Summary
Several U.S. states are changing how they handle Social Security benefits for children in foster care. This comes after the federal government warned that using these benefits to cover state foster care costs might be against federal law. More states are now working to ensure these benefits go directly to the children.
Key Facts
- Most states have redirected Social Security benefits meant for foster children to pay for foster care costs.
- An estimated 30,000 children in foster care are eligible for Social Security benefits.
- Social Security benefits belong to the child, and a representative payee manages the funds for their needs.
- The Trump administration criticized the practice of using these funds to cover state costs.
- The Department of Health and Human Services advised that taking these funds undermines their purpose.
- Nebraska recently stopped the practice, making it the 12th state to do so.
- Critics argue that using these funds leaves foster youth financially disadvantaged after leaving the system.
