President Donald Trump on Tuesday signed an executive order modernizing the way the federal government disburses payments, eliminating paper checks in favor of electronic transactions.
The move could affect nearly 500,000 recipients of Social Security benefits, Axios reported Wednesday.
The order stated that starting Sept. 30, the government "shall cease issuing paper checks for all Federal disbursements inclusive of intragovernmental payments, benefits payments, vendor payments, and tax refunds."
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The order has exemptions for individuals who don't have access to banking services or electronic payment systems; certain emergency payments where electronic disbursement "would cause undue hardship"; certain activities related to national security or law enforcement; and other circumstances as determined by the Treasury secretary, "as reflected in regulations or other guidance."
It said individuals or entities qualifying for an exception or other applicable law shall be provided with alternative payment options.
A total of 455,601 Americans receive Social Security benefits through paper checks, less than 1% of the 68,154,135 total recipients, according to Social Security data released this month.
Trump's order stated the continued use of paper-based payments, including checks and money orders, "imposes unnecessary costs; delays; and risks of fraud, lost payments, theft, and inefficiencies."
The order is part of Trump's sweeping set of reforms aimed at boosting transparency and operational efficiency at the Social Security Administration.
Also on Wednesday, the agency issued updated identity verification procedures. Starting April 14, individuals applying for Social Security Disability Insurance, Medicare, or Supplemental Security Income who cannot use a personal Social Security online account can complete their claim entirely over the telephone without the need to come into an office.
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Individuals who cannot use an online Social Security account to apply for benefits will only need to prove their identity at a Social Security office if they are applying for retirement, survivors, or auxiliary (spouse or child) benefits. For those cases, the agency said it will enforce online digital identity proofing or in-person identity proofing.
The agency said it will not enforce such requirements in "extreme dire-need situations," such as terminal cases or prisoner prerelease scenarios. The agency said it is developing a process that will require documentation and management approval to bypass the policy in such dire cases.
Individuals who do not or cannot use the agency's online services to change their direct deposit information for any benefit will need to visit a Social Security office to process the change or can call (800) 772-1213 to schedule an in-person appointment.
The agency also recommended that individuals unable to apply online should call to schedule an in-person appointment to begin and complete a claim for benefits in one interaction.
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Michael Katz ✉
Michael Katz is a Newsmax reporter with more than 30 years of experience reporting and editing on news, culture, and politics.
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