State Reform Efforts

On April 8, 2026, Governor Ivey, joined by the Administration for Children & Families (ACF) Assistant Secretary Alex J. Adams and Alabama Department of Human Resources (DHR) Commissioner Nancy Buckner, signed a proclamation formalizing a renewed partnership between the state of Alabama and ACF within the U.S. Department of Health and Human Services, reinforcing a shared commitment to improving outcomes for children and families across the state. In addition, Alabama officials announced that they had revised rule 660-5-28-.07 to provide that Federal survivor benefits shall not be used to reimburse the County Department, State Department of Human Resources or any contractor for the cost of a child's care or maintenance while in the legal custody of the County Department or State Department of Human Resources.

In May 2026, the Alaska Legislature considered a proposed amendment to SB 237 that would have provided, among other things, that the department may not apply for, receive, use, or expend a social security survivor or dependent benefit, supplemental security income benefit, veteran benefit payable to or on behalf of a child, or any other federal monetary benefit intended for the direct support of a child for the purpose of reimbursing the state for the cost of foster care, placement, or other services provided to a child. However, this amendment was not included in the final version of the bill.

In State of Alaska, et al., v. Z.C. (2025) Alaska Supreme Court Case Nos. S-18248/18259, the Alaska Supreme Court held that foster children have a property interest in their stream of benefits, such that they are entitled to notice of the Office of Children’s Services’ (OCS) systemic practice impacting the amount of funds the children may benefit from, as well as notice of their ability to nominate a rep payee other than OCS for the SSA’s consideration.”

As enacted on June 19, 2026, SB 1496 amends A.R.S. 8-468. It requires the department to apply to serve as the representative payee until someone other than the department is appointed to serve as the representative payee. It further provides that (1) following the initial application to serve as the representative payee, the department shall remain the representative payee only if no other appropriate person is available to serve as the representative payee and within thirty days after the application to serve as the representative payee is approved by the SSA and at each subsequent report and review hearing or permanency planning hearing, the department shall file with the court documentation of the department's efforts to identify an appropriate person who is outside of the department and who could better serve as the representative payee and (2) not later than an annual screening or on the request of the child or the child's attorney, the department shall consult with the parties to determine if an appropriate person who is outside of the department, and on approval by the social security administration, could better serve as the representative payee and the department shall also consult with the parties whenever a change in circumstances occurs that might make an appropriate person who is outside of the department available to serve as the representative payee.

HB 2559, signed into law on June 19, 2023, requires DCS to determine whether each child in its custody is receiving or eligible for benefits administered by SSA or the VA within sixty days after the child enters its care; if DCS determines that a child is eligible or may be eligible for federal benefits, it shall apply for the benefits on behalf of the child. If a child is already receiving benefits before entering DCS’ care or if DCS applies for benefits on behalf of the child, DCS shall identify, in consultation with the child and the child's attorney, a representative payee in accordance with federal law, and shall apply to become the representative payee only if no other suitable candidate is available. If DCS is appointed to serve as the representative payee, it may not use the child's federal benefits, other benefits, savings or assets to pay for or to reimburse DCS or the state for any of the costs of the child's care. It may use the child's federal benefits for the child's unmet needs beyond what DCS is obligated, required or agrees to pay. DCS shall establish an appropriate account to use and conserve the child's benefits in the child's best interest for current unmet needs and future needs in a manner consistent with federal and state asset and resource limits. The account may include a special needs trust; a pooled special needs trust; an achieving a better life experience account; or any other trust account determined not to interfere with Social Security or asset limitations for any other benefit program. The bill also requires DCS to provide an annual accounting as to the use, application or conservation of the child's federal benefits to the child, the child's attorney and the child's parents or guardians. DCS shall periodically review if someone other than the Department is available to apply to assume the role of representative payee and could better serve in that role in the child's best interests. DCS shall notify the child, the child's parents, unless parental rights have been terminated, the child's guardian, the child's current placement and the child's attorney of any application, decision or appeal related to a child's federal benefits. In providing notice of any denial of benefits, DCS shall consult with the child's attorney and appeal the denial if it is in the child's best interests. DCS shall annually review cases of children in its care to determine whether a child may have become eligible for benefits after the department's initial assessment. Notwithstanding any other law, on termination of the Department's responsibility for the child, it shall release any monies remaining to the child's credit pursuant to the requirements of the funding source or, in the absence of any requirements, shall release the remaining monies to the child, if the child is at least eighteen years of age or is emancipated; or the person who is responsible for the child if the child is a minor and not emancipated. View videos from HB 2559 hearings (click on Videos tab).

Implementation of HB 2559

In June 2024, the Arizona Department of Child Safety issued a Service Guide, detailing the Preserving Children’s Benefits Program, which details program requirements. In September 2024, the Arizona Department of Child Safety issued DCS 03-20, a comprehensive policy on the Preserving Children’s Benefits Program.

As amended on January 22, 2026, AB 1080 would expand changes made by AB 2906 (see below). It would, among other things, ensure that benefits for which the child or nonminor dependent is eligible under Title II of the federal Social Security Act are available for their current and future use and shall not be utilized by the county placing agency to offset the cost of the youth's care, and that placing agencies shall instead conserve those funds for the future use of the beneficiary.

As signed by the Governor on Sept. 26, 2024, AB 2906, among other things, requires a placing agency to act in accordance with specified guidelines and pursuant to certain requirements when acting as the representative payee or in any other fiduciary capacity for a child or youth, including, among other requirements, ensuring that the child’s federal Social Security Administration survivors’ benefits, as defined, are not used to pay for, or to reimburse, the placing agency for any costs of the child’s care and supervision, as defined. The bill also provides that before applying to be appointed representative payee on behalf of a child beneficiary, the county shall send a written notice of the intent to be appointed to the child’s counsel and parents or legal guardians.The bill makes these requirements operative January 1, 2025, or 30 days after the Department of Social Services issues the necessary all-county letters and informing materials to county placing agencies, whichever is later.

• View testimony in support of AB 2906 from April 9, 2024 (bill discussion starts at 2hrs 18mins 20 seconds).

AB 1512, as amended Sept. 8, 2023, would have require a placing agency to act in accordance with specified guidelines and pursuant to certain requirements when acting as the representative payee or in any other fiduciary capacity for a child or youth, including, among other requirements, ensuring that the child’s benefits are not used to pay for, or to reimburse, the placing agency for any costs of the child’s care. On October 8, 2023, Governor Newsom vetoed AB 1512; in response to the veto, CAI issued a statement on October 10, 2023. For more information on AB 1512, including a fact sheet, sample support letter, and CAI’s letter to the Governor requesting his signature, please visit CAI’s 2023 legislative priority web page.

SB 187, enacted in 2022, included several new foster youth SSI provisions. Among other things, it shifts the first SSI screening from age 16.5-17.5 to age 16-17 (and does not preclude counties from starting earlier); requires, in certain circumstances, SSI screening for nonminor dependents; requires counties to submit SSI applications for any nonminor dependents screened as being likely to be eligible for SSI and who consents to the application; requires that counties file appeals on behalf of a youth in foster care whose SSI application is denied; and requires counties to assist nonminor dependents with age-18 redeterminations.

As enacted on June 1, 2026, HB 1347, among other things, extends certain application, accounting, and notice provisions already in place for survivor benefits to federal supplemental security income benefits (SSI). The bill also adds requirements related to identifying and documenting the disability of a child or youth in the child welfare system.

As signed by the Governor on May 28, 2025, HB 1271 provides that beginning on or before July 1, 2027, if the county department is the representative payee or fiduciary for a child or youth, the county department shall not use any federal survivor benefits of a child or youth to pay for or reimburse the county department for care or services for the child or youth, including, but not limited to, foster care maintenance expenses and cost of care. Additionally, the bill requires the department to, among other things: determine whether each child may be eligible to receive benefits administered by certain federal agencies, including the United States railroad retirement board, social security administration, or veterans administration within 90 days after placement; apply for these federal benefits on behalf of the child or youth; establish a trust account for the federal benefits; provide an annual accounting of the accumulation of the youth’s federal survivor benefits to the youth and the legal representative of the youth; and annually reassess, in consultation with interested parties, whether a candidate other than the county department would be a preferable representative payee.

In June 2025, DCW issued an Information Memo convening an implementation workgroup that meets monthly. They invite individuals with experience in both finance and program operations, as well as those with expertise in Social Security benefits, to participate.

Signed into law April 24, 2024, HB 24-1017 establishes a statutory bill of rights for children and youth in foster care in Colorado. Among other things, the bill provides for written notification of who is serving as a child or youth’s representative payee; provides for accounting on the use of payments when requested by the child or youth and on an annual basis; and provides assistance to youth transitioning into adulthood in applying for benefits the youth is eligible for or currently receiving to ensure that benefits continue once the youth turns 18 or transitions out of care.

