Trump administration reverses policy, allows full Social Security overpayment clawbacks

The Trump administration has reversed a policy that limited Social Security overpayment clawbacks to 10%, now allowing the Social Security Administration to withhold 100% of monthly checks for overpayments, according to reports from WSB.

This change affects approximately 1 million of the 2 million people annually dealing with Social Security overpayments, many of whom rely on these checks as their sole income source.

Martin O’Malley, former Commissioner of Social Security, criticized the policy as “hurting people,” emphasizing the impact on senior citizens living near poverty. Acting Commissioner Lee Dudek stated that the policy revision is necessary to safeguard taxpayer funds, reverting to full withholding as practiced during previous administrations.

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Denise Woods, a Georgia resident, became homeless after receiving a $58,000 demand letter from the SSA, which led to her entire Social Security check being withheld. Kathleen Romig, a former researcher at the SSA, warned that the policy change could lead to increased hunger, homelessness, and missed medical care for affected individuals.

The Trump administration claims that the policy will save taxpayers $7 billion over the next decade, but it is not retroactive for those already on an overpayment plan. The policy applies to overpayments discovered after March 27 and affects traditional Social Security recipients, excluding SSI Disability.

The reversal of the clawback policy has sparked concern among former officials and affected citizens, highlighting the potential hardships for those dependent on Social Security income.

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