The Trump Administration has directed states to end the practice of taking Social Security survivor benefits from children and youth in foster care.
In a letter sent to governors in early December, Alex Adams, an assistant secretary of the U.S. Department of Health and Human Services (HHS) and overseer of federal child welfare policy, instructed states to cease what he termed "the orphan tax." This refers to the monthly benefit paid to children whose deceased parents had worked and paid Social Security taxes.
States have historically taken these checks as reimbursement for the cost of a child's care, despite legal requirements for states to provide foster care to all children in need. Adams stated that there is no "moral justification" for children in foster care to pay their own way, as they are not responsible for their situation.
An NPR investigation with The Marshall Project in 2021 brought attention to this issue. Since then, leaders from both Democratic and Republican parties in several states and cities have initiated efforts to discontinue the practice.
The average monthly survivor benefit check is approximately $1,100. This money is intended to provide stability for families or, in the case of children in foster care, to be set aside for their needs upon leaving care, such as education, housing, or transportation. Adams described the practice of diverting these funds to state agency costs as "morally shocking" and "morally corrupt."
Justin Kasieta, who was 13 when his father died, recounted how the state of Michigan collected $18,000 from his checks over three years while he was in foster care. Kasieta, now 25, highlighted that most children who exit foster care experience financial hardship, emphasizing the importance of supporting them rather than taking their funds.
Adams had previously implemented this policy change in Idaho when he served as director of the state's Department of Health and Welfare. In his current role at the Administration for Children & Families (ACF) within HHS, he promptly notified the governors of 39 states that still engaged in the practice to revise their policies. HHS Secretary Robert F. Kennedy Jr. publicly supported this initiative.
Efforts to guarantee foster children access to their benefit checks have received bipartisan support. While the Biden Administration previously sent letters suggesting states reconsider taking survivor benefits, the current directive from the Trump Administration provides new impetus for change. Amy Harfeld of the Children's Advocacy Institute characterized conservatives' engagement on the issue as a concern regarding "government overreach into kids' private assets."
Some state officials have raised budgetary concerns regarding the policy change. However, Adams, who was formerly Idaho's budget director, rejected this argument, estimating the total Social Security survivor benefits nationwide to be around $34 million. He noted this sum represents a minimal fraction of the overall child welfare budget, which is funded by federal, state, and local governments.
A related but more complex issue involves states collecting disability checks (Supplemental Security Income, or SSI) from children in foster care. Addressing this would likely require legislative action from Congress and other federal agencies due to the limits on how much an individual can retain in SSI benefits, necessitating additional steps to return these funds to foster youth.