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Newsweek
a day ago
- Business
- Newsweek
Social Security Alert Issued About Big Change Coming This Fall
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. The Social Security Administration (SSA) issued a new alert on Monday about its plan to discontinue issuing paper checks for benefit payments starting September 30. It marks a major shift in how millions of Americans will receive their Social Security, Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI) benefits. Why It Matters Transitioning to electronic payments carries significant implications for benefit security and government efficiency. Electronic Funds Transfers (EFTs) process payments more quickly and securely than mailed paper checks, which the SSA found are 16 times more likely to be lost, stolen or tampered with. The cost difference is notable: Issuing a paper check costs about 50 cents compared to less than 15 cents for an EFT. The transition could save the government millions of dollars each year. A Social Security Administration office in Washington, D.C., on March 26, 2025. A Social Security Administration office in Washington, D.C., on March 26, 2025. SAUL LOEB/AFP via Getty Images What To Know The shift to digital payments follows federal concerns over fraud and theft involving paper checks, which spiked during the COVID-19 pandemic. An executive order signed by President Donald Trump on March 25 mandated a government-wide move to fully digital payments in response to the risks. Nearly 500,000 Social Security recipients still receive monthly benefits by paper check. The SSA has emphasized that most beneficiaries already use electronic payments, but those who do not must enroll in a digital option—either direct deposit or the Direct Express debit card—to maintain timely benefit delivery after the cutoff date. "There are two key reasons for this change: efficiency and fraud prevention," Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek. "Digital payments streamline the distribution process, cut down on mailing costs, and reduce the potential for delays or errors while by using secure electronic payment methods, the SSA can better ensure that benefits are delivered directly to the intended recipients, reducing the risk of theft or misdirected funds." Beneficiaries who currently receive paper checks are being contacted directly by the SSA and provided guidance on how to switch to electronic payments. The agency is including informational inserts in existing paper checks, running outreach efforts, and making staff available for assistance. Recipients can update payment methods by enrolling in direct deposit with their financial institution or applying for a Direct Express prepaid debit card, which is designed for those without bank accounts. The SSA also advises recipients to remain vigilant against fraud. SSA and Treasury Department officials underscored that neither agency will ever request payment to expedite or set up benefits. Individuals facing hardship or without access to digital payment methods can apply for exemptions, which are reviewed on a case-by-case basis. Newsweek reached out to the SSA for comment via email. What People Are Saying Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek: "This move is not without challenges. Many individuals who still receive checks may lack access to digital tools or may not feel comfortable using them. These are often the same people who may be most vulnerable during the transition." Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: "This change to Social Security is a logical one. Less than 1 percent of current recipients receive their benefits through a paper check. Direct deposit is less expensive to implement and more efficient in preventing fraud, so this switch should save money of the program while also cracking down on some efforts to illegally use fund distribution through paper checks." What Happens Next The SSA is on track to complete the migration to an all-electronic benefits system by September 30. Beneficiaries are encouraged to keep their contact details up to date at and follow official guidance as the transition progresses. Additional exceptions may be considered for those with extreme barriers to digital access, but the agency's goal remains to modernize payments for improved security and service. "In the long term, the shift to digital payments is expected to enhance security, lower costs and improve overall efficiency across the Social Security system," Thompson said. "But short-term success is ultimately dependent on how well the process fundamentally works without disruption."
