ID H0558

Within 60 days of a child entering Department of Health and Welfare custody, the department must determine eligibility for Social Security or Veterans Affairs benefits and apply for benefits or serve as representative payee if no other suitable candidate exists.

The department is prohibited from using a child's federal benefits to reimburse itself or the state for costs of care, maintenance, supervision, or services—benefits may only cover unmet needs beyond what the department is already obligated to provide.

Annual accounting of benefit use must be provided to the child, their attorney, guardian, and parents (if parental rights remain intact), along with annual review of whether a more suitable representative payee could assume the role.

Children may access portions of conserved benefits upon completing independence milestones such as obtaining a driver's license, graduating high school, enrolling in postsecondary education, maintaining employment for 6 consecutive months, or completing financial literacy programs.

Remaining funds must be released to the child upon turning 18 or emancipation, or to the parent/guardian if the child is younger than 18, with an effective date of July 1, 2026.