Hawai'i Protects Foster Care Survivor Benefits
New state policy ensures federal benefits remain in trust for foster youth to use for their future housing and education.
Updated on Oct. 26, 2026 in Special Education
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The Hawai'i Department of Human Services has officially reaffirmed its policy to reserve federal Social Security survivor and disability benefits exclusively for the foster children who receive them. This ensures the funds are kept in trust for the youth's future needs rather than being used to reimburse state care costs.
Why it matters
By keeping these funds in individual trust accounts, the state ensures that foster youth have financial resources available for essential housing, education, and transportation costs as they transition to independence.
Hawai'i ended the practice of redirecting these federal benefits in 2023, joining 35 other states that have implemented similar protections. The Department of Human Services began maintaining these individual trust accounts on July 1, 2023.
The players
Hawai'i Department of Human Services
The state agency responsible for overseeing child welfare programs and managing the financial assets of youth in foster care.
Administration for Children and Families
A federal division within the U.S. Department of Health and Human Services that provides national guidance on foster care and welfare policies.
The details
Under this policy, Social Security survivor and disability benefits are deposited directly into trust accounts opened in the name of the individual foster child. The Department of Human Services maintains internal procedures to ensure that the funds are tracked separately from state operating budgets, keeping the money accessible for the child's future. This transition occurred after the passage of House Resolution 117 and Senate Concurrent Resolution 188.
Timeline
2023: Hawai'i ended the practice of redirecting survivor benefits.
July 1, 2023: The Department of Human Services began maintaining trust accounts.
October 26, 2026: The state reaffirmed its ongoing commitment to the policy.
The Home Front
This move aligns Hawai'i with a growing national shift toward protecting the assets of youth in state care. It marks a departure from traditional reimbursement practices that previously allowed states to claim children's survivor benefits to offset the costs of foster care.
Families and guardians of foster youth should confirm that these funds are being appropriately deposited into individual trust accounts by the Department of Human Services. It is a good time to review any existing financial documentation to ensure the assets are properly managed for the child's future.
The takeaway
The policy change secures critical financial independence for foster youth by preventing the diversion of their survivor and disability benefits. Caregivers should stay informed on these protections as the state continues to update its internal transparency and access procedures.
Further reading
Learn more about support programs for students and youth in the state via our Special Education section.
Source note: This article includes information reported by Maui Now | Hawaii News | Local Maui News and Information | Hawaii News.
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Should states be prohibited from using foster children's federal survivor benefits to pay for their care?
