In the United States, Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI) payments will suffer cuts of up to 50% by the Social Security Administration. However, these cuts will apply to those who have outstanding benefit overpayments. It should be noted that this measure is part of the recent plan being promoted by the new government. It should also be noted that the Cost of Living Adjustment will not be affected in the first instance, but monthly checks will undergo changes. Along the same lines, those affected will be able to consult all the information regarding their payments on SS.gov and will be able to manage it without any inconvenience.
Automatic cuts will be implemented starting July 24
Starting July 24, 2025, the Social Security Administration (SSA) will begin applying automatic cuts of up to 50% on SSI payments for those who received more money than they were entitled to and have not paid off their debt or agreed to a payment plan.
If you are among the SSI or Social Security beneficiaries who have an outstanding overpayment, starting on that date, you will see your monthly check reduced while the SSA recovers the funds. The measure is part of a stricter recovery plan launched this year.
The SSA will reduce SSI checks by 50% for those who owe overpayments
The new adjustment announced by the SSA seeks to recover billions of dollars in accumulated overpayments. According to official records, approximately 2 million people were notified in the last fiscal year that they had received more than they were entitled to in monthly benefits.
If you receive retirement, SSDI, or SSI payments and have an outstanding balance, you should know that the 50% withholding will be applied automatically starting at the end of July, approximately 90 days after receiving the official overpayment letter. For example, if your monthly benefit is $1,200, starting July 24, you may receive only $600 until the debt is paid off.
This cut applies even if the overpayment was not your fault. It is important to review any notifications you have received since April because the SSA is sending these notices in advance to allow you to take action before the deduction begins.
How to negotiate or request exemptions from the SSA in light of these cuts
If you cannot afford to have 50% of your monthly benefit withheld, the SSA allows you to request alternative payment plans or exemptions. To do so, you must prove that the overpayment was not your responsibility, that you cannot afford to make the repayment, or that recovery would be unfair in your financial situation.
Requests can be made directly through the official SSA.gov portal or at your local office. In addition, voluntary debt payments can be made online, by credit card, or by check to prevent automatic withholding from being activated. Remember that this policy does not affect all beneficiaries: only those who have received a formal notice of overpayment and have not yet resolved their financial situation with the agency.
Monthly check according to the usual schedule
If you have no outstanding debts, your monthly check will continue to arrive as normal according to the usual schedule.
The SSA payment schedule for July has not changed:
- July 3: payments to beneficiaries who started before May 1997
- July 9: payments for those born between the 1st and the 10th
- July 16: payments for those born between the 11th and the 20th
- July 23: payments for those born between the 21st and the 31st
July 1: SSI payments already distributed to people over 65 or with disabilities and limited resources. To avoid surprises, it is essential that you keep your information up to date on SSA.gov and review all official communications sent to your registered address.
This will allow you to confirm whether you are among the affected beneficiaries and, if necessary, take timely action to file an appeal or request a reduction in the monthly deduction.