Social Security Faces Tens of Billions in Uncollected Debt – Will the Trump Administration Garnish Your Benefits?

Over 1 million Social Security beneficiaries could face monthly payment reductions of up to 50%, raising serious concerns among retirees across the United States.

For a significant majority of retirees, Social Security payments are a vital source of income. In a recent Gallup survey conducted in April, 86% of retirees acknowledged that their Social Security check is a “major” or “minor” contributor to their household income. Clearly, even small reductions can have a noticeable impact on their daily lives.

Social Security’s Deepening Financial Trouble

The future of the Social Security program is growing more uncertain. The latest report from the Social Security Board of Trustees reveals a staggering $25.1 trillion long-term funding shortfall over the next 75 years.

If corrective actions aren’t taken, retired workers and survivor beneficiaries could see their monthly benefits slashed by 23% starting in 2033.

Trump’s Administration Drives Major Social Security Changes

While many elected officials avoid making big moves on Social Security due to political risks, President Donald Trump’s administration has introduced sweeping changes:

• End of Paper Checks by September 30, 2025: All federal benefits, including Social Security, must be received digitally, such as through direct deposit, to save administrative costs and minimize fraud.
• Stricter ID Protocols: Changing direct deposit details now requires either two-factor authentication via a “my Social Security” account or an in-person visit to a Social Security office.
• Creation of the Department of Government Efficiency (DOGE): This department announced a reduction of 7,000 SSA employees and the closure of several offices, aiming to streamline federal operations.

Additionally, the Trump administration is targeting Social Security’s trust fund shortfalls, specifically the recovery of tens of billions of dollars in overpayments.

The Target: $23 Billion in Overpaid Benefits

A central focus of these reforms is the $23 billion in overpayments the SSA recorded by the end of fiscal 2023.

Nearly 2 million recipients received benefits they were not fully entitled to—some due to SSA miscalculations, others from recipients not updating income details.

Changes in Garnishment Rates Over Time

Presidency	Garnishment Rate	Context
Trump (First Term)	100%	Full recovery of overpayments from each monthly check
Biden	10%	Reduced during the pandemic
Post-March 2025	Proposed return to 100% garnishment
April 2025 Revision	50%	Implemented after public backlash

Starting July 24, over 1 million beneficiaries began seeing up to 50% of their checks garnished following 90-day notices sent from April 25.

What Beneficiaries Can Do: Legal Options Available

If you’re among those facing reduced payments, there are legal avenues to contest or reduce what you owe:

1. SSA-632BK – Request for Waiver of Overpayment Recovery

Use this if:

• The overpayment wasn’t your fault
• Repayment causes financial hardship
• You can provide supporting documentation

2. SSA-561 – Request for Reconsideration

Choose this if:

• You believe you weren’t overpaid
• You dispute the amount overpaid

3. SSA-634 – Request for Change in Overpayment Recovery Rate

Use this when:

• You admit to the overpayment
• You can demonstrate financial strain
• You seek a lower garnishment rate or installment plan

With Social Security’s financial strain and the Trump administration’s aggressive cost-recovery strategies, over 1 million recipients may see significant cuts to their monthly benefits.

If you’re affected, don’t wait—take proactive steps using the SSA’s official forms to request a waiver, reconsideration, or a lower repayment plan. Being informed and acting quickly can potentially save your financial future and restore a portion of your benefits.

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