Trump administration reverses policy to allow comprehensive social security overpayment
According to the WSB, the Trump administration reversed a policy that limits social security overpayment to 10%, now allowing the Social Security Agency to withhold 100% of checks paid per month.
The change affects about one million out of the 2 million people handling Social Security overpayments each year, many relying on these checks as their sole source of income.
Former Social Security Director Martin O’Malley criticized the policy as “harmful to the people”, highlighting the impact on older people living near poverty. Acting Commissioner Lee Dudek said the policy amendment was necessary to maintain taxpayer funds and restored all withholdings previously implemented by the administration.
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Georgia resident Denise Woods was homeless after receiving a $58,000 demand letter from SSA, which led to her entire Social Security check being detained. Kathleen Romig, a former SSA researcher, warned that policy changes could lead to hunger, homelessness and missed health care services for affected individuals.
The Trump administration claims the policy will save taxpayers $7 billion over the next decade, but it is not retroactive for those who have already overpayed plans. The policy applies to overpayments found after March 27 and affects traditional social security recipients, excluding SSI disability.
The reversal of the reversal policy has raised the attention of former officials and affected citizens, highlighting the potential difficulties for those who rely on social security income.
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