Trump Administration Cuts Social Security Withholdings to 50%

The Social Security Administration (SSA) has revised its policy on recovering overpayments, now withholding up to 50% of monthly benefits from recipients with outstanding balances—a significant increase from the previous 10% cap established under the Biden administration. This change follows a brief period in which the Trump administration announced plans to withhold 100% of benefits, a move that was met with public backlash and subsequently scaled back to the current 50% default. The new policy, effective as of April 25, applies to retirement, survivor, and disability beneficiaries and was announced via an emergency message to staff rather than a public press release, leaving many recipients unaware. Critics argue that even a 50% withholding can cause severe financial hardship for seniors and disabled individuals who rely on these payments for basic needs such as food, housing, and healthcare. The SSA’s ongoing efforts to recover overpayments—often resulting from agency errors—have long been controversial, with advocacy groups and former officials warning that aggressive clawbacks disproportionately harm the most vulnerable. While the partial rollback from 100% to 50% is seen as a modest improvement, many believe the policy still imposes undue burden on those least able to afford it.