Many New Yorkers to Get Smaller Social Security Checks; Will You?

New Yorkers who depend on Social Security may need to tighten their belts starting this month, as checks may be missing some money.

Approximately 3.8 million New Yorkers receive Social Security benefits every month, which totals more than $6.8 billion. Now, that number may be smaller as the federal government will be taking away some of those payouts starting this month.

The Trump Administration announced that starting in June, payouts from Social Security for over 450,000 Americans over the age of 62 will be lowered, but there are some ways to reverse the garnishment.

Why Are Social Security Checks Shrinking For Some New Yorkers?

According to CNBC, the Trump administration announced on April 21 that the U.S. Department of Education was going to target individuals who still owed money on their student loans by directly taking the money out of Social Security checks. Up to 15% of monthly benefits may be reclaimed each month to pay off student debt.

Garnishments to Social Security were halted during COVID, and the Biden Administration moved to have them permanently forgiven. President Trump, however, has vowed to reinstate them.

Most New Yorkers who receive Social Security depend on it for their monthly expenses. Garnishments could mean falling behind on bills or navigating a tighter budget. The good news is that regardless of how much you owe, monthly checks won't fall below $750 a month.

How to Reverse Social Security Garnishments

If you are going to receive a lower Social Security benefit starting this month, you should have already been sent a notice. There is information incuded on how to challenge the garhishment due to financial hardship or a clerical error.

Student loan debt can be forgiven for those who have significant health issues or other disabilities. The government also has a Default Resolution Group that will help navigate different strategies for getting out of student loan debt. One option a repayment plan based on current income, which for Social Security recipients could wind up being zero payment.