[Congressional Bills 118th Congress] [From the U.S. Government Publishing Office] [H.R. 10478 Introduced in House (IH)] <DOC> 118th CONGRESS 2d Session H. R. 10478 To ensure that foster children are able to use their Social Security benefits, Supplemental Security Income benefits, and other assets and benefits to address their needs and improve their lives. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES December 18, 2024 Mr. Davis of Illinois (for himself and Mr. Raskin) introduced the following bill; which was referred to the Committee on Ways and Means _______________________________________________________________________ A BILL To ensure that foster children are able to use their Social Security benefits, Supplemental Security Income benefits, and other assets and benefits to address their needs and improve their lives. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Protecting Foster Youth Resources Act''. SEC. 2. LIMITATION ON USE FOR STATE COSTS OF BENEFITS PAID TO STATE OR LOCAL GOVERNMENT ACTING AS A REPRESENTATIVE PAYEE FOR A FOSTER CHILD. (a) Amendments to Title II.--Section 205(j)(9) of the Social Security Act (42 U.S.C. 405(j)(9)) is amended-- (1) by inserting ``(A)'' after ``(9)''; and (2) by adding at the end the following: ``(B)(i) For purposes of this subsection, misuse of benefits by a State or local government agency serving as a representative payee under this subsection for an individual in foster care under the responsibility of the State occurs in any case in which the State or local government agency uses any benefits paid to the representative payee pursuant to paragraph (1) of this subsection or any other law or any other property of, or held for the benefit of, the individual, for-- ``(I) foster care maintenance payments under section 472; or ``(II) other payments made by the State or a political subdivision of the State to cover any other cost or expense for the individual other than to meet unmet current needs described in section 471(a)(39). ``(ii) An expense described in paragraph (4)(A)(i) of this subsection or section 1631(a)(2)(D) shall not be considered a cost or expense for purposes of clause (i)(II) of this subparagraph.''. (b) Amendments to Title XVI.--Section 1631(a)(2)(A)(iv) of such Act (42 U.S.C. 1383(a)(2)(A)(iv)) is amended-- (1) by inserting ``(I)'' after ``(iv)''; and (2) by adding after and below the end the following: ``(II)(aa) For purposes of this paragraph, misuse of benefits by a State or local government agency serving as a representative payee under this subsection for an eligible individual in foster care under the responsibility of the State occurs in any case in which the State or local government agency uses any benefits paid to the representative payee pursuant to clause (ii) of this subparagraph or any other law or any other property of, or held for the benefit of, the individual, for-- ``(AA) foster care maintenance payments under section 472; or ``(BB) other payments made by the State or a political subdivision of the State to cover any other cost or expense for the individual other than to meet unmet current needs described in section 471(a)(39). ``(bb) An expense described in subparagraph (D) of this paragraph or section 205(j)(4)(A)(i) shall not be considered a cost or expense for purposes of item (aa)(BB) of this subclause.''. (c) Amendments to Part E of Title IV.--Section 471(a) of such Act (42 U.S.C. 671(a)) is amended-- (1) by striking ``and'' at the end of paragraph (36)(D); (2) by striking the period at the end of paragraph (37); and (3) by adding at the end the following: ``(38)(A) provides that neither the State nor a local government in the State may use any benefits paid to the State or local government on behalf of an individual in foster care under the responsibility of the State, or any other assets, resources, or earnings of such an individual, for-- ``(i) foster care maintenance payments under section 472; or ``(ii) other payments made by the State or a political subdivision of the State to cover any other cost or expense for the individual other than to meet unmet current needs described in paragraph (39). ``(B) An expense described in section 205(j)(4)(A)(i) or 1631(a)(2)(D) shall not be considered a cost or expense for purposes of subparagraph (A)(ii) of this paragraph.''. SEC. 3. SCREENING OF FOSTER CHILDREN FOR ELIGIBILITY FOR SOCIAL SECURITY AND SUPPLEMENTAL SECURITY INCOME BENEFITS. (a) State Plan Requirement.