Starting in July 2025, the Social Security Administration (SSA) will begin withholding up to 50% of monthly benefits from recipients suspected of receiving overpayments.
This move is part of an effort to recover billions of dollars that were incorrectly distributed over the past decade. While the goal is to correct past mistakes, the change has caused concern and confusion for many beneficiaries.
Why Are These Cuts Happening?
The SSA has been making these changes to recover the $72 billion in overpayments it made from 2015 to 2022. Much of this was due to mistakes on the part of the SSA or because individuals did not report changes in income, marital status, or disability status. By the end of 2023, the SSA still needed to recover $23 billion.
Initially, the SSA planned to take 100% of recipients’ monthly benefits to recover overpayments, even halting some payments completely. After pushback from the public and the media, the SSA revised the plan in April 2025, settling on a policy to withhold 50% of the monthly benefits for both past and future overpayments.
When Will These Changes Start?
The new rule will go into effect on July 24, 2025. There will be a 90-day period after recipients receive a notice of overpayment on April 25, 2025, to inform them of the changes. Starting from July 24, anyone who has been overpaid will see 50% of their monthly benefits withheld until the overpayment is fully repaid.
Who Will Be Affected?
The biggest impact will be felt by those receiving Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI), as these recipients are required to report changes in their personal circumstances, such as income or marital status.
If they fail to report changes or if the SSA makes a mistake, they may face these significant reductions in their benefits.
Additionally, survivors and retirees who did not report changes or were miscalculated by the SSA may also experience these cuts. In September 2023, the SSA attempted to recover overpayments from 2 million people.
What Can You Do if You’re Affected?
If you receive a notice saying you’ve been overpaid, you have several options:
Pay back the amount: You can use a credit card, check, or make an online payment to return the overpaid funds.
Request a waiver: If the overpayment wasn’t your fault or if paying it back would cause financial hardship, you can request a waiver.
Appeal: If you believe the SSA’s overpayment decision is incorrect, you can appeal the claim.
You can find the necessary forms and assistance on the SSA website.
Why This Matters
For many people, Social Security benefits are crucial to their financial stability. Nearly one-third of Social Security recipients rely on it for 75% or more of their income. Losing half of these benefits could force people to make difficult decisions about their housing, food, or health care.
Critics of this change argue that it’s unfair to penalize people who may not have even known they were overpaid, especially if the mistake was on the SSA’s part. While the goal is to fix past mistakes, the effects on low-income families could be severe.
Staying Updated
If your Social Security check is smaller than usual in July 2025, you’re not alone. It’s important to stay updated on the changes, check your SSA account, and be aware of what options you have to address overpayments. Be sure to monitor your payments and take action if needed.
