During the course of the first half of this year, the Social Security Administration (SSA) has been undergoing a number of changes as the country transitioned into the new leadership of the Trump Administration. Social Security benefit checks provide more than 70 million Americans with a stable source of income and for a fair amount of these households, these monthly checks are a main or even sole source of income.
Since being elected to office at the beginning of the year, the Trump Administration has been making various sweeping changes across various federal systems and the Social Security Administration (SSA), in particular, has been undergoing its fair share of upheaval. President Donald Trump also introduced the Department of Government Efficiency (DOGE) which had initially been headed by tech mogul Elon Musk — who has since stepped down from this position.
These changes faced by SSA has sparked some concern with many beneficiaries beginning to fear for the stability and longevity of their benefits in the future. Here is what you need to know about some of the changes at the SSA during the first half of 2025.
Social Security withholding and garnishments
In April, a withholding rate of 50% was confirmed for beneficiaries with overpayment balances. Beneficiaries with overpayment balances were sent a notice regarding this on April 25. Following this, the individual had a 90 day period during which they could submit a request for a lower rate of withholding or a waiver of repayment. Failure to take action during this period would result in 50% of your benefit being withheld and this would begin going into effect around the end of July.
Additionally, in May, the Department of Education announced that it would be resuming collections from individuals found to be in default of their federal student loans. A pause on collections had been in place since March of 2020 due to the COVID-19 pandemic, however, these collections will now be resuming through the Treasury Offset Program. In the case of Social Security beneficiaries who in default of their federal student loan, their benefit checks could be subject to a maximum 15% garnishment.
Writing in an opinion piece for the Wall Street Journal, Linda McMahon, Education Secretary, stated, “Borrowers who don’t make payments on time will see their credit scores go down, and in some cases, their wages automatically garnished.”
New leadership at the SSA
In January, President Trump nominated Frank Bisignano, former Fiserv CEO, for the role of SSA Commissioner. In early May, Bisignano was officially appointed to the post and has since shared ambitious plans to make the SSA a “digital-first” agency. Additionally, in April, Stephen Evangelista was also appointed to the role of Deputy Commissioner for the Office of Operations at the SSA.
“Stephen’s proven track record of leadership and his dedication to public service make him an excellent choice for this critical role,” Lee Dudek, former Acting Commissioner of Social Security stated. “His deep knowledge of the agency’s programs will be an asset as we continue to improve customer service while safeguarding Americans’ hard-earned benefits.”
Social Security Fairness Act
In January, the Social Security Fairness Act (SSFA) was signed into law and as a result, around 3 million public sector employees were able to have their full benefits restored to them. These individuals previously had their benefits reduced due to the provisions of the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) since their employers had provided pensions for them. In addition to a bump in their benefits, this cohort will also qualify for a once-off retroactive payment dating back to January 2024.
The downside to the SSFA is that it is increasing financial strain on the trust funds that are used to pay benefits. According to the latest annual report from Social Security trustees, the OASI trust fund will be exhausted by 2034 and at that point, only 77% of scheduled payments will be covered.