Treasury Offers Exemptions for Electronic Payments to Complete Transition by September 30
The Treasury Department is offering exemptions for switching to electronic payments for those in dire need or over 90 years old, with applications processed through their department. This move aims to complete the transition by September 30, as required by law, with minimal disruption to beneficiaries.
The shift towards electronic payments has been ongoing for years, with the Social Security Administration encouraging and requiring it for new beneficiaries. Over 99% of beneficiaries already receive electronic payments, but there are still hundreds of thousands who prefer or require physical checks. These individuals often include marginalized groups such as the unbanked, homeless, or elderly with digital struggles.
Electronic payments offer several advantages. They are faster and provide better protection from theft compared to paper checks. The government stands to save money as well, with electronic funds costing just 15 cents per transaction compared to 50 cents for paper checks. Starting October 1, paper checks will only be issued for rare exceptions, following an executive order signed by President Trump in March.
The deadline for the government to be fully funded and for switching over to online direct deposit for various federal payments is September 30. A government shutdown would not affect this deadline, as Social Security benefits are paid during shutdowns and offices typically remain open. The Social Security Administration, however, has faced challenges due to staffing cuts, leading to longer wait times and difficulties reaching a human representative.
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