The Hawaii Department of Human Services on Oct. 25 announced it will continue its policy of preserving Social Security survivor and disability benefits for children in foster care, saying those federal payments belong to the youth for whom they were intended. The department said the policy shift began in 2023 and that the state now deposits such benefits into trust accounts for eligible children as they prepare for independence.
What changed and when
For decades, many states had used federal survivor benefits paid on behalf of foster children to recoup some of the costs of caring for those children. In 2023, under the direction of House Resolution 117 and Senate Concurrent Resolution 188, and with the support of Gov. Josh Green, Hawaii ended that practice and began conserving the funds for the direct benefit of each eligible foster youth, the department said.
“Here in Hawai‘i, we believe every child deserves dignity, stability and the full support they are owed,” said Gov. Josh Green.
Federal context and national momentum
Hawaii’s statement ties the move to a broader federal effort. The Administration for Children and Families (ACF) has pushed states to stop using these federal survivor and disability benefits to reimburse foster‑care costs. The department cited ACF’s goal and said the state’s practice aligns with that national priority.
“For foster youth who tragically experience the loss of a parent, these benefits represent the last, or only, financial support a deceased parent can provide to them. I applaud Governor Green for continually prioritizing the best interest of foster youth and encourage the remaining states who continue to steal,” said Assistant Secretary Alex J. Adams.
How Hawaii handles the benefits now
The Department of Human Services said it ensures the Social Security survivor and disability funds are deposited into trust accounts for each eligible foster child. These accounts are intended to be available to the youth as they transition to adulthood, providing financial resources for education, housing or other needs related to independence, according to the department.
- Policy start: Hawaii ended the reimbursement practice in 2023.
- Mechanism: Benefits are conserved in trust accounts for the individual youth.
- Federal alignment: The change supports an ACF objective to stop states from redirecting these benefits.
Implications
Hawaii’s reaffirmation underscores a growing trend in state policy to preserve federal survivor and disability payments for the children who qualify for them. The department framed the move as ensuring dignity and financial stability for foster youth as they prepare for independence. The announcement also serves as an example for other states that continue to use these federal benefits to offset foster‑care costs, a practice critics call the “orphan tax.”
| Before 2023 | After 2023 |
|---|---|
| Some states, including Hawaii historically, used survivor benefits to reimburse foster‑care costs | Hawaii conserves benefits in trust accounts for each eligible foster child |
The department’s announcement did not provide data on the number of children affected or balances held in trust accounts. It credited the 2023 state resolutions and the governor’s support for the prior policy change and cited ACF’s public stance encouraging states to stop retaining those federal payments.
