Stealing Orphans’ Social Security Survivor Benefits? Hawaii Department of Human Services tries to Cover its Tracks
by Andrew Walden
A Hawaii Department of Human Services news release today announces: “the state’s ongoing commitment to protecting Social Security survivor and disability benefits for children in foster care — proudly reaffirming a policy shift made in 2023 to ensure that these funds belong to the youth they were intended to support.”
DHS has been chiseling and skimming money from orphans for decades. When caught, they lied to legislators about it. When their lie was exposed, they made this mess into an excuse to extort a budget boost from Legislators. To this day, DHS continues taking foster kids’ social security benefits for purposes other than ‘board payments’.
Akamai readers may be forgiven for thinking of the deadly stinginess of Isaac and Lehua Kalua.
Maybe DHS is afraid the Feds will turn a spotlight in them? On October 15, 2026 the federal Administration for Children and Families announced it is looking to end the so-called "orphan tax" in every state—but the Trump Administration appears to be holding Hawaii up as a success story.
DHS’ news release claims, “In 2023, under the direction of House Resolution 117, Senate Concurrent Resolution 188 and with Governor Josh Green’s support, DHS ended this practice ...”
Actually, 2023 was when DHS was caught lying. It was a year earlier, 2022, when Legislators approved both HR117 and HCR117, “Requesting the Department of Human Services to immediately cease intercepting Social Security payments for children in foster care.” SCR188 “Requesting the Department of Human Services to continue to cease intercepting Social Security payments for children in foster care” came in 2024.
DHS Director Cathy Betts’, March 28, 2022, official testimony on 2022 HR117 explains how DHS steals orphans’ Social Security survivor benefits to pay foster parent without using state funds. The ‘foster board payment’ is the money DHS pays foster parents for warehousing kids. DHS makes no mention of expenses to cover duct tape, dog cages, or refrigerator chains:
Currently, DHS uses the Social Security Administration benefits payments of a child in foster care to cover the costs of caring for the child; this is the purpose of the benefits. If the amount of the Social Security benefit is less than Child Welfare Services (CWS) foster board payment, CWS uses State funds to pay the difference. Conversely, if the Social Security benefit amount exceeds the CWS foster board payment, the Department sets the money aside for each child's conserved funds (trust account).
When the child exits foster care, any balance left in their trust account is returned to the local Social Security Administration office. Then, a letter is sent to the child's caregivers (or to the young adult if they exited care at age 18 or later). The letter explains that they should apply for their unspent funds from the child's trust account and the monthly benefits for the child through the Social Security Administration. Social Security Administration benefits are tracked by the Department's Social Services Division's Management Information and Compliance Unit (MICU).
On April 29, 2022, HNN reported on the Growing push seeks to prevent the state from taking millions in benefits from foster kids: “DHS administrator (Daisy) Hartsfield said the state is ‘open to reviewing and reassessing our current policy and programs. If we can come up with something better, by all means we’ll take that into consideration.’” (Governor Josh Green appointed Hartsfield Representative for HD36-Waipahu in January, 2026.)
Despite passing both HR117 and HCR117 in 2022, Legislators again felt the need in 2023 to take DHS to task on its continuing theft from orphans who had the misfortune to fall under DHS control:
On March 16, 2023, DHS Director Betts told legislators:
“DHS immediately ceased intercepting Social Security payments for children in foster care in response to House Concurrent Resolutions 117 HD1/House Resolution 117 HD1 (2022) that made similar requests.”
She then pitches a budget request for $500,000 per year to make up for the money no longer being taken from orphans.
But, on April 4, 2023, HNN exposed Betts' testimony to Legislators:
… in March, DHS filed testimony with the state claiming changes had been made.
In a two-page document dated March 16, officials said: “DHS immediately ceased intercepting Social Security payments” last year following the introduction of a similar resolution. It went on to ask lawmakers for a half-million dollars to make up for the money it’s losing from no longer taking children’s money.
But HNN confirmed those statements were not accurate.
The false information is still posted on the state Legislature’s website….
The mistake was brought to the attention of lawmakers at a hearing on March 17..
Social Services Division Administrator Daisy Hartsfield (now an appointed state legislator) added: “What actually occurred is that we immediately began discussions to consider how we can cease Social Security payments for use of foster board board reimbursements.”
In later testimony the department told lawmakers, “it’s willing to forego the use of Social Security benefits.”
But to make up the difference, the agency needs an additional $500,000 a year added to its budget….
In other words, DHS discussed how it could exploit its own theft from orphans to grab for more budget money.
SR46 and HR46 were each approved by vote of their respective chambers. DHS Director Cathy Betts, revised testimony, March 29, 2023, pitches a budget boost by again explaining how the survivor benefits are being stolen from orphans:
Social Security benefits issued by the Social Security Administration will be used for the child’s current maintenance needs, such as food, clothing, shelter, medical care, and personal comfort items. Additionally, the benefits can be used to meet education or medical-related costs of beneficiary children in care. Any benefits that are not needed to meet a child's current needs in foster care are conserved.
