Wed Jul 02 13:20:00 UTC 2025: **Summary:**

Starting in July, some Social Security recipients will see their monthly benefits reduced as the Social Security Administration (SSA) begins recovering past overpayments. These overpayments, totaling billions of dollars, can occur due to unreported income changes or errors in benefit calculations. The SSA will now withhold up to 50% of monthly benefits until the debt is repaid, a change from the previous 10% withholding. Recipients can repay via various methods and may request a waiver if they believe they were not at fault or cannot afford repayment.

**News Article:**

**Social Security Benefits to Shrink for Some Americans Starting in July**

**WASHINGTON D.C.** – Some Social Security recipients will see their monthly payments decrease starting in late July as the Social Security Administration (SSA) begins recouping billions of dollars in past overpayments. This comes after the SSA announced in April it would withhold up to 50% of benefit payments to those who were overpaid.

The SSA has identified over $23 billion in uncollected overpayments as of September 2023, stemming from situations where beneficiaries failed to update income changes, or due to errors in the agency’s benefit calculations. According to a report from the Social Security Administration’s Office of the Inspector General, nearly $72 billion in improper payments (mostly overpayments) were issued during fiscal years 2015-2022.

This change marks a partial retreat from an initial plan announced in March to withhold all of a recipient’s benefit until the debt was repaid. This initial plan generated significant criticism after reports surfaced of individuals losing their homes due to the drastic cuts. Previously, the SSA only withheld 10% of benefits to recover overpayments, a policy implemented after negative media coverage in 2023 highlighted the devastating impact on some recipients.

“Innocent people can be badly hurt,” said former Social Security chief Martin O’Malley.

The SSA attempted to recover overpayments from approximately 2 million people in the fiscal year ending September 2023.

Under the new policy, the SSA began issuing overpayment notices on April 25, and will begin withholding 50% of benefits roughly 90 days later, starting around July 24th, until the debt is cleared.

Recipients can repay the overpayment through various methods, including credit card, online bill pay, or check. Those who believe the overpayment was not their fault or that repayment would cause undue hardship can request a waiver on the SSA website.

The SSA hopes this measure will help recover outstanding funds while mitigating the negative impact on beneficiaries.

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