In August 1935, President Franklin D. Roosevelt signed the Social Security Act into law, aiming to provide financial security to aging workers. Nearly 90 years later, it continues to fulfill that mission and has expanded to assist individuals with disabilities and survivors of deceased workers.
However, recent changes under the Donald Trump administration have brought new challenges for beneficiaries, especially regarding Social Security overpayments and garnishment of payments.
The Trump Administration’s Impact on Social Security Payments
Under the Trump administration, significant changes have been made to how the Social Security Administration (SSA) handles overpayments. One of the most notable adjustments is the garnishment rate for beneficiaries who have received overpayments.
These changes have resulted in up to 50% of Social Security checks being garnished for select beneficiaries who owe money due to overpayments.
Why Are Social Security Payments Being Garnished?
Social Security overpayments occur for various reasons, but they often happen when the SSA mistakenly issues more benefits than a person is entitled to, or when beneficiaries fail to report income changes. In 2025, for example, non-blind workers with disabilities can earn up to $1,620 per month without impacting their benefits.
However, if they earn more than this amount and fail to report it, they could end up receiving more benefits than they are entitled to. Once this is flagged, the SSA seeks to recover the overpayment, often through garnishment of Social Security checks.
How Much of a Social Security Check Can Be Garnished?
Before Joe Biden’s presidency, the recovery rate for overpayments was set to 100% of the monthly Social Security benefit. Under Biden, this rate was lowered to 10%.
However, the Trump administration increased it to 50% starting in 2025, which means beneficiaries may see half of their monthly check garnished until the overpayment is repaid. As of April 2025, the SSA began sending repayment notices to nearly 2 million beneficiaries, who collectively owe around $23 billion in overpayments.
Options for Avoiding or Reducing Garnishment
For those facing garnishment, there are legal options to potentially reduce or avoid the repayment of overpaid Social Security benefits:
- Request for Waiver of Overpayment Recovery (Form SSA-632BK):
- If the overpayment was not your fault, or paying it back would cause a financial hardship, you can request a waiver. If approved, the SSA may forgive the overpayment.
- If the overpayment was not your fault, or paying it back would cause a financial hardship, you can request a waiver. If approved, the SSA may forgive the overpayment.
- Request for Reconsideration (Form SSA-561):
- If you believe the SSA made an error and you haven’t been overpaid, you can file this form with supporting evidence to challenge the decision.
- Alternatively, if you accept the overpayment but believe the amount is wrong, you can use this form to contest the amount the SSA is seeking.
- If you believe the SSA made an error and you haven’t been overpaid, you can file this form with supporting evidence to challenge the decision.
- Request for Change in Overpayment Recovery Rate (Form SSA-634):
- If a 50% garnishment would create a financial burden, you can request a change to the repayment rate. This form allows you to propose a more manageable payment plan, potentially over 12 to 60 months (5 years).
The Importance of Keeping Your Information Updated
One of the most common reasons for overpayments is the failure of beneficiaries to update the SSA with their current income or life circumstances.
It’s crucial to report changes like starting a new job, receiving a raise, or any other financial change that could affect your eligibility. By staying proactive and keeping the SSA informed, you can avoid future overpayments.
A $23,760 Social Security Bonus: An Overlooked Opportunity
Many retirees are unaware of certain Social Security secrets that could increase their retirement income. One such secret could lead to a $23,760 bonus for eligible retirees. This bonus is just one example of how maximizing your Social Security benefits can significantly impact your retirement income.
While Social Security garnishments and overpayments are a challenge for many beneficiaries, there are legal options available to help reduce or avoid the financial strain.
Understanding your rights and taking action, such as requesting a waiver or reconsideration, can help mitigate the impact. Furthermore, staying informed about potential Social Security benefits and adjustments could provide a much-needed financial boost in retirement.