Newsweek
2 days ago
- Business
- Newsweek
Social Security Payments Up to $5,108 Going Out This Week: What to Know
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Millions of Americans are set to receive social security payments this week. The Social Security Administration (SSA) has published a document online containing the key dates that recipients should mark on their calendars. Some can expect to receive up to $5,108. Beneficiaries have been divided into three groups in order to stagger their benefits over three payment dates this month because of the sheer scale of distributing the money. The first group received their July funds when they were issued last week. The second group will be paid on Wednesday, while the third group will be paid on July 23. A file photo shows a Social Security Administration office in Washington, D.C., on March 26, 2025. A file photo shows a Social Security Administration office in Washington, D.C., on March 26, 2025. SAUL LOEB/AFP via Getty Images Why It Matters The SSA issues payouts each month to more than 70 million Americans. The funds include retirement payments, as well as disability and survivor benefits. Payments are sent out once a month in the form of a single lump sum for most recipients. But due to the high number of beneficiaries, not all payments are issued on the same day. What To Know Recipients whose birthday falls on the 1st to the 10th of any month were scheduled to receive their benefits on the second Wednesday of July, which means they were paid last week on July 9. Those whose birthday falls between the 11th to the 20th will be paid this week —on Wednesday, July 16. The remaining group of beneficiaries, whose birthday falls on the 21st through to the 31st, will be paid next week on July 23. What People Are Saying In recent months, there have been concerns that the SSA could be affected by President Donald Trump's attempts to slash budgets across the federal government, with tech mogul Elon Musk, being drafted in to run a newly created Department of Government Efficiency (DOGE) until he stepped down in May. Former President Joe Biden accused the pair of "taking a hatchet" to the social security system, which the White House and the SSA denied. Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, previously told Newsweek: "From a customer service standpoint, it does appear the Social Security Administration is feeling pressure at the moment, as layoffs have meant more work to do for a smaller staff of employees. The distribution of benefits has yet to see any negative effects, but with other aspects of the administration falling behind, it's easy to see why there are concerns future payments could be Americans will tolerate missed payments or slower customer service for a program they paid into for decades." What Happens Next Social security beneficiaries should receive their payments on the dates outlined above. Anyone who does not receive their payment on the scheduled date should wait three working days before contacting the SSA, the agency says, noting that Saturdays, Sundays and public holidays do not count as working days.
Newsweek
5 days ago
- Business
- Newsweek
What to Know About VantageScore: New Credit Rating For Mortgages
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Americans now have a new credit option to use when applying for a mortgage, and it allows them to use their rent payments as a qualifying factor. President Donald Trump's administration announced this week that mortgages sold to Fannie Mae and Freddie Mac will now accept the use of VantageScore 4.0 credit scores when determining loan qualifications. Why It Matters By opening up the VantageScore credit rating to qualify for a mortgage, more Americans will likely be able to be approved and subsequently purchase homes than before. The housing market has become increasingly unaffordable for the everyday American, with home prices nationwide up 0.6 percent year-over-year in May, and the median sale price set at $440,910. Mortgage rates have also exacerbated this trend, hovering in the high six percent range. A house's real estate for sale sign is seen in front of a home in Arlington, Virginia, November 19, 2020. A house's real estate for sale sign is seen in front of a home in Arlington, Virginia, November 19, 2020. SAUL LOEB/AFP via Getty Images What To Know Americans will now be able to use the VantageScore credit score to qualify for home loans, which means rent will count as a qualifying factor to be approved for a mortgage. The VantageScore 4.0 credit score ratings will now be accepted in place of the FICO 10T model, enabling all rent and utility payments to be used in the calculation of your credit score. "VantageScores are considered more flexible than traditional credit scores. They incorporate both financial and non-financial data—like utility and rent payments—to help establish creditworthiness, especially for individuals with limited credit history," Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek. "This opens the door for more people to be seen as creditworthy in the eyes of lenders." Bill Pulte, director of the Federal Housing Finance Agency (FHFA), said on X that the new order "will allow for Americans to use their RENT to qualify for a mortgage." "Credit history will no longer just include credit cards and loans," he wrote. "This is HUGE." Moving forward, the MBA said it will work with the Federal Housing Finance Agency to address the "numerous implementation questions that are necessary to realize these benefits as well as the continued conversations around credit reporting competition. Will This Lead to a Boom In Home Buyers? While more borrowers will be able to qualify for mortgages as a result of their VantageScore, there's still a possibility that lenders will approach these credit ratings with caution, Thompson said. "Even if the VantageScore appears solid, financial institutions may still view these borrowers as higher risk and compensate by charging higher interest rates," Thompson said. "So while this is a step in the right direction, it may come at a cost—access, yes, but potentially at higher borrowing rates." What People Are Saying Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek: "The inclusion of non-traditional data in VantageScores could be a positive shift for housing. It allows more borrowers—especially those with thin credit files—to qualify for mortgages by recognizing payments they're already making, like rent and utilities. That could expand access to credit and increase homeownership potential." A spokesperson for the Mortgage Bankers Association (MBA) previously told Newsweek: "MBA has consistently advocated for increased competition in credit reporting and scoring and welcomes reforms that will lower costs for consumers. FHFA's announcement to allow lenders to have a choice of credit score models to use when delivering loans to Fannie Mae and Freddie Mac could help to accomplish the goals of added competition in the credit score space and reduced consumer costs, if implemented correctly." Daryl Fairweather, chief economist for Redfin, said on X: "FHFA's approval of VantageScore is a win for competition, as it breaks FICO's monopoly on credit scores for conventional loans. This should lead to lower costs for lenders, but it's unclear if those savings will reach homebuyers in the form of lower closing costs." What Happens Next The details around how rental payment data will be reported and used is still unclear, but there could be long term effects when it comes to the housing market. "This could be a huge boost for some borrowers, as the ability to make these monthly cost-of-living payments could enhance the score usually just associated with debt. At the same point, parts of the decision are still unclear, and it remains to be seen how it will impact the housing market," Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek. "Obviously, the goal is to get more borrowers to qualify for a mortgage, but just how making bill payments will dramatically do so is still a work in progress."
