Social Security Alerts, News & Updates
Trump Policy Slashes Social Security Benefits by Half

Understanding the New Social Security Changes That May Affect Your Benefits
We understand how concerning it can be to hear about potential changes to your Social Security benefits. After all, these monthly payments represent more than just numbers on a check – they’re the foundation of financial security for millions of Americans who have worked hard their entire lives.
Currently, nearly 53 million retired workers receive Social Security benefits, with the average monthly payment recently reaching over $2,000 for the first time. While this milestone represents progress, we recognize that for most recipients, this income isn’t just helpful – it’s absolutely essential.
Research consistently shows that between 80% and 90% of retirees depend on their Social Security checks to cover basic living expenses. Therefore, any reduction in these benefits can create genuine financial hardship for families across the country. Let’s walk through what’s happening and, more importantly, how you can protect yourself during these changes.
Recent Social Security Policy Changes and Their Impact
The current administration has implemented several modifications to Social Security operations since taking office. These changes include:
- Enhanced identity verification processes
- The elimination of paper checks
- The establishment of the Department of Government Efficiency
- Staff reductions and some field office closures
However, the changes causing the most concern involve increased garnishment rates for two specific situations. First, approximately 452,000 people with delinquent federal student loans will face a 15% monthly student loan garnishment starting this summer. These garnishments were paused during the pandemic and are now being reinstated.
Many people are surprised to learn that older Americans carry student debt. In fact, federal student loan borrowers aged 62 and above increased by 59% between 2017 and 2023, reaching approximately 2.7 million people. Nevertheless, this 15% garnishment is significantly less severe than what’s happening with overpayment recovery.
The Larger Concern: Social Security Overpayment Recovery Changes
The more significant impact comes from changes to how the Social Security Administration recovers overpayments. Under the new policy, beneficiaries who were overpaid now face a 50% garnishment rate. This affects retirees, survivors, and people with disabilities who received more retirement benefits than they were entitled to receive.
To provide context, the previous administration had reduced these recovery rates to just 10% per check. This was already an improvement from the 100% recovery rate that existed under earlier administrations.
According to Social Security Administration data, more than 1 million beneficiaries were overpaid in fiscal 2022, with over 980,000 recipients affected in fiscal 2023. Since the Social Security benefits garnishment rates were only 10% under the previous policy, it’s reasonable to estimate that over 1 million people are still repaying these overpayments.
For someone receiving the average $2,000 monthly benefit, this change means the difference between losing $200 per month versus $1,000 per month. We understand how this dramatic increase can create immediate financial stress for families already managing tight budgets.
Understanding How Social Security Overpayments Occur
It’s important to recognize that overpayments don’t always result from recipient error. Sometimes, the Social Security Administration makes mistakes through computer glitches, processing errors, or communication breakdowns. In these cases, people receive more than their entitled amount through no fault of their own.
Other times, overpayments occur when beneficiaries don’t report income changes promptly. For example, non-blind workers with disabilities can earn up to $1,620 per month in 2025 without affecting their benefits. However, if someone begins earning earn up to $1,620 per month in 2025 and doesn’t report this change, their tax filing will eventually reveal the discrepancy, leading to an overpayment determination.
Unfortunately, even when the overpayment isn’t your fault, you’re typically expected to repay it unless you can demonstrate otherwise. However, you do have options to address this situation and protect your Social Security benefits.
Three Approaches to Address Social Security Overpayment Issues
If you’ve received an overpayment notice, please know that you have legitimate options to protect yourself. Here are three approaches that can help reduce or eliminate your repayment obligation through the Social Security overpayment recovery process.
How to Apply for an Overpayment Waiver Request
Your strongest option is filing Form SSA-632BK, the “Request for Waiver of Overpayment Recovery.” This form can completely eliminate your repayment obligation if you can demonstrate two things: the overpayment wasn’t your fault, and repaying it would cause financial hardship.
You’ll need to provide documentation of your income and necessary expenses to support your hardship claim. If approved, Social Security will waive your entire repayment obligation. This means you won’t need to repay any of the overpayment amount.
How to Appeal Social Security Overpayment Decisions
Form SSA-561, the “Request for Reconsideration,” allows you to formally challenge the overpayment determination. This option works well if you believe you weren’t actually overpaid or if you think the calculated amount is incorrect.
Through this appeal process, you can present evidence supporting your position. If Social Security agrees with your appeal, you may not owe anything. Even partial agreement can significantly reduce the amount you’re required to repay.
How to Calculate and Negotiate a Manageable Payment Plan
Form SSA-634, the “Request for Change in Overpayment Recovery Rate,” acknowledges the overpayment but requests a more reasonable payment schedule. This option focuses on demonstrating that a 50% garnishment would create financial hardship for your household.
You’ll need to provide detailed financial information, including your income and essential expenses. While the Social Security Administration prefers to recover overpayments within 12 months, payment plans can sometimes extend up to 60 months. This could reduce your monthly garnishment from 50% to a much more manageable amount.
Taking Action to Protect Your Social Security Benefits
We encourage you not to delay if you’ve received an overpayment notice. The new garnishment rates are already in effect, and Social Security typically begins withholding money relatively quickly after sending notices.
Remember that these benefits represent income you’ve earned through years of work and contributions. You have every right to ensure fair treatment during the overpayment resolution process. Whether you pursue a waiver, file an appeal, or negotiate a payment plan, taking action is always better than accepting a significant reduction in your monthly benefits.
Understanding the Impact of Policy Changes on Social Security Benefits
We understand that dealing with government bureaucracy can feel overwhelming, especially when your financial security is at stake. However, you have legal protections and options available to you. Don’t let the complexity of the process prevent you from exploring every avenue to protect your benefits.
Your Social Security benefits provide essential support for your daily needs, including housing, food, healthcare, and other necessities. With the vast majority of retirees depending on these payments to make ends meet, protecting your full benefit amount is crucial for maintaining your quality of life and financial stability.
The recent changes represent a significant shift in how the Social Security Administration handles overpayment recovery. By understanding your options and taking prompt action when needed, you can better navigate these challenges and maintain the financial security you’ve worked so hard to achieve.