Ever since the Donald Trump‘s administration took over, the future of social security has been hanging by a thread. Numerous changes have been taking place. New rules and policies have made beneficiaries extremely worried.
Now, the government has announced a new policy change for social security. News Center 7 has been able to get their hands on the emergency confidentiality report.
In March 2025, the Trump administration announced a policy that there would be a 100% withhold of the SSA benefits for those who have been overpaid.
However, the news portal has recently gotten their hands on a confidential report. This report suggested that the original policy had been overturned. Now, the government will withhold only 50% of the benefits for those who have been overpaid.
The full withholding policy was made public by the SSA just weeks prior to this shift. According to SSA, that policy could save the government $7 billion. There had been widespread national scrutiny of the agency’s aggressive debt-collection tactics after the policy was announced. However, this abrupt turnaround has not been made public.
Hundreds of thousands of Social Security recipients may soon find their monthly checks completely withheld due to alleged overpayments.
They don’t care about losing votes from struggling seniors; their task is to destroy the USA.
source: https://t.co/o3Y7pBTIZw pic.twitter.com/mzxjQjpRkX— Anonymous (@YourAnonNews) March 27, 2025
In 2023, Channel 2 Action News, KFF Health News, and Cox Media Group revealed that SSA overpayments were frequently the result of administrative mistakes. These were then being repossessed in large lump sums or at exorbitant monthly rates by recipients. This lump sum amount often leaves recipients stressed and devastated.
Many of these people had limited incomes. This used to make it impossible for them to return thousands of dollars. Especially when the overpayments had accrued over the years without their knowledge, this was never the recipient’s mistake but an administrative issue. Yet the general people were getting hassled along the way.
My family is in desperate need of help. Social Security claims my mom suddenly owes them 10k in overpayments out of the blue. We sent in an overpayment waiver and we just heard back, they’re withholding 100% of her SSI for a YEAR until it’s repaid! pic.twitter.com/SnR8FYw8BF
— Chris Alvino (@ChrisAlvino) November 16, 2023
In 2024, the Joe Biden administration limited the repayments to 10% of monthly benefits in response to the controversy. This was backed by former SSA Commissioner Martin O’Malley. He wanted to lessen the burden on Americans who were already at risk. O’Malley called the current 50% withholding policy “still cruel.” He cautioned that beneficiaries become confused and anxious due to frequent policy changes.
In order to recover overpayments, the checks of more than 669,000 people were already withheld. It was settled at a rate of 10% or less, according to SSA data from October 2024. These numbers might not include all SSA benefits, though.
However, the government has not made the details about withholding 50% of checks clear. It is still not clear how widely the new 50% rule would be implemented.
Supplemental Security Income (SSI) is one of the SSA benefits. It is for low-income seniors and individuals with disabilities. This benefit is exempt from the regulation.
These regulations will impact people who receive retirement payments and Social Security Disability Insurance (SSDI).
What does “disability” really mean under Social Security law? Stanley Law Attorney Shannon Doan breaks down how the SSA defines disability—and what that means for your case. Applying for benefits for yourself or child? Understanding is the first step.#SocialSecurityDisability pic.twitter.com/PC9sZZiguY
— Stanley Law Offices (@JoeStanleyLaw) April 22, 2025
SSA is offering some relief to the recipient, though. According to them, if repayment is difficult for the recipient, they can request a waiver. They can also request lower withholding rates. Recipients can also appeal for overpayment letters.
However, there is a fear that too many individuals will be left behind. This is because over 2 million overpayment notices are sent out each year.
There has been no response from SSA to the media.
