Oklahoma ends ‘orphan tax,’ preserves survivor benefits for foster children

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Gov. Kevin Stitt at State of the State address
Gov. Kevin Stitt at State of the State address

OKLAHOMA CITY –Oklahoma will no longer use Social Security survivor benefits from foster youth to reimburse state costs, commonly known as the “orphan tax,” Governor Kevin Stitt announced Wednesday.

This announcement is part of a partnership with the Administration for Children and Families (ACF) and the U.S. Department of Health and Human Services (HHS.)

“Every child deserves the opportunity to pursue the American Dream and build a brighter future, regardless of the circumstances they were born into,” said Stitt. “I’m proud that Oklahoma can join the effort to protect Social Security survivor benefits earned on behalf of children in foster care and ensure they’re used in the best interest of each child. I’m grateful to First Lady Melania Trump, Secretary Kennedy, and Assistant Secretary Adams for their dedication to American’s children.

“Oklahoma is proud to lead on reforms that help young people leave care with greater opportunity and a stronger foundation for success,” said Stitt. Oklahoma is the 30th state in the nation to preserve survivor benefits for foster children.

ACF first called on states to end the “orphan tax” in December 2025, leading states to begin preserving these benefits. Stitt first signed an executive order pertaining to this topic June 4, 2026.

First Lady Melania Trump launched Fostering the Future Accounts for foster youth June 11, 2026. These accounts were authorized by H.R.1, known as the “One Big Beautiful Bill.”

Stitt’s 2026 State of the State address in February 2026 included a reference to Trump Accounts, and a call to “Re-appropriate $12 million dollars of existing funds” to add $250 to every Oklahoma child’s account in 2026.

In EO 2026-21, Stitt refers to HB 4071, otherwise known as the Oklahoma Dream Accounts Investment Program Act. The Oklahoma legislature also authorized the State Treasurer to make a “one-time state contribution into the federally authorized Trump Account of each eligible Oklahoma child.”

EO 2026-21 orders DHS to review all children in its custody to determine whether they are eligible for a Trump Account, an Oklahoma Dream Account contribution, or any federal or state contribution. If they are eligible, DHS must facilitate the creation, verification or funding of this account, per the executive order.

The states that have legislated the preservation of survivor benefits for foster children are Alabama, Arizona, California, Colorado, Georgia, Idaho, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Mississippi, Missouri, Nebraska, Nevada, New Jersey, New Mexico, North Dakota, Ohio, Oklahoma, Oregon, South Dakota, Tennessee, Utah, Vermont, Virginia, Washington and Wyoming. The District of Columbia has also passed similar legislation.