Government Taking Social Security Payments From Children Sparks Fury

The decision by the Philadelphia Department of Human Services to keep millions of dollars that should have gone to young people in foster care despite the practice having been banned has sparked anger among many locals.

A year ago, an investigation by the Resolve Philly and The Philadelphia Inquirer found that the city DHS had taken $5 million in foster children's Social Security payments between fiscal years 2016 and 2020 under a controversial legal practice that allowed it to transfer the fund into the city's $5 billion general fund. The two publications were able to access the data through a right to know request.

Crucially, the children who should have received those funds and their legal representatives or foster parents were not informed that the money was available and had been taken. The Philadelphia DHS was legally allowed to do so.

While the incident doesn't highlight a fault within the Social Security system, it comes at a time when the program is increasingly under pressure, and calls to reform it are growing. The program is facing an uncertain future as it is expected to face a 23 percent across-the-board benefit cut in 2033, according to the Committee for a Responsible Federal Budget, unless Congress takes action to fix it.

According to a recent survey conducted by Redfield & Wilton Strategies on behalf of Newsweek, 63 percent of Americans "strongly agreed" (28 percent) or "agreed" (35 percent) that the Social Security system needs to be reformed.

Several readers recently wrote to Newsweek saying they blamed the current financial problems with the program on government spending.

There are two cases in which children can become Social Security benefits recipients. They can receive Supplemental Security Income (SSI) due to mental or physical disability and financial need or they can get Old Age, Survivors and Disability Insurance (OASDI) if a parent or legal guardian has paid enough money into the Social Security system before retiring, becoming disabled or dying.

Children can only receive these benefits until age 18 or until 19 if they attend elementary or secondary school full time. This money is meant to help the children (or their foster parents) support themselves after the death of their legal guardian or parent.

After the outrage sparked by last year's investigation, the Philadelphia City Council passed a law banning the controversial practice and requiring the DHS alert youths when they're about to take their benefits, so they can claim them.

Yet, The Philadelphia Inquirer reported that the city DHS is still keeping some of the money it took. It said the department is keeping about $1.3 million in Social Security benefits meant for 380 foster children in a typical year and incorporating into the city's funds.

City Council member Jamie Gauthier told the newspaper he was "appalled that our young people in foster care continue to be robbed of benefits that belong to them even after City Council took action to ban this shameful practice."

The Philadelphia DHS said it was "currently gathering the necessary guidance and advice to embark on the complicated legal and financial process of conserving the benefits for youth with financial support from the city."

Newsweek reached out to the Philadelphia DHS by email on Thursday for comment.