WASHINGTON, D.C. — The U.S. Department of Health and Human Services launched two sweeping actions this month that put state governments under renewed federal scrutiny, opening a civil rights investigation into behavioral health licensing practices while pressing governors nationwide to stop the seizure of foster youths’ Social Security benefits.
On December 9, the HHS Office for Civil Rights announced a major investigation into a state health department over concerns that its licensing policies for behavioral health residential facilities and professionals may violate federal law. The probe will examine whether the state discriminated against faith-based organizations or health care providers by penalizing religious objections in licensing, certification, or enforcement actions.
OCR said it is assessing whether the state required providers to facilitate services that conflict with religious beliefs or moral convictions, including abortion-related counseling, sex-rejecting procedures, or female genital mutilation, and whether religious objections were treated as grounds for adverse licensing actions, including denial or termination of professional licenses.
“Amid a national shortage of behavioral health providers, every qualified professional is essential to meeting the needs of people in crisis,” said OCR Director Paula M. Stannard. She said the agency is committed to ensuring faith-based organizations can contribute fully to care delivery without being forced to violate religious beliefs or moral convictions.
The investigation will proceed under multiple federal protections, including the Equal Treatment for Faith-Based Organizations rule and long-standing federal health care conscience statutes, such as the Church Amendments, the Coats-Snowe Amendment, and the Weldon Amendment. HHS said this is the fifth announced investigation during President Trump’s second term examining compliance with federal conscience protections for health care professionals.
Two days later, on December 11, another arm of HHS turned its attention to child welfare systems across the country. The Administration for Children and Families sent letters to the governors of 39 states urging immediate action to stop the practice of diverting foster youths’ earned Social Security survivor benefits to reimburse state care costs.
Federal officials said many state child welfare agencies routinely intercept survivor benefits tied to a deceased parent’s work history, funds intended to support children in foster care as they transition into adulthood. Instead of being preserved for the child’s future needs, the money is often absorbed into state budgets.
“At HHS, our guiding principle is simple: every child deserves a home and a fair chance to thrive,” said HHS Secretary Robert F. Kennedy, Jr., adding that the administration will intervene when state practices undermine that goal.
ACF Assistant Secretary Alex J. Adams said the benefits belong to the children, not government agencies. He pointed to reforms implemented during his tenure leading Idaho’s Department of Health and Welfare, where the state ended benefit diversion and now preserves survivor funds for a child’s unmet needs and future use.
The issue carries personal weight for Scott Matlock, an Idaho native and current NFL fullback for the Los Angeles Chargers, who entered foster care at thirteen after losing both parents. Before Idaho changed its policy, Matlock never received his parents’ survivor benefits.
“I commend President Trump, Secretary Kennedy, and Assistant Secretary Adams for taking decisive action to encourage states to protect children and ensure foster youth have a strong financial foundation,” Matlock said. “My hope is the next kid coming through foster care gets every penny he or she deserves, no matter what state they live in.”
HHS officials said only 11 states have enacted policies to stop intercepting survivor benefits. ACF and the Social Security Administration plan to provide additional resources and technical assistance to help the remaining states change course.
Together, the twin actions signal an assertive federal posture, pairing civil rights enforcement with child welfare reform as HHS moves to protect religious liberty in health care and financial security for some of the nation’s most vulnerable children.
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