Substitute Senate Bill No. 2, enacted in 2022, provides that no Social Security disability insurance benefit received by a child or youth in the care and custody of the Commissioner of Children shall be utilized by the Department of Children and Families to offset the cost of such child or youth's care.”

District of Columbia 24-0857, Preserving Our Kids’ Equity Through Trusts (POKETT) Amendment Act of 2022, was introduced in June 2022 and approved by the Council in December 2022. This measure would provide local funding for the cost of care of foster and disabled children to enable these children to leave care with their Social Security benefits still available. It also requires the Child and Family Services Agency to conserve children’s benefits in accounts that avoid transgressing federal resource limitations, creating a nest egg for when children leave care.

• 24-0857 Racial Equity Impact Assessment (Nov. 30, 2022)

Implementation of POKETT Act

• In February 2026, the District of Columbia Child and Family Services Agency issued a Social Security Income Benefit Conservation Annual Report for 2025. This report is pursuant to the 2022 POKETT Act, which requires the Mayor to submit an annual status report on CFSA’s efforts to conserve the Social Security benefits of children under its care.
• District of Columbia CFSA contracts with Sivic Solutions Group, LLC to provide education, financial literacy, training and aftercare planning for youth exiting care, and parents and guardians. They created this POKETT webinar, which is available on the CFSA website.
• In June 2024, the District of Columbia Child and Family Services Agency issued a Social Security Income Benefit Conservation Annual Report for 2023. This report is pursuant to the 2022 POKETT Act, which requires the Mayor to submit an annual status report on CFSA’s efforts to conserve the Social Security benefits of children under its care.

As introduced on January 23, 2025, HB 1229 would have prohibited 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. It would also have required 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. The bill died upon conclusion of the session in May 2026.

As introduced January 17, 2025, SB 974 would have prohibited 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, and would have required the Department 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. The bill died upon conclusion of the session in May 2026.

As introduced March 8, 2024, SCR 188 would have requested the Department of Human Services to continue to cease intercepting Social Security payments for children in foster care.

Hawaii passed two Resolutions, HR 117 in April 2022 and SCR 51 in April 2023, requesting the Department of Human Services to immediately cease intercepting Social Security payments for children in foster care. In March 2023, Cathy Betts, Director of the Department of Human Services, submitted testimony indicating that DHS had immediately ceased intercepting Social Security payments for children in foster care in response to HR 117 and asked lawmakers for $500,000 to make up for the money it is losing from no longer intercepting children’s Social Security benefits. However, an investigation by Hawaii News Now confirmed that these statements were not accurate and that Social Security benefits were still being used for foster board reimbursement. DHS subsequently indicated that the testimony submitted was incorrect and that what the Department had actually done is immediately start discussions to consider how to cease using Social Security payments for foster board reimbursements.

As enacted on March 17, 2026, HB 558, provides, among other things, that if the department is the child's representative payee, the department shall not use a child's Social Security survivor benefits to pay for or reimburse the department or the state of Idaho for any costs of the child's care, maintenance, supervision, or services. It further provides that the department may use such benefits to pay for the child's unmet needs beyond what the department is obligated, is required, or has agreed to pay.

As introduced on January 29, 2026, HB 558 would, among other things, provide that if the department is the child's representative payee, the department shall not use a child's Social Security survivor benefits to pay for or reimburse the department or the state of Idaho for any costs of the child's care, maintenance, supervision, or services. It would further provide that the department may use such benefits to pay for the child's unmet needs beyond what the department is obligated, is required, or has agreed to pay.

In Director's Bulletin 2025-02, dated May 21, 2025, the Director of the Idaho Department of Health & Welfare provides, among other things, that when serving as the representative payee, the Department shall not use a child's Social Security Survivor Benefits for maintenance payments, indicating further that the Department shall not use the child's funds to offset state funds by simply covering items that are otherwise covered for other children in foster care who do not have Social Security Survivor's Benefits.

As passed by both houses on May 21, 2026, SB 3196 would require the Department to periodically verify accounts identified as belonging to or held for the benefit of a youth in care to ensure the preservation of the youth's financial resources and to adopt rules establishing a process by which a youth, or the youth's parent, guardian, attorney, or guardian ad litem may request an accounting of funds held, conserved, or expended by the Department on behalf of a youth in care and accounts known to the Department. It would further require the Department to make reasonable efforts to develop, in partnership with the youth, a developmentally appropriate individualized youth-driven transition plan, which addresses the youth's financial stability, including developmentally appropriate financial literacy education and information regarding any financial accounts established in the youth's name or for the youth's benefit of which the department is aware.

SB 3470, enacted in 2022, provides that upon receiving custody or guardianship of a youth in care, and at least annually thereafter, the Department of Children and Family Services shall determine whether the youth may be eligible for Social Security benefits, Supplemental Security Income, or Veterans benefits; provides that if it is determined that the youth may be eligible for benefits, the Department shall ensure that an application is filed on behalf of the youth; requires the Department to ensure that any youth in care eligible for benefits beyond the age of 18 has a timely application filed; requires the Department to immediately notify a youth over the age of 16, the youth's attorney and guardian ad litem, and the youth's parent or legal guardian or another responsible adult of: (1) any application for or any application to become representative payee for benefits on behalf of a youth in care; (2) any decisions or communications from the Social Security Administration or the U.S. Department of Veterans Affairs regarding an application for benefits or for representative payee status; and (3) any appeal or other action requested by the Department regarding an application for benefits; requires the Department to ensure that when the youth attains the age of 14 years and until the Department no longer serves as the representative payee or fiduciary, a minimum percentage of the youth's benefits are conserved in a way that avoids violating any federal asset or resource limits that would affect the youth's eligibility to receive the benefits, including, but not limited to, establishing for the youth a Plan to Achieve Self-Support (PASS) Account; an ABLE account, a Social Security Plan to Achieve Self-Support account, or other specified savings accounts; and contains provisions concerning annual accounting reports to a youth's attorney and guardian ad litem of how a youth's benefits have been used and conserved, financial literacy training and support for youth in care, and other matters.

On July 23, 2026, Governor Reynolds announced that Iowa will change how the state manages Social Security survivor benefits for foster children with deceased relatives, allowing the child to retain this money for the future and directing Iowa Health and Human Services to preserve survivor benefits using the most appropriate account type for each eligible child.

As introduced March 3, 2025, Senate Bill 481 would have required the Department of Health and Human Services to establish a benefits account in the name of any child under 18 years of age if the child receives benefits, as defined; provided that any benefits the child receives must be placed in the child’s account; provide that if a conservator makes a demand for moneys in the child’s account, the moneys in the child’s account must be paid to the conservator; provided that the account must be an interest-bearing account at a reputable bank or saving association, and maintained by the Department as trustee for the child; and provide that all moneys in the account must be released to the child upon the child reaching 18 years of age. This bill was not enacted.

In 2024, the Iowa Legislature considered a proposed amendment to HF 2698 that would have provided that if the Department of Health and Human Services collects a child’s federal Social Security survivor benefits on behalf of a child, the Department shall establish a separate account for deposit of the child’s benefit funds, and shall release the funds deposited in a child’s account to the individual when the individual reaches eighteen years of age. View Sen. Sarah Trone Garriott’s remarks in support of the amendment (April 19, 2024). However, this amendment was not included in the version of the bill signed by the Governor on May 9, 2024.

In a January 2025 Executive Order from Kansas Governor Laura Kelly, Kansas reversed its policy and declared, among other things, that the Kansas Department for Children and Families will not use any of a child’s federal benefits to reimburse itself for the contractual maintenance of a child while in the Department’s custody.

In response to Executive Order No. 25-01, Kansas Department for Children and Families (DCF) created an Q&A web page, which contains information on the Kansas ABLE program and indicates it will be updated on a regular basis.

Introduced on January 18, 2024, HB 2552 would have prohibited the Secretary for Children and Families from using federal benefits of a child in need of care for the care and custody of the child and require the Secretary to create and maintain an account of such benefits received for such child. However, this measure died April 30, 2024.

• View testimony of CAI National Policy Director Amy Harfeld in support of HB 2552 (Feb. 2, 2024)

As introduced on February 18, 2026, HB 669 provides, among other things, that if the cabinet is appointed to serve as the representative payee, the cabinet shall not use any of the child’s earned federal benefits, savings, or assets to pay for or reimburse the cabinet or the Commonwealth for any cost of the child’s care, maintenance, supervision, or services. Further, it allows but does not require use of the child’s earned benefits only for unmet needs of the child that are beyond those the cabinet is obligated or agrees to pay. On April 10, 2026, HB 669 was vetoed by Governor Beshear. However, on April 14, 2026 the Legislature overrode the Governor's veto.

