Social Security Undergoes Permanent Changes Starting Today, September 30, Thanks to President Donald Trump

For the majority of the over 53 million retired-worker Social Security recipients, their monthly benefit is a crucial part of their finances. While the typical monthly payment for retired workers stood at $2,008.31 as of August, this amount, though not large, has played a significant role in reducing poverty among seniors. In fact, 80% to 90% of retirees depend on these payments each month to help meet their financial needs.

This longstanding program, which has provided benefits to retirees, individuals with disabilities, and survivors of deceased workers for decades, is frequently updated. The Social Security Administration (SSA) regularly introduces and announces changes, often on an annual basis.

However, the SSA is not the only authority that can modify Social Security. Thanks to an executive order (EO) signed by President Donald Trump in March, Social Security undergoes a permanent change today, Sept. 30.

Donald Trump brings an end to an 85-year Social Security tradition, starting today

The executive order titled "Modernizing Payments To and From America's Bank Account," signed by President Trump on March 25, aims to stop the federal government from issuing paper checks as of Sept. 30, the EO’s official compliance date. This affects Social Security, which has been sending out paper checks since January 1940, as well as other federal benefit programs.

On one side, this permanent update will only affect a small fraction of the more than 70 million people currently receiving Social Security payments. Electronic payments, such as direct deposit, have been available since 1975, and by 2025, over 99% of recipients will get their payments through some form of electronic funds transfer (EFT).

On the other side, more than 390,800 beneficiaries—about 0.6% of all recipients—who still receive paper checks as of September 2025, according to the SSA, will need to take steps to keep getting their monthly Social Security payments.

The reasoning behind this shift is closely tied to Donald Trump’s ongoing push to cut down on suspected fraud and unnecessary government spending. Moving to EFTs provides three main benefits:

1. Recipients get their payments much faster than with paper checks. While mailed checks can take a week or more to arrive, EFTs are processed much more quickly.
2. The president’s EO notes that paper checks from the federal government are 16 times more likely to be lost or stolen compared to EFTs.
3. Most importantly, switching to digital payments saves money. Issuing a paper check costs the government about $0.50, while an EFT costs less than $0.15 per transaction. With over 500,000 people receiving paper checks earlier this year, this move is expected to save Social Security more than $2 million annually.

Except for emergencies and individuals who cannot access digital payment methods, there are two main ways to continue receiving payments.

The simplest method is to sign up for direct deposit if you have a bank or credit union account. You can set up direct deposit in person at a Social Security office or online through your "my Social Security" account, which uses two-factor authentication. Alternatively, your bank can send your direct deposit details to the SSA through an automated process.

For those without a traditional bank or credit union account, the alternative is to use a Direct Express card, a prepaid debit card that can receive federal government deposits.

Several major updates are expected in three months

Alongside President Trump’s permanent change to Social Security through his executive order and other indirect modifications since his inauguration in January, the SSA is expected to announce a series of updates on Oct. 15 that will take effect on Jan. 1, 2026.

The most eagerly awaited update for all 70 million-plus beneficiaries is the annual cost-of-living adjustment (COLA), which serves as a yearly increase to help offset inflation. Independent projections from The Senior Citizens League, a nonpartisan senior advocacy group, and Social Security and Medicare policy analyst Mary Johnson, estimate the 2026 COLA at 2.7% and 2.8%, respectively.

If these predictions are accurate, it would be the fifth year in a row that COLAs have exceeded 2.5%, a streak last seen from 1988 to 1997. However, a projected 11.5% jump in the monthly Medicare Part B premium, along with persistent inflation in housing and healthcare services, is expected to significantly reduce the impact of next year’s COLA for many older beneficiaries.

Significant changes are also anticipated for high-income workers and those receiving the highest possible monthly benefit at full retirement age.

When there is a positive COLA and the National Average Wage Index rises, the maximum amount of earnings subject to the payroll tax also increases. In 2025, all earned income (wages and salaries, but not investment income) up to $176,100 is subject to the 12.4% payroll tax, which is the main source of Social Security funding. This cap is expected to rise in 2026, meaning higher earners will pay more in payroll taxes.

At the same time, the maximum Social Security benefit at full retirement age—$4,018 per month in 2025—is also expected to go up.

Social Security continues to adapt as a program, and both Trump’s executive order and the SSA’s anticipated announcements on Oct. 15 highlight this ongoing evolution.