Mon Mar 10 11:20:00 UTC 2025: ## Social Security Reverses Course, Will Again Seize 100% of Overpayments

**Washington, D.C.** – The Social Security Administration (SSA) announced Friday a significant shift in its policy regarding overpayments, reverting to a 100% withholding of benefits starting March 27th. This reverses a March 2024 decision to withhold only 10% to ease financial hardship on recipients.

The change follows criticism last year regarding the agency’s aggressive overpayment collection practices, which in some cases led to severe financial consequences for beneficiaries. The SSA faced pressure after reports detailed instances of individuals losing their homes due to benefit deductions.

The new policy, effective March 27th, means that any identified overpayment will result in the complete suspension of Social Security benefits until the overpaid amount is repaid. The agency clarified that this will not affect those currently repaying overpayments under the previous 10% withholding rate, and the 10% rate will remain for Supplemental Security Income (SSI) overpayments.

The decision comes amid a broader push by the Trump administration and Department of Government Efficiency (DOGE), led by Elon Musk, to reduce federal spending. This includes plans by the SSA to cut its workforce by over 12%. While President Trump has pledged not to cut Social Security benefits, the administration has alleged widespread fraud within the system, claims disputed by a 2023 report from the SSA’s inspector general.

The SSA maintains that recovering overpayments is essential to protect taxpayer funds. The agency estimates the policy change will recoup approximately $7 billion over the next decade. Overpayments, which can arise from errors or beneficiaries failing to report changes in income or marital status, represent a significant portion of improper payments.

The SSA advises beneficiaries to report any changes in their circumstances promptly and to contact the agency if they are unable to afford full repayment. Options for repayment include credit card, online bill pay, or check, and the SSA may also utilize tax refunds or wage garnishment in cases of non-payment. Beneficiaries can appeal overpayment decisions or request waivers if they believe the overpayment was not their fault.

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