A big change is coming to how the federal government sends out payments. On March 25, 2025, President Trump signed an executive order that officially ends the era of paper checks for federal disbursements.

 

Starting September 30, 2025, the IRS, Social Security Administration (SSA), U.S. Department of Veterans Affairs, and other federal agencies will no longer send out paper checks. Tax refunds, Social Security benefits, Veterans’ benefits, and most other federal payments will only be delivered electronically. Simply put: if you’re used to receiving a paper check in the mail, that option is going away.

 

?What this means for you

 

• Most taxpayers won’t notice a change. If you already get your refund through direct deposit, nothing will be different.
• If you still get paper checks, you’ll need to switch. This means signing up for direct deposit into a U.S. bank account or using the Treasury-sponsored Direct Express® Debit Mastercard®.
• Exceptions are possible. The Treasury can allow paper or alternative payments in limited cases, such as for people without access to banks or electronic payment systems, but the details haven’t been fully spelled out yet.

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Who may face challenges

 

• Unbanked and underbanked individuals (including some elderly, disabled, or rural residents).
• U.S. citizens living abroad, since IRS direct deposit only works with U.S. banks.
• Employers and employees in global mobility programs, who often rely on mailed refund checks.

 

Important distinction: Sending vs. Paying

 

The IRS has stated that Executive Order 14247 also applies to payments made to the IRS, but taxpayers should continue to use existing payment options until further notice. Additional guidance and information for filing 2025 taxes will be issued prior to the 2026 filing season. Therefore, as of now, you may continue to send paper checks for payment to the IRS after September 30, 2025, unless and until the IRS issues further guidance restricting this option. If and when the IRS requires electronic payments for tax liabilities, it will provide detailed instructions and outline any exceptions or waiver processes for those unable to comply.

 

What happens next

 

The Treasury will be rolling out an implementation plan and a public awareness campaign in the coming months. In the meantime, if you’re still receiving paper refund checks, now is the time to set up direct deposit or explore electronic options. You can learn how to do this here: The Federal Government Will Transition Away from Paper Checks to Electronic Payments | MyMoney.gov

 

You can sign up for direct deposit at GoDirect.gov if you receive payments by paper check from the following federal agencies:

• The Social Security Administration (for SS and SSI)
• Department of Labor (Black Lung)
• Department of Veterans Affairs
• Railroad Retirement Board
• Defense Finance and Accounting Service
• Office of Personnel Management (Civil Service)

 

Why the change is happening

 

?The move is aimed at reducing fraud, speeding up payments, and modernizing the government’s payment system. While that’s good news for most people, it could create hurdles for those who don’t have easy access to electronic payment options.