In a move that could significantly impact older and disabled Americans, President Donald Trump has signed an executive order requiring Social Security payments to go fully digital by September 30. The order, titled Modernizing Payments To and From America’s Bank Account, eliminates paper checks, mandating the use of direct deposit or prepaid cards such as Direct Express, with only limited exceptions.
While the shift affects a small percentage of beneficiaries—about 500,000 out of 69 million Social Security recipients—it raises concerns about accessibility for seniors and disabled individuals who rely on traditional checks. Many are unfamiliar with online banking, lack bank accounts, or have cognitive disabilities that complicate the transition.
“We don’t know how this will work, and we have concerns,” said Jennifer Burdick, a Social Security expert at Community Legal Services in Philadelphia. “Many elderly people feel more comfortable with paper checks.”
Critics also point to administrative hurdles. Social Security offices are facing staff reductions and closures, raising questions about how the transition will be implemented smoothly within six months.
While the government has long encouraged electronic payments, concerns persist over prepaid card provider Comerica Bank, which faces allegations of mishandling fraud complaints and overcharging users. Last year, the Consumer Financial Protection Bureau sued Comerica for disconnecting 24 million customer service calls and imposing illegal fees.
Michael Astrue, former Social Security Administration head under President George W. Bush, agrees with promoting electronic payments but opposes the administration’s approach. “To simply pull the right to have a check mailed is unconscionable,” he said.
Source: Philadelphia Inquirer