If there is no current representative payee and DHS is appointed as representative payee by the Social Security Administration (SSA), DHS receives Social Security benefits on behalf of children who are under the custody and placement responsibility of the department. There are two types of benefits - Retirement, Survivors, and Disability Insurance (RSDI), which has no maximum resource limit, and Supplemental Security Income (SSI), which has a resource limit of $2000. If that $2000 amount is exceeded, benefits are suspended by the Social Security Administration until the benefits are below the $2,000 threshold. The only benefits that can be used for the maintenance needs of a child are from RSDI or SSI. DHS does not use any RSDI or SSI money that is not an eligible expense recognized by the SSA.
DHS is willing to forego using Social Security benefits to reimburse foster board costs for children in foster care receiving Social Security benefits. However, if that is done, the DHS will need a general fund appropriation to assume the total costs of the foster board payments. In many cases, the amount a foster child receives in Social Security benefits is less than the actual costs of foster board, or the Social Security benefits are used for something else that is allowed, e.g., a laptop for school, or the benefits are conserved. Therefore, the DHS typically has to pay for either the total cost of foster board or a portion. For example, in SFY 22, the State paid more for the foster board than the total amount of Social Security benefits received. This session, DHS includes a budget request for a recurring general fund appropriation of $500,000 in hopes of securing more appropriate placements for youth in foster care with specialized needs due to their disabilities and for foster board payments so that Social Security benefits can be conserved instead of being used to reimburse for maintenance care. For children in foster care who receive Social Security benefits, IV-E maintenance payments are not eligible for federal reimbursements that can be claimed because Social Security benefits are already provided for maintenance needs to care for a child. In addition, by ceasing to use SSA benefits for foster board reimbursements, more State funds must be used to pay monthly foster board payments. The budget request is in GM1, page 33, program ID HMS 303.
HMS 303 on page 33 of Governor’s Message 1 dated, February 13, 2023, demands $1M per biennium to make up for the Social Security survivor benefits DHS had been stealing from orphans. Compared to the $1.5M cited in the text of 2023 SCR 51, the DHS budget blackmail demand is a full $200K per year more than the funds stolen from orphans.
DHS testimony continues:
The RSDI and SSI benefits for children in CWS care are initially deposited into a checking account with a private financial institution and then transferred to a state trust account (T-903) for each child, where the conserved funds are held and managed. DHS manages the ledger of children in foster care who receive Social Security benefits, which are utilized to cover allowable primary and personal expenses. Primary expenses include foster board, clothing, and transportation. Personal expenses include miscellaneous expenses like household items, electronics, school activity fees, etc. Personal expenses are paid through the DHS Fiscal Management Office, which processes a check to the resource caregiver to purchase the items.
As required by federal regulation, when a child exits foster care, any money in the state trust account is returned to the local Social Security Administration (SSA) Office, and the SSA distributes the funds. If the child is an adult, the SSA distributes it to the individual. If the child is a minor when they exit foster care or if the existing individual is an adult with a disability requiring a representative payee, the family or responsible adult resume payments from the SSA. The new responsible adult (i.e., adoptive parent, legal guardian, or biological parent) must apply to become the new representative payee for the child or disabled adult to access the funds. CWS staff works with the assigned social worker and social services assistant to forward to the new responsible adult-representative payee to provide information to contact their local SSA office.
Legislators gave DHS the $500K. The 2023 Conference Committee report on HB300 (Budget Bill) includes: “Adding $500,000 in both fiscal years for foster board payments.”
Despite DHS’ alleged change, Legislators continued offering up resolutions. Testifying March 22, 2024 on 2024 SCR188, DHS Director Betts, described the ways that DHS is still taking orphans' money:
…effective July 1, 2023, DHS ceased using all forms of SSA payments (Supplemental Security Income (SSI) and Retirement, Survivors, and Disability Insurance (RSDI) benefits) received on behalf of children in foster care for foster board reimbursement to the state.
For the committee's information, although reimbursement for foster board payments has ceased, SSA benefits are to be used for the child's current maintenance needs, such as food, clothing, shelter, medical care, and personal comfort items. Additionally, the benefits can be used to meet education or medical-related costs of beneficiary children in care….
Betts resigned as DHS Director in May, 2024, and slid into a shiny new gig as executive director of the Hawaii State Bar Association.
SCR188 passed the Senate but was not heard in the House.
But that wasn’t the end.
Some Legislators saw through the DHS doublespeak and in 2025, they stopped writing toothless resolutions and started proposing actual laws. SB974 and HB1229, ‘Relating to Foster Care’ would “Prohibit the Department of Human Services from using any social security income payments, including supplemental income payments it receives on behalf of a child under foster custody of the Department to cover the cost of foster care services. Requires the Department of Human Services to deposit all social security income payments received on behalf of a child under foster custody of the Department into a savings account that shall be made accessible to the child when the child leaves foster care custody.”
