The federal government is mandated to discontinue issuing paper checks by September 30, transitioning to direct deposit, prepaid cards, or other digital payment methods, as per an order signed by President Trump last week. Approximately 500,000 Americans, including over 5,700 residents in Oregon, will be impacted by this directive, which halts paper check payments for Social Security.
This initiative is part of a larger White House campaign aimed at curbing what it identifies as government waste, fraud, and abuse. The order does allow for “limited exceptions” for individuals without bank accounts. This change could disrupt the financial stability of some of the nation’s most vulnerable citizens, especially as Social Security services are already being reduced.
The implications of this shift are significant, particularly for vulnerable populations. A large number of Social Security recipients are elderly or disabled individuals who may not be comfortable or familiar with digital banking methods. For those who have relied on paper checks for years.
According to data from the Social Security Administration, nearly 456,000 individuals still receive paper checks, representing about 0.7% of the total 68.2 million recipients. In Oregon, 5,726 out of 946,986 recipients are still reliant on paper checks, accounting for 0.6%.
Many Social Security recipients are older adults who may find it challenging to adapt to these changes, particularly those who have had the option to switch to direct deposit but have not done so. Compounding the issue, the Social Security Administration is also hastily cutting back on phone services at the request of the White House.
