Federal Benefits for Youth in Foster Care

Beginning on or before July 1, 2026, the bill requires a county department of human or social services (county department) to determine whether each child or youth in foster care and each youth participating in the foster youth in transition program (child or youth) may be eligible to receive benefits administered by certain federal agencies, including the United States railroad retirement board, social security administration, or veterans administration (federal benefits) within 90 days after placement. If the county department determines that the child or youth may be eligible, the county department shall apply for federal benefits on behalf of the child or youth.

Under current law, certain federal agencies appoint a representative payee or fiduciary (representative payee) to receive and manage certain federal benefits on behalf of a child or youth in foster care, and a county department serving as a representative payee may use federal benefits to offset the cost of providing basic care and services to a child or youth in foster care. The bill prohibits this benefit offset practice. Instead, the bill directs a county department serving as a representative payee to establish a trust account for the federal benefits (account). Money in the account is available for a limited set of current, unmet needs. Otherwise, the representative payee must save money in the account for the future needs of the individual child or youth.

The bill sets forth various accounting and notice requirements related to federal benefits and requires the department of human services (department), in consultation with interested stakeholders, to establish guidance for county departments. The guidance extends to procedures for identifying a representative payee, disability screening for a child or youth, county department responsibilities when federal benefits are denied or when a child or youth leaves foster care, and policies governing access to account funds. The department shall provide technical assistance to a county department during the 2025 and 2026 state fiscal years.

(Note: This summary applies to this bill as introduced.)