SSDI News You Can Use: What Changed in August and September 2025

As advocates for individuals living with disabilities, we utilize our SSDI blog to translate government updates into actionable guidance. The last two months have brought several meaningful developments that affect how benefits are paid, how quickly some claims are processed, and what to expect from next year’s cost-of-living adjustment. Below, our SSDI advocates break down each change, explain who is affected, and share simple action steps you can take now.

Electronic payments are becoming the rule: paper checks end September 30, 2025

The U.S. Department of the Treasury will stop issuing paper checks for most federal payments on September 30, 2025, and that includes Social Security Disability Insurance. If you are one of the relatively small number of people still receiving a paper check, you will need to switch to direct deposit or to the Treasury-sponsored Direct Express debit card. Treasury is steering the change to cut fraud, speed up delivery, and reduce costs. You can enroll in several ways, including contacting your bank, using your my Social Security account, visiting GoDirect.gov, or calling the Electronic Payment Solution Center at 800-967-6857.

Who is affected: Less than one percent of beneficiaries still receive paper checks. The Social Security Administration has emphasized that electronic payments are faster and far less likely to be lost or stolen. If you are unable to use online services, local offices can assist you in transitioning.

What to do now:

1. If you have a bank account, enroll in direct deposit through your bank or your My Social Security account.
2. If you do not have a bank account, ask about the Direct Express card when you call the Electronic Payment Solution Center.
3. Beware of scams that pressure you to “confirm” bank information by phone or text. Use official numbers and websites only, and never give account details to anyone who contacts you first.

Why this matters: Mailing delays, check theft, and natural disasters can all interrupt paper payments. Electronic payments typically arrive on time, are easier to trace, and can be replaced more quickly if something goes wrong.

Faster paths for the most serious diagnoses: 13 new Compassionate Allowances conditions

On August 11, the Social Security Administration added 13 conditions to its Compassionate Allowances list, which flags the most severe medical diagnoses for expedited decisions. With these additions, the list now contains 300 conditions. Compassionate Allowances does not change the legal standard for disability. Still, it helps the agency identify likely eligible cases quickly, often reducing decision times by months when medical evidence is clear.

The new additions include: Au-Kline Syndrome, Bilateral Anophthalmia, Carey-Fineman-Ziter Syndrome, Harlequin Ichthyosis (child), Hematopoietic Stem Cell Transplantation, LMNA-related Congenital Muscular Dystrophy, Progressive Muscular Atrophy, Pulmonary Amyloidosis (AL type), Rasmussen Encephalitis, Thymic Carcinoma, Turnpenny-Fry Syndrome, WHO Grade III Meningiomas, and Zhu-Tokita-Takenouchi-Kim Syndrome.

What this means for you: If your condition is on the list, tell SSA at the start of your application and make sure your medical records clearly document the diagnosis. A Compassionate Allowances flag can accelerate the medical decision, but nonmedical factors still apply for SSDI claims, including your work credits and recent earnings. For SSI, financial eligibility rules must still be met.

Tips to leverage CAL effectively:
• Submit definitive diagnostic evidence: pathology reports, genetic test results, imaging, or specialist notes that clearly confirm the condition.
• Organize records chronologically and label them. Adjudicators move faster when the record is easy to navigate.
• If you receive a new qualifying diagnosis after filing, promptly update your file. Do not wait for the agency to discover it on its own.

Identity proofing and direct deposit changes: security tightened, processing sped up

SSA has been rolling out stronger identity proofing for claims and for direct deposit changes. Would you be able to complete online identity proofing through your My Social Security account? In that case, you may be asked to visit a local office to verify your identity in person before a new claim or a payment change can be completed. At the same time, SSA aims to process direct deposit changes within one business day once identity is verified. These updates are designed to curb account takeover fraud while still processing legitimate requests more quickly.

Practical tip: If your bank details are changing soon, update them early to avoid a gap. If online identity proofing does not work for you, call 1-800-772-1213 to schedule an in-person appointment rather than waiting until the last minute. Bring government ID, proof of address, and your new routing and account numbers.

Security checklist for beneficiaries:
• Use a unique, strong password for your my Social Security account and enable multifactor authentication.
• Never click links in unsolicited texts or emails about benefits. Navigate directly to official sites.
• If you suspect someone changed your deposit information without your consent, contact SSA immediately and notify your bank.

What to expect from the 2026 COLA: early estimate at 2.7 percent

Every October, the SSA announces the cost-of-living adjustment for the following year, based on the third-quarter CPI-W inflation. As of mid-August, a widely watched advocacy group projected a 2.7 percent COLA for 2026. That is an estimate, not the official figure, but it offers a useful planning benchmark.

For context, the average monthly benefit for all disabled workers at the start of 2025 was about $1,580 after the 2.5 percent COLA. A 2.7 percent adjustment on that baseline would translate to roughly $43 per month for the average SSDI beneficiary. Your exact amount depends on your own primary insurance amount and family status.

How to plan around an estimate:
• Build a provisional 2026 budget using a 2.5 to 3.0 percent range.
• Prioritize fixed costs like rent, utilities, and medications.
• If inflation cools further and the official COLA lands lower than expected, be prepared to trim discretionary categories.
• If you receive SSI in addition to SSDI, remember that the SSI federal maximum would move by the same percentage.

September 2025 payment timing: what landed when

SSDI payments follow the standard Wednesday schedule tied to your birth date, and that has not changed. However, many households noticed a shift in timing for SSI due to Labor Day. Because September 1 falls on a federal holiday this year, September’s SSI payment was issued early, on Friday, August 29. That early release is regular under SSA rules; it does not mean there is a bonus payment in September. The payment calendar shows the early SSI deposit at the end of August and a blank SSI date on September 1.

