Map of 34 States Who Have Ended 'Orphan Tax' on Social Security
Summary
At least 34 states and the District of Columbia have stopped or changed a practice where child welfare agencies used Social Security survivor benefits meant for children in foster care to pay for their care. The Trump administration pushed for these changes, calling the practice the "orphan tax," which is not an actual tax but the use of these benefits to offset foster care costs.Key Facts
- More than 330,000 children are in foster care across the United States.
- Social Security survivor benefits are intended to help children whose parents have died and who qualify based on the parent's work history.
- Some states used these benefits to reimburse foster care costs, taking money meant for the children.
- The Trump administration urged states to stop this practice starting in 2025.
- Federal guidelines say that benefits must be used for the child's current and future needs, not to cover government expenses.
- Children can receive up to 75% of a deceased parent's Social Security benefit, averaging $1,179 per month.
- States that have ended the practice include Alabama, California, New Jersey, Michigan, Maine, and many others.
- Recent states to change the policy include Oklahoma, Iowa, Montana, Michigan, and Maine.
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