South Dakota is backing a federal plan that would funnel survivor benefits owed to foster children into savings accounts the program calls “Trump Accounts,” according to a report from KOTA Territory News published Saturday, June 14.
The proposal would redirect those benefits — money that foster children are legally entitled to receive — into the designated accounts rather than paying them out directly or routing them through the state child welfare system. Details on how and when a child could access the funds weren’t immediately available from the report.
Background
Foster children who have lost a parent covered by Social Security are typically eligible for survivor benefits under federal law. States vary in how they handle those payments — some have faced criticism for collecting the funds to offset foster care costs rather than holding them for the children themselves.
The “Trump Accounts” program, named after President Donald Trump, was included in the federal budget legislation moving through Congress earlier this year. The accounts are structured as investment savings vehicles for children, seeded with federal dollars at birth or, under some proposals, at the time a child enters the foster system.
Whether South Dakota’s support reflects a formal legislative action, an executive commitment by the governor’s office, or a policy position taken by the state Department of Social Services wasn’t specified in KOTA’s report. The state hasn’t announced a timeline for implementation.
KOTA Territory News reported this story on June 14, 2026. Read the original report.
