Governor Gianforte Announces Montana To End Orphan Tax

Social Security survivor benefits to be preserved for foster youth

Governor's Office

HELENA, Mont. - Governor Greg Gianforte today announced the state of Montana will end the Orphan Tax, or the practice of diverting Social Security survivor benefits from foster youth, following a call from the Administration for Children and Families (ACF) at the U.S. Department of Health and Human Services (HHS).

"No child in foster care should have the government raid the benefits they deserve," Gov. Gianforte said. "Montana is proud to join the momentum to put an end to this outdated practice, and my budget will ensure these benefits stay with the children who earned them. Thanks to the leadership of First Lady Melania Trump, Secretary Kennedy, and Assistant Secretary Adams, states are ensuring brighter futures for children in care."

For more than two decades, the Montana Department of Public Health and Human Services (DPHHS), acting as the state child welfare agency, has collected federal benefits, such as Social Security survivor benefits earned through a deceased parent's lifetime contributions, into a state special revenue account to cover cost of care for the individual youth receiving Social Security while in foster care.

In November, the governor will include language in his proposed budget to ensure these benefits are preserved for children starting July 1, 2027, as they transition out of state care. As of December 2025, Montana was one of 39 states that followed this practice. To date, less than 20 states remain.

"Thanks to the leadership of Governor Gianforte, Montana is ending the 'orphan tax' and protecting the best interests of children in foster care," said Administration for Children and Families Assistant Secretary Alex J. Adams. "Preserving survivor benefits for Montana's foster youth stands to provide these young people with a financial foundation that can change the trajectory of their lives as they transition out of state care and into adulthood."

Supporting Montana children in foster care, preventing entry, and reducing the number of kids in care is a top priority for the governor. In June, Gov. Gianforte joined ACF Assistant Secretary Alex Adams t o announce Montana's participation in the national "A Home for Every Child" initiative to improve foster home availability, strengthen kinship care, reduce unnecessary administrative burdens, and modernize child welfare accountability systems.

Following the announcement, the governor also announced Montana joined First Lady Melania Trump's initiative to increase access to Trump Accounts for children in the foster care system to help build financial independence as children aging out of the system prepare for a successful transition into adulthood.

Since Gov. Gianforte took office in 2021, DPHHS reports the number of Montana children in foster care is 1,706, as of June 30, 2026, down from 3,236 at the close of state fiscal year 2021. The reduction marks a 47 percent decrease in the number of kids in care.

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