Reps. Davis and Raskin Champion Bill to Protect Foster Youth Assets and Benefits

Rep. Danny K. Davis (D-IL) and Rep. Jamie Raskin (D-MD) introduced the Protecting Foster Youth Resources Act to protect the benefits and assets of foster youth by stopping states from making disabled and orphaned foster youth pay for their own care. 

When child welfare entities serve as Social Security Representative Payees for foster youth, they are supposed to act as fiduciaries and use funds in the best interests of the youth.  Alarmingly, most states take the assets and benefits of disabled and orphaned foster youth to reimburse state costs of care rather than using the benefits to meet the current or future unmet needs of the youth. Even though foster youth have many academic and developmental needs due to the trauma and instability experienced from entering and surviving the child welfare system, this practice deprives already vulnerable foster youth of the opportunity to achieve financial stability or build assets that could support their unique needs and improve their long-term outcomes.  Further, states typically seize these funds without any notice to the youth, their parents, or their attorneys or guardians ad litem. 

Importantly, states can stop this practice without any action by the federal government, and many are working to do so.  Four states and jurisdictions (Arizona, Oregon, Massachusetts, and the District of Columbia) have enacted comprehensive reform, and an additional six states or jurisdictions (California, Connecticut, Illinois, Maryland, New Mexico, and New York City) have adopted substantial reforms to protect some of the assets and benefits of orphaned and disabled foster youth. Unfortunately, the majority of states still choose to bolster their own financial security rather than help the orphaned and disabled youth. 

The Protecting Foster Youth Resources Act would protect the benefits of foster youth to improve their well-being by stopping child welfare entities from taking foster youths’ assets to pay for their costs of care while also helping cover states’ costs of applying for benefits and protecting funds. This bill will help foster youth thrive by helping to secure and protecting these vital assets for eligible children to meet their unmet current and future needs.  Specifically, the bill would prohibit agencies from taking a foster youth’s assets or benefits for foster care costs, require agencies to screen foster youth for eligibility of benefits, apply for and manage any benefits, and work with the youth and concerned adults to meet the youths’ unmet individual needs. 

The bill is supported by 20 organizations focused on child well-being:  CARES, a Center for the Study of Social Policy Initiative; Center for the Rights of Abused Children; Center for the Study of Social Policy; Children's Advocacy Institute; Children's Defense Fund; Children's Law Center of California; Defender Association of Philadelphia; Foster Care Alumni of America, Illinois Chapter; Foster Forward; iFoster; National Association of Counsel for Children; National Center for Housing & Child Welfare; National Disability Institute; National Foster Care Alumni of America; Nebraska Appleseed; New Mexico Child First Network; Office of the Cook County Public Guardian (Chicago); Partners for Our Children, Washington State; Support Center for Child Advocates; University of Baltimore School of Law Civil Advocacy Clinic; and Voices for Children Coalition.

“When child welfare entities take the benefits and assets of disabled and orphaned foster youth to cover a state’s legally-mandated responsibility of care, states deprive already vulnerable foster youth of the opportunity for greater financial stability and services that could improve their well-being,” said Rep. Davis.  “My home state of Illinois is a national leader in this area, and I proudly advance this federal bill with my colleague, Rep. Jamie Raskin, to protect foster youths’ resources across the nation by requiring states to conserve or use these assets for the youths’ unmet current or future needs while also helping cover states’ costs of doing the right thing.”

