Gary Grippo, Treasury’s acting fiscal assistant secretary, signed a proposal in April that would shut most of the remaining doors to paper government checks. It would also end the waiver for anyone born before May 1, 1921. The rule is still only a proposal, and Treasury has set no date for it to take effect.
The proposal grew out of Executive Order 14247, signed March 25, 2025, which directs Treasury to stop issuing paper checks for federal payments to the extent the law allows. The Treasury Department’s Bureau of the Fiscal Service published the proposed rule in the Federal Register on April 29, 2026, and took comments until June 15.
Anyone who still gets a federal benefit by paper check is the person this lands on. The proposed rule itself does not name a benefit program, so the open question for a check recipient is when their own agency switches them, and what to set up before that day.
What changed this year: Social Security and Medicare change every year, and nobody sends you a memo. The Retirement Money Brief breaks down what changed and what to do.
Get the Retirement Money Brief →
We may earn a commission from links on this page.
Which waivers go and which stay
Federal payments already have to go out by electronic funds transfer unless Treasury waives the rule. That requirement dates to 1998 under 31 CFR Part 208. The proposal removes three waivers that individuals can use. One is for people born before May 1, 1921, which Treasury says would now apply only to people over 104.
The second is for people whose Direct Express accounts were suspended or cancelled. The third lets agencies keep sending checks after Treasury has offered a Treasury-sponsored account. Two hardship waivers stay, for mental impairment and for living where the infrastructure cannot support electronic payment. Agencies, not Treasury, would decide those requests and could revoke them.
The proposal also rewrites what counts as an electronic payment. It would include instant payment networks and accounts that meet 31 CFR Part 210, such as certain prepaid cards and digital wallets. The word “recipient” would expressly cover representative payees, the people who manage money for someone else. The notice would also drop two older sections, one that lets Treasury redirect payments to another account without the recipient’s consent and one on accounts for disaster victims. Tax payments would be taken out of the definition of a federal payment.
Exceptions that would remain
The notice also keeps waivers for agencies. Some need no Treasury sign-off, such as payments in disaster areas for the first 120 days and payments in countries without electronic banking. A new one covers people on Indian land that lacks electronic infrastructure.
Others need Treasury approval, including one-time payments to individuals and small businesses. A new waiver would cover groups of recipients with a reasonable need for non-electronic payment. Treasury could reject those requests and pull waivers that produce an unusually large share of check payments. Before an agency certifies any paper check, a certifying officer would have to confirm a waiver applies.
Why Treasury says checks must go
Treasury’s notice says about 97% of the more than 1.3 billion payments it makes each year are already electronic. It still printed 40.9 million checks in fiscal 2025. The average check costs $3.07 to print, about 20 times the cost of an ACH payment. By that math, the checks alone cost roughly $126 million to print.
Treasury also says checks are 16 times more likely to be reported lost or stolen, returned undeliverable or altered. A 2025 request for comment drew 248 responses, and the notice says common worries included people without bank accounts, tribal communities, seniors and people with disabilities.
What banks asked for
The comment period closed June 15 with 20 comments showing on the Federal Register page. The Independent Community Bankers of America said the same day that it “supports the overall objectives” of the proposal but wanted changes.
The trade group asked Treasury to make sure prepaid cards and digital wallets that receive federal payments meet the same baseline standards for security and consumer protection as bank accounts. It also asked for uniform hardship standards so that recipients who truly need paper checks are accommodated, and for a timely approval process for one-off checks.
Treasury has not said when it will issue a final rule. The Federal Register page lists no final rule, effective date or compliance date.
Social Security’s own timeline
Social Security does not wait on this rule. SSA says on its website that it plans to complete the transition to electronic payments for all beneficiaries this year, 2026. It gives no single cutoff date.
People can switch by signing in to a my Social Security account at ssa.gov/myaccount and adding bank details. They can also ask their bank to send the direct deposit information to SSA. Those with no bank account can enroll in Direct Express, a prepaid debit card, at GoDirect.gov or by calling 1-800-967-6857. SSA adds that people facing challenges, such as mental health concerns or living in a remote area without access to a bank, can request a waiver through Treasury.
Will your check still come in the mail next month?
A switch changes how and when money arrives. A household that budgets to the day feels any gap between the old check date and the first deposit.
The turn here is from the rule to the payment itself. The Social Security Check Protection Kit has the 2026 payment calendar, so you know the day the money should arrive. It also has a first-24-hours plan for a late or missing payment, and a worksheet for an overpayment notice.
Get the 2026 payment calendar and missing-payment steps in the Check Protection Kit →
More Financial Reading
- The New $6,000 Senior Deduction and 14 More Tax Moves for Retirees
- 21 Ways to Stretch a $2,087 Social Security Check
- 15 Steps to Stop the Scams That Took $7.7 Billion From Seniors
This article was produced with the assistance of AI and reviewed by the editorial team.
David M. Keller is a finance writer based in Columbus, Ohio, covering personal finance and consumer-focused economic topics. He earned his degree in journalism from Ohio University and began his career reporting on local business and economic trends for a regional media outlet. Since then, he has contributed to a variety of online publications, focusing on clear, practical coverage of topics such as cost of living, debt, and everyday financial decision-making.
