Even though COVID-19 started five years ago, its effects are still being felt today. Many government services are finally returning to normal. One of those services is the Social Security Administration (SSA). After years of delays, the SSA is now restarting its debt collection processes that were paused during the pandemic.
The SSA supports millions of people, especially the elderly and disabled. Sometimes, overpayments happen — often due to system or administrative errors, not fraud. But when people receive more money than they should have, the SSA tries to get that money back. To do this fairly and efficiently, the SSA works with a system called the Treasury Offset Program (TOP).
What Is the Treasury Offset Program (TOP)?
TOP is a system run by the Department of the Treasury’s Bureau of the Fiscal Service. It helps federal and state agencies collect overdue debts. This is done by taking (or “offsetting”) money from other federal payments that a person may receive. These payments can include tax refunds or Social Security checks.
In the SSA’s case, TOP is used to recover money that was mistakenly overpaid in programs like OASDI (Old-Age, Survivors, and Disability Insurance) and SSI (Supplemental Security Income).
Debt Collections Were Paused During the Pandemic
When the COVID-19 pandemic hit in early 2020, the SSA stopped collecting debts through TOP. The reason was simple: many people were struggling financially, and it didn’t seem fair to add more pressure. Even after the worst of the pandemic ended, the pause continued to help the economy recover.
But now, the SSA has announced that debt collections will restart. The agency believes that enough time has passed and it’s important to bring back this process to maintain fairness and accountability.
Why Is This Important?
It might seem like a small issue, but Social Security programs often struggle with limited funding. Every dollar counts. Before the pause in 2020, the SSA had recovered nearly $2 billion using TOP — money that would have otherwise been lost. Recovering this money helps strengthen the SSA’s programs and ensures fairness for all recipients.
Leland Dudek, Acting Commissioner of Social Security, supports the return of the program. He said, “Resuming collections through the Treasury Offset Program is a key step in managing taxpayer funds responsibly and keeping our programs strong. We’re focused on recovering overpayments while helping people understand and manage their debts.”
Who Will Be Affected?
The debts being collected now were mostly referred to the Treasury before March 2020. These are not new debts — they were simply put on hold. Around 280,000 people owe a combined total of $2.7 billion. These individuals will now see federal payments reduced until their debt is repaid.
The goal isn’t to punish people, but to make sure that public money is handled correctly. The SSA also offers help and options for people who are affected, so they can understand what’s happening and plan accordingly.