39 States Have Been Taking Foster Kids Social Security Checks for Decades

Trump Administration Demands They Stop

When a parent dies, their children are supposed to receive Social Security survivor benefits. But for decades, state foster care agencies have been quietly taking that money for themselves.

On December 11, 2025, the Trump administration sent letters to 39 governors demanding they end the practice.

The push comes from a federal official who stopped it in his own state and watched an NFL player speak out about the benefits he never received.

The fallout could reshape how America treats its most vulnerable children.

States Intercept Checks Meant for Orphans

State child welfare agencies have been applying to become the “representative payee” for foster children who qualify for Social Security.

Once approved, the agencies receive the monthly checks and route them into state accounts to reimburse foster care costs.

Federal regulations technically allow this, even though they state that a parent, foster parent, or family friend should be preferred.

Most states never tell the children, their families, or their lawyers that the money is being taken. Kids typically find out only when they’re about to age out of the system.

Investigation Found 49 States Doing This

A 2021 investigation by NPR and The Marshall Project revealed the practice was happening in at least 49 states and Washington, D. C. Reporters found that state agencies collected more than $165 million from foster children in 2018 alone, and the actual number was likely much higher.

At least 10 states hired for-profit companies to comb through case files and find children with deceased or disabled parents.

The companies earned fees every time they signed a new child up for benefits the state would then take.

NFL Player Lost Both Parents by Age 13

Scott Matlock lost his father Doug to testicular cancer when he was nine years old. Four years later, his mother Lisa died of heart disease.

Matlock found her on the couch and tried to perform CPR.

As a 13-year-old orphan in Idaho, he qualified for survivor benefits based on his parents’ work history. The state applied for those benefits on his behalf.

Matlock never saw a dollar of that money.

He bounced between foster homes before landing with Mike and Donna Marose in Homedale, who later adopted him.

From Foster Care to the NFL Sidelines

Matlock enrolled at tiny Homedale High School, population 350 students, and discovered football. He walked on at Boise State and became a standout defensive tackle.

In 2023, the Los Angeles Chargers signed him as an undrafted free agent. He now plays both fullback and defensive line, one of the few two-way players in the NFL.

Matlock has used his platform to advocate for foster children, wearing custom cleats during games to promote Idaho foster care nonprofits. He speaks openly about how the system failed him financially.

Idaho Official Discovered His State Was Doing It

Alex Adams became director of the Idaho Department of Health and Welfare in June 2024. He soon learned that Idaho had been taking foster children’s survivor benefits for years.

In May 2025, Adams issued a directive ordering the practice to stop by July 2026.

The new policy requires Idaho to use the funds only for unmet needs not typically covered for other foster children, or to save the money for when the child leaves care.

Adams called it a matter of basic fairness to kids who had already lost so much.

Adams Now Leads the National Push

President Trump nominated Adams to serve as Assistant Secretary for the Administration for Children and Families, the federal agency that oversees child welfare programs.

After his Senate confirmation, Adams made ending benefit diversion a priority. On December 11, his office sent letters to all 39 governors whose states still allow the practice.

The letters urged states to preserve benefits for children transitioning out of care. Adams framed it simply: the money belongs to the kids, not the bureaucrats.

Only 11 States Protect Kids’ Benefits

Arizona became the first state to pass a comprehensive law banning the practice in 2023. Idaho, Maryland, Massachusetts, and seven other states have followed with their own protections.

Massachusetts ended a policy in 2024 that had been taking up to 90% of children’s benefits, an estimated $5. 5 million per year.

That leaves 39 states still diverting money. Some governors may not even know their agencies do this.

Adams said in interviews that many state leaders were simply unaware of the practice until he raised it.

Foster Youth Often Leave Care With Nothing

About 20,000 young people age out of foster care each year, typically between ages 18 and 21. Research shows that between 31% and 46% of them experience homelessness by age 26.

One study found that 20% become homeless the moment they leave care. Many exit without savings, job skills, or family support.

Child advocates argue that preserving their Social Security benefits could give them a financial cushion during the critical transition to adulthood.

A few thousand dollars can mean the difference between an apartment and the street.

States Fought to Keep the Money in Court

In 2003, the U. S. Supreme Court ruled in Washington State v. Keffeler that states could legally serve as representative payees for foster children’s benefits.

Thirty-nine state attorneys general filed briefs arguing that losing access to the money could cost state governments billions of dollars over time.

The ruling didn’t require states to take the money, but it allowed them to continue.

Child advocates have been fighting to change the practice ever since, with limited success until the recent wave of state reforms.

What Happens Next for Foster Children

The ACF and Social Security Administration plan to provide resources to help states change their policies. This includes guidance on setting up individual trust accounts for children and tracking funds separately.

States will need to decide whether to use benefits only for unmet needs or to save everything for the child’s future.

The federal government cannot force states to stop, but the public pressure from Washington may push reluctant governors to act.

For kids like the 13-year-old Scott Matlock once was, the change could mean leaving foster care with something to show for their parents’ lifetime of work.

Matlock Hopes the Next Kid Gets Every Penny

Scott Matlock now earns an NFL salary and no longer needs his parents’ survivor benefits. But he remembers what it felt like to have nothing.

After the federal announcement, Matlock released a statement praising the administration’s action.

He said his hope is that the next kid coming through foster care gets every penny they deserve, no matter what state they live in. For the thousands of children still in the system, that hope now has federal backing.

Whether 39 governors listen is another question.

This article was created with AI assistance and human editing.

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