If you receive Social Security and rely on those payments every month, you may want to take a close look at your check in late July. Starting around July 24, some people will begin seeing a smaller payment than usual. And it is not because of a new law or benefit cut. It is because the Social Security Administration (SSA) is now collecting money it says was overpaid by mistake.
These overpayments are not new. They have built up over the years. But now, the government is making a big push to recover that money—and that could hit your monthly budget.
Who is affected by the July Social Security reduction?
You may be wondering if this will affect you personally. The people who will see reduced checks are those who received more money than they should have in past payments—sometimes years ago.
Here are the key details:
- The SSA sent out over $72 billion in improper payments between 2015 and 2022
- Most of those were overpayments, not fraud
- As of late 2023, the SSA had $23 billion in uncollected overpayments
- If you are on the list, you would have already received a notice starting April 25, 2025
- If you got that letter, your check may be cut by 50% starting July 24
So if you have not received any letter or notice from the SSA, you are likely in the clear. But if you have, it is important to prepare for a smaller check.
How much will checks be reduced?
The SSA originally planned to withhold 100% of your check if you owed money. That caused a huge public outcry. So now, they are taking a less aggressive approach—but it will still impact many people.
Here is how it breaks down:
- Instead of stopping your check entirely, the SSA will now withhold 50% of each payment
- That will continue every month until your debt is repaid
- Previously, they were only withholding 10% of benefits, so this is a significant change
This means if your monthly check is $1,800, and you are affected, you could receive only $900 starting in July. For many, that kind of cut is a serious blow to their financial stability
Why is the Social Security Administration doing this now?
According to the Social Security Administration’s Office of the Inspector General, the agency is under pressure to recover overpayments made in error. The money was sent by mistake, but now the responsibility falls on you to pay it back—even if the mistake was not yours.
Martin O’Malley, former SSA Director, summed it up honestly when he said:
“Innocent people could be seriously harmed.”
Many feel this situation is unfair, especially for those who were unaware they were overpaid. But the agency says it must balance fairness to the public and its duty to protect taxpayer dollars.
What should you do if you are on the list?
If you received a notice from the SSA about an overpayment, here is what you should do:
- Review the letter carefully to understand how much you owe
- You can request a payment plan or appeal the decision
- If the amount is wrong or you think you should not have to repay it, you can ask for a waiver
- Do not ignore it—starting July 24, 50% of your check may be withheld automatically
The SSA is encouraging people to contact them if they have questions or need help setting up an arrangement.
Related article:
What do I need to report to Social Security if I get Supplemental Security Income (SSI)?