In Executive Order JML 26-021, Louisiana Governor Jeff Landry declared, among other things, that the DCFS shall not use any portion of a child's earned survivors' federal benefits to reimburse itself or any contractor for the cost of the child's care or maintenance while in the legal custody of the DCFS.

As introduced on February 6, 2026, SB 33 would have memorialized the current policy in Executive Order JML 26-02 which, among other things, prohibits the department from using any of the child's earned federal benefits, savings, or assets to pay for or reimburse the department or the state for any cost of the child's care, maintenance, supervision, or services. SB 33 was not enacted.

As amended June 13, 2025, LD 52 would have required the Department of Health and Human Services to study options for allowing children in the Department's custody to receive federal benefits. This measure was not enacted.

As introduced December 20, 2023, LD 2078 would have, among other things, require the Department to determine whether a child in its custody is eligible for a federal benefit; if a child is eligible for a federal benefit, the Department shall apply for the federal benefit on behalf of the child, and shall notify the child, the child's attorney or guardian ad litem and the child's parents or legal guardians of the application for the federal benefit; if the Department is serving as the representative payee, it may not use the child's federal benefit to pay for or reimburse the department or the State for any of the costs of the child's care, and may use the child's federal benefit for the child's unmet needs beyond what the Department is required to pay; if appropriate, shall establish a special-needs trust to use and conserve the child's federal benefit in a manner that is consistent with federal and state requirements for special-needs trusts and in a manner that avoids federal and state asset and resource limits; shall provide an annual accounting of the child's federal benefit to the child, the child's attorney or guardian ad litem and the child's parents or legal guardians; and shall periodically provide the child with financial literacy training and support, including information regarding the availability and use of funds conserved for the child. In May 2024, the Maine Legislature carried over LD 2078 to any special session of the 131st Legislature, but it died upon conclusion of the 131st in December 2024.

• View Testimony of CAI National Policy Director Amy Harfeld Re LD 2078 (Jan. 30, 2024)

As amended March 17, HB 768 would have required the department to, among other things, conserve any federal benefits received on behalf of children in care; this change would have become effective on June 30, 2027. This measure was not enacted.

As introduced on February 6, 2026, SB 658 would have required the department to, among other things, ensure that when the child enters the care of the department and until the Department no longer serves as the representative payee or fiduciary, the child’s benefits are not used to reimburse the State for the costs of care. This measure was not enacted.

In 2018, Maryland became the first state in the nation to enact legislation to protect Social Security and federal resources belonging to children in foster care. Md. Code, Fam. Law § 5-527.1 requires the Department of Human Resources to work with child’s attorney to identify a representative payee, and puts specific requirements in place when the Department serves as the representative payee. For example, the Department must use or conserve the benefits in the child’s best interest; when the child attains age 14, a minimum percentage of the child’s benefits must be conserved for the child; the funds must be conserved or used for services for special needs not otherwise provided by the Department; and the Department must monitor federal asset or resource limits and use funds in a way that avoids violating any federal asset or resource limits that would affect the child’s eligibility.

As enacted on July 4, 2025, Sections 49 & 50 of the FY26 Final Budget require that if the department is the child’s representative payee, the Department shall not use such benefits to reimburse the Commonwealth for the child’s placement in foster care. The bill also requires the Department to, among other things, provide notice to counsel for the child when the Department applies for benefits, requests to become the child’s representative payee, or receives notice of the agency’s decision regarding benefits; identify within 60 days of the child being committed to custody of the department whether the child is receiving or eligible to receive benefits and to review cases of children in foster care annually to determine whether the child may have become eligible for benefits after the initial assessment; apply for such benefits on the child’s behalf; make available to child’s counsel current accounting information; and provide child with ongoing financial literacy training and support, beginning at 14 years of age.

On May 13, 2025, the Joint Committee on Children, Families and Persons with Disabilities held a hearing to solicit written and oral testimony in-person and remotely on bills that pertain to human services and child welfare. Testimony relevant to the protection of foster youth federal benefits can be viewed at the 19:58 and 22:53 timestamps.

As introduced on Feb. 27, 2025, Bill S.105 would provide, among other things, that if the Department is the child’s representative payee or fiduciary, the Department shall not use a child’s federal benefits to reimburse the Commonwealth for the child’s placement in foster care.

Beginning in 2024, the Commonwealth of Massachusetts stopped its practice of diverting to its general fund, 90% of SSI and survivor benefits paid to children in foster care. Instead, the state’s Department of Children and Families now places 100% of children’s benefits into personal needs allowance (PNA) accounts and establishes ABLE accounts for children receiving SSI. This reflects a voluntary policy change still awaiting memorialization in a pending bill.

Introduced June 3, 2024, H4704 would, among other things, provide that if it is serving as the child’s representative payee, the Department shall not use such benefits to reimburse the Commonwealth for the child’s placement in foster care. If the child is receiving SSI benefits, the department shall ensure that any funds retained on the child’s behalf are kept in a manner that does not exceed any federal asset or resource limit that would affect the child’s eligibility to continue receiving SSI benefits. Benefits held by the department as a representative payee or fiduciary may be spent on the child’s unmet needs, which would not ordinarily be funded by another source, subject to program rules for the use of such benefits, or otherwise conserved for the child. The Department shall take steps to conserve the benefits of children receiving benefits to assist them in the transition to adulthood and living independently. The Department shall establish accounts in conserving a child’s benefits. The bill would also

• Require the Department to provide timely notice to counsel for the child, as well as counsel for the parent or parents or legal guardian or guardians for each of the following events: submits an application for benefits; submits a request to become the child’s representative payee; receives notice of the agency’s decision regarding benefits including denial, termination or reduction in benefits; decides whether or not to appeal an adverse determination, including the outcome of any appeal filed; and receives notice of an eligibility redetermination.
• When a child is placed in foster care under a voluntary placement agreement or court-ordered custody, require the Department to make all reasonable efforts to identify within 60 days of the child being committed to custody of the department whether the child is already receiving or may be eligible to receive benefits.
• Require the Department to review cases of children in foster care annually to determine whether the child may have become eligible for benefits after the initial assessment.
• Provide that if the Department determines, or has cause to believe, that the child may be eligible for benefits, it shall apply for benefits on the child’s behalf.
• Provide that if the agency administering such benefits denies the application, the Department may appeal the decision

Introduced on June 6, 2024, S. 2803 would establish a bill of rights for children in foster care, and would (among other things) require notice to a child’s attorney when the Department applies for any benefits on behalf of the child or applies to be the child’s representative payee, and would provide that the Department shall preserve all of such funds received in an interest bearing account belonging to the child so the funds are available for the child’s benefit and use when they turn 18 and shall not use such funds for the customary costs of foster care.

State legislators previously considered H. 157 and S. 65, which would have protected benefits owed to foster children by, among other things, requiring the Department to comply with laws pertaining to eligibility screening, payee or fiduciary assistance, appropriate notice, benefits accounting, conservation of benefits and other services relative to benefits for children and youth below the age of 22 under the custody, care, or responsibility of the Department.

• View the 9/26/2023 hearing of the Joint Committee on Children, Families and Persons with Disabilities, discussing H. 157 (relevant discussion starts at 52:00, with testimony of Marissa Pike, lived experience expert, starting at 1:17).

As enacted on July 23, 2026, HB 4750 and SB 18 provide, among other things, that when the child in foster care is 14 years through age 17, and until the department no longer serves as the representative payee or fiduciary, at least 50% of the benefits of the child in foster care is conserved.

• View testimony of lived experience advocate Justin Kasieta in support of Senate Bill 18 (Feb. 25, 2025)

According to Michigan DHHS Communication Issuance 25-098, dated December 15, 2025, effective Jan. 1, 2026, relative foster care providers will be eligible to receive both foster care maintenance payments and Social Security Administration (SSA) benefits – including Social Security Income /Retirement and Survivors and Disability Insurance – for eligible relative foster children in their care. However, advocates in Michigan indicate that this change has not been published in the foster care manual.

