A bill to amend title 31, United States Code, to provide for an exemption to the requirement that all Federal payments be made by electronic funds transfer.

Makes a requirement that all Federal payments after January 1, 1999, be made by electronic funds transfer inapplicable to: (1) payments authorized under title II (Old-Age, Survivors and Disability Insurance) (OASDI) of the Social Security Act; and (2) veterans' benefits payable as compensation for service-connected disability or death, dependency and indemnity compensation for service-connected deaths, and pensions for non-service-connected disability or death or for service.

Allows recipients of such payments to notify the Commissioner of Social Security or the Secretary of Veterans Affairs, as appropriate, to authorize such payments to be made by electronic funds transfer.