Idaho foster youth didn’t receive Social Security money they’re entitled to. That will soon change.

A 2021 report from NPR and the Marshall Project found that at least 49 states and Washington, D.C., had been collecting Social Security benefit money intended for foster youth and using it for their care. Under federal law, those Social Security benefits are considered the children’s property, but it is legal for states to be a financial representative for children. (Getty Images)

Many foster children across the U.S. with a disability or whose parents died should have been entitled to Social Security benefits, but they never saw those funds — Idaho was no different, until recently. 

Between July 2021, and May 2025, there were 326 foster children in Idaho who would have received federal Social Security payments either because of a death of a parent or disability, but the state used nearly $2.3 million of those benefits to offset the cost of their care. 

That may begin to change for those with survivor’s benefits starting next year after a recent directive issued by Idaho Health and Welfare Director Alex Adams. 

“Children in foster care deserve the ability to have the same opportunities and privileges afforded to every other child in our state, including receiving funds that they are federally entitled to for their own benefit, not the state’s,” Adams wrote in a May 21 “director’s bulletin.” 

National foster care advocate noticed Idaho policy amid HHS nomination

Adams recently caught the attention of one national foster youth advocate amid his nomination hearing for a federal post at the U.S. Department of Health and Human Services, and by association, this new policy that he quietly enacted. 

Amy Harfeld, national policy director at the Children’s Advocacy Institute, has been campaigning for years in states across the nation to change what had been a widespread practice of the state accepting Social Security survivors’ and disability benefits on behalf of the child to use for their care. 

Harfeld, an attorney, has engaged in multiple lawsuits and testified in around 25 states to try and get this policy changed. 

“Most states have not done this by themselves,” she said, “and so that really does distinguish (Adams) here, and it’s exciting that it distinguishes the state at this moment where he is going to have such a big stage and authority and capacity to make changes like this.” 

Adams’ nomination by President Donald Trump narrowly advanced out of the Senate Finance Committee July 31, and if nominated, he will oversee the nation’s Administration for Children and Families. 

A 2021 report from NPR and the Marshall Project found that at least 49 states and Washington, D.C., had been collecting this money intended for foster youth and using it for their care. Under federal law, those Social Security benefits are considered the children’s property, but it is legal for states to be a financial representative for children. 

Harfeld said that over the past four years, 32 states have taken action to change this policy. 

“It’s just a colossal failure of accountability and transparency within both agencies and … and also between federal and state agencies.” Harfeld said. “We’re just really grateful that this has been exposed now.” 

Harfeld said that the language in federal regulations and guidelines regarding survivor’s benefits for foster youth “leaves just enough gray area” that states can collect the benefits without outright violating any laws. 

She said the Administration for Children and Families — which Adams would oversee if his nomination is confirmed — could mitigate this by updating its guidance language that clearly states how the money should not be used. 

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Idaho Health and Welfare will conserve funds for youth transitioning out of foster care

Adams’ directed the agency to change this practice for youth with survivor’s benefits by July 1, 2026. The new policy will be to only use the funds for “unmet needs,” and to conserve the remaining benefits for the “child’s future needs.” 

The new policy only addresses survivor’s benefits and not disability benefits. Health and Welfare spokesperson AJ McWhorter said in an email to the Idaho Capital Sun the agency is “taking a phased approach to this issue.” 

If the child is over the age of 12, using the money to meet their needs must be done in consultation with that child. When serving as a foster child’s financial representative, agency staff would be directed to explore opportunities to deposit their money in a special needs trust, a fund for those with disabilities, or other types of trusts or savings accounts that would not limit the child’s access to public benefits. 

“The Department shall not use the child’s funds to offset state funds by simply covering items that are otherwise covered for other children in foster care who do not have Social Security Survivor’s benefits,” the bulletin said. 

The money would be released to the Social Security Administration to return to the child once they left custody.  

McWhorter said the agency opted to change the policy because, “IDHW recognizes the importance of empowering foster youth to succeed. We always look for ways to strengthen youth and support independence for youth exiting the foster care system.”

“Safeguarding these funds increases their financial stability for when they exit foster care,” McWhorter said, “ which is essential to addressing basic needs.” 

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