WA SB5488

Beginning January 1, 2026, the Department of Children, Youth, and Families is prohibited from using benefits paid to youth ages 14-17 in state care (including SSI and disability payments) as reimbursement for cost of care; this protection extends to all ages starting January 1, 2028, subject to appropriations.

The department must assess whether persons in out-of-home placement are eligible for Supplemental Security Income (SSI) and Social Security disability benefits, apply for benefits on their behalf, and maintain eligibility if approved.

When serving as representative payee, the department must deposit funds into accounts for the person's unmet personal needs and place excess funds in protected savings vehicles such as ABLE accounts, special needs trusts, or pooled trusts that won't affect benefit eligibility.

The department must provide annual account statements to the person in care and relevant parties, and work to transfer representative payee status to parents, guardians, or the individual when they exit care or turn 18.

A financial literacy training program covering public benefits must be developed and provided to youth over age 14 who are exiting care and receiving or likely eligible for public benefit payments.