Social Security July update: Here’s why checks could be smaller for millions of Americans

Up to two million Americans could see their Social Security payments reduced by 50% in late July. The reduced payments are being implemented so that the Social Security Administration (SSA) can claw back billions in funds that it overpaid to some Americans over the past several years.

Here’s what to know about the reduced Social Security payments and who could be affected.

What’s happened?

In April, the Social Security Administration announced that it would begin recouping approximately $72 billion in improper payments made to Social Security claimants between 2015 and 2022.

These payments were either made to individuals in error or because individuals failed to notify the SSA about changes to their income, which could affect the amount of Social Security benefits they receive each month.

While the Trump administration is implementing some sweeping changes to the Social Security system in America, this overpayment recoupment was actually decided during the Biden administration. As Newsweek notes, in 2023, the SSA announced that those who received an overpayment in benefits would see 10% of future payments withheld until the total sum of the overpayments was recovered.

However, in March, the agency—now under Trump—announced that it would begin withholding 100% of an individual’s Social Security check until all overpaid monies were paid back. This 100% withholding sent shivers down the spines of many people who rely on their Social Security checks to pay for basic necessities, such as food and housing.

After backlash, the SSA said it will reduce the withholding to 50%. However, this is still a significant sum for many retirees and more than it’s been in the past.

Who will have 50% of their SS checks withheld?

The withholding of 50% of Social Security payments will affect approximately 2 million individuals.

If you are one of the individuals impacted, you should have already received notification from the Social Security Administration, which began sending letters about the upcoming withholdings in April.

How long will the 50% SS check withholding last?

That depends upon how much an individual was overpaid in Social Security benefits in the past. 

Their Social Security check will now have 50% withheld until the total sum of their overpayments is recouped by the agency.

The withholding is expected to begin with Social Security payments made around July 24, 2025.

Are individuals at fault?

Not necessarily.

While Social Security claimants need to inform the Social Security Administration of changes to their income so their payments can be adjusted, if necessary, not everyone who was overpaid was so because of action (or inaction) on their part.

It is possible that the Social Security Administration incorrectly calculated some people’s benefits, leading to the overpayment.

What if I rely on my entire Social Security check?

If you rely on your full Social Security check payment, and a 50% reduction would cause you challenges, there are a few options available.

First, you can manually repay Social Security check overpayments. Details on how to manually replay your overpayments can be found here.

A second option is to ask for an overpayment recovery waiver. You should apply for this waiver if you believe that your previous overpayments were not your fault or if you cannot afford the overpayment recovery cost.

You can find the Request for Waiver of Overpayment Recovery here.