Oklahoma – Oklahoma Gov. Kevin Stitt announced that the state will end the practice of diverting Social Security survivor benefits from foster youth, allowing the funds to remain available for the children they were intended to support.
The decision was announced in partnership with the Administration for Children and Families (ACF) at the U.S. Department of Health and Human Services (HHS), making Oklahoma one of 30 states that have taken action to preserve survivor benefits for children in foster care rather than use the funds to reimburse state expenses.
Stitt said the change will help protect benefits earned on behalf of some of the nation’s most vulnerable children and ensure the funds are used in the best interest of each child.
“Every child deserves the opportunity to pursue the American Dream and build a brighter future, regardless of the circumstances they were born into,” Stitt said. “I’m proud that Oklahoma can join the effort to protect Social Security survivor benefits earned on behalf of children in foster care and ensure they’re used in the best interest of each child.”
The governor also thanked First Lady Melania Trump, HHS Secretary Robert F. Kennedy Jr. and Assistant Secretary Alex J. Adams for their efforts to encourage states to change the policy.
The practice, sometimes referred to by critics as the “orphan tax,” involved states using Social Security survivor benefits received by foster children to offset the costs of providing foster care. Under the new approach, those benefits will remain with the children rather than being used to reduce state expenses.
ACF first called on states to end the practice in December 2025, and governors and state legislatures across the country have since taken steps to preserve the benefits for foster youth.
“Every child deserves the financial security their parents worked hard to earn,” Kennedy said. “These benefits represent the last support many deceased parents can provide to their children.”
Officials said 30 states and the District of Columbia have now ended or substantially reformed the practice, including Oklahoma, North Dakota, Oregon, Tennessee, Louisiana, Missouri, Virginia and Washington.
Assistant Secretary Adams said the changes represent bipartisan efforts to protect children who have already experienced significant hardships.
“These children have already lost their parents – diverting their survivor benefits just adds unnecessary hardship to unimaginable grief,” Adams said.
The announcement is also connected to First Lady Melania Trump’s efforts to encourage states to preserve foster youth survivor benefits through Fostering the Future Accounts, an investment program designed to support long-term financial stability for young people leaving foster care.
State officials said Oklahoma’s policy change is intended to ensure foster youth receive the financial support connected to their deceased parents and have greater opportunities as they transition into adulthood.
