On May 12, Senator John Kerry (D-MA) introduced a Senate bill that would significantly change how Third Party benefits for a child would be treated by a state. Most states become the representative payee when children enter the foster care system and have benefits or if they apply for them while children are in foster care. Representative Pete Stark (D- CA) introduced similar legislation last year and is expected to introduce a bill similar to the Senate version in coming months.
The Senate bill requires child welfare agencies to
- Screen children for Social Security eligibility
- Assist with the application and apply to be representative payee when no other suitable party exists
- Provide notice to the child when the child is over 14 years of age, or the child’s attorney or guardian ad litem, of a determination of benefits received.
- Create an individualized benefit management plan, which includes necessary items such as housing, educational opportunities, and the purchase of a vehicle.
- A major provision that will support children’s continuation of Social Security and Medicaid eligibility is the elimination for foster children of the $2,000 income limit, allowing youth to build a bank account for special needs while in foster care or upon exiting the system. Recognizing that the states will incur administrative expenses for receiving and managing benefits for children in the foster care system, the legislation allows for up to 50 percent of the benefits received to be applied toward foster care maintenance costs for children under the age of 14.
