39 States May Have to Repay Foster Children’s Social Security Benefits: In the United States, a large number of foster children get Social Security or SSI payments; nevertheless, some states appropriate their funds to cover state expenses. This is being prevented by the federal government, which includes Social Security and ACF. There are very few states with protection regulations. Ensuring foster children retain their earned Social Security payments is the aim.
The U.S. Department of Health and Human Services (HHS) Administration for Children and Families (ACF) wrote a letter to 39 governors on Thursday, December 11. They requested that the states safeguard the Social Security payments of foster children. Contrary to popular belief, thousands of children in foster care receive Social Security or Supplemental Security Income (SSI) benefits.
Repay Foster Children’s Social Security Benefits
According to a Daily Express US story, the ACF stated that 39 state child welfare organizations are receiving Social Security survivor payments that foster children have earned. Instead of sending the money to the children, these state agencies use the children’s benefits to cover the state’s own foster care expenses.
According to ACF Assistant Secretary Alex J. Adams, “every earned benefit dollar belongs to these foster youth, not the government agencies or bureaucrats.” According to Reports, Adams continued, “Protecting children is the core mission of child welfare, and we will keep the best interests of the child front and center in all our efforts.” Social Security survivor benefits are crucial for foster children and are derived from the lifetime contributions of a deceased parent.
Social Security Funds for Foster Kids
A September 2025 Social Security Advisory Report quoted that around 27,000 foster children receive Social Security or SSI, accounting for more than 5% of all foster children in the United States. One of the most vulnerable populations covered by Social Security is foster children, and the issue of states stealing their benefits is becoming more widespread. States frequently exploit these advantages to save millions of taxpayer dollars on foster care services.
Trump Policy Shift May Require 39 States to Return Foster Children’s Social Security Funds
According to the ACF, its objective is to prevent states from stealing earned benefits and to ensure that the funds support foster children as they transition out of state custody. Senator Elizabeth Warren brought up this matter during a hearing with former Social Security Commissioner Martin O’Malley back in March 2024. She begged him to forbid states from accepting survivor benefits for foster children. Warren pointed out that states stole at least $179 million from foster children in 2018 to fund unrelated state goals.
she claimed that “dozens of states are now secretly screening the kids in their care to see if they would be eligible for Social Security benefits, sometimes even hiring data mining companies… then funneling those benefits into state coffers to pay for anything from paper clips to prisons.” Some states have taken action to safeguard Social Security benefits for foster children. The practice was abolished in Idaho by Adams, the former head of the state’s Department of Health and Welfare.
Eleven states, including Idaho, have laws prohibiting the diversion of Social Security income for foster children. In the 39 states where payments are still being received, the ACF and Social Security Administration are currently attempting to alter the procedures.