As introduced on May 4, 2024, Senate Bill 872 would require the Department to apply for and secure all income and funds available to a child in foster care, including any unqualified benefits for which a child in foster care is eligible, and screen a child in foster care for unqualified benefits within 60 days after the child enters foster care, and annually if the child remains in foster care. Except as provided, the state shall not use the unqualified benefits of a child in foster care, or any other assets or income that the child has earned, owned, or received, as reimbursement for the cost of care for the child. The Department may do one or more of the following if it determines that it is in the child's best interests: use the child's unqualified benefits for special needs services for the child that are not otherwise provided by the department or conserve the unqualified benefits for reasonably foreseeable future special needs services for the child. If the department applies for federal benefits for a child in foster care, it shall, in cooperation with the child's guardian ad litem, if one has been appointed, identify a representative payee or fiduciary in accordance with the requirements of 20 CFR 404.2021 and 416.621, as applicable. And among other provisions, the bill would require the department to provide an annual accounting to the child and the child's guardian ad litem, if one has been appointed, of how the child's unqualified benefits have been used or conserved. View testimony in support of SB 872 by Amy Harfeld, National Policy Director of the Children’s Advocacy Institute, dated Dec. 3, 2024.

In June 2023, Rep. Kathy Schmaltz introduced House Bill 4694 to make sure youth who age out of Michigan’s foster care system have the resources they need to start building successful lives. Currently, any federal benefits the state collects on behalf of children in the foster care system are used to reimburse the state for the cost of their care. This includes income such as Veterans Administration benefits, Supplemental Security Income, and Social Security benefits. According to Rep. Schmaltz, her plan would change that policy, instead setting aside a portion of these federal benefits for the child’s future needs. For children aged 14 and 15, at least 40 percent of these benefits must be set aside; children aged 16 and 17 would have at least 80 percent set aside; and foster youth aged 18 to 20 would have 100 percent set aside. The plan also provides foster youth with financial literacy training and ensures they are notified about all of the federal benefits the state applies for and collects on their behalf.

Introduced on April 9, 2026, HF 4872 would have required, among other things, that a financially responsible agency deposit all federal and state sources of income a child in foster care is entitled to receive into a trust and once a beneficiary has reached 18 years of age, the financial institution must disburse to the beneficiary $10,000 or the total amount remaining in the beneficiary's account, whichever is less, annually on the beneficiary's birthday until the beneficiary's account is depleted. The bill would further have provided that on petition of a minor beneficiary who is 14 years of age or older, a court may order the ombudsperson to deliver or pay to the beneficiary or expend for the beneficiary's benefit the amount of the beneficiary's trust account as the court considers advisable for the use and benefit of the beneficiary and that upon written request to the ombudsperson, a beneficiary may request up to 50 percent of the beneficiary's account balance for a documented need, including for housing, education, transportation, mental health, or legal fees. The bill would also have provided a repayment program by which affected youth would receive compensation for cash benefits diverted to the individual's financially responsible agency between January 1, 1976, and December 31, 2026.

Introduced on March 23, 2026, SF 4635 would have required, among other things, that a financially responsible agency deposit all federal and state sources of income a child in foster care is entitled to receive into a trust and once a beneficiary has reached 18 years of age, the financial institution must disburse to the beneficiary $10,000 or the total amount remaining in the beneficiary's account, whichever is less, annually on the beneficiary's birthday until the beneficiary's account is depleted. The bill would have further provided that on petition of a minor beneficiary who is 14 years of age or older, a court may order the ombudsperson to deliver or pay to the beneficiary or expend for the beneficiary's benefit the amount of the beneficiary's trust account as the court considers advisable for the use and benefit of the beneficiary and that upon written request to the ombudsperson, a beneficiary may request up to 50 percent of the beneficiary's account balance for a documented need, including for housing, education, transportation, mental health, or legal fees. The bill would also have provided a repayment program by which affected youth would receive compensation for cash benefits diverted to the individual's financially responsible agency between January 1, 1976, and December 31, 2026.

As introduced February 13, 2025, House Bill 588 would have provided, among other things, for the establishment of the Foster Children Assistance Trust. It would provide that all assets of the trust are held in trust for the exclusive benefit of beneficiaries and that trust assets are not subject to claims by creditors of the state, are not part of the general fund, and are not subject to appropriation by the state. It also would have provided that a "financially responsible agency" must, among other things, assess whether each child the agency is responsible for is eligible to receive benefits through SSI; apply to be the payee for the child for the duration of the child's placement in foster care; remit all benefit payments to the commissioner of children, youth, and families; and notify each beneficiary above the age of 18 that the beneficiary may be entitled to disbursements. It further would have provided that the "commissioner of children, youth, and families" must, among other things, annually notify each beneficiary between the ages of 14 and 18 of the amount of federal cash assistance benefits received on the beneficiary's behalf in the prior calendar year and the tax implications of those benefits, and once a beneficiary has reached 18 years of age, disburse $10,000 every year to the beneficiary until the beneficiary's account is depleted.

As introduced February 6, 2025, Senate Bill 1025 would have provided, among other things, for the establishment of the Foster Children Assistance Trust. It would also have provided that all assets of the trust are held in trust for the exclusive benefit of beneficiaries and that trust assets are not subject to claims by creditors of the state, are not part of the general fund, and are not subject to appropriation by the state. It provides that a "financially responsible agency" must, among other things, assess whether each child the agency is responsible for is eligible to receive benefits through SSI; apply to be the payee for the child for the duration of the child's placement in foster care; remit all benefit payments to the commissioner of children, youth, and families; and notify each beneficiary above the age of 18 that the beneficiary may be entitled to disbursements. It further would have provided that the "commissioner of children, youth, and families" must, among other things, annually notify each beneficiary between the ages of 14 and 18 of the amount of federal cash assistance benefits received on the beneficiary's behalf in the prior calendar year and the tax implications of those benefits, and once a beneficiary has reached 18 years of age, disburse $10,000 every year to the beneficiary until the beneficiary's account is depleted.

On Jan. 15, 2025, the Minnesota Department of Children, Youth, & Families issued a report entitled, “Income and Resources for Children in Foster Care,” as requested by the Minnesota Legislature during the 2023 Legislative Session.

As enacted in May 2024, HF 5237 provides that If the financially responsible agency applies to be the payee for a child who receives federal benefits, or receives such benefits on behalf of a child, the agency must provide written notice by certified mail, return receipt requested to the child, if the child is 13 years of age or older; the child's parent, guardian, or custodian or if there is no legal parent or custodian the child's relative selected by the agency; the guardian ad litem; the legally responsible agency; and the counsel appointed for the child pursuant to specified law. The measure also provides that if a financially responsible agency receives federal benefits on behalf of a child 13 years of age or older, the legally responsible agency and the guardian ad litem must disclose this information to the child in person in a manner that best helps the child understand the information (unless the child is living outside of Minnesota). Among other things, the measure also provides that if a financially responsible agency receives federal benefits on behalf of a child, it cannot use those funds for any other purpose than the care of that child, it must not commingle any benefits received, and it must not put the benefits received on behalf of a child into a general fund. However, the measure does not prohibit the agency from using the child’s benefits to reimburse itself for the child’s foster care.

As introduced on Feb. 15, 2024, HF 3856 and SF 3614 would have provided that if a financially responsible agency applies to be the payee for a child who receives certain federal benefits, including SSI and survivor's benefits, or receives the benefits on behalf of a child, the financially responsible agency must provide written notice by certified mail, return receipt requested to the child, if the child is 13 years of age or older; the child's next of kin; the guardian ad litem; the legally responsible agency; and the counsel appointed for the child. If a financially responsible agency receives benefits on behalf of a child 13 years of age or older, the legally responsible agency and the guardian ad litem would have been required to disclose this information to the child in person in a manner that best helps the child understand the information (however, this would not apply in circumstances where the child is living outside of Minnesota). If a financially responsible agency receives the benefits on behalf of a child, it would have been prohibited from using those funds for any other purpose than the care of that child, and the financially responsible agency must not commingle any benefits received and must not put the benefits received on behalf of a child into a general fund. If a financially responsible agency receives any benefits, it would have been required to keep a record of the total dollar amount it received on behalf of all children it receives benefits for; the total number of children it applied to be a payee for; and the total number of children it received benefits for. By January 1 of each year, each financially responsible agency would have been required to submit a report to the Commissioner of Human Services that includes this information, and by January 31 of each year, the Commissioner would have been required to submit a report to the chairs and ranking minority members of the legislative committees with jurisdiction over child protection that compiles the information provided to the Commissioner by each financially responsible agency. On May 19, 2024, the Minnesota Legislature ended its 2024 session without enacting either measure.

