(NEXSTAR) — Fall is an important time of year for those who receive federal benefits, largely because Social Security’s cost-of-living increases are typically announced in October. Before that, however, you may notice another change to your payments.
In late September, how benefits from Social Security and the Department of Veterans Affairs are paid out will change for some recipients in response to a March executive order signed by President Donald Trump.
The order calls for “payments to and from America’s bank account” to be modernized. To reduce the number of paper checks and money orders that are lost, stolen, returned undeliverable, or altered — something that is “16 times more likely” to happen than with electronically-disbursed funds, according to the order — benefits are set to be disbursed electronically, with few exceptions.
The order impacts “all Federal disbursements inclusive of intragovernmental payments, benefits payments, vendor payments, and tax refunds.” That includes any benefits sent out by the Social Security Administration and the Department of Veterans Affairs.
Under Trump’s order, acceptable digital payment methods include 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 don’t already receive benefit payments electronically, you’ll need to log into your account to update your Social Security direct deposit details, speak with a representative, or contact your bank. The latter can provide your direct deposit information to Social Security on your behalf. You can also update your payment details for VA benefits online or over the 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.
