00:00The familiar paper Social Security check, a staple for millions, is disappearing.
00:05By September 30, 2025, all federal benefit payments, including Social Security and
00:11Supplemental Security income, will be fully electronic. This move, mandated by a March
00:16executive order from President Trump, aims to save the government over $657 million annually,
00:22the cost of maintaining the physical infrastructure for paper checks.
00:25Nearly 500,000 beneficiaries still receive paper checks, a group disproportionately composed
00:31of those over 80, individuals in rural areas without internet access, and people with disabilities.
00:38Experts like Teresa Gallarducci, an economist at the New School for Social Research,
00:43voice concerns about potential delays and anxiety for those who rely heavily on these payments.
00:48Mary Johnson, a Social Security analyst, highlights the significant impact on unbanked households,
00:534.2% of all U.S. households in 2023, who may lack the trust, funds, or privacy needed for
01:00traditional bank accounts. While the Social Security Administration urges beneficiaries to
01:06update direct deposit information online, by phone, or at local offices, many, especially the elderly,
01:12struggle with digital literacy and access. The agency suggests prepaid debit cards through the
01:18Direct Express program as an alternative for those without bank accounts. In rare cases,
01:23the Treasury Department may grant waivers to the electronic payment mandate.
01:28Critics like Nancy Altman of Social Security Works argue this policy lacks sensitivity towards
01:32vulnerable populations, forcing them into a system they may not be equipped to navigate.
01:38The White House, however, defends the decision, citing a surge in mail theft and fraud involving
01:43paper checks during the COVID-19 pandemic, noting paper checks are 16 times more likely to be lost or
01:49stolen than electronic transfers. Money explainers.
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