Treasury to Phase Out Paper Checks

The U.S. Department of the Treasury recently announced it will stop issuing most paper checks for any federal benefits beginning September 30, 2025. This change is intended to help reduce fraud and theft while reducing payment delays by using fast and reliable electronic payment methods, such as direct deposit.

For the military community, the impact is expected to be limited since many already receive federal benefit payments electrically via direct deposit.  However, some still receive paper checks for federal tax refunds, Veterans benefits, and Social Security benefits.

If you still receive paper checks for any of those situations, here are actions you can take now to avoid missed payments.

Enroll in Direct Deposit

• The fastest way to make the switch is through GoDirect.gov, the Treasury’s official site for setting up direct deposit. You will need your bank routing number and account number to enroll.
• Veterans can also update their information directly through VA.gov or by calling 800-827-1000.
• If you don’t have a bank account, consider opening one at an insured bank or credit union for added security and protection.

Consider the Direct Express® Card

• If you don’t use a bank account, the Department of Treasury offers the Direct Express® card to receive your benefits safely.
• It works like a prepaid debit card and can be used at most merchants and ATMs.

Watch for Official Notices

• The Treasury and individual agencies will notify recipients with instructions for transitioning.
• Be wary of scams — visit FTC.gov/scams to learn how to spot and avoid fraud.

Plan Ahead

• Consider setting aside a small emergency fund so you have a cushion in case of delays in processing your direct deposit. You can start planning with tools like our Budget Builder and deploy these tips to build an emergency fund.

As of late 2025, paper checks from the Treasury will be mostly a thing of the past. By enrolling in direct deposit, keeping your information current, or using the Direct Express® Card, you can ensure your pay and benefits continue without interruption.

Taking these steps today will help you and your family stay financially mission-ready — no matter what changes come next.

The USAA Educational Foundation is a nonprofit, tax-exempt IRS 501(c)(3) and cannot endorse or promote any commercial supplier, product, or service. The content of this blog is intended for information purposes only and does not constitute legal, tax, or financial advice.