Social Security Faces 15% Benefit Cuts Starting June

Starting June 2025, some Social Security beneficiaries, particularly those with delinquent student loans, may face a 15% reduction in their benefits due to the Treasury Offset Program resuming debt collection efforts, with cuts ensuring benefits do not fall below $750 monthly. The Social Security payment schedule remains consistent for June, but new applicants may experience processing delays, and some Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI) recipients could see adjustments following income eligibility reviews. Meanwhile, federal employees face potential retirement benefit cuts under a budget reconciliation bill passed by the House, including the elimination of the Federal Employees Retirement System (FERS) supplement for most retiring before age 62, a move criticized for potentially driving away experienced workers. On a broader scale, proposals to overhaul Social Security include raising the full retirement age to 70, eliminating the payroll tax income cap to increase funding, and possibly removing federal taxes on benefits, sparking debate among lawmakers and the public. These policy changes reflect ongoing efforts to address Social Security’s financial challenges but have raised concerns about the impacts on retirees, workers, and federal employees. The combination of immediate benefit cuts for some and long-term structural reforms signals a significant period of change for Social Security recipients in the near future.