There are limited exceptions to this sweeping change. Paper checks may still be issued in situations where an individual does not have access to banking services or electronic payment systems, when issuing electronic payments would cause undue hardship, or in rare cases involving emergency payments, law enforcement, national security, or legal requirements.

The government’s reasons for making this shift are straightforward. Paper checks are expensive to produce and process, requiring physical infrastructure and resources that ultimately cost taxpayers. They are also more vulnerable to fraud, theft, and alteration. Moving to electronic systems reduces these risks while modernizing the way the government manages its financial obligations.

This change will affect anyone who currently receives federal paper checks. Those who still receive their Social Security benefits, veterans’ payments, or IRS refunds by mail will need to switch to electronic payment methods, such as direct deposit or a prepaid debit card, before the September 30, 2025 deadline. In addition, businesses and individuals making payments to the government will need to plan for electronic transfers rather than relying on paper checks.

The bottom line is that checks from the federal government are coming to an end. Now is the time to make sure your bank information is current with the IRS, Social Security Administration, or any other federal agency from which you receive payments. For those making payments, the IRS website provides secure electronic options that will meet the new requirements.