Social Security Administration Adjusts Withholding Policy on Overpayments

April 29, 2025 - 15:09

The Social Security Administration has revised its policy regarding the withholding of benefits to recover alleged overpayments. Initially, the administration announced a drastic measure to withhold 100% of monthly benefits from many recipients. However, following backlash and concerns from stakeholders, this figure has been reduced to 50%.

This new policy marks a significant shift from the previous cap of 10% that was in place during the Biden administration. The decision to withhold a larger percentage reflects the administration's ongoing efforts to address financial discrepancies while balancing the needs of beneficiaries.

Critics of the original 100% withholding plan argued that it would place undue hardship on vulnerable individuals who rely on Social Security for their day-to-day expenses. The adjustment to a 50% withholding aims to provide some relief while still allowing the agency to recoup funds it believes were overpaid. This change is expected to impact numerous recipients across the nation.