WASHINGTON, D.C. – The U.S. Department of Health and Human Services’ Administration for Children and Families (ACF) has formally notified 39 governors that their states continue to divert Social Security survivor benefits intended for foster youth, calling for immediate policy changes to protect those funds.
According to ACF, many state child welfare agencies intercept federal benefits—such as Social Security payments earned through a deceased parent’s work history—and use them to reimburse state costs rather than reserving the money for the children it was meant to support. Officials say the practice undermines financial security for foster youth, particularly as they transition into adulthood.
“HHS’ 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 announcement. “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 dollars should never be treated as agency income. “Every earned benefit dollar belongs to these foster youth, not the government agencies or bureaucrats,” Adams said. He noted that during his previous role leading Idaho’s Department of Health and Welfare, the state ended the practice and now directs survivor benefits toward a child’s unmet needs, saving the remainder for their future.
The press release also highlighted the experience of Idaho native and Los Angeles Chargers fullback Scott Matlock, who entered foster care at age 13 after losing both parents. Matlock said he never received his survivor benefits and praised the federal effort to ensure other foster youth do not face the same barrier.
Only 11 states have enacted policies to prevent the diversion of these funds. ACF and the Social Security Administration plan to provide further resources and technical assistance to help the remaining states adopt protections.
ACF officials say the agency intends to work closely with governors to end the practice and ensure earned benefits are preserved for the children who rely on them.
