Trump Administration Urges States to Abolish ‘Orphan Tax’ on Foster Children
The Trump Administration has initiated a significant policy change concerning foster care practices across the United States. In December 2025, Alex Adams, the assistant secretary of the U.S. Department of Health and Human Services, formally requested governors to abolish the practice of deducting Social Security survivor benefits from children in foster care. This controversial practice, referred to as the “orphan tax,” has faced increasing scrutiny.
The Orphan Tax Explained
The orphan tax refers to the long-standing policy where states seize Social Security survivor benefits intended for children whose parents have passed away. These benefits are essential for the financial stability of orphaned children, often amounting to approximately $1,100 per month.
Impact on Foster Children
For many children placed in foster care, these benefits represent a critical financial resource. When withheld, they can hinder opportunities for education, housing, and basic living expenses. Adams emphasized that orphans should not be financially disadvantaged due to circumstances beyond their control.
- Average monthly survivor benefit: $1,100
- Total estimated benefits taken from foster children nationwide: $34 million
Political and Personal Reactions
The decision to eliminate the orphan tax has garnered bipartisan support, as both Democratic and Republican leaders recognize its moral implications. Many advocates, including Justin Kasieta, who experienced this firsthand, have voiced concerns about the detrimental effects on foster youth. Kasieta lost considerable funds during his time in the system and highlighted the broader challenges faced by foster children.
Adams previously addressed this issue in Idaho, where he worked to end the practice of cashing in survivor benefits while serving as the director of the state’s Department of Health and Welfare. His commitment to this cause reflects a broader shift in federal policy that seeks to prioritize the welfare of children in foster care.
Federal Endorsement and Future Implications
Secretary of HHS, Robert F. Kennedy Jr., has publicly supported Adams’ directive, stating that every child deserves a chance to thrive. The recent policy shift aims to reinforce this principle by ensuring that funds meant for orphaned children are not diverted to state budgets.
In conclusion, the initiative to abolish the orphan tax marks a pivotal moment in child welfare policy, addressing a long-standing injustice that has affected countless children in the foster care system. As the Trump Administration pushes for changes, the focus remains on protecting the rights and resources of vulnerable youth across the nation.
