Some Americans will see their Social Security checks drop by 50% after the Social Security Administration announced in April that it would start withholding payments from recipients who were overpaid starting at the end of July. Here’s what you need to know about the new policy and how it will affect you.

Starting July 2025, the Social Security Administration (SSA) will start cutting certain beneficiaries’ payment benefits to 50%- and no, it’s not because of the predicted treasury shortfall. Instead, it is part of the SSA’s policy to recover lost funds disbursed in overpayments.

Some Social Security recipients will see reduced benefits starting in July as the agency begins recovering the funds initially sent to Americans who received a boost in their monthly checks in recent years.