Federal Policy Reform Efforts

Federal law does not explicitly endorse or prohibit state foster care agencies from using Social Security and other federal benefits belonging to children in foster care to pay for, or reimburse the agencies for, the cost of care. Arguably, however, such use is prohibited by the express requirement that these funds be used in a manner that furthers the best interests of the beneficiaries; the fact that the agencies serving as representative payees for youth in care are doing so in a fiduciary capacity, and federal requirements mandating that states use their own funds to pay for their share of foster care maintenance costs.

To help clarify the federal government’s position on this issue, Congress has introduced federal legislation five times that would expressly limit the practice and ensure that foster children are able to use their Social Security and Supplemental Security Income benefits to address their needs and improve their lives.

• H.R.10478, the Protecting Foster Youth Resources Act, introduced by Rep. Danny Davis on Dec. 18, 2024
• H.R.9654, the Protecting Foster Youth Resources to Promote Self-Sufficiency Act, introduced by Rep. Danny Davis on Dec. 21, 2022
• H.R. 7296, the Protecting Foster Youth Resources to Promote Self-Sufficiency Act, introduced by Rep. Danny Davis on Dec. 13, 2018
• H.R. 5737, the Protecting Foster Youth Resources to Promote Self-Sufficiency Act, introduced by Rep. Danny Davis on July 12, 2016
• H.R. 1104, the Foster Children Self-Support Act, introduced by Rep. Pete Stark on Feb. 15, 2007

• Request for Information: Use and Conservation of Social Security Benefits and Supplemental Security Income Payments that Representative Payees Receive for Beneficiaries Residing in Foster Care [Posted by the Social Security Administration on Nov. 1, 2024]
• Comments submitted by the Children’s Advocacy Institute, USD School of Law [Dec. 2, 2024]
• All submitted comments

• Request to SSA Commissioner Martin O’Malley for SSA Action to Ensure Proper Assignment and Use of Foster Children’s Benefits, submitted by the Children’s Advocacy Institute (Jan. 26, 2024)
• Proposed Administrative Action by SSA to Support Proper Use of Foster Youth Benefits, submitted to the Social Security Administration by the Children’s Advocacy Institute
• Request for ACF Administrative Action to Support Proper Use of Foster Youth Benefits, submitted to the U.S. Department of Health and Human Services, Administration for Children and Families, by the Children’s Advocacy Institute (Oct. 10, 2022)
• Proposed Administrative Action by ACF to Support Proper Use of Foster Youth Benefits, submitted to the U.S. Department of Health and Human Services, Administration for Children and Families, by the Children’s Advocacy Institute (May 14, 2021)

• Washington Must Step Up to Protect Foster Youths’ Benefits, Imprint Op-Ed by Ian Marx (Aug. 17, 2022).