South Carolina to Redirect Foster Care Survivor Benefits for Children’s Future
South Carolina Governor Henry McMaster has announced the state will end the practice of using Social Security survivor benefits, known as the 'orphan tax,' for children in foster care. These benefits will now be conserved for the children's direct use,…
Greenville Spartanburg Asheville Anderson, SC, September 1, 2026 — South Carolina is changing how Social Security survivor benefits, often referred to as the ‘orphan tax,’ are utilized for children in the foster care system. Governor Henry McMaster announced that these benefits will no longer be used to offset state foster care costs.
Instead, the Social Security survivor benefits will be directly conserved for the children’s personal use. This policy shift aims to provide financial resources that will specifically help fund each child’s future endeavors and support their transition into adulthood. Previously, these funds contributed to the state’s expenses related to maintaining the foster care system.
The decision intends to create a more direct financial benefit for the children themselves, equipping them with resources for education, housing, or other essential needs as they prepare to leave foster care. The exact implementation details and the timeline for this change were not specified, nor was the total amount of funds previously offset by this practice.
This initiative reflects a broader effort to ensure that financial benefits intended for vulnerable children are directly channeled towards their long-term well-being and independence. The governor’s office indicated that the move is designed to provide a stronger financial foundation for former foster youth as they navigate post-care life.
Story summarized from the original created by Lorenza Medley on www.foxcarolina.com, see more information here.
