SSA needs to improve foster care data exchanges

The Government Accountability Office found that SSA needs to improve data exchanges used to identify children in foster care who may need a new representative payee. SSA has encouraged states since 2018 to submit monthly data on children in foster care.

Twenty-five states were submitting data through the exchanges as of July 2026. No new states had begun submitting data since 2024. Officials from four of eight selected states that were not submitting data had minimal awareness of the exchanges. GAO said SSA had not changed its state outreach efforts, limiting the beneficiaries covered.

SSA generates alerts when a beneficiary enters or exits foster care or changes placement while in foster care. The alerts have helped field office staff identify when to reassess payees. In fiscal year 2025, payees managed over $270 million in Social Security benefits for about 44,000 children in foster care.

GAO said field office staff in four selected offices reported challenges addressing alerts. Each alert had limited information and required additional, time-consuming research. There were over 50,000 alerts to address in fiscal year 2025, but many did not require a change in payee.

Staff said SSA could designate staff to address alerts and include more information in each alert, such as payee email addresses. They also said SSA could use artificial intelligence tools to address alerts requiring action. Although field office staff were the end users of the data, SSA had not sought their input or provided a way for them to share useful practices. GAO said this limited opportunities to improve efficiency and ensure beneficiaries had suitable payees.

GAO reviewed SSA documents and policies and analyzed alert data from fiscal years 2019 through 2025. It interviewed officials from 21 states, including 13 that submitted data and eight that did not, and officials and staff at four selected field offices. GAO said the interview information was not generalizable but offered insight into challenges and possible responses.