In 2023, the Minnesota Legislature introduced H.F. 2467 and S.F. 2464, which would have, among other things, required the establishment of trusts for current and recent foster children receiving benefits and other income, provided that all assets of the trusts are held in trust for the exclusive benefit of beneficiaries, and required that once a beneficiary has reached 18 years of age, the Office of the Foster Youth Ombudsperson shall disburse $10,000 or the total amount remaining in the beneficiary's account, whichever is greater, every year to the beneficiary until the beneficiary's account is depleted. At this writing, neither bill was enacted. Instead, an alternative proposal was passed. The Health and Human Services Omnibus bill, at Line 649.28 includes a 2-year, mandated study of the current practice in Minnesota. As part of this study, by December 15, 2023, each county was to provide the following data for fiscal years 2018 to 2022: (1) the nonduplicated number of children in foster care in the county who received income and resources attributable to a child; (2) the nonduplicated number of children for who the county was the representative payee for income and resources attributable to a child; (3) the amount of money that the county received from income and resources attributable to children in out-of-home placement for whom the county served as the representative payee; (4) the county's policies and standards regarding collection and use of this money; and (5) to the extent available, demographic information on the children in out-of-home placement for whom the county serves as the representative payee. Further, the Commissioner of Human Services must develop a plan and recommendations to preserve and make these funds available to meet the child’s best interest. The final report and recommendations are due by January 15, 2025.

• View testimony from Amy Harfeld, CAI National Policy Director, to Senate Health and Human Services Committee (March 21, 2023)
• View March 21, 2023 Senate Health and Human Services Committee hearing (bill discussion starts approximately 1 hour and 8 minutes into the clip)

In 2022, the Minnesota legislature considered S.F. No. 4410, a bill that would have addressed this practice in two phases: first planning and data, then benefit conservation. That bill did not make it out of conference.

As signed by the Governor on March 13, 2026, HB 1758, among other things, prohibits the department from using any of the child's earned federal benefits, savings, or assets to pay for or reimburse the department or state for any cost of the child's care, maintenance, supervision, or services, allowing the department to use the child's earned benefits only for unmet needs of the child that are beyond those the department is obligated or agrees to pay.

As introduced on January 19, 2026, SB 2571 would have, among other things, prohibited the department from using any of the child's earned federal benefits, savings, or assets to pay for or reimburse the department or state for any cost of the child's care, maintenance, supervision, or services, allowing the department to use the child's earned benefits only for unmet needs of the child that are beyond those the department is obligated or agrees to pay.

As introduced on January 19, 2026, SB 2456 would have, among other things, prohibited the department from using any of the child's earned federal benefits, savings, or assets to pay for or reimburse the department or state for any cost of the child's care, maintenance, supervision, or services, allowing the department to use the child's earned benefits only for unmet needs of the child that are beyond those the department is obligated or agrees to pay. This bill died in committee.

Enacted July 9, 2025, House Bill 737 provides, among other things, that any money received by the division on behalf of a child shall be accounted for in the name of the child; any money in the account of a child shall not be expended by the division for care or services for the child including, but not limited to, foster care maintenance expenses and any special allowances or expenses established by the division for the care of children in the division's custody, for a child of a similar age; provided, however, that the division may use the specified benefits for the child's unmet needs beyond what the division is obligated, required, or agrees to pay.

As introduced on January 8, 2025, Senate Bill 170 would provide, among other things, that the Children's Division shall determine whether a child coming into the custody of the Division is eligible for or receiving U.S. Railroad Retirement Board, Social Security, or Veterans Administration benefits within 60 days of entering the Division's legal custody; the Division shall apply for such benefits on the child's behalf if he or she is eligible, and shall only serve as a representative payee if no other candidate is suitable; such money shall not be used to pay for care or services for the child, but may be used by the Division for the child's unmet needs beyond what the Division is otherwise obligated to pay; and that the accounts in which the child's benefits shall be placed shall be established in a manner consistent with federal and state asset and resource limits.

As considered in 2024, SB 862 and HB 2227 would have provided that the Children's Division shall determine whether a child coming into the custody of the Division is eligible for or receiving U.S. Railroad Retirement Board, Social Security, or Veterans Administration benefits within 60 days of entering the Division's legal custody. The Division would have been required to apply for such benefits on the child's behalf if he or she is eligible, and shall only serve as a representative payee if no other candidate is suitable. Further, the bills would have provided that money in the child's accounts shall not be used by the Children's Division to pay for care or services for the child. However, U.S. Railroad Retirement Board, Social Security, or Veterans Administration benefits may have been used by the Division for the child's unmet needs beyond what the Division is otherwise obligated to pay. Finally, the bills would have required that accounts in which the child's benefits shall be placed shall be established in a manner consistent with federal and state asset and resource limits. On May 20, 2024, the Missouri Legislature adjourned its 2024 legislative session without enacting either measure.

• View testimony from Amy Harfeld, CAI National Policy Director, to the Missouri House of Representatives’ Committee on Children and Families (January 22, 2024)

Governor Pillen's Executive Order 26-03, enacted on January 27, 2026, provides, among other things, that DHHS shall not use any portion of a child's federal survivor benefits to reimburse itself or any contractor for the cost of the child's care or maintenance while in custody.

As enacted June 4, 2025, LB 275 requires DHHS to conserve a minimum amount of social security benefit payments received on behalf of a child beneficiary, which shall not be used to reimburse the state for the cost of care in the following percentages: (i) for children 14+ years, no less than 20%; (ii) for children 16+ years, no less than 30%; (iii) for children 17+ years, no less than 40%; and (iv) for children 18+ years, 50%. Further, it requires DHHS to, among other things, screen each child for social security benefit eligibility; submit an application for such benefits if it determines that a child may be eligible; provide notice to the child, the child’s GAL, and the child’s parents of all benefit determinations from SSA and of any appointment to serve as the child’s representative payee and the right to appeal; provide written notice to the juvenile court at each review hearing regarding the department’s receipt and conservation of the child’s benefits; and provide to the child, the child’s GAL, and the child’s parents, upon request, all accounting records relating to social security benefit payments, upon request.

LB 1173, enacted in April 2022, requires notice to child and child’s guardian ad litem, and requires that the Department provide accounting records regarding its use and conservation of the child’s benefits upon request by specified individuals. However, the measure also retains state law requiring that a foster child’s assets over $1,000 and current income be available for reimbursement to the state for the cost of care, and contains no provision about screening/application, or conservation of benefits.

Unsuccessful legislative efforts to address this issue include (1) LR 198, which would have called for an examination of Nebraska practices regarding use of Social Security benefits, and (2) LB 932, introduced January 2022, which would have amended Section 43-907 to require both screening of children in foster care for Social Security benefit eligibility within 60 days of entering care and require application for Social Security benefits. Although LB 932 was indefinitely postponed, portions of that bill were amended into LB 1173, discussed above.

As enacted on May 31, 2025, Senate Bill 284 prohibits an agency from using any federal benefits or other benefits, awards or assets belonging to a child to pay for or reimburse the agency for costs of the child’s care. Further, it requires the agency to, among other things: notify the child, any parent of the child whose parental rights have not been terminated, the legal guardian and the attorney of any application, decision or appeal related to benefits, and any application to be the representative payee; determine (not later than 60 days after a child is placed in the custody of an agency and annually thereafter) whether the child is receiving or is eligible to receive federal benefits; perform an accounting of the use, application or conservation of all benefits received by the agency at least once every 6 months, and provide documentation of the accounting to, among others, the child and the child’s attorney.

As enacted on July 10, 2026, HB 661, among other things, clarifies the obligation of the Department of Health and Human Services to ensure that Social Security payments, Supplemental Security Income payments, and Veterans benefits for children in the care of the Department be held securely until the child has reached the age of majority or is no longer in the care of the Department. It provides that the department shall not use the child's federal benefits, other benefits, savings, or assets to pay for or reimburse the department or this state for any of the costs of the child's care in accordance with the following phase-in schedule: Beginning July 1, 2028, the department shall conserve 25 percent of the child's federal benefits; Beginning July 1, 2030, the department shall conserve 50 percent of the child's federal benefits; Beginning July 1, 2032, the department shall conserve 75 percent of the child's federal benefits; Beginning July 1, 2034, the department shall conserve 100 percent of the child's federal benefits. While this bill is comprehensive of all benefits for all youth, the bill was amended to phase in benefit conservation over time, requiring the conservation of 100% of benefits by 2034.

• CAI National Policy Director Amy Harfeld’s testimony in support of HB 661 (Feb. 11, 2025)

As signed by the Governor on July 12, 2024, HB 1598 requires the Department of Health and Human Services to prepare a report for the Legislature and Governor regarding budget requirements associated with management of Social Security and Veterans benefits for children in placement through the Department. The bill makes an appropriation to the Department to hire a consultant to assist with the report and its implementation.

As enacted on December 18, 2025, S 3153, among other things, prohibits DCF from utilizing any portion of the child's property or benefits to offset the State's costs for the child's maintenance, except to maintain the child's eligibility for federal Supplemental Security Income Program benefits and to avoid a violation of federal asset or resource limits under the Supplemental Security Income Program. The bill stipulates that the Department may utilize such benefits of a child in the custody of the division for the child's unmet needs beyond the amount that the State is obligated, required, or agrees to pay after notifying the child, the child's parent, legal guardian, counsel, and the Family Part of the Chancery Division of the Superior Court.

