Government Cuts Off Disability Benefits, Leaving Woman Homeless

More than a year after the federal government first cut off her disability benefits, Denise Woods drives nightly to strip malls, truck stops, and parking lots around Savannah, Georgia, looking for a safe place to sleep in her Chevy.

Woods, 51, said she had rented a three-bedroom house she shared with her adult son and grandson until March 2022, when the government terminated her disability payments without notice.

According to letters sent by the Social Security Administration, the agency determined it had been overpaying Woods and demanded she send back nearly $58,000.

Woods couldn't come up with the money. So, until February 2026, the agency is withholding the $2,048 in disability she would have received each month.

• Social Security clawbacks hit a million more people
• Social Security trying to force Chicago woman to pay back $88,000 in overpayments
• Under fire, Social Security chief vows "top-to-bottom review of payment clawbacks"

"I still don't know how it happened," said Woods, who has requested a waiver and is seeking a hearing. "No one will give me answers. It takes weeks or months to get a caseworker on the phone. They have made my life unbearable."

Kilolo Kijakazi, acting commissioner of the Social Security Administration, addressed a congressional subcommittee in October, highlighting the agency's efforts to assist recipients who have received overpayments. Kijakazi stated that the agency notifies individuals of overpayments and provides support for establishing repayment plans or seeking waivers of the debt.

However, the relief provided for overpayments is limited, leaving many individuals facing severe consequences. Some individuals become homeless, face eviction from rental housing, or experience foreclosure on their mortgages.

Disproportionate Impact on Vulnerable Communities

The Social Security Administration has a troubling history of excluding Black individuals from receiving benefits. The agency's own research demonstrates that overpayments primarily affect Black and Hispanic individuals, who are among the poorest, least educated, and have medical conditions unlikely to improve.

Woods is just one example of the millions who have been targeted by the Social Security Administration's efforts to recover billions of dollars in allegedly incorrect payments sent to beneficiaries. It can take years for the agency to identify these mistakes, and even small overpayments can accumulate over time.

The government's pursuit of these overpayments often results in imposing debts of tens of thousands of dollars on individuals who are least financially capable of repaying them.

Lawyers describe the impact as "wreaking havoc in people's lives."

Overpayments Cause Financial Hardship for Social Security Beneficiaries

A 64-year-old man from Florida and a 24-year-old woman from Pennsylvania are facing financial struggles after being overpaid by the Social Security Administration.

The Florida man, who is now living in a tent in the woods, had his Social Security retirement payments garnished last year due to an alleged overpayment of $35,176 in disability benefits. Unable to afford rent, he has resorted to living in the woods.

The Pennsylvania woman, who lives with her mother and younger siblings in public housing, lost the opportunity to buy her own home because of an alleged overpayment of $6,063 that accrued when she was a child.

Jen Burdick, an attorney with Community Legal Services of Philadelphia, which represents clients who have received overpayment notices, expressed concern over the impact of these overpayments on people's lives. "Social Security overpayments are wreaking havoc in people's lives," Burdick said. "They are asking the poorest among us to account for every dollar they get. Under their rules, some people can save up money for a funeral burial but not enough to get housing."

The Florida man, who suffers from lupus and congestive heart failure, has been forced to work part-time after his benefits were rescinded. He earns $14 an hour transporting railroad crew members, but the cost of his SUV, $386 a month, consumes a significant portion of his income. Without the vehicle, he would be unable to work or have a place to sleep.

"My life is just survival now," the Florida man said. "Sometimes I feel like I am just waiting to die."

The Social Security Administration has stated that it is required by law to attempt to recover overpayments. Beneficiaries are sent notices asking them to repay the money directly. In addition, authorities have the power to reduce or halt monthly benefits and garnish wages and federal tax refunds in order to recoup the overpaid amounts.

Benefits Terminated Without Explanation

Officials from the agency claim that the process of terminating benefits is orderly and that beneficiaries are given an explanation for the overpayment and the opportunity to appeal the decision. They also state that charges can be waived if the individual cannot afford to pay. A letter sent to one recipient outlined that a waiver could be granted if paying back the overpayment would result in an inability to cover essential expenses such as food, clothing, housing, and medical care.

However, individuals who are most affected by Social Security's decisions, including those with disabilities and widows receiving survivors' benefits, have a different story to tell. They describe having their benefits terminated abruptly and without any explanation or warning. They also mention that the appeals process can be lengthy, dragging on for years, and that it is difficult to obtain answers from the SSA to even the most basic questions.

Nancy Altman, the president of Social Security Works, a group that advocates for the protection and expansion of the program, shared a distressing experience of a colleague's mother who received an overpayment notice. Altman highlighted the stress and difficulty they faced in resolving the matter, which ultimately led to the mother being hospitalized. Altman emphasized that the situation would be even worse for someone who is not fluent in English, lacks formal education, and does not have the support of a knowledgeable advocate.