Why this matters: If you receive both SSDI and SSI or you budget around an SSI payment, build your September cash-flow plan accordingly. The early deposit can make the month feel longer. Consider setting aside a portion of that August 29 deposit to cover expenses in the final week of September.

Quick calendar refresher for SSDI:
• If your birthday falls on the 1st through 10th, you are paid on the second Wednesday of the month.
• If it falls on the 11th through 20th, you are paid on the third Wednesday.
• If it falls on the 21st through 31st, you are paid on the fourth Wednesday.
• People who started receiving benefits before May 1997, and some who also receive SSI, are typically paid on the 3rd of each month.

Average benefits and key 2025 numbers, at a glance

For planning purposes, the current 2025 reference amounts remain important until SSA releases 2026 figures in October. Highlights include:
• Average benefit for all disabled workers: about $1,580 per month at the start of 2025.
• Substantial gainful activity (SGA) thresholds: $1,620 per month for non-blind beneficiaries and $2,700 for blind beneficiaries.
• SSI federal maximums: $967 for an individual and $1,450 for a couple.

How to use these numbers:
• If you receive SSDI and are testing work, track your gross monthly earnings against the SGA limit. Reviewing SGA can impact eligibility after any trial work period and grace period.
• If you receive SSI, remember that the federal maximum can be supplemented or reduced based on state payments or countable income. Still, the federal baseline is set at the federal level for 2025.
• Keep receipts and pay stubs. If your earnings vary by month, documenting fluctuations helps you respond quickly to SSA inquiries and avoid overpayments.

Are disability decisions moving faster?

SSA’s performance dashboard shows progress on two fronts: the number of initial disability claims pending at Disability Determination Services has trended down from 2024 levels, and the average days to complete initial decisions has improved. The agency is continuing to expand virtual hearing capacity on appeal, which can shorten travel time and reduce scheduling bottlenecks. Your timeline still depends on where you live and how quickly medical evidence arrives, but the overall direction is positive.

What to do while you wait:
• Keep medical appointments and follow prescribed treatment. Gaps in care can be misinterpreted as improvement.
• Respond promptly to SSA requests for information. Missing deadlines slows cases more than any other single factor.
• If your condition worsens or you receive a new diagnosis that appears on the Compassionate Allowances list, tell your adjudicator and submit updated records so your file reflects the current picture.
• Consider appointing a representative to help gather evidence and communicate with SSA.

Step by step: switching from a paper check to direct deposit or Direct Express

Because the paper-check sunset is a hard deadline, we recommend making the switch well before September 30. Here is a simple path that works for most people:

1. Pick your method. If you have a checking or savings account, choose direct deposit. If you do not use a bank, ask for the Direct Express debit card.
2. Enroll with the right source. Either sign in to your my Social Security account to update your payment method, or follow Treasury’s official enrollment steps at GoDirect.gov, or call the Electronic Payment Solution Center at 800-967-6857. Do not share bank info with anyone who reaches out to you first.
3. Verify identity as needed. If SSA asks for in-person verification, please make an appointment with your local office. SSA aims to complete direct deposit changes within one business day after verification is received.
4. Confirm the first electronic payment. Watch your bank or Direct Express account for the first deposit on your regular pay date. Keep the paper check account open until you see the electronic deposit arrive.
5. Update your records. If you pay rent, utilities, or subscriptions automatically, please make sure that the new deposit account aligns with those payment dates to avoid overdrafts.

Avoiding common pitfalls:
• Do not close your old bank account until after your first successful deposit clears in the new account.
• If you use a representative payee, coordinate the change together and keep written notes of who you spoke with and when.
• If you are behind on bills, notify creditors that your payment date might shift during the transition so you can arrange a one-time grace period if necessary.

Common questions we are hearing

Will there be any exceptions to the paper-check cutoff? Treasury’s policy ends paper checks for most federal payments on September 30. If you believe you qualify for a narrow exception, contact your paying agency or the Electronic Payment Solution Center to discuss options; however, plan to transition to an electronic method.

Does the Compassionate Allowances list guarantee approval? No. CAL flags cases that almost always meet the medical standard for disability, which can speed up a decision, but nonmedical requirements still apply for SSDI and SSI. Could you make sure the record includes definitive diagnostic evidence and that you meet work-credit or financial eligibility rules?

When will the 2026 COLA be final? SSA announces the COLA in October after the third-quarter inflation data is complete. Until then, could you treat the 2.7 percent figure as an informed estimate, not the official number?

Are payments changing daily in September? SSDI continues on the second, third, or fourth Wednesday based on your birth date. Only SSI shifted for September because September 1 is a federal holiday; that payment arrived on Friday, August 29.

I am working part-time while applying. Will that hurt my case? Limited work below SGA does not automatically disqualify you, but it can trigger additional scrutiny. Please be open about your hours, earnings, and accommodations, and keep detailed pay records.

Our take on SSDI

From where we sit, the two biggest to-dos for SSDI recipients right now are transitioning away from paper checks and double-checking payment information through a secure channel. The paper-check deadline is firm, and there are clear, official paths to help you make the switch. At the same time, the August expansion of Compassionate Allowances is a bright spot for individuals and families facing devastating diagnoses, offering a faster path to a decision when the medical evidence is unmistakable. Looking ahead, a moderate COLA is likely for 2026, and we are closely monitoring inflation data as October approaches.

If you have questions about how these changes affect your specific situation or need help navigating an application or appeal, please feel free to reach out. At Jeffrey Glassman Injury Lawyers, we are here to advocate for you, from the first application to any hearing that may follow.