Ending the 'Orphan Tax': Protecting Social Security Benefits for Children in Foster Care

Read Ending the 'Orphan Tax': Protecting Social Security Benefits for Children in Foster Care on WALY Radio

Ending the 'Orphan Tax': Protecting Social Security Benefits for Children in Foster Care

The Trump Administration has instructed states to cease the practice of withholding Social Security benefit checks from children and youth in foster care. The assistant secretary of the U.S. Department of Health and Human Services, Alex Adams, referred to this practice as the "orphan tax" and urged states to discontinue taking survivor benefits from children in foster care. These benefits are intended for children whose parents have passed away and have paid Social Security taxes during their lifetime. States have been deducting these checks to cover the cost of caring for children in foster care, despite the legal obligation to provide foster care to all children in need.

An investigation conducted by NPR and The Marshall Project in 2021 shed light on the issue of states withholding survivor benefit checks from children in foster care. Following this revelation, leaders from both Democratic and Republican parties in various states and cities have taken steps to end this practice. The average monthly survivor benefit check amounts to around $1,100, which can provide crucial financial stability to families who have lost a parent. For children in foster care, this money can be saved for future expenses such as college tuition, rent, or transportation.

Adams strongly opposes the practice of diverting Social Security benefits meant for orphaned children to cover state agency costs, labeling it as morally reprehensible and corrupt. He emphasized the importance of preserving these benefits as the last resources left behind by deceased parents for their children. Individuals like Justin Kasieta, who shared his personal experience with Adams, highlighted the impact of losing these benefits while in foster care. Kasieta's story underscores the challenges faced by foster youth and the critical role that financial support plays in their transition to adulthood.

Adams, who previously addressed this issue in Idaho, has taken swift action in his current role to notify governors in remaining states to revise their policies. His efforts have garnered support from HHS Secretary Robert F. Kennedy Jr., who emphasized the agency's commitment to ensuring every child has a fair chance to thrive. The bipartisan support for guaranteeing foster children their benefit checks reflects a shared concern for protecting children's assets and preventing government overreach.

While the Trump Administration and states have made progress in addressing the withholding of survivor benefits, there remains a complex issue regarding the cashing of disability checks for children in foster care. Unlike survivor benefits, there are limitations on how much Supplemental Security Income (SSI) children can retain. Resolving this issue would require additional steps by state child welfare agencies and potential legislative action at the federal level. The ongoing efforts to safeguard the financial well-being of children in foster care demonstrate a collective commitment to supporting vulnerable youth and ensuring they have the resources needed to succeed.