Elon Musk’s DOGE has done irreparable damage to Americans’ Social Security benefits

Americans depending on monthly Social Security checks are now being crushed by brutal clawbacks, just weeks after the Social Security Administration triggered panic with a new 100% withholding policy thanks to Elon Musk’s Department of Government Efficiency (DOGE).

That number has now been slashed to 50%—but the financial fallout is already spreading fast, with many people still at risk of losing half their income overnight.

The change applies to Title II benefits, which include retirement, disability, and survivors insurance. For those who got overpayment notices dated April 25 or later, 50% of their monthly benefit will be taken back automatically unless they request help within 90 days.

The previous rate was 10%, but under Donald Trump’s White House, that rate was increased to 100%, before this rollback. The Supplemental Security Income (SSI) program keeps its old 10% withholding, but that doesn’t help the thousands affected under Title II.

Social Security cuts 100% clawback to 50% for Title II benefits

The update was quietly shared by the agency as an emergency change, and the affected individuals are getting notices in the mail demanding full repayment of any overpaid amounts. These overpayments usually happen when someone fails to report a change in their circumstances on time, or when the agency makes a mistake processing or entering their info.

Either way, the money is gone, and the agency wants it back.

Once notified, beneficiaries have a limited window—just 90 days—to push back. They can ask for a lower withholding rate, request a waiver, or file for reconsideration. If they miss the deadline, the 50% rate kicks in automatically and continues until the overpaid amount is completely collected.

The agency’s rapid policy flip—from 10% to 100% and now to 50%—has shocked advocates. “In the last 100 days, we’ve gone from as low as 10 [percent] to 100 and now to 50,” said Richard Fiesta, executive director of the Alliance for Retired Americans.

Richard called the 100% withholding “ridiculously draconian and cruel,” and warned that even the new 50% rate will push many into financial hardship.

The Social Security Administration had estimated that taking back 100% of checks would save the agency around $7 billion over 10 years. But that number doesn’t reflect the real cost for people who rely on every dollar to survive. “Losing 50% [of benefits] for a lot of people could put them into immediate economic hardship,” Richard added.

Kate Lang, director of federal income security at Justice in Aging, said cutting checks in half is a real threat to the stability of low-income retirees.

“Obviously, it’s better not to lose all of your income,” Kate said. “But if you’re relying on your benefits to pay your rent or your mortgage and buy food, losing half of that income is going to be devastating and can still result in people becoming homeless.”

Negotiation options offer little hope to most beneficiaries

Even though the administration says people can try negotiating lower payments, there’s no guarantee. Kate explained that every case depends on the staff handling it.

“There are thousands of employees that individual beneficiaries are going to be dealing with to ask for a waiver or ask to negotiate a different repayment rate,” said Kate. “And those employees have a lot of discretion in what they decide.”

For people caught in the middle of this mess, even reaching someone to talk to is a battle. Beneficiaries are facing long wait times just to get appointments at their local Social Security offices. Those delays are making it harder to use the options they’ve technically been given.

The timeline is tight. The burden is heavy. And the cause is often not the recipient’s fault. Richard said that in most of these cases, the overpayments weren’t caused by the individuals. “They shouldn’t be put in a worse situation because of something they never caused in the first place,” he said.

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