HHS touts 35 states that have scaled back ‘orphan tax’ on Social Security benefits
Summary
The Department of Health and Human Services (HHS) announced that 35 states have stopped taking Social Security survivor benefits from children in foster care. These benefits, meant to support orphans after a parent's death, were previously intercepted by state agencies.Key Facts
- HHS officials reported the change on a recent Tuesday.
- Thirty-five states have ended the practice of taking Social Security benefits from foster children.
- These benefits are survivor benefits, given after the death of a parent who contributed to Social Security.
- The money was previously taken by state agencies instead of going fully to the children.
- The policy to intercept these benefits had been in place for many years.
- This change aims to ensure that orphans in foster care receive the full amount intended for their support.
- Social Security survivor benefits help provide financial assistance to children who lost a parent.
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