LANSING, Mich. (Nov. 7, 2024) — Today, the Michigan Senate unanimously passed legislation, sponsored by Sen. Jeff Irwin (D-Ann Arbor), 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. Currently, 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.
“Helping our foster kids gain stability when they age out of system is not just in everyone’s best interest — it’s the simply right thing to do,” Sen. Irwin said. “Foster kids face significant challenges already, from what caused them to enter foster care in the first place to difficulties they face in the system. By setting aside the benefits they receive while under the care of the state, this legislation would greatly reduce the added financial challenges that they encounter when they age out. Whether by helping them secure housing, access educational opportunities, or afford a car, these funds would support our foster kids’ ability to get on their feet and realize their full potential when they exit the system.”
Under Senate Bill 872, all of a foster child’s benefits would be managed for their own best interests and with full transparency. The Michigan Dept. of Health and Human Services (MDHHS) would provide regular accounting of funds paid to the department and notify children of the status of their benefits. In contrast to other legislation introduced in the Michigan House earlier this year, Senate Bill 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 becomes homeless.
Originally brought to Sen. Irwin’s attention by a concerned citizen, this legislation has garnered the support of several institutions, including Samaritas, Children’s Advocacy Institute, Michigan Poverty Law Program, Michigan Catholic Conference, National Association of Social Workers, and the Michigan League for Public Policy. It now heads to the House for consideration.