30 States Have Ended the “Orphan Tax,” Preserving Survivor Benefits for Foster Youth

As of July 15, 2026, 30 states have either ended or substantially reformed the practice of diverting Social Security survivor benefits from foster youth. The action marks a major milestone in protecting earned benefits for some of the nation’s most vulnerable children.

In addition, 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 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 Accounts advance 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.