How you receive your Social Security, VA benefits may change in fall: What to know
Back in March, President Donald Trump signed an executive order to modernize 'payments to and from America's bank account.' The order claimed that paper checks and money orders from the nation's general fund 'are 16 times more likely to be reported lost or stolen, returned undeliverable, or altered' compared to funds that are disbursed electronically.
To reduce such occurrences and promote 'operational efficiency,' Trump's order mandates that funds sent out by the federal government be done electronically, with a 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 September 30, with a few exceptions.
If you are without access to banking services or electronic payment systems, you may still be able to receive a non-electronic payment. 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 immediately 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.
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.
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.
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