TBA Law Blog


Posted by: Julia Wilburn on Jul 7, 2026

Since 2019, Tennessee's Department of Children's Services (DCS) has taken possession of more than $38 million in federal Social Security survivor benefits owed to orphans in state custody — funds that, if held in trust, would have averaged roughly $30,000 per child upon aging out of foster care. The Tennessean reports the practice drew federal scrutiny this spring when the Department of Health and Human Services called it "contrary to the best interests of children," though the state did not immediately change course. In June, Tennessee joined "Fostering the Future," a federal initiative backed by first lady Melania Trump, under which states will hold survivor benefits in individual investment accounts that children may access at age 18. In related news, the paper reports that since 2019, the state also has returned over $11 million in unused survivor benefits — about $10,000 per orphan — to the federal government instead of holding on to the funds for the benefit of the children.