In a significant move, the United States federal government has formally called upon dozens of state administrations to halt the controversial practice of seizing Social Security benefits intended for children under foster care. The Administration for Children and Families (ACF), a key agency within the Department of Health and Human Services, dispatched letters to the governors of 39 states on Thursday, urging them to safeguard these critical funds for the vulnerable youth they are meant to support.
States Accused of Misusing Critical Funds
The core allegation from the ACF is stark: state child welfare agencies are systematically identifying and collecting Social Security survivor benefits and Supplemental Security Income (SSI) owed to children in foster care. Instead of preserving this money for the children's future needs—such as education, housing, or personal expenses—these states are allegedly using the funds to offset their own foster care program costs. This practice potentially diverts millions of dollars annually from the children themselves.
Alex J. Adams, the Assistant Secretary of the ACF, left no room for ambiguity in his statement. "Every earned benefit dollar belongs to these foster youth, not government agencies or bureaucrats," he asserted. He emphasized that the protection and well-being of children must remain the absolute cornerstone of all child welfare policies.
Scale of the Issue and Political Backlash
The scale of this issue is substantial. According to a Social Security Advisory Report cited in the news and published in September, approximately 27,000 foster children—more than 5% of the total foster care population—are recipients of Social Security or SSI benefits. The Associated Press has reported that several states routinely divert these funds, saving themselves millions in expenditure.
It is crucial to understand that Social Security survivor benefits are not a government handout. They are earned benefits based on the lifetime contributions of a deceased parent and represent a vital financial resource for the affected child. The ACF is now intensifying efforts to ensure these benefits are preserved, especially as youth prepare to transition out of state care and into independent adulthood.
The issue has ignited considerable political attention. Notably, in March 2024, Senator Elizabeth Warren brought the matter to the forefront during a Senate hearing, demanding a ban on states' collection of foster children's survivor benefits. Senator Warren claimed that states had taken at least $179 million from foster children in 2018 alone, funneling the money into general state budgets to cover unrelated expenses from office supplies to prisons. She further alleged that some states actively screen foster children for benefit eligibility, sometimes employing data-mining firms, to identify this revenue stream.
Path to Reform and Leading States
Amid this crackdown, a path to reform is emerging. The federal authorities are actively working on strategies to change practices in states where benefit collection continues. There are also positive examples to follow. Under the leadership of Assistant Secretary Adams, Idaho has discontinued the practice, joining a group of ten other states that have already enacted policies specifically designed to protect foster children's benefits.
The letters sent to the 39 states serve as a powerful directive, signaling that the federal government views the preservation of these benefits as a non-negotiable aspect of its duty to children in care. The coming months will likely reveal which states comply with the federal call to action and how comprehensive the resulting reforms will be.