As introduced on June 13, 2024, A 4543 would have, among other things, prohibited DCF from utilizing any portion of a child’s property or benefits, including Social Security benefits, to offset the state’s costs of the child’s maintenance. Rather, the bill would have stipulated that the Department must either conserve the child’s benefits, in an account at a federally insured financial institution, for the child’s future use or to use in the child’s best interests for unmet needs that exceed the state’s maintenance obligation, within the federal income and resource limits established for the relevant federal benefits program. By prohibiting the Department from utilizing the federal benefits of a child under the division’s custody to offset the state’s costs to care for the child, the sponsor intended to ensure that the child’s financial resources be preserved to either pay for the child’s unmet needs while in an out of home placement, or saved for the child’s future use. This bill was replaced by S 3153, which was enacted on December 18, 2025.

As introduced June 6, 2024, A 4495 would have prohibited the Department of Children and Families (DCF) from using certain federal benefits to reimburse the state for a child’s cost of foster care, would require DCF to conserve the benefits for a child’s unmet or future needs, and contains other elements of CAI’s proposed model law. This measure was not enacted.

On January 16, 2024, New Jersey enacted A3980, which revises the foster youth bill of rights to, among other things, provide that a child in foster care has the right to be to be notified of property and benefits to which the child is the owner or beneficiary at the time of the child’s placement outside of the child’s home, if known by the Department of Children and Families at the time of the child’s placement, or to be promptly notified upon the Department of Children and Families becoming aware of such property and benefits, including but not limited to federal Social Security benefits; to be informed of the department’s intent to file for federal benefits on the child’s behalf; and to have an opportunity to review the contents of any application form for federal benefits filed on the child’s behalf prior to submission.

As signed by the Governor on March 20, 2025, SB 283 provides, among other things, that if the department is the child's representative payee, it shall not use a child's federal benefits to pay for or reimburse the department for any of the costs of the child's care; however, the department may use those benefits to pay for the child's unmet needs beyond what the department is obligated or required or has agreed to pay.

As introduced on February 11, 2025, House Bill 364 requires, among other things, that the department determine federal benefits eligibility for children in its custody, apply for federal benefits, and either act as the child's representative payee or determine an appropriate alternative. It also sets forth the department's obligations when acting as the child's representative payee and prohibits the use of federal benefits to pay the department for the child's care and sets forth provisions for the release of federal benefits provided to children in legal custody of the state.

As introduced on February 10, 2025, Senate Bill 333 requires the department to, among other things, do the following: within thirty days of being appointed as a representative payee, provide notice of the appointment to the beneficiary and the beneficiary's parent or guardian; provide an annual accounting statement to each beneficiary and each beneficiary's parent or legal guardian; and establish a no-cost benefits account at a financial institution for each beneficiary for whom the department is appointed as representative payee. It also provides that the department shall take the steps necessary to be appointed as the representative payee by the federal social security administration for each child in the department's custody who is a beneficiary or an eligible beneficiary, providing that (1) if a child in the department's custody is a beneficiary, the department shall request to be appointed as the beneficiary's representative payee by application to the federal social security administration, including providing a plan indicating how the beneficiary's funds will be used to meet the beneficiary's needs, as well as any other supportive information necessary or appropriate (2) If a child in the department's custody is an eligible beneficiary, the department shall apply to the federal social security administration for benefits on behalf of that child and shall at that same time apply to be appointed as the child's representative payee, including providing a plan indicating how the beneficiary's funds will be used to meet the beneficiary's needs, as well as any other supportive information necessary or appropriate.

According to an article in the Albuquerque Journal, in a letter to staff dated July 21, 2023, the acting head of the state Children, Youth and Families Department halted the long-standing agency policy of tapping federal benefits owed to children in state custody to offset the cost of foster care. Acting Cabinet Secretary Teresa Casados promised that the agency will now keep the benefits in trust for the intended recipients. “CYFD will not use Social Security Administration (SSA) Title II benefits (Retirement, survivors, disability insurance) and Title XVI benefits (Supplemental Security Income) received on behalf of children in state custody to pay for foster care maintenance and/or child incidental payments,” she wrote in a letter posted on CYFD’s website. “Any SSA benefits to which CYFD is the representative payee will be held in a trust for each individual child or youth entitled to that benefit,” Casados wrote, adding that “implementation policies and procedures” will be distributed by Sept. 1, 2023. However, no further information about those policies and procedures have been made available. The Department’s 2023 directive apparently expired as of March 1, 2024.

As introduced January 25, 2024, HB 254 would have, among other things, required that within sixty days after a child enters the Department's legal custody, and annually thereafter, the Department shall determine whether the child is currently receiving or is eligible to receive federal benefits; in consultation with specified individuals, the Department would have been required to either identify the child’s representative payee or apply to become the child’s representative payee provided that no other candidate is available; if the Department becomes the representative payee of a child in its legal custody, it would have required it to establish an appropriate account to use and conserve the child's federal benefits, in the child's best interest, for current unmet needs and future needs pursuant to the requirements of the funding source and any applicable asset and resource limits, annually determine whether a person, other than the Department, is available to assume the role of representative payee and could better serve in that role, in the child's best interest, and notify the child and specified individuals of any application, decision or appeal related to a child's federal benefits; required the Department to provide an annual accounting as to the use, application or conservation of the child's federal benefits to the child and specified individuals; and would have provided that if the Department is the child's representative payee, it shall not use a child's federal benefits to pay for or reimburse the department for any of the costs of the child's care (however, it may use those benefits to pay for the child's unmet needs beyond what it is obligated or required or has agreed to pay). According to New Mexico’s legislative website, this measure is dead.

As introduced on April 22, 2025, Assembly Bill 8036 would have prohibited the commissioner from using a child's benefits to reimburse the local social services district for the costs associated with maintaining any child in the care and custody or the custody and guardianship of the commissioner, including the administrative costs associated with foster care. It would also have, among other things, required commissioners of local social services districts to screen, rescreen, and apply for retirement, survivors and disability insurance, supplemental security income, veterans' or any other federal social security benefits on behalf of children placed in foster care, as well as to provide notice to a child, such child's attorney, and such child's parent or parents or legal guardian or guardians of any application, decision, communication, or appeal. This bill was not enacted.

As introduced on May 6, 2025, Senate Bill 7778 would have prohibited the commissioner from using a child's benefits to reimburse the local social services district for the costs associated with maintaining any child in the care and custody or the custody and guardianship of the commissioner, including the administrative costs associated with foster care. It would also have, among other things, required commissioners of local social services districts to screen, rescreen, and apply for retirement, survivors and disability insurance, supplemental security income, veterans' or any other federal social security benefits on behalf of children placed in foster care, as well as to provide notice to a child, such child's attorney, and such child's parent or parents or legal guardian or guardians of any application, decision, communication, or appeal. This bill was not enacted.

In 2025, North Dakota DHS revised its Policy Manual, Social Security Organizational Representative Payee 447-10-20-20-20. However, in the revised policy, there is no express prohibition on the use of any federal benefits (e.g., Supplemental Security Income, Retirement, Survivors, and Disability Insurance) to offset the cost of foster care and there is no express mandate to conserve federal benefits for the child's unmet current or future needs. Although DHS claims that it no longer uses survivor benefits to offset the cost of foster care, the summary figures above reflect official changes to state law, not changes in practice or procedure.

Governor Stitt's Executive Order 2026-21, enacted on June 4, 2026, provides, among other things, that DHS shall not use a child’s federal survivor benefits to reimburse itself, the State of Oklahoma, or any contractor for the ordinary cost of the child’s care or maintenance while the child is in the legal custody of the Department, except to the extent expressly required by federal law, court order, or other binding legal authority.

Ohio Administrative Code 5180:3-27-02, effective November 1, 2025, requires Title IV agencies to, among other things, assess whether a child is receiving or eligible for benefits; apply for benefits on the child's behalf; inform a child fourteen years of age and older, developmentally appropriate, of the benefits and provide an annual update/report of the benefits; and establish and maintain an account in a manner that preserves the child’s eligibility for federal and state benefits/supports the child is otherwise eligible to receive. See also: Ohio Benefit Conservation Q&A (Ohio Department of Children & Youth).

Ohio Revised Code Section 5103.09, effective September 30, 2025, requires Title IV agencies to determine if the child is eligible for or receiving benefits, including those administered by the United States social security administration and the United States department of veterans affairs. Further, it provides that if the child is eligible for or receiving such benefits, the agency shall not use the child's benefits to pay for or reimburse the agency, county, or state for any cost of the child's care.