The Impact of Racial Inequity on Social Security

The Social Security Administration is facing numerous challenges, exacerbated by funding shortages and understaffing. As a result, many people who have been overpaid, often through no fault of their own, are not receiving adequate assistance from the agency. This issue is particularly prevalent among Black people and other minority groups, highlighting the racial inequity that persists in government programs.

Despite promises from President Joe Biden and Social Security leaders to address racial inequity, the agency's actions have fallen short. Advocates for people with disabilities argue that Congress has ignored these issues in favor of cost-saving measures, neglecting the needs of those affected. This lack of action is deemed completely inexcusable by David Weaver, a former associate commissioner for research, demonstration, and employment support at the SSA.

The majority of overpayments are associated with the Supplemental Security Income (SSI) program, which primarily benefits individuals with little to no income who are disabled, blind, or over 65 years old. A significant proportion of SSI recipients are Black, Hispanic, or Asian.

When questioned about specific cases and concerns, the Social Security Administration declined to comment, citing privacy laws. However, spokesperson Nicole Tiggemann acknowledged that receiving an overpayment notice can be distressing and stated that the agency provides assistance to beneficiaries in navigating the process and understanding their rights if they believe they were not at fault or are unable to repay the debt.

According to Tiggemann, even if individuals do not want to appeal or request a waiver for overpayments, they are encouraged to contact the Social Security Administration if the planned withholding would cause hardship. The agency offers flexible repayment options, including as low as $10 per month, and handles overpayments on a case-by-case basis, taking into account each person's unique situation.

Challenges with paperwork

Critics argue that fighting an overpayment notice is not as simple as it may seem. Many beneficiaries, who may already be dealing with physical, mental, or intellectual disabilities, often find themselves overwhelmed by complex paperwork or unable to locate financial documents that may be several years old.

The Social Security Administration has the authority to waive overpayments if it is determined that recovering them would violate "equity and good conscience," or if the disputed amount falls below certain thresholds. The agency's guidance also states that collecting an overpayment "defeats the purpose" when the individual needs substantially all of their current income to meet their current ordinary and necessary living expenses.

Advocates for people with disabilities argue that most overpayments occur due to delays in processing paperwork and errors made by the Social Security Administration or recipients making innocent mistakes. The agency can waive overpayments when the beneficiary is found not at fault.

However, in fiscal year 2023, the Social Security Administration collected approximately $4.9 billion in overpayments, with an additional $23 billion yet to be collected, according to an agency report.

David Camp, the interim chief executive officer of the National Organization of Social Security Claimants' Representatives, which advocates for improvements in federal disability programs, said the Social Security Administration is a "broken structure."

The agency sometimes tries to claw back overpayments from people falsely accused of failing to provide required documents, Camp said.

"Dropping off forms at their field offices is not a guarantee" paperwork will be processed, he said. "Mail is slow, or it doesn't get opened. We see it so many times you are left with the idea that has to do with the structure."

Left destitute

Advocacy groups and others said they don't know how many people become homeless after their benefits are terminated, but they say anecdotal accounts are common.

A study found that more than 800,000 disability applicants from 2007 to 2017 experienced homelessness. Advocates say it only makes sense that overpayments could lead more people to become homeless, since nearly 40% of people receiving disability benefits experience food insecurity and cannot keep up with their rent and utility bills, according to research.

Ronald Harrell sleeps in the woods near Wildwood, Florida, about 50 miles northwest of Orlando. He said he shelters in a tent, cooks his meals on a small grill, and showers at a friend's house.

Harrell, 64, said he rented a room in a house for $125 a week until last year, when the Social Security Administration cut off his retirement benefits.

According to Jonathan Stein, a former attorney with Community Legal Services of Philadelphia, the Social Security Administration's tendency to deny applications and terminate benefits cannot be solely attributed to budget cuts. Stein, who has participated in workgroups and meetings with federal officials on access to Social Security payments for vulnerable populations, believes that the agency has an implicit bias against granting benefits. He argues that this skewed view of integrity fosters a culture of suspicion and prosecution of applicants.

Recent data from the Social Security Administration reveals that approximately 136,540 people had their Supplemental Security Income benefits suspended. This number is more than double the figure recorded in 2010.

Chance at homeownership derailed

A 24-year-old woman from Pennsylvania, who received Supplemental Security Income as a child due to a learning disability, shared her experience. However, she requested that her name not be published. The woman received an overpayment notice for over $6,000 from the Social Security Administration, which she found frustrating. She described dealing with unpleasant individuals over the phone and struggling to obtain answers.