Representative Adelita Grijalva (D-AZ) has introduced a bicameral bill with Senator Ron Wyden (D-OR) to protect Social Security from garnishment.
How the Bill Works
The Debt Collection Improvement Act of 1996 allows for Social Security benefits to be withheld (garnished) to collect delinquent non-tax debts owed to other federal agencies, such as student loans.
Rep. Grijalva's Protection of Social Security Benefits Restoration Act would repeal these provisions, restoring protections that were part of the original Social Security Act and expanding them to Social Security, Railroad Retirement, and Black Lung benefits.
According to Rep. Grijalva's press release, many seniors rely on Social Security as their sole source of income, and for over 63% of seniors, those payments make up half their income.
In 2019, the average amount collected from individual beneficiaries was $186 per month.
What Grijalva and Wyden are Saying
"Social Security is not a handout — it is a benefit earned over decades of hard work. Retirees deserve to know that money will be there when they need it," the Arizona congresswoman said. "At a time when the cost of living continues to rise, seniors living on fixed incomes can't afford to have their Social Security benefits taken away. I'm proud to introduce this legislation with Senator Wyden to protect these critical benefits that retirees have earned."
Similarly, Sen. Wyden said, "Social Security should not be able to garnish benefits that American workers earned over a lifetime of hard work on account of outstanding student debt or other federal loans."
"With inflation and rising costs of living, Congress must take the financial burden off struggling seniors and Americans with disabilities at risk of seeing their Social Security benefits cut," Sen. Wyden continued, adding, "That's why I am proud to introduce legislation that will ensure that Americans' benefits are protected from garnishment, providing greater peace of mind to seniors in their retirement."
