On Tuesday, the Department of Health and Human Services (HHS) reported that 35 states have officially ended the practice of intercepting Social Security survivor benefits from children in the foster care system. These benefits are federal payments provided to children who have lost a parent who previously paid into the Social Security program. For decades, many state agencies across the country have redirected these funds to reimburse themselves for the costs associated with providing foster care services to those same children.

Advocates and critics of the practice have long argued that these funds should belong to the children to help them transition into adulthood, rather than being used by state governments to balance their budgets. The HHS announcement marks a significant shift in state-level policy, though the report highlights that the practice is not yet universally abolished across all 50 states. While the federal government is now touting the progress made in these 35 jurisdictions, the remaining states continue to operate under different guidelines regarding the management of these survivor benefits. The move follows increasing pressure from federal oversight and child welfare organizations to protect the financial assets of children in state custody.