Excuse Me! What Is the Orphan Tax?

When children lose a parent, they may be eligible for Social Security survivor benefits based on their parent’s work history. However, some states have redirected these benefits to cover the costs of foster care rather than preserving the funds for the children. This American Moment podcast features Assistant Secretary Alex Adams discussing this practice, known as the “Orphan Tax,” and broader policy changes at the Administration for Children and Families (ACF) related to child welfare, childcare, and family services.

For Temporary Assistance for Needy Families (TANF) practitioners and administrators, the discussion highlights how government policies and administrative decisions can affect children’s financial security and access to support. The podcast offers an opportunity to consider how benefit policies, program regulations, and administrative practices influence family well-being. These insights may help practitioners and program leaders reflect on ways to prioritize children’s interests, reduce unnecessary administrative barriers, and ensure public programs better support families’ needs.