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Important Update: Paper Checks from the Government Are Being Phased Out

Published: May 22, 2025

The end of paper checks is coming soon

If you currently receive physical checks from the government for income tax refunds or Social Security payments, take note – this process is changing. On March 25, 2025, President Trump signed an executive order requiring the federal government to discontinue the issuance of paper checks as of September 30, 2025. After that date, all such payments will be made electronically via direct deposit to your bank account, debit account, or digital wallet. According to a fact sheet issued by the White House, this shift is expected to be more cost-effective, faster, and should provide enhanced security.

Order is anticipated to have limited impact

While the majority of monthly Social Security payments and tax refunds are already paid electronically, according to the New York Times, approximately 486,000 paper checks are still issued monthly, in addition to over 200,000 sent to recipients of Supplemental Security Income, available to people with low incomes who are blind or disabled. If you currently receive paper checks, you will have to create an online account and provide electronic payment instructions to continue receiving your benefits after the deadline.

Electronic payments are harder to steal

Paper checks can be delayed, lost or stolen. As thieves grow more sophisticated, they have resorted to techniques such as chemical washing, which allows them to alter the name and the amount before cashing them fraudulently. Electronic payments help reduce these risks and offer better protection for recipients.

What happens if you don’t have a bank account?

The executive order allows for “limited exceptions” for individuals without access to banking or electronic payment access, though details on how this will be handled are still unclear. However, since the percentage of individuals without a traditional checking or savings account continues to drop, the order is not expected to affect most people.

What about payments to the government?

This change doesn’t just apply to payments FROM the federal government. Starting September 30, 2025, all payments TO the federal government, including income taxes and passport application fees, must also be made electronically.

If you have any questions about how this change may affect you or a family member, please do not hesitate to call us at 212.492.7000. We are here to provide support on this or any other issue you may have.

As always, we are honored to serve as your trusted advisor. If you are not yet working with Klingenstein Fields Advisors, we welcome the opportunity to discuss how we can help you and your family achieve your long-term wealth planning goals.

Important Disclosures

This material is provided for informational or educational purposes only and should not be construed as investment, accounting, tax or legal advice. Always consult a financial, tax and/or legal professional regarding your specific situation. This communication is not intended as a recommendation or as investment advice of any kind. It is not provided in a fiduciary capacity and may not be relied upon for or in connection with the making of investment decisions. Nothing herein constitutes or should be construed as an offering of advisory services or an offer to sell or a solicitation to buy any securities or a recommendation to invest in any specific investment strategy. Investing involves risk, including the possible loss of principal. Past performance is not indicative of future returns. The views expressed herein are as of a particular point in time and are subject to change without notice. The information and opinions presented herein are general in nature and have been obtained from, or are based on, sources believed by Klingenstein Fields Advisors (“KF Advisors’) to be reliable, but KF Advisors makes no representation as to their accuracy or completeness. Although the information provided is carefully reviewed, KF Advisors cannot be held responsible for any direct or incidental loss resulting from applying any of the information provided. KF Advisors represents two investment advisers registered with the Securities and Exchange Commission: Klingenstein, Fields & Co., L.P. ® and KF Group, LP. If you are a KF Advisors client, please remember that it remains your responsibility to advise KF Advisors, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services.