In Focus – SCCCU Blog

On March 25, 2025, an Executive Order was signed requiring federal agencies to stop using paper checks for payments by September 30, 2025. This applies to payments the government sends to individuals and vendors.

What’s Changing?
After September 30, the federal government will send payments electronically instead of by paper check. This includes:

• Direct deposit to a bank or credit union account
• Prepaid cards
• Electronic Funds Transfers (EFTs)
• Debit or credit card payments
• Digital wallets or real-time payment systems

A few exceptions will remain for people without access to banking services, in certain emergency situations (such as FEMA disaster payments), or for national security reasons.

Who Will Be Affected
Most federal payments are already made electronically — about 96% to 99% of Social Security, SSI, and tax refund recipients receive their funds this way. This order will eliminate the remaining exceptions for those who still get paper checks.

Even if you don’t get federal benefits, you could still be affected. For example, if you apply for a U.S. passport, you will need to use an electronic payment method instead of a paper check.

How to Prepare
If you still receive paper checks from a federal agency, you’ll need to make the switch before September 30 to avoid payment delays:

• Update your payment information – Provide your financial institution's routing number and account number to the agency sending your payments.
• Set up direct deposit – Visit GoDirect.gov to enroll quickly.
• Choose another electronic option – Such as a prepaid card or digital wallet.

Making these changes now will help ensure your payments continue without interruption. If you have questions or need assistance, please give us a call at 831-425-7708 or stop by any of our branches for guidance.