As introduced January 13, 2025, SB 740 would have directed DHS to set up a grant program for people who had certain resources seized while in the care or custody of DHS, and direct DHS to establish and administer the Youth Support and Repayment Grant Program to provide financial support to specified persons from whom, while in the care or custody of the Department, resources to which the persons were entitled were seized and used to pay for certain services provided. In January 2024, the Oregon Department of Human Services issued Policy Transmittal CW-PT-24-002 to implement SB 556. In April 2022, the Department of Human Services, Office of Child Welfare Programs, revised Chapter 413, Division 310, its regulations on the financial management of trust accounts, including those on behalf of children in foster care.

On July 31, 2023, the Oregon Governor signed SB 556, which prohibits public bodies from seizing certain benefits and resources intended for persons in the custody of the Department of Human Services (DHS). A companion bill, SB 557, was not enacted, that measure would have directed DHS to establish and administer Youth Support and Repayment Grant Program, to provide financial support to specified persons from whom, while in care or custody of DHS, resources to which persons were entitled were seized and used to pay for certain services provided. The measures were introduced at the request of Oulu Noonan (for more information about Oulu, see BSW Student Oulu Noonan Protects the Legal Rights of Foster Care Youth. Portland State University School of Social Work, by Jordan Harris. (Feb. 27, 2023)).

Implementation of SB 556

In January 2024, the Oregon Department of Human Services issued Policy Transmittal CW-PT-24-002 to implement SB 556.

In April 2022, the Department of Human Services, Office of Child Welfare Programs, revised Chapter 413, Division 310, its regulations on the financial management of trust accounts, including those on behalf of children in foster care.

As amended on June 24, 2026, HB 151 would prohibit the county agency from using a child's "Retirement, Survivors and Disability Insurance Benefits", or "RSDI benefits" to pay or reimburse a county agency for care or services of the child, including, but not limited to, services covered under foster care maintenance payments and placement maintenance. RSDI is defined as "[t]he federal program administered by the social security administration that provides monthly insurance benefits to eligible dependents and survivors of insured individuals."

As introduced in 2024, HB 2617 would have, among other things, provided that the county agency is required to ensure that each child in foster care is screened to determine whether the child is currently receiving or is eligible to receive specified federal benefits within 60 days of being placed in foster care and annually thereafter; within 60 days of a determination that a child is potentially eligible to receive specified federal benefits, the agency shall apply for the benefits, in cooperation with the child's attorney or guardian ad litem, if the screening determines that the child may be eligible for benefits; if an application for benefits is denied, the county agency shall appeal the decision; the agency shall identify, in cooperation with the child's attorney or guardian ad litem, a representative payee in accordance with the established categories of preferred payees as outlined by Social Security and Supplemental Security Income guidelines and apply to become the representative payee if there is no other suitable candidate available; the county agency shall support the maintenance of benefits for a child transitioning out of foster care or an individual under the county agency's care who has reached the age of legal adulthood; if the county agency serves as a representative payee for a child receiving specified federal benefits, the county shall use or conserve the benefits in the child's interest, as determined in cooperation with the child and the child's attorney or guardian ad litem, including using the benefits for services or unmet needs not otherwise provided by the county agency, court ordered or covered by health insurance or conserving the benefits for the child's reasonably foreseeable future needs, ensure that for a child in foster care, the child's benefits are not used to reimburse the Commonwealth for the costs of care for the child or other payments made by the Commonwealth to cover any other cost or expense for the child, and monitor any Federal asset or resource limit for the benefits and ensure that a child's best interest is served by using or conserving the benefits in a way that avoids violating the Federal asset or resource limit, including conserving funds by establishing individual financial accounts as specified; consistent with the best interest of a child in foster care, the county agency shall place the child's benefits in individual financial accounts that avoid asset limitations for Federal and State programs; and the department and county agency shall assess the feasibility of providing repayments for a child formerly in foster care whose benefits were not used in the best interest of the child. HB 2617 was not enacted.

• View Oct. 8, 2024 hearing by the Children and Youth Committee.

As enacted on June 12, 2026, HB 7127, ensures, among other things, that the entirety of the youth's social security benefits, supplemental security income, veterans benefits, and railroad retirement benefits are conserved.

As introduced on February 6, 2025, House Bill 1235 would have required the department to conserve any federal funds a child in the department's care is eligible for or may receive for the child's reasonable, foreseeable future needs or use for special needs services not currently being provided by the department. The legislature adjourned in April 2026 without passing this bill.

As introduced on January 27, 2025, Senate Bill 312 would have required the department to conserve any federal funds a child in the department's care is eligible for or may receive for the child's reasonable, foreseeable future needs or use for special needs services not currently being provided by the department. The legislature adjourned in April 2026 without passing this bill.

Introduced on Jan. 31, 2023, SB 1262 and HB 1394 would have amended § 37-1-172 to add new subsection (c), providing that (1) notwithstanding § 37-1-172(a) and (b) or another law to the contrary, the Department of Children's Services shall not collect or expend moneys that are received as survivor benefits, disability benefits, or otherwise from the Social Security Administration or the Department of Veterans Affairs on behalf of a child in the custody of the Department; and (2) the Department shall receive and hold such moneys in a trust account for the child to be released to the child without condition upon the child's eighteenth birthday. The measure also would have required the state to maintain a trust account established pursuant to subsection (c). This measure was not enacted prior to the conclusion of the legislative session on April 25, 2024.

In April 2025, language from HB 966 was amended into HB 215, which would have set forth various requirements relating to notice regarding certain benefits for which a representative payee or fiduciary has been appointed for a child in the conservatorship of the Department of Family and Protective Services and is required to provide, among other things, an accounting of the disbursement of benefit funds to both to the child through the child's legal representative before each placement review hearing.

As introduced December 13, 2024, SB 577 would have required the establishment of the Foster Child Trust Account program, and would require, among other things, that the Department shall serve as the representative payee for a child in its conservatorship who receives or is eligible for specified federal benefits, and would require that the Department shall deposit any benefits received by the Department on behalf of the child into an interest-bearing trust account maintained by the comptroller and manage the account until all money in the account is disbursed to the child.

As introduced on November 12 2024, HB 966 would have set forth various requirements relating to notice regarding certain benefits for which a representative payee or fiduciary has been appointed for a child in the conservatorship of the Department of Family and Protective Services.

Prior Legislation

In 2023, the Texas legislature considered H.B. No. 336, which would have provide that if a foster child is eligible to receive benefits or services for which a representative payee or fiduciary is required, the Department of Family and Protective Services shall immediately provide notice to the child through the child's legal representative regarding (1) any application for specified federal benefits made on the child's behalf; (2) if the Department serves as the representative payee or in any other fiduciary capacity for the child, any application to become representative payee for the child's federal benefits; (3) any decisions or communications from specified federal agencies regarding an application; and (4) any appeal or other action requested by the Department regarding an application for benefits. The bill would also have provided that if the Department serves as the representative payee or otherwise receives specified federal benefits on a child's behalf, it shall provide the following information to the child through the child's legal representative before each placement review hearing: (1) the amount of benefit funds received on the child's behalf since the most recent notification to the child's legal representative and the date the benefits were received; (2) information regarding the child's assets and resources, including the child's benefits, insurance, cash assets, trust accounts, earnings, and other resources; (3) an accounting of the disbursement of benefit funds, including the date, amount, and identification of the payee; and (4) information regarding each request by the court appointed special advocate for the child, the child's legal representative, or the child's caregiver for disbursement of funds and a statement regarding the Department's reason for not granting the request if the request was not granted. H.B. 336 was passed by the House on April 4, 2023, but was not heard by the Texas Senate and died.

• View Texas House of Representatives’ Human Services Committee hearing on HB No. 336 (March 14, 2023).

In 2021, the legislature considered H.B. No. 4244, a measure mirroring Maryland’s successful legislation discussed above; that bill was not enacted

As enacted on March 17, 2026, HB 108 provides, among other things, that the Department may expend up to 25% of a federal benefit deposited into a minor beneficiary's account for maintenance costs; and further requires the department to conserve or invest the balance of a minor beneficiary's federal benefit that is not expended for maintenance costs.

As signed by the Governor on March 24, 2025, House Bill 302 provides, among other things, that for each minor in the custody of the Department on whose behalf the Department receives or manages a federal benefit, the Department shall establish a separate account into which the benefit shall be deposited. It also requires that the Department administer each minor's account in the best interest of the minor for whom the account is established; in accordance with the provisions of this section; consistent with the Department's fiduciary duties; and in a manner that does not interfere with asset limitations for any state or federal benefit program for which the minor is or may be eligible. It also provides that as permitted by, and unless otherwise required by the source of the benefit: the Department may expend up to 50% of a federal benefit deposited into a minor's account established pursuant to Subsection (4)(a) for maintenance costs; and the Department shall conserve or invest the balance of a minor's federal benefit that is not expended for maintenance costs.

