Several states have been under pressure to change their practice of using Social Security survivor and disability benefits of foster children to cover the costs of foster care services. Advocates argue that this practice is immoral and detrimental to foster children as it exhausts funds that could have helped them transition to adulthood. More than a dozen states have made revisions to this practice, with Colorado being the latest to enact a law establishing foster children’s rights to ensure that benefits are used for their individual needs. The Children’s Advocacy Institute has been leading efforts to reform this practice, with proposed measures in various states.
However, achieving change in this area has not been easy, as evidenced by legislation in Missouri and Maine that failed to receive final approval due to various challenges. Child welfare agencies face significant financial, operational, technical, and legal challenges in shifting practices related to the use of foster children’s federal benefits. An estimated 40,000 to 80,000 children in foster care receive or are eligible for Social Security benefits, totaling millions of dollars annually for states. In Missouri alone, more than $9.3 million was spent last year on foster care services using benefits of about 1,400 foster children.
In an effort to address this issue, various states have passed laws prohibiting the use of foster children’s benefits to cover state costs for foster care services. Arizona and Oregon have implemented such measures, directing funds to savings accounts for children’s personal needs, education, and future housing expenses. New Mexico and Massachusetts have also announced changes to stop tapping into foster children’s benefits for covering costs. Efforts are ongoing in states like Missouri and Maine to reintroduce legislation that limits the use of these federal benefits for foster children, with advocates emphasizing the importance of ensuring that the funds are saved for the children’s future needs.
Advocates, including the Children’s Advocacy Institute, have been pushing for reforms in various states to protect foster children’s benefits and ensure that they are used for their intended purposes. Legislation has been passed in states like Colorado, Arizona, Oregon, New Mexico, and Massachusetts to prohibit the use of these benefits for state costs and instead direct funds to savings accounts for children’s needs. Lawmakers in states such as Missouri and Maine are committed to continuing efforts to pass legislation that limits the use of foster children’s federal benefits and prioritizes the children’s future needs. The issue remains complex, with challenges to overcome, but advocates are determined to make changes to benefit foster children.
