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- Finance. Social Security warns: It will recover all overpayments made in error to benefit recipients
The Social Security istration (SSA) is moving forward with a controversial policy to fully reclaim overpaid benefits from recipients - even if it means taking 100% of their monthly Social Security checks.
This move, set to begin March 27, 2025, marks a sharp return to a previously abandoned rule that had drawn widespread backlash. According to SSA officials, this new strategy could recover an estimated $7 billion over the next ten years, but advocates argue it will leave many beneficiaries financially devastated.
Acting SSA Commissioner Lee Dudek defended the decision, saying, "It is our duty to revise the overpayment repayment policy back to full withholding, as it was during the Obama istration and first Trump istration, to properly safeguard taxpayer funds."
While the SSA claims this policy is necessary to protect Social Security trust funds, critics argue the government is unfairly punishing Americans for errors that are often caused by the agency itself.
How Will the 100% Overpayment Recovery Work?
Under the revised policy, any new overpayments identified after March 27 will automatically trigger a 100% withholding rate, meaning an entire Social Security check could be withheld until the full amount is repaid.
While existing overpayments discovered before that date will remain capped at 10%, and Supplemental Security Income (SSI) overpayments will continue to follow the 10% rule, the impact on new overpayment cases could be severe.
Although SSA says recipients can request a reduced repayment rate or appeal the overpayment entirely, navigating that process may be difficult - especially as SSA faces deep staffing cuts and field office closures. With fewer workers and higher caseloads, many worry that appeals and adjustments will take months, if not longer.
In fact, many overpayments are not the fault of beneficiaries. A 2022 Inspector General report revealed that 73,000 overpayments were linked to SSA's own failures, including improper calculations. Yet, under this new policy, people hit with overpayment notices could see their entire income vanish overnight.
The National Committee to Protect Social Security & Medicare criticized the move, saying, "This action, ostensibly taken to cut costs at SSA, needlessly punishes beneficiaries who receive overpayment notices - usually through no fault of their own. Many overpayments are the result of errors on SSA's part."
The reinstated 100% clawback comes as SSA is downsizing under the Trump istration, which is also working on closing field offices and trimming staff to historic lows - a combination that many fear will increase mistakes and reduce the agency's ability to help those affected.
Though President Trump has promised not to cut Social Security, this harsh repayment policy raises serious questions about how beneficiaries will survive if they are left with no income.
Beneficiaries who receive overpayment notices are encouraged to immediately SSA at 1-800-772-1213 to request lower repayment rates or appeal the claim, but must be prepared for possible delays.
As more Americans become aware of this policy, the public outcry is growing, and many are calling on lawmakers and the SSA to reconsider before millions are left without the payments they depend on to survive.