Newsweek
08-07-2025
- Business
- Newsweek
Social Security Update: Payout Shift Triggers Drop in Personal Income
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Personal income in the United States declined by 0.4 percent in May, marking the first monthly drop since 2021, according to recently released government data. The decrease was not driven by Americans earning less, but was instead attributed to a shift in Social Security benefit payouts. This change comes amid ongoing concerns about the financial sustainability of the program, as its trust fund is forecast to run out of cash within the next 10 years unless legislative action occurs. Why It Matters The decline in personal income underscores the significant influence that Social Security has on the nation's economic well-being. With more than 60 million Americans receiving benefits, even modest adjustments in payouts can affect broader measures of household income and economic stability. Concerns about Social Security's solvency have been mounting, with the program facing automatic benefit reductions if Congress does not intervene before the trust fund is depleted. According to a report released by Social Security trustees last month, once the trust fund is exhausted, payroll taxes would only be sufficient to cover about 77 percent of scheduled benefits. Advocates and policymakers warn that such cuts could increase poverty rates among older Americans and disrupt finances of millions who depend on these payments. A Social Security Administration office in Washington, D.C., is pictured on March 26. A Social Security Administration office in Washington, D.C., is pictured on March 26. SAUL LOEB/AFP via Getty Images What To Know In May, there was a 0.4 percent dip in personal income, following a 0.8 percent rise in April. Analysts have attributed the decline not to lower wages or earnings, but to a specific change in how Social Security benefits were distributed. Since the Social Security Fairness Act went into effect, retroactive payments were sent out to beneficiaries in March and April, triggering monthly income to temporarily rise for nearly 3 million recipients. The law affects former public sector workers whose jobs previously did not receive equal coverage from Social Security. Due to the boost, it appeared income dropped in May, but moving forward, the extra benefits will be factored into monthly payments. "What really happened is that the Social Security Fairness Act eliminated two provisions. The Windfall Elimination Provision (WEP) & the Government Pension Offset (GPO). They previously reduced benefits for individuals who also receive income from public pensions," Michael Ryan, finance expert and founder of told Newsweek. "These retired teachers, firefighters, and government workers had been getting the short end of the stick for years. Having their Social Security benefits slashed just because they'd also earned a pension from their public service jobs," Ryan added. The Social Security trust fund is projected to run out of cash by 2033, about nine months sooner than anticipated last year, due in part to the new Social Security Fairness Act. Trustees have warned that, without legislative intervention, benefits for over 60 million recipients would automatically be slashed by 23 percent once the fund is empty. A recent analysis from the Committee for a Responsible Federal Budget projected that a typical couple could see annual Social Security benefits drop by up to $16,500 in 2033 if no fix is enacted, while a middle-income single worker could face a reduction of $8,200 per year. This amounts to an automatic 21 percent cut to monthly checks. More than 11,000 baby boomers now reach retirement age daily, resulting in fewer workers supporting a growing population of beneficiaries. Decades of surplus payroll taxes have created a large, but dwindling, trust fund buffer. Once depleted, incoming payroll taxes would only sustain partial payments, covering 77 percent to 79 percent of promised benefits, according to current estimates. Potential solutions discussed include raising payroll taxes, lifting the income cap on taxable wages, cutting benefits or raising the retirement age. However, these proposals face political resistance and there have been no specific plans proposed by the president or Congress. What People Are Saying Ryan also told Newsweek: "When May rolled around and those lump sums disappeared from the monthly calculations, it looked like everyone suddenly got poorer. It's like if you got a big tax refund in April. Your income would spike that month, then 'drop' in May even though you're not actually making less money." Martha Shedden, president and co-founder of the National Association of Registered Social Security Analysts, told Newsweek: "Beneficiaries affected by the Social Security Fairness Act were issued retroactive checks by the SSA for their new monthly amounts, some for as many as 16 months back to January 2024. "Those individuals are now receiving higher monthly benefit checks that will not change going forward except for the annual COLAs each January." What's Next Congress faces increasing pressure to address Social Security's funding gap before the trust fund depletion deadline in 2033. Should legislators fail to take action, automatic benefit cuts will be enacted under current law, significantly impacting retirees' incomes and potentially further reducing nationwide personal income figures. At the moment, the Social Security Fairness Act is adding even more strain to the financially overrun system. "This is fantastic news for about 2.8 million public sector retirees who've been getting shafted by these arcane rules. But it's also adding pressure to Social Security's already strained finances. We're talking about billions in additional payouts at a time when the program's trustees are warning about fund depletion," Ryan said. "It's honestly a perfect storm of good intentions meeting fiscal reality. We're essentially robbing from tomorrow's beneficiaries to pay today's."
