For most aging workers, Social Security provides more than just a monthly check. The payout they receive serves as a financial foundation that helps nearly nine out of 10 retired workers make ends meet, according to a quarter-century of annual surveys from Gallup.
But for some Social Security beneficiaries, this payout they’ve come to rely on isn’t guaranteed. Since President Donald Trump took office for his second, non-consecutive term on Jan. 20, 2025, he and his administration have enacted several changes to America’s leading retirement program. Chief among them are two Social Security garnishments: one already in place and one that appears likely to be reinstated later this year.
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President Trump delivering remarks. Image source: Official White House Photo by Daniel Torok. Trump and his administration have overseen several Social Security changes
To preface the following discussion, Social Security is a dynamic program. Changes are made on a near-annual basis to keep up with inflation and other shifting variables.
For instance, Social Security beneficiaries were privy to a “Trump bump” this year, with Donald Trump’s tariff and trade policy lifting the inflation rate and increasing the program’s annual cost-of-living adjustment (COLA) to 2.8%. There’s a good chance beneficiaries will enjoy a second consecutive Trump bump in 2027 due to inflationary pressures from the Iran war.
On a more direct level, President Trump signed an executive order in March 2025 that established Sept. 30, 2025, as the compliance date to end the issuance of paper checks by the federal government. Electronic payments are deemed safer and more cost-effective for Social Security and its recipients.
But perhaps the most eyebrow-raising Social Security change in Trump’s second term was the Social Security Administration (SSA) adjusting the overpayment recovery rate that was previously changed under former President Joe Biden.
Prior to the COVID-19 pandemic, the overpayment clawback rate was set at 100%. In other words, if the SSA sent you benefits that you weren’t owed, and you didn’t repay these benefits in full upon notice of overpayment, your payouts could be fully garnished until the repayment is complete.
Under Biden, this overpayment clawback rate was slashed to just 10%. The SSA initially attempted to reinstate the previous 100% recovery rate in March 2025, but received public backlash. It ultimately settled on a revised 50% overpayment garnishment, which has since gone into effect.
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