Policy Announcement / Memoranda

ACF Notifies 39 Governors That States Are Diverting Foster Youths’ Earned Social Security Survivor Benefits

In December 2025, the Administration for Children and Families (ACF) sent letters to 39 governors, calling for immediate action to protect vulnerable foster youth in their states. The letters highlighted the pressing issue of state child welfare agencies diverting foster youths’ earned Social Security survivor benefits. These agencies were intercepting federal benefits, such as Social Security survivor benefits earned through a deceased parent’s lifetime contributions, that were intended for a child in foster care. The agencies then used these funds to reimburse their own costs.

ACF has notified the governors who allowed this practice and is working with states to end it. The goal is to ensure these earned benefits are no longer taken from foster youth and are instead preserved to support them as they transition out of state care.

Source
OFA Peer TA
OFA Initiatives
A Home for Every Child
Geographic Area
Statewide
National/International
National
Topics/Subtopics
Asset Building
Special Populations
Youth in Transition
Program Integrity
Publication Date
2025-12-11
TANF Regulatory Codes
45 CFR Part 260.20 – (b)
45 CFR Part 261.14
45 CFR Part 265.3