DHS Director Ryan Yamane testified against SB974 at a January 29, 2025, hearing of the Senate Committee on Health and Human Services.
Akamai readers will remember that on July 24, 2026, Yamane was indicted (1CPC-26-0000936 Indictment State v. Tobi Solidum, et al.) for allegedly taking dozens of cash bribes to get bills passed while a Legislator in 2020, 2021 and 2022. He was allegedly lining his pockets $2,000 at a time.
Meanwhile, this is what his DHS was stealing from orphans:
"…although reimbursement for foster board payments and difficulty of care payments have ceased, SSA benefits are to be used for the child's current maintenance needs, such as food, clothing, shelter, medical care, and personal comfort items. These benefits can also be used to meet the education or medical-related costs of beneficiary children in care….”
This stands in contrast with today’s news release which claims:
“… In 2023, DHS … began conserving all Social Security funds for the direct benefit of each eligible foster child….”
Now, with the 2027 Legislative Session approaching, DHS is trying to sweep all this history under the rug.
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July, 2026: Five Indicted in Luke Bribery Case--will this be enough to keep Feds Away?
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Administration for Children and Families leader looks to eliminate 'Orphan Tax'
Interview with Alex Adams, Administration for Children and Families, Oct 15, 2026
The federal Administration for Children and Families is looking to end the so-called "orphan tax" in every state, including New York.
The practice allows state child welfare agencies to intercept a foster child's deceased caregiver's federal and Social Security benefits to reimburse themselves for the costs of foster care. That's care the state is legally required to provide for every foster child.
New York is one of the remaining 13 states to uphold the practice.
Alex Adams, the assistant secretary for ACF, joined "The Rush Hour" on Wednesday to talk about the latest moves to end the practice nationwide.
Watch the interview: Spectrum News NY1
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HAWAI‘I REAFFIRMS COMMITMENT TO PRESERVING SURVIVOR BENEFITS FOR FOSTER YOUTH
News Release from Hawaii DHS, October 23, 2026
HONOLULU — The Hawai‘i Department of Human Services (DHS) today announced the state’s ongoing commitment to protecting Social Security survivor and disability benefits for children in foster care — proudly reaffirming a policy shift made in 2023 to ensure that these funds belong to the youth they were intended to support.
For decades, many states, including Hawai‘i, followed a practice of utilizing foster youths’ federal survivor benefits to reimburse the state for the cost of their care. In 2023, under the direction of House Resolution 117, Senate Concurrent Resolution 188 and with Governor Josh Green’s support, DHS ended this practice and began conserving all Social Security funds for the direct benefit of each eligible foster child, establishing a model that aligns with emerging federal Administration for Children and Families’ (ACF) goal to end this practice nationwide. DHS ensures these funds are deposited into trust accounts and made available to youth as they prepare for independence.
Today’s announcement comes as ACF highlights national momentum to end what Assistant Secretary Alex J. Adams has called the “orphan tax,” and as states across the country reform longstanding policies to ensure foster youth retain the financial support owed to them.
“Here in Hawai‘i, we believe every child deserves dignity, stability and the full support they are owed,” said Governor Green. “Years ago, our state ended the outdated practice of redirecting survivor benefits, and we are proud to reaffirm that commitment today. These funds belong to our keiki and preserving them ensures that foster youth have a stronger foundation as they step into adulthood.”
“At the Administration for Children and Families, we are grateful for Hawai‘i’s longstanding commitment to preserving Social Security survivor benefits for children in foster care,” said Assistant Secretary Alex J. Adams. “For foster youth who tragically experience the loss of a parent, these benefits represent the last, or only, financial support a deceased parent can provide to them. I applaud Governor Green for continually prioritizing the best interest of foster youth and encourage the remaining states who continue to steal from orphans to do right by these children who need our support and protection the most.”
“Hawai‘i’s child welfare system is strongest when we honor the rights and needs of the children in our care,” said DHS Director Joseph Campos II. “By conserving Social Security survivor benefits and placing them directly into accounts for each eligible youth, we help ensure they have resources for education, housing, transportation and stability as they transition out of care.”
Since ending the reimbursement practice on July 1, 2023, DHS has maintained dedicated trust accounts for foster youths’ survivor and disability benefits — and has strengthened internal procedures to ensure transparency, accountability and timely access to funds as youth prepare for adulthood.
This longstanding policy mirrors federal expectations and aligns Hawai‘i with more than 35 states that have recently ended or reformed their use of children’s Social Security benefits. The policy also complements Hawai‘i’s work to implement Fostering the Future Accounts, a national federal initiative supporting long‑term financial security for foster youth.
DHS will continue to collaborate with ACF as the federal government releases updated guidance and as states strengthen benefit‑preservation practices nationwide.
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