The Trump administration is pressing states to end a policy that critics call the "orphan tax," with about 10 states changing course after federal pressure and outreach, according to the Department of Health and Human Services.
Assistant Secretary for Children and Families Alex Adams told the Daily Signal that the effort targets a practice in which states take Social Security survivor benefits from foster children to offset care costs.
"When parents die before withdrawing their Social Security benefits and their children subsequently enter the foster care system, about 30 states have a policy of taking the benefits to pay for their care instead of that money going directly to the child."
"That's why it's called the orphan tax," Adams told the Signal. "States are taxing orphans at 100% of their benefits to offset government expenses."
Adams said the policy stood out immediately when he first encountered it.
"It is literally the worst of the worst government I have come across," he said.
In December, the Administration for Children and Families sent letters to 39 states that continued the practice, and since then 10 states have changed their policies.
Utah, Idaho, Mississippi, and Kentucky passed legislation, while Nebraska and Louisiana acted through executive orders.
Louisiana's move came in February, when Republican Gov. Jeff Landry signed an order directing the state to preserve Social Security survivor benefits for foster youth.
"Louisiana is proud to be one of the first states to join President Trump and First Lady Melania Trump's Foster Care initiative," Landry said. "Our actions today focus on two priorities: ensuring children have safe, stable homes and protecting financial benefits that rightfully belong to them."
"The Trump Administration commends Governor Landry's bold leadership in prioritizing and protecting foster youth," Adams said in a statement announcing the action. "By joining 'A Home for Every Child' and taking swift action to preserve the earned survivor benefits that rightfully belong to foster youth, Louisiana is ensuring children have both safe homes and the resources they need to succeed."
Louisiana First News reported on the cooperation to end the practice of intercepting benefits from foster youth.
Adams said the administration plans to escalate pressure on remaining states, including tying federal funding to policy changes.
"Every governor has the ability to end this today through courage and executive action," he said. "Let's do right by these orphans."
Adams said preserving benefits for children could have a long-term financial impact.
"Having the resources that their parents left for them might change the entire trajectory between success or failure in life," he said. "That's a down payment on a house. It helps with rent. It's an education or career technical education."
Jim Mishler ✉
Jim Mishler, a seasoned reporter, anchor and news director, has decades of experience covering crime, politics and environmental issues.
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