SB 872 would end the practice of seizing children’s benefits
LANSING, Mich. (May 16, 2024) — Sen. Jeff Irwin (D-Ann Arbor) has introduced legislation to end the state’s current practice of seizing foster children’s benefits to subsidize the state budget. Many foster children are eligible for benefits because they are disabled or orphaned. When a child enters foster care, the state begins collecting any existing benefits and often applies for benefits on the child’s behalf. Senate Bill 872 would eliminate the practice of taking these resources from children who are under the care of the state. Instead, the funds would be managed for the benefit of the children, providing a path to stability for them and their families when they exit foster care.
“We have a responsibility to provide for foster children and help them succeed, because the state has taken them into our care,” Sen. Irwin said. “It’s in the best interest of children and the state to ensure that these kids have a greater chance at success when they age out of foster care. The current system means children leave foster care without any savings for housing or education, making them less likely to succeed and more likely to end up in the hospital or in jail. These benefits are better used for their intended purpose: to provide stability for children and their families so they don’t fall off a financial cliff when they exit foster care.”
Under SB 872, all of a foster child’s benefits would be managed for their own best interests and with full transparency. The Michigan Department of Health and Human Services (MDHHS) would provide regular accounting of funds and notify children of the status of their benefits. MDHHS would also set up Achieving a Better Life Experience (ABLE) accounts for children with disabilities and 529 education savings accounts as appropriate so that children’s savings do not affect their continued eligibility for benefits. In contrast to other legislation introduced in the Michigan House this session, SB 872 would preserve all of a foster child’s benefits regardless of the age of the child.
Michigan takes about $3.2 million from foster children every year. Most of this is in the form of Social Security benefits, either survivor benefits or disability benefits. But MDHHS’s current policy is to secure all sources of a foster child’s income for the state, including veterans’ survivor benefits and survivors’ pensions. While this practice used to be universal among the states, in recent years several states — including Oregon and Arizona — have moved to end it. The Children’s Advocacy Institute estimates that nationwide about 39,000 to 60,000 foster children have benefits seized by a state each year. One in three youths aging out of foster care become homeless.
“Foster youth receiving Social Security benefits have their money covertly taken by the government with no recourse or notice,” said Justin Kasieta, who was in Michigan foster care for three years as a child. “This issue holds a deeply personal significance for me. At the tender age of 13, I lost my father to a relentless form of cancer. My mother, grappling with health issues, was unable to provide the care we needed, which led to my four siblings and me being placed in foster care. Shockingly, we were never informed that our Social Security survivor benefits were being taken from us. The state simply assumed the role of the representative payee. Had I not been vigilant about the funds meant for our family, we might never have known about this injustice that resulted in just me personally losing over $18,000.”
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