30 States Have Ended the “Orphan Tax,” Preserving Survivor Benefits for Foster Youth
WASHINGTON, D.C.–The Administration for Children and Families (ACF) at the U.S. Department of Health and Human Services today announced that 30 states have now ended, or substantially reformed, the practice of diverting Social Security survivor benefits from foster youth. The action marks a major bipartisan milestone in protecting earned benefits for some of the nation’s most vulnerable children.
Since ACF first called on states to end the “orphan tax” in December 2025, governors and state legislatures across the country have acted to ensure that survivor benefits remain with the children for whom they were intended. Under the leadership of Governor Kevin Stitt, Oklahoma became the 30th state to preserve these benefits rather than use them to reimburse state costs.
In addition to Oklahoma, the following states have now ended or taken steps to substantially reform the practice: Alabama, Arizona, California, Colorado, Georgia, Idaho, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Mississippi, Missouri, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, North Dakota, Ohio, Oregon, Rhode Island, South Dakota, Tennessee, Utah, Vermont, Virginia, Washington, and Wyoming, as well as the District of Columbia.
“Thirty states have chosen fairness over bureaucracy by protecting the Social Security survivor benefits that belong to foster children, and I commend their leadership,” said HHS Secretary Robert F. Kennedy, Jr. “When a parent dies, those benefits are meant to help their child — not reimburse the government. Every state should protect these children instead of taking what their families earned, and HHS will keep pressing until they do.”
"Every child deserves the opportunity to pursue the American Dream and build a brighter future, regardless of the circumstances they were born into,” said Oklahoma Gov. J. Kevin Stitt. “I’m proud that Oklahoma can join the effort to protect Social Security survivor benefits earned on behalf of children in foster care and ensure they're used in the best interest of each child. I’m grateful to First Lady Melania Trump, Secretary Kennedy, and Assistant Secretary Adams for their dedication to American’s children. Oklahoma is proud to lead on reforms that help young people leave care with greater opportunity and a stronger foundation for success.”
“We have seen tremendous bipartisan leadership from these 30 governors and state legislatures, proving that preserving these benefits can be done,” said Assistant Secretary Alex J. Adams. “These children have already lost their parents — diverting their survivor benefits just adds unnecessary hardship to unimaginable grief. With 60% of states already taking action, we are past the tipping point and encourage the remaining states to stop balancing budgets on the backs of orphans.”
Thanks to the leadership of First Lady Melania Trump, states can now preserve foster youth’s Social Security survivor benefits in Fostering the Future Accounts — the newly announced investment vehicle designed to empower foster youth and support long-term wealth building. Since the accounts were announced in June, 25 bipartisan governors have pledged to open Fostering the Future Accounts in their respective states. States both ending the orphan tax and pledging to open Fostering the Future Account advances President Donald J. Trump and the First Lady’s Executive Order on Fostering the Future for American Children and Families designed to improve the nation's child welfare system and protect the financial future of children in foster care.
ACF will continue working with governors, state legislatures, child welfare agencies, and advocates to ensure every foster youth receives the survivor benefits intended to provide them with financial security following the loss of a parent.
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