39 States Warned Over Social Security Benefit Rules
More than half of all U.S. states have been encouraged by the federal government to change laws surrounding Social Security benefits and children in foster care.
The Department of Health and Human Services (HHS) has asked 39 states to review policies that divert foster youths’ earned Social Security survivor benefits.
Why It Matters
According to the most recent Adoption and Foster Care Analysis and Reporting System report for fiscal year 2024, an estimated 328,947 children were involved in the U.S. child welfare system. In a September report, the Social Security Advisory Board estimated that 27,000 children in foster care receive Social Security or Supplemental Security Income benefits, accounting for more than 5 percent of the total foster care population.
What To Know
Under federal law and Social Security Administration (SSA) regulations, Social Security survivor benefits earned on a parent’s work record belong to the child, and if the child cannot manage them directly, a representative payee can be appointed. The payee must use the benefits only for the child’s use and benefit, generally for the child’s current maintenance and best interests, and any funds not needed immediately must be conserved or saved for the child’s future needs—the framework is intended to ensure that federal benefits support the child rather than third parties.
Despite the rules, many state child welfare agencies have routinely applied to become the representative payee for foster children eligible for survivor benefits and then intercept and use those federal funds to reimburse their own foster care costs, often without notice to the child or their guardian, according to the HHS.
“To date, only 11 states have enacted policies to stop the interception of Social Security survivor benefits and conserve them for the child’s unmet needs,” a press release from the HHS reads. “ACF and the Social Security Administration plan to provide resources, in addition to existing technical assistance, to help the remaining 39 states change this practice.”
The department’s Administration for Children and Families said it has “notified all 39 governors who allow this practice and aims to work with states to end it.”
“The goal is to ensure these earned benefits are no longer taken from foster youth and are instead preserved to support them as they transition out of state care,” the release reads.
The department did not detail to which states the letters have been sent. Newsweek has contacted the HHS for clarification via email.
Several states have passed legislation that bars the use of Social Security payments to pay for a foster child’s care. Oregon and New Mexico have explicitly banned using Social Security to pay for the cost of foster care, while other states like Hawaii and Nebraska require funds to go directly into checking or savings account of the foster child.
What People Are Saying
HHS Secretary Robert F. Kennedy Jr.: “At HHS, our guiding principle is simple: every child deserves a home and a fair chance to thrive. But when state agencies stack the deck against children, we step in. In the Trump Administration, we are committed to ensuring every child in America has the chance to reach their full potential.”
Scott Matlock, current NFL player for the Los Angeles Chargers and former foster youth: “I commend President Trump, Secretary Kennedy and Assistant Secretary Adams for taking decisive action to encourage states to protect children and ensure foster youth have a strong financial foundation. My hope is the next kid coming through foster care gets every penny he or she deserves, no matter what state they live in.”