The Social Security Administration announced on Wednesday that it will no longer require all beneficiaries to switch to electronic payments by October 1, reversing a decision made just weeks earlier. The agency confirmed to CBS MoneyWatch that paper checks will remain available for those who rely on them, citing both practical necessity and political pressure.
According to reporting by AOL, the update reflects ongoing internal assessments and external input regarding service accessibility for certain groups. The Social Security system continues to adapt its operational policies while evaluating the broader impact of payment delivery changes across its national beneficiary network.
Prior Plan Aimed to End Paper Checks in October
In mid-July, Social Security officials said they would phase out paper checks starting in October, encouraging all 70 million recipients to transition to electronic direct deposits. The agency highlighted efficiency and cost as the main drivers: each electronic payment costs 15 cents, compared to 50 cents for a paper check.
At the time, the agency promoted the change as a way to streamline processes and improve security. But critics warned the move could negatively affect vulnerable recipients, particularly those who lack access to mainstream banking.
Senator Warren Intervenes After Meeting With Commissioner Bisignano
The policy reversal followed a meeting between Senator Elizabeth Warren and Social Security Commissioner Frank Bisignano on Wednesday morning. In a press call, Warren explained her concerns:
There are about 600,000 Americans who still receive their paper checks — it’s a small fraction of people who receive Social Security payments, but it’s a population that often needs checks through paper versus electronic deposit.
She added that Commissioner Bisignano had personally assured her:
No one will be left behind and that people who have access to paper checks will get access to paper checks.
According to Warren, the unbanked population includes many older Americans who either do not trust financial institutions, cannot afford minimum balances, or face barriers related to identification or fees. These individuals often rely on non-bank services like PayPal, Venmo, or check-cashing stores to manage their finances.
Financial Inclusion Remains a Barrier for Millions
Data from AARP shows that one in five households headed by someone over 65 is either unbanked or underbanked. These populations often lack the infrastructure, digital literacy, or economic stability to use electronic banking tools, making paper checks a vital option.
The Social Security Administration acknowledged this reality, noting that it will continue to promote the benefits of electronic transfers but without eliminating the paper alternative. The goal is to encourage voluntary adoption, not force it.
Social Security Responds With Service Improvements
Warren also raised concerns about agency operations more broadly, particularly in light of recent staffing cuts that could affect customer service. She called for an independent audit by the SSA’s inspector general to evaluate call center performance, field office wait times, and the ability of beneficiaries to speak with live representatives.
More accurate data is absolutely essential to oversight, to holding the Social Security Administration accountable to the job they are required to do – Warren said.
In response, the agency presented improved service metrics. According to a Social Security spokesperson:
Commissioner Bisignano had a productive meeting with Senator Warren where he presented improved customer service metrics that are currently being realized on the phone, in field offices and online.
Among the key improvements:
- Phone wait times reduced from 30 minutes in 2024 to 18 minutes in 2025
- Disability claims backlog down by 25%
- SSFA payments delivered five months ahead of schedule
Warren reportedly reacted positively to the data, though she emphasized the need for ongoing oversight to ensure continued progress.
