50% Of Social Security Benefits Will Be Seized From Some New Yorkers

Certain Social Security recipients will have 50 percent of their benefits seized by the administration. There has been a lot of anxiety about Social Security lately. Many New Yorkers who receive benefits have been on edge due to the current administration controlling both the White House and Congress. While Republicans say they don't plan on cutting Social Security, it's hard for people to believe they will keep their word based on their track records.

New Yorkers expecting their social security benefits may be in for a total shock! Some New Yorkers will have their money garnished from their paychecks. Under the Trump regime, the U.S. Department of Education has reignited its collection efforts on student loans. New Yorkers who defaulted on their school debts could face garnishments this year. Collections have been paused since the COVID-19 pandemic.

Under Trump's first term, in March of 2020, borrowers were protected from normal collection activities. The temporary relief officially ended in October of 2024. However, President Biden decided not to pursue any involuntary collections before the end of his term, leaving the decision to restart collections up to Trump.

Social Security To Seize 50% of Benefits

READ MORE: Massive Change To Social Security Affects New Yorkers This Summer

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 if they received an overpayment. Instead, in an act of humanity, the 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.”

The fact that the rate was ever 100 percent under previous administrations is disturbing. But, since a reduction had been put in place, it allowed the SSA to consider the impact of taking 100 percent on the lives of seniors and disabled New Yorkers who rely on the payments.

READ MORE: New Yorkers Brace For Major Changes To Social Security

It appears that the SSA has done an about-face, giving beneficiaries a bit of cushion. An "emergency message” has been 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.

Many seniors may still face financial difficulties, but getting 50 percent of benefits is better than getting none. However, Martin O’Malley, who was Social Security Commissioner during the Biden administration, doesn't believe that 50 percent is much better. He said,

“It was a cruel hearted policy before with 100% and with 50% it’s half as cruel, but it’s still cruel."

Many overpayments, according to SSA, are due to a change in circumstances or missing information, not any type of fraud. With funding for benefits like Meals on Wheels, SNAP, and Heating/Cooling assistance being cut by the Trump administration, it is particularly cruel to take 100 percent of beneficiaries' money, leaving them with no safety nets.

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