Questions (20 High-Search FAQs)

1. Are Social Security paper checks stopped?

Yes. Paper checks ended October 1, 2025.
https://www.ssa.gov/deposit/

2. Does this affect SSDI and SSI?

Yes. All Social Security programs are included.
https://www.ssa.gov/benefits/

3. Are VA benefits paid electronically now?

Yes. Paper checks are eliminated.
https://www.va.gov/resources/direct-deposit-for-va-benefits/

4. Can I still get a paper tax refund check?

Only with a rare hardship exemption.
https://www.irs.gov/payments

5. What happens if I do not provide bank info on my tax return?

Your refund will be delayed.
https://www.irs.gov/refunds

6. What is the Direct Express card?

A prepaid debit card for federal benefits.
https://www.usdirectexpress.com/

7. Is Direct Express free?

Yes, for basic use.
https://www.usdirectexpress.com/faq.html

8. Are electronic payments safer than checks?

Yes. They reduce theft and fraud.
https://fiscal.treasury.gov/eft/

9. Can seniors still receive benefits without a bank account?

Yes, using Direct Express.
https://www.ssa.gov/deposit/

10. Does this apply to Railroad Retirement benefits?

Yes.
https://www.rrb.gov/Benefits/Payment

11. What if I cannot manage a debit card?

You may assign a representative payee.
https://www.ssa.gov/payee/