Americans dependent on monthly Social Security checks are currently crushed by harsh clawbacks, just weeks after the Social Security Administration sparked panic with its new 100% withholding policy thanks to Elon Musk's Department of Government Efficiency (DOGE).

That number has currently been reduced to 50%, but the financial consequences are already spreading quickly, and many people still risk losing half their income overnight.

The changes apply to Section II benefits, which include retirement, disability, and survivor insurance. For those who received overpayment notifications from April 25 onward, 50% of their monthly benefit will be clawed back automatically unless they request assistance within 90 days.

The previous rate was 10%, but under Donald Trump's White House, the Supplemental Security Income (SSI) program maintains its old 10% withholding, but this does not help the thousands affected under Section II.

Social Security reduces the 100% clawback to 50% for Section II benefits

The update was quietly divided by the agency as an emergency change, and affected individuals are receiving notifications in the mail demanding full repayment of any overpaid amounts. These overpayments typically occur when someone does not report changes in their circumstances in time or when the agency makes an error in processing or entering their information.

In any case, the money is gone, and the agency wants to get it back.

After notification, beneficiaries have a limited window—just 90 days—to push back. They can request a lower withholding rate, ask for a waiver, or file for a review. If they miss the deadline, the 50% rate goes into automatic ally mode and continues until the overpayment amount is fully collected.

The agency's rapid shift—from 10% to 100%, and now to 50%—has shocked advocates. "In the last 100 days, we've gone from 10 to 100 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% rates will push many into financial hardship.

The Social Security Administration estimated that returning 100% of checks would save the agency about $7 billion over 10 years. But this number does not reflect the real cost to people who rely on every dollar to survive. "Losing 50% [of benefits] for many people can lead to immediate economic hardship," Richard added.

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

"Clearly, it’s better not to lose all your income," Kate said. "But if you rely on your benefits to pay rent or your mortgage and buy food, losing half of that income will be devastating and could lead to people becoming homeless."

Negotiation options offer little hope to most beneficiaries

Despite the administration saying that people can try to negotiate lower payments, there is no guarantee. Kate explained that each case depends on how the staff handles it.

"There are thousands of staff that individual beneficiaries will deal with to request a waiver or ask to negotiate a different repayment level," Kate said. "And these staff members have a lot of discretion in what they decide."

For people caught in the middle of this mess, even finding someone to talk to is a battle. Beneficiaries face long wait times just to meet at local social security offices. These delays make it difficult to utilize the options they have technically been given.

Deadlines are tight. The burden is heavy. And the reason is often not the fault of the recipient. Richard said that in most of these cases, the overpayments were not caused by people. "They shouldn't be put in a worse situation because of something they never caused," he said.

Source - Doge Elon Musk has inflicted irreparable damage to American social security benefits