Toronto Sun
02-07-2025
- Politics
- Toronto Sun
U.S. senator urges bribery probe over Trump-Paramount settlement
Published Jul 02, 2025 • 3 minute read SAUL LOEB/AFP/File Photo by SAUL LOEB / AFP/File Washington (AFP) — A U.S. senator renewed calls Wednesday for a bribery probe into Paramount following its reported $16 million settlement with President Donald Trump over a lawsuit the entertainment giant initially described as meritless. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account The president had sued the CBS News parent company for $20 billion, claiming its '60 Minutes' program had deceptively edited an interview with his 2024 election rival Kamala Harris in her favour. The suit is described by Trump's critics as part of a broader assault on press freedom that has seen him bar the Associated Press from the Oval Office and sue other media organizations over their coverage. Paramount nevertheless entered into mediation in a bid to placate Trump, as it seeks to close its $8 billion merger with the entertainment company Skydance, which needs federal government approval. 'With Paramount folding to Donald Trump at the same time the company needs his administration's approval for its billion-dollar merger, this could be bribery in plain sight,' said Massachusetts Senator Elizabeth Warren, a Democrat. Your noon-hour look at what's happening in Toronto and beyond. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. 'Paramount has refused to provide answers to a congressional inquiry, so I'm calling for a full investigation into whether or not any anti-bribery laws were broken.' Warren was among three senators who wrote to Paramount Global Chair Shari Redstone in May with bribery concerns over the company's efforts to settle the suit, and calling for a congressional probe. Republicans control both chambers of Congress, limiting the power of Democrats to investigate or compel answers from witnesses. The senators' letter came after CBS News head Wendy McMahon and '60 Minutes' executive producer Bill Owens announced they were quitting over Paramount's handling of the showdown with Trump. 'Paramount's surrender' The company — which didn't immediately respond to AFP's request for comment — initially called the suit 'completely without merit' and had sought to have it dismissed. This advertisement has not loaded yet, but your article continues below. 'The Trump administration's level of sheer corruption is appalling and Paramount should be ashamed of putting its profits over independent journalism,' Warren added. Trump accuses CBS of airing two different snippets from the same answer that Harris, then vice president, gave about Israel, to help her in her election campaign. The Republican billionaire sued last October, alleging that the interview violated a Texas consumer protection law. Legal experts have argued that the lawsuit would have been an easy victory in court for CBS, which made public an unedited transcript of the Harris interview. And media watchers have pointed out that Trump routinely takes part in interviews that are edited for all manner of reasons, often in his favor. This advertisement has not loaded yet, but your article continues below. The $16 million will go toward Trump's future presidential library rather than to him personally, according to a Paramount statement published by the Los Angeles Times Tuesday. ABC News, owned by Disney, agreed to donate a similar amount to the library in its own settlement with Trump late last year. Jameel Jaffer, executive director of the Knight First Amendment Institute at Columbia University, called the settlement 'a sad day for press freedom.' 'This was a frivolous lawsuit and the payment being described as a 'settlement' bears no relation to Paramount's actual legal exposure in the case, which was negligible,' he said in a statement. 'Paramount should have fought this extortionate lawsuit in court, and it would have prevailed. Now Trump's presidential library will be a permanent monument to Paramount's surrender, a continual reminder of its failure to defend freedoms that are essential to our democracy.' Ontario Toronto Maple Leafs Toronto Maple Leafs Ontario Celebrity
