On August 11, 2026, officials from the Department of Health and Human Services (HHS) announced that 35 states have ceased the practice of intercepting federal benefits designated for orphans in foster care. This practice involved state agencies taking Social Security survivor benefits from children in foster care following the death of their parents, who had contributed to the program.
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HHS reports 35 states have stopped intercepting Social Security benefits for orphans
The Department of Health and Human Services reported that 35 states have stopped intercepting Social Security benefits meant for orphans in foster care. This change ends a long-standing practice where state agencies took these benefits after the death of the children's parents.
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HHS touts 35 states that have scaled back ‘orphan tax’ on Social Security benefits
HHS reports 35 states have stopped intercepting Social Security benefits for orphans