Starting in late July, some Social Security recipients may notice a significant reduction in their monthly payments, USA Today reports.
The Social Security Administration (SSA) will begin withholding 50% of benefit payments for individuals who previously received overpayments, as part of an effort to recover funds that were incorrectly disbursed.
This change does not stem from the widely discussed concerns about Social Security’s long-term funding but rather from efforts to address past administrative errors. Overpayments can occur for various reasons, such as beneficiaries failing to report changes in income or the SSA miscalculating benefit amounts.
According to the agency’s Office of the Inspector General, nearly $72 billion in improper payments — mostly overpayments — were made between fiscal years 2015 and 2022. Although these accounted for less than 1% of total benefits distributed during that time, the SSA had a balance of $23 billion in uncollected overpayments as of September 2023.
In April, the SSA announced a revised approach to recovering overpayments. Instead of withholding all benefits, which it had initially proposed in March 2025, the agency will now withhold 50% of a recipient’s monthly benefit. This change will take effect approximately 90 days after the first overpayment notice is sent, with the earliest reductions expected around July 24.
Previously, the agency withheld only 10% of benefits to recover overpayments. That policy followed public backlash and media coverage in 2023 highlighting the financial strain some beneficiaries faced — including reports of people losing their homes due to sudden benefit stoppages. Then-Social Security Commissioner Martin O’Malley acknowledged that “innocent people can be badly hurt” by aggressive collection efforts.
In the fiscal year ending September 2023, the SSA sought to recover overpayments from roughly 2 million individuals, according to data obtained through a Freedom of Information Act request by KFF and Cox Media Group.
Those who receive an overpayment notice can repay the balance through several options, including credit card, check, or online bill pay. Details and payment instructions are available on the SSA’s official website.
Recipients who believe the overpayment was not their fault or who cannot afford to repay it may request a waiver. The waiver process can be initiated online by submitting a designated form provided by the SSA.
The agency has said its updated policies are intended to strike a balance between recovering taxpayer funds and avoiding undue hardship for beneficiaries.
For more information or to inquire about specific cases, individuals are encouraged to contact the SSA directly or visit ssa.gov.
