Trump’s executive orders directly affect more than 500,000 Social Security beneficiaries.
Since the first benefits check was mailed in January 1940, Social Security has provided a financial foundation for the American people. Initially, it was considered a program to financially support older people who could no longer provide themselves, but has been expanded to include workers with disabilities and survivors of deceased workers. In July, nearly 70 million people received traditional Social Security payments.
But social security is not static. The Social Security Act requires 60 votes in the Senate of Congress, which will bring about major changes, but will involve various adjustments to the Social Security Agency (SSA) programme almost in year to date.
More than seven months ago, a surge in changes to the Social Security program was announced after Donald Trump took office for his second discontinued term. Some social security adjustments will decline and flow according to the political parties that control the White House, but one of these shifts is set to change Social Security forever on September 30th.
Donald Trump is directly transforming into Social Security by the end of this month
The major changes in the matter will come courtesy of the Executive Order (EO) signed by President Trump on March 25th. While government programs affected by EO are not the only social security programmes, paper Social Security benefits checks mean that it has been less than a month since it is a thing of the past.
The good news is that most Social Security beneficiaries are not currently receiving paper checks, so they will not be directly affected by this EO. However, for 0.8% of beneficiaries still receiving paper checks (over 500,000 recipients), the “date of sentencing” of payments is rapidly approaching.
SSA provided three reasons why it makes sense to move to digital payments and move away from paper checking.
- Paper checks are much more expensive than e-fund transfers (EFTS). Paper checks cost around $0.50 to issue US government, but EFT costs less than $0.15. This should reduce the cost of issuing Social Security payments by more than $2 million a year.
- EFTS offers a faster way to benefit from the recipient’s hands. Paper checks can take several days to arrive in the beneficiary’s mailbox, but EFTS can be deposited and cleared faster.
- Digital payments are safer than paper checks. According to the SSA, paper checks are 16 times more likely to be lost or stolen than electronic payments.
Based on renewals from President Trump’s EO and SSA, more than 500,000 beneficiaries still receiving paper checks must set up direct deposits with banks or credit unions or use direct high-speed cards, a prepaid debit card that deposits federal benefits.
The Trump administration oversees other social security changes, including decorations
The end to the paper Social Security check is a direct result of President Trump’s EO, but since taking office he has overseen other changes to America’s major retirement programs.
On the first day he signed EO and created an office called the Government’s Efficiency Bureau. This is known as Doge. The purpose of Doge was to position Capitol Hill’s government inefficiency and save federal government money. Based on Doge’s findings, SSA chose to reduce its workforce from 7,000 to 50,000 employees, and closed some of its physical locations to reduce operating expenses.
Donald Trump also oversaw Frank Vignano nominations (and final confirmations) as his latest SSA commissioner. Bisignano was CEO of Global Financial Technology (“Fintech”) company Fear It was almost five years before taking on a role in SSA. He seems the perfect individual to lead the agency as it moves to digital payments.
Additionally, the SSA has implemented changes to personal identification methods that are consistent with the President’s clear desire to reduce fraud cases. As of April 2025, most beneficiaries are no longer permitted to change their direct deposit information or to apply for retirement or survivor benefits via telephone. These changes must be made directly at the Social Security Agency through my “My Social Security” account with two-factor authentication. These changes were made to reduce the likelihood of social security fraud.
Finally, President Trump oversaw changes in overpayment recovery rates since Joe Biden’s days.
By the end of the federal government’s fiscal year 2023 (September 30, 2023), $23 billion in Social Security overpayments remained collected. Biden had reduced the decoration rate to 10% due to overpayments during the presidency, but the Trump administration set an overpayment clawback rate at 50% in April. This is significantly higher than the Biden-era overpayment recovery rate, but lower than the 100% ornamental rate during Trump’s first term and during the Barack Obama administration.
There could be more changes to be brewed, but nothing will forever change the Social Security program, like closing paper checks from EO.
Sean Williams has no position in any of the stocks mentioned. Motley’s fools have no position in any of the stocks mentioned. Motley Fools have a disclosure policy.
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