Social Security Benefits Will Be Seized From Some New Yorkers

There is bad news for many New Yorkers who rely on Social Security. The new administration will seize Social Security benefit checks for several reasons. There will not be any Social Security payments in June. This is nothing to worry about (maybe). It's a technicality in scheduling. The Social Security Administration sent out two payments in May.

According to Money.com, this is due to the way Social Security issues checks. SS checks are issued on the first of each month unless the first falls on a weekend or federal holiday. In that case, the checks go out on the previous business day, which in this case was May 30, 2025. Because of this timing, there were two benefit checks sent out in May, but none will be sent out in June. For most, this is not a big deal. However, with the new rules Trump has put in place, those checks may be the last that some New Yorkers will receive with the full amount of benefits.

Social Security Checks May Be Seized Soon For Two Reasons

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New Yorkers Who Defaulted On Their Student Loans
Under Trump's first term, in March of 2020, borrowers were protected from normal collection activities. The temporary relief officially ended after four years, in October 2024. But, President Biden decided not to pursue any involuntary collections before the end of his term.

On Monday, May 5, 2025, the Department of Education resumed collections of delinquent student loans. It issued a warning to borrowers who are behind on their loan - pay up or we'll take your paychecks and federal benefits. The 195,000 student-loan borrowers who have defaulted started receiving 30-day notices from the Treasury Department. The notices let them know that their federal benefits, including Social Security payments, could be subject to garnishments. It has been approximately 30 days, meaning garnishments will begin soon. The Ed. Dept. issued a warning,

"The first monthly benefit checks subject to offset are those scheduled for early June. Later this summer, all 5.3 million defaulted borrowers will receive a notice from Treasury that their earnings will be subject to administrative wage garnishment."

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New Yorkers Who Were Overpaid Social Security Benefits
During President Biden's term, in March of 2024, he directed the Social Security Administration to stop collecting 100 percent of a person's benefits to repay an overpayment they may have received. Instead, the Biden administration settled on taking 10 percent to go towards repayment.

Trump recently instructed the SSA to resume seizing 100 percent of a person's benefits in order to recoup any overpayment.  In a press release directly from the SSA, Acting Commissioner of Social Security Lee Dudek, said,

“We have the significant responsibility to be good stewards of the trust funds for the American people. It is our duty to revise the overpayment repayment policy back to full withholding, as it was during the Obama administration and first Trump administration, to properly safeguard taxpayer funds.”

However, there is some "good news." An "emergency message” was sent to Social Security Administration staff informing them that SSA will now be withholding 50 percent of monthly benefits checks rather than 100 percent. While 50 percent is certainly higher than 10 percent, it's important to acknowledge the reduction from 100 percent.

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