Social Security to Resume Full Benefit Withholding for Overpayments Starting Thursday

The policy change, aimed at recovering $7 billion over a decade, has raised concerns about financial hardship for vulnerable beneficiaries.

Starting March 27, 2025, the Social Security Administration (SSA) will withhold 100% of benefits for new overpayment cases until the debt is repaid.
Supplemental Security Income (SSI) overpayment recovery will remain capped at 10%, as will rates for existing overpayment cases.
The SSA aims to recover $7 billion over the next decade, addressing $23 billion in uncollected overpayments as of September 2023.
Critics warn the policy could cause severe financial hardship for seniors and disabled individuals who rely heavily on Social Security for income.
Cost-cutting measures, including workforce reductions and office closures, have made it more difficult for beneficiaries to access assistance or appeal overpayment decisions.