A report entitled, “The Fleecing of Foster Children” was issued by the First Star, a national nonprofit which advocates for abused children, and by the University of San Diego School of Law’s Children’s Advocacy Institute. The report charges state agencies with confiscating a foster child’s Social Security benefits provided for foster children with disabilities or a deceased or disabled parent. Rep. Pete Stark (D-CA) plans to introduce legislation, titled the Foster Children Self–Support Act, which would require child welfare agencies to ensure each foster child is screened for Social Security benefits, and if the child is determined eligible, to develop an individualized plan and personal account for the eligible child.
Currently, most states use Social Security benefits to offset the cost of a child’s care while under state care and custody. Of the approximately 460,000 children in foster care, the Congressional Research Service estimates that 30,000 children receive Social Security benefits. Child welfare administrators challenge the assertion that a state agency is robbing a child of his or her benefits, arguing instead that benefits received are for the care and subsistence of the child recipient. Therefore, to offset the costs of taking care of a child, a child welfare agency is entitled to the funds.
The report also asserts that foster children are often victims of identity theft because their Social Security numbers and personal information circulate among relatives, foster parents, and agency employees. Rep. Jim Langevin (D-RI) is working on a bill to curtail the potential of identity theft. The legislation would require state agencies to review credit reports of all foster children to ensure accuracy. If inaccurate information is found, the agency would be required to make corrections. The proposed legislation requires child welfare agencies to ensure that foster youth leave the system with necessary documents, help them apply for state benefits, and assist with setting up individual development accounts for their finances.
About Kay Casey
Kay Casey has over 20 years of experience in federal and state child welfare policy and programs, having worked for the federal Administration for Children and Families (ACF) and the Florida Department of Children and Families prior to joining PCG. She is responsible for the review and assessment of fiscal processing systems that impact a state’s ability to identify, document, and report expenditures for federal reporting purposes accompanied with the programmatic impact on the state’s system of care.
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