“States across the country are clamoring for Congress to guide and support their efforts to do better by disabled foster youth and those who have lost one or both parents. Members of Congress from both sides of the aisle have acknowledged the changing landscape and called for change on this issue. With introduction of this Act, Congress has an opportunity to preserve vital assets for eligible youth, ensure appropriate use of taxpayer dollars, and help states continue their charge to promote justice and opportunity for foster youth beneficiaries.” Amy C. Harfeld, JD, National Policy Director, Children's Advocacy Institute

“Child welfare agencies have long been violating their fiduciary role by taking Social Security benefits from foster children who are disabled or have deceased parents, leaving the children penniless. I applaud Representative Davis for championing the congressional effort to stop this harmful and unethical practice, including this crucially needed legislation to better protect foster youth’s resources for their struggle against the odds as they leave foster care.” Daniel Hatcher, Professor of Law at the University of Baltimore and author of The Poverty Industry

“Listen to courageous foster youth like Marissa Pike, Katrina White, Ian Marks, Justin Kasieta,  and Anthony Jackson. The Center for the Rights of Abused Children is committed to protecting children’s rights through comprehensive, child-centric reform, including stopping states from taking foster youth’s federal benefits. We appreciate federal policymakers engaging on this issue, and we encourage governorsand state legislators to take action today.”  J. Kendall Seal, Vice President of Policy, Center for the Rights of Abused Children.

A summary of the bill is available here. 

Multiple press stories and reports have documented state practices of taking benefits and assets of foster youth to reimburse themselves the cost of care, including: 

• Hager, E., & Shapiro, J. (May 17, 2021).  Foster Care Agencies Take Thousands of Dollars Owed to Kids. Most Children Have No Idea.  Joint investigation The Marshall Project and National Public Radio. https://www.themarshallproject.org/2021/04/22/foster-care-agencies-take-thousands-of-dollars-owed-to-kids-most-children-have-no-idea   

• Moriarty, E. (April 7, 2024).  How a Loophole Deprives Foster Children of Benefits.  CBS News Sunday Morning. https://www.cbsnews.com/video/how-a-loophole-deprives-foster-children-of-benefits/

• Rosinsky, K., Williams, S. C. (January 16, 2024) Special Savings Accounts Can Help Child Welfare Agencies Conserve Social Security Benefits.  Blog.  Child Trends.   https://www.childtrends.org/publications/savings-accounts-child-welfare-agencies-social-security

• Corkery, Michael. “May 26, 2024) Foster Children Fight to Stop States From Taking Federal Benefits: A longstanding practice of using a child’s federal survivor and disability benefits to defray the cost of foster care is under scrutiny in Congress and statehouses. https://www.nytimes.com/2024/05/26/business/foster-children-federal-benefits.html?unlocked_article_code=1.iU4.ltOK.12kaUvHAUWrZ&smid=url-share

• Hager, E., & Shapiro, J. (April 22, 2021).  State Foster Care Agencies Take Millions of Dollars Owed to Children in Their Care. Joint investigation National Public Radio and the Marshall Project. https://www.npr.org/2021/04/22/988806806/state-foster-care-agencies-take-millions-of-dollars-owed-to-children-in-their-ca 

• Hatcher, D.L. (2006). Foster Children Paying for Foster Care. Cardozo Law Review, Vol. 27, pp. 1797-1852.  https://ssrn.com/abstract=942007

• Hatcher, D.L. (2016). The Poverty Industry: The Exploitation of America’s Most Vulnerable Citizens.  NYU Press. http://www.jstor.org/stable/j.ctt18040th 

• Children’s Advocacy Institute at the University of San Diego School of Law and First Star (2011).  The Fleecing of Foster Children:  How We Confiscate Their Assets and Undermine Their Financial Security. Children’s Advocacy Institute of the University of San Diego School of Law, San Diego, CA.  http://www.caichildlaw.org/Misc/Fleecing_Report_Final_HR.pdf 

• Children’s Advocacy Institute at the University of San Diego School of Law and First Star (2024).  Foster Care or Foster Con?  Preserving the Federal Benefits of America’s Most Vulnerable Children:  An Evaluation of All 50 States and the District of Columbia.  Children’s Advocacy Institute of the University of San Diego School of Law, San Diego, CA.  https://catcher.sandiego.edu/items/usdlaw/Foster_Care_or_Foster_Con_Report_FINAL.pdf 

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