West Virginia Uses Foster Children’s Social Security Benefits to Fund Foster Care
West Virginia is one of only 11 states that continues to intercept federal Social Security survivors’ benefits intended for children in foster care to offset the state’s own child welfare costs. While other states have moved to ban this practice, West Virginia’s current policy mandates that these payments be considered a resource toward the cost of providing foster care, according to the Department of Human Services.
The practice involves the state claiming federal benefits—money earned by a deceased parent and paid into the Social Security system—to reimburse the costs of the state-run foster care system. Data from the Children’s Advocacy Institute at the University of San Diego confirms West Virginia remains among the minority of states that have not acted to stop the interception of these funds.
Why the practice is under scrutiny
Critics argue the policy unfairly deprives children of their own financial legacies. Daniel Hatcher, a law professor at the University of Baltimore, characterized the practice as a “violent abdication of trust” by agencies tasked with protecting vulnerable children. For a teenager transitioning out of the foster system, these funds can provide a critical financial foundation for education, transportation, or housing.
Attorney Cathy Wallace, who represents foster children in Kanawha County, noted that these children have often lost their families and a significant portion of their childhood. She argued that the funds represent a “tiny leg up” that can help a young adult secure employment or continue their education. In one documented case, a young woman named Olivia Frausto was able to secure approximately $11,000 in back payments by working with an attorney to ensure she, rather than the state, was named the representative payee for her benefits.
In 2022, the average cost to the state for a child who had been in foster care for at least six months was approximately $1,619 per month, according to state data.
What happens next
Pressure is mounting at both the state and federal levels to end the diversion of these benefits. The Trump administration sent a letter to West Virginia officials in December 2025 urging the state to stop using survivors’ benefits to offset foster care expenses. While other states, including Indiana, Mississippi, and Kentucky, have recently moved to ban the practice through legislation or executive orders, the office of Governor Patrick Morrisey has not responded to inquiries regarding whether he would take similar executive action.
Legislative efforts may emerge in the coming sessions. Del. Adam Burkhammer, who previously sponsored legislation aimed at assisting youth aging out of the system, indicated he is considering a legislative fix. He suggested that it is more cost-effective for the state to support youth during their transition than to bear the long-term societal costs if those individuals face incarceration, homelessness, or substance abuse issues later in life.
The conflict reflects a fundamental tension between state budgetary priorities and the individual rights of foster children. While officials often frame these fiscal decisions as being in the “best interest of the child” to ensure immediate care, legal experts and advocates argue that survivors’ benefits constitute personal assets belonging to the child, which should be preserved for their future independence rather than absorbed into state operational budgets.
Frequently Asked Questions
How does West Virginia justify taking these benefits?
The state’s foster care policy manual states that a child’s monthly income is considered a resource toward the cost of foster care. Department of Human Services spokeswoman Angel Hightower stated that decisions regarding resources are guided by the best interests of the child, considering both current needs and long-term stability.
Are foster children notified when they receive these benefits?
There is no formal requirement for the state to notify children or their advocates that they are receiving survivors’ benefits. Former caseworker Elaine Goodman reported that foster children were often unaware the money existed.
What happens to the money if it is not used for care?
According to state policy, any money left over after the cost of care is deducted is supposed to be placed in an interest-bearing account for the child. However, former state employees have reported that in practice, they rarely saw funds remaining after the department deducted the costs of care.
Do you believe the state should be allowed to use a child’s inheritance to pay for the cost of their own foster care?