Washington, D.C. — The Administration for Children and Families (ACF) at the U.S. Department of Health and Human Services (HHS) has issued formal letters to 39 governors, calling for immediate action to end the long-standing practice of state child welfare agencies diverting Social Security survivor benefits earned by foster youth.
ACF officials say many state agencies routinely claim federal benefits—such as Social Security payments based on a deceased parent’s contributions—that belong to foster children, using the funds to reimburse agency costs rather than supporting the youth themselves. The agency argues the practice deprives young people of critical financial resources as they prepare to exit state custody.
“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,” said HHS Secretary Robert F. Kennedy, Jr. “In the Trump Administration, we are committed to ensuring every child in America has the chance to reach their full potential.”
ACF Assistant Secretary Alex J. Adams emphasized that these survivor benefits are the rightful property of foster youth. “Every earned benefit dollar belongs to these foster youth, not the government agencies or bureaucrats,” Adams said. “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.”
Adams previously ended the practice in Idaho during his tenure leading the state’s Department of Health and Welfare. Idaho now requires that survivor benefits be used only for a child’s unmet needs, preserving any remaining funds for their future.
Scott Matlock, an Idaho native and current NFL fullback for the Los Angeles Chargers, shared his support for the federal push. Entering Idaho’s foster system at thirteen after losing both parents, Matlock said he never received the benefits he was entitled to. “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,” he said. “My hope is the next kid coming through foster care gets every penny he or she deserves, no matter what state they live in.”
So far, only 11 states have enacted policies to stop diverting Social Security survivor benefits and conserve them for a child’s unmet needs or future transition out of care. ACF and the Social Security Administration plan to expand resources and technical assistance to help the remaining 39 states adopt reforms.
Federal officials say the goal is clear: ensure foster youth retain the financial support earned for them, strengthening their stability and independence upon leaving state oversight.
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