As enacted on June 15, 2026, House Bill 657 requires, among other things, that the Department not use any portion of a child’s Social Security benefits to offset the State’s costs for the child’s maintenance except to maintain the child’s eligibility for SSI benefits and to avoid a violation of federal asset or resource limits. It further provides that upon the request of the child or the child’s foster care provider, the Department, in its capacity as representative payee for a child, may use the child’s Social Security benefits for the child’s unmet needs beyond the amount that the State is obligated, required, or agrees to pay for the care of the child.

As introduced on February 19, 2025, HB 269 would have directed the federal disability and survivor benefits of youth in state custody to an account at the Office of the Treasurer, with a study committee to recommend how to distribute the funds back to the individual when the individual ages out of state custody.

As introduced on January 13, 2026, HB 578 would have, among other things, prohibited the department from using benefits to pay for the care and support of children in foster care that the Commonwealth is otherwise obligated to pay for, including maintenance payments or special allowances and further provide that the department shall use such benefits only for expenses necessary to meet the child's current, individual, and unmet needs.

As signed by the Governor on March 21, 2025, Senate Bill 818 provides that, if the local department of social services serves as representative payee for a child receiving certain federal benefits, specified in the bill, the local department of social services shall provide written notice that it is acting as the child's representative payee within 30 days after receiving the first benefit payment on behalf of the child to (i) the child, if the child is 12 years of age or older; (ii) the child's parent, prior guardian, or prior custodian, or, if there is no legal parent or prior guardian or custodian, the child's next of kin; (iii) the guardian ad litem; and (iv) the counsel appointed for the child.

As signed by the Governor on March 24, 2025, House Bill 2457 directs the State Board of Social Services to amend its regulations by January 1, 2026, to (i) require local departments of social services to apply for federal benefits on behalf of children in foster care that they may be eligible for, (ii) prohibit the use of military survivor benefits to pay for the care and support of children in foster care that the Commonwealth is otherwise obligated to pay for, and (iii) require local departments of social services that are representative payees for children in foster care to conserve such military survivor benefits in an appropriate trust instrument or protected account that is exempt from federal asset and resource limits.

As originally introduced on December 18, 2023, Senate Bill No. 40 would have directed the State Board of Social Services to amend its regulations by January 1, 2025, to (i) require local departments of social services to apply for federal benefits on behalf of children in foster care that they may be eligible for, (ii) prohibit the use of federal benefits to pay for the care and support of children in foster care that the Commonwealth is otherwise obligated to pay for, and (iii) require local departments of social services that are representative payees for children in foster care to conserve such federal benefits in an appropriate trust instrument or protected account that is exempt from federal asset and resource limits. However, substituted language made on Feb. 8, 2024 removed the original language and would now direct the Department of Social Services to establish a task force to assess the feasibility of (i) requiring local departments of social services to apply for benefits administered by the Social Security Administration or the Department of Veterans Affairs on behalf of children in foster care that they may be eligible for, (ii) prohibiting the use of federal benefits to pay for the care and support of children in foster care that the Commonwealth is otherwise obligated to pay for, and (iii) requiring local departments of social services that are representative payees for children in foster care to conserve such federal benefits in an appropriate trust instrument or protected account that is exempt from federal asset and resource limits, such as an Achieving a Better Life Experience account. The Department shall report its findings to the Chairmen of the Senate Committees on Finance and Appropriations and Rehabilitation and Social Services and the Chairmen of the House Committees on Appropriations and Health and Human Services by November 1, 2024. On February 12, 2024, the revised version of SB40 passed in the Senate, but has since died in House Appropriations.

House Bill 75, as introduced on Dec. 26, 2023, includes the language that SB 40 had when it was introduced (see above); however, on Feb. 2, 2024, a House Subcommittee voted to lay HB 75 on the table.

As enacted on March 18, 2026, SB 5911 provides that beginning January 1, 2027, the department may not apply any benefits, payments, funds, or accrual paid to, or on behalf of, a person in extended foster care as reimbursement for the cost of care.

As introduced on December 18, 2025, HB 2169 would have, among other things, provided that beginning January 1, 2027, the department may not apply any benefits, payments, funds, or accrual paid to, or on behalf of, a person ages 18 through 21 in the care of the department as reimbursement for the cost of care.

As introduced Jan 29 2025, HB 1711 would have, among other things, provided that, as of January 1, 2026, the department may not apply any benefits, payments, funds, or accrual paid to, or on behalf of, a person in the care of the department subject to chapter 13.34 or 13.40 RCW as reimbursement for the cost of care.

On April 27, 2025, Washington policymakers approved a budget proviso (see section 237(14) starting on page 303) to strengthen policies around notification, access to, and retainment of benefits for children in care. Appropriations are made for the department to: Provide information to parents on how to become the representative payee for a child receiving benefits and maintain eligibility for those benefits; Provide information and support to youth turning 18 on how to become the payee for social security benefits and maintain eligibility; Adopt rules to notify caregivers and parties to the dependency proceeding when the department applies for benefits and establish procedures for children and caregivers to request the disbursement of benefits to meet the unmet personal needs of a child. It also requires the department to submit a report to the legislature, including among other things, an updated implementation plan to discontinue the practice of using any benefits paid to a child to reimburse itself for the cost of care and conserve benefits for the future needs of the child by the earliest date feasible.

In March 2025, DCYF published a report in accordance with a bill requiring them to report “on a plan to discontinue the practice of using any benefits, payments, funds, or accrual paid to or on behalf of a child or youth to reimburse itself for cost of care by the earliest date feasible.”

As introduced Jan 24, 2025, Senate Bill 5488 would have, among other things, provided that, as of January 1, 2026, the department may not apply any benefits, payments, funds, or accrual paid to, or on behalf of, a person in the care of the department subject to chapter 13.34 or 13.40 RCW as reimbursement for the cost of care.

• View hearing on SB 5488 from Senate Human Services Committee (Jan. 28, 2026) [starts at 27:30 timemark]
• CAI National Policy Director Amy Harfeld’s testimony in support of SB 5488 (Jan. 28, 2025)

Although not enacting SB5397/HB1405, which had strong bipartisan and agency support, Washington policymakers approved a proviso (see section 29 starting on page 399) to require DCYF to report on a plan to discontinue the practice of using any benefits, payments, funds, or accrual paid to or on behalf of a child or youth to reimburse itself for cost of care by the earliest date feasible. The report must include an implementation plan to conserve funds for the future needs of the child in a manner in which the funds will not count against eligibility for federal or state means tested programs. The report must include a strategy for developing the financial literacy and capability of youth and young adults exiting foster care and juvenile rehabilitation.

The report is due to the Legislature and Governor by Oct. 1, 2024.

• CAI National Policy Director Amy Harfeld’s testimony in support of SB 5397 (Jan. 23, 2023).

As introduced on February 26, 2026, AB 1053 would have provided, among other things, that State or federal benefits received by the department or a county department on behalf of a child may not be used by the department or a county department to pay for the costs of caring for the child in out-of-home care. This bill failed on March 23, 2026.

As introduced on February 6, 2026, SB 990 would have provided, among other things, that State or federal benefits received by the department or a county department on behalf of a child may not be used by the department or a county department to pay for the costs of caring for the child in out-of-home care. This bill failed on March 23, 2026.

As introduced on February 18, 2025, SB 45 would have, among other things, provided that the department may not use benefits received on behalf of a child to pay for the costs of caring for the child in out-of-home care, but may use the child's federal benefits for the child's unmet needs beyond what the agency is obligated to, is required to, or has agreed to provide. On May 8, 2025, the bill was amended to remove provisions relating to the protection of foster youth federal benefits.

As introduced on February 18, 2025, AB 50 would have, among other things, provided that the department may not use benefits received on behalf of a child to pay for the costs of caring for the child in out-of-home care, but may use the child's federal benefits for the child's unmet needs beyond what the agency is obligated to, is required to, or has agreed to provide. The final budget passed on did not include these provisions. On May 8, 2025, the bill was amended to remove provisions relating to the protection of foster youth federal benefits.

In the Governor's FY 2025-27 Budget Recommendations, dated March 2025, he proposed to “provide $3 million GPR starting in fiscal year 2026-27 to provide statewide management of children trust accounts, to prepare for the future requirement that child welfare agencies screen, apply for, and preserve benefits in trust accounts for a child in out-of-home care who received Supplemental Security Income or Social Security.” Further, the Governor recommended, among other things, prohibiting DCF from using funds deposited into children's trust accounts to pay for the costs of caring for the child in out-of-home care.