In March of 2025 President Trump signed Executive Order 14247 which mandated that the U.S. Department of the Treasury stop issuing most paper checks for federal payments. As of September 30, 2025, the treasury will no longer issue checks for tax refunds, Social Security, and Veterans Affairs benefits. Its aim is to modernize payments, reduce fraud and theft, and eliminate delays.
Most recipients who already receive payments electronically will not need to do anything. Those currently receiving paper checks must switch to electronic payment methods, such as direct deposit into a bank account or a Direct Express prepaid debit card, which is run by the treasury department and currently administered by 5/3 Bank.
Last year the IRS issued over 90 million refunds via direct deposit. But there are still approximately 5.9 million taxpayers who received their tax refund via paper checks. This year they must switch to an electronic payment method to receive future refunds without potential delays.
The Social Security Administration (SSA) reports that the number of people affected is over half a million beneficiaries, including approximately 397,000 Social Security beneficiaries and 238,000 Supplemental Security Income (SSI) recipients. The SSA has been reaching out to those affected to encourage them to switch to electronic payments via direct deposit or a Direct Express prepaid debit card.
The Department of Veterans Affairs has also stated that most of its beneficiaries already use electronic payments. In June 2025, the VA reported that around 120,000 veterans and their family members, which is fewer than 3%, were still receiving monthly paper checks for disability, survivor, and other compensation. The VA has been working to transition these individuals into electronic payments in preparation for the September 30, 2025.
But for the millions of Americans without bank accounts or reliable internet access the transition presents a significant challenge for the “unbanked” population—the 4.2% of U.S. households (around 5.6 million people) who lack checking or savings accounts. Many of these individuals are minorities, low-income, or live in rural areas with limited internet access.
In an FDIC 2023 survey the main reasons Americans are unbanked include financial constraints, historical distrust, and barriers to access. They found that 42% of unbanked households couldn’t meet the minimum balance requirements, which often range from $100 to $500 to avoid monthly maintenance fees. While nearly 35% of unbanked consumers cite concerns about high and unpredictable fees, such as overdraft fees, which can quickly deplete limited funds. Plus, if you happen to have a history of financial mistakes, like unpaid overdraft fees, it can land you on ChexSystems, a banking background check service that makes opening new accounts very difficult.
Historically, marginalized communities have been systematically excluded from financial services. For example, some banks have not maintained branches in low-income areas, creating “banking deserts” where access to traditional banking is limited.
To fix this situation a multifaceted approach is required, leveraging digital technology, policy changes, and financial literacy. Mobile banking and digital wallets offer low-cost, accessible services that bypass geographical barriers. Programs such as the Bank On initiative for low fee accounts and explore alternative data like bill payments to establish creditworthiness. Simultaneously, fostering public-private partnerships can develop financial education programs that build trust and encourage account usage. Expanding broadband access also enables individuals to engage with these digital solutions.
We can turn “banking deserts” into blooming financial gardens.
If you know anyone who is still “waiting for their check” please help them to apply for Direct Express, visit GoDirect.gov. You will need your Social Security number, personal information, and the details from a recent federal benefit check or claim number. You can also apply by phone by contacting their enrollment center at the number provided on their official website, USDirectExpress.com.
As for Medicare 2026 be aware that Medicare Advantage plans are undergoing broad changes that will affect enrollees nationwide, including those in Michigan. I can confirm that the following companies will have major changes including but not limited to elimination of certain plans: Blue Cross Blue Shield of Michigan; UM Health Plan; Aetna; UnitedHealthcare/AARP and Humana.
As you know, CMS rules bar us from giving detailed information until after October 1st, so If you have any questions call after next Wednesday. I have answers.