--Section 471(a) of the Social Security Act (42 U.S.C. 671(a)), as amended by section 2(c) of this Act, is amended-- (1) by striking ``and'' at the end of paragraph (37); (2) by striking the period at the end of paragraph (38) and inserting ``; and''; and (3) by adding at the end the following: ``(39) provides that, not later than the beginning of the first calendar quarter that begins after the 1-year (or, if State legislation is required to comply with this paragraph, 2- year) period that begins with the date of the enactment of this paragraph, the State agency referred to in paragraph (2) of this subsection shall-- ``(A) develop and implement procedures to ensure that, within 60 days after the status of a child who is in foster care under the responsibility of the State is first reviewed pursuant to section 475(5)(B) and annually thereafter, the child is screened to determine the potential eligibility of the child for benefits under title II and for supplemental security income benefits under title XVI; ``(B) if the screening results in a determination that the child is potentially eligible for any of such benefits, apply for, and (if necessary) appeal any decisions made with respect to, the benefits within 60 days; ``(C) develop and implement procedures to ensure that any such child who is potentially eligible for, or is a recipient of, benefits under title II or supplemental security income benefits under title XVI, is assisted with applying for such benefits not later than 180 days (or, if the child has attained 17 years of age, 1 year) before the child exits foster care; and ``(D) provide for the appropriate transfer of any such benefits application for a child who is returning home or moving out of State to ensure that the application for benefits is not disrupted by the return or move.''. (b) GAO Study.-- (1) In general.--Within 4 years after the date of the enactment of this Act, the Comptroller General of the United States shall complete a study to determine whether the States have substantially complied with the amendments made by this section and to develop recommendations to improve the compliance, including specifically whether the States have-- (A) established successful procedures that screen all foster children under the responsibility of the States for their potential eligibility for benefits under title II of the Social Security Act and for supplemental security income benefits under title XVI of such Act; (B) provided all such potentially eligible foster children assistance in applying for, and appealing decisions made with respect to, the benefits; and (C) implemented procedures to identify suitable nongovernmental candidates to serve as representative payees for children in foster care with respect to the benefits. (2) Report to the congress.--Within 1 year after completing the study required by paragraph (1), the Comptroller General shall submit to the Congress a written report that contains the results of the study and the recommendations referred to in paragraph (1). SEC. 4. NOTICE TO ATTORNEY OR GUARDIAN AD LITEM FOR FOSTER CHILD OF DETERMINATION TO PAY SOCIAL SECURITY OR SUPPLEMENTAL SECURITY INCOME BENEFITS TO REPRESENTATIVE PAYEE. (a) Amendment to Title II.--Section 205(j)(2)(E)(ii) of the Social Security Act (42 U.S.C. 405(j)(2)(E)(ii)) is amended-- (1) by striking ``In'' and inserting ``On application for the appointment of a person to be a representative payee under paragraph (1), on making the initial and final determinations on such an application, on receipt of an appeal of any such determination, and in''; and (2) by inserting ``, except that, in the case of an individual who is in foster care under the responsibility of a State or in a legal guardianship, such notice shall also be provided to any attorney or guardian ad litem appointed to represent the individual in any foster care proceeding or proceeding in which a decision referred to in section 422(b)(8)(B) may be made, any parent of the individual, any relative with custody or legal guardianship of the child, and, if the individual has attained 14 years of age, to the individual'' before the period at the end. (b) Amendment to Title XVI.--Section 1631(a)(2)(B)(xii) of such Act (42 U.S.C. 1383(a)(2)(B)(xii)) is amended-- (1) by striking ``In'' and inserting ``On application for the appointment of a person to be a representative payee under subparagraph (A)(ii), on making the initial and final determinations on such an application, on receipt of an appeal of any such determination, and in''; and (2) by inserting ``, except that, in the case of an individual who is in foster care under the responsibility of a State or in a legal guardianship, such notice shall also be provided to any attorney or guardian ad litem appointed to represent the individual in any foster care proceeding or proceeding in which a decision referred to in section 422(b)(8)(B) may be made, any parent of the individual, any relative with custody or legal guardianship of the child, and, if the individual has attained 14 years of age, to the individual'' before the period at the end. SEC. 5. MANAGEMENT OF ASSETS AND BENEFITS FOR FOSTER YOUTH. (a) Plan for Managing Assets and Benefits for Foster Youth.-- Section 471(a) of the Social Security Act (42 U.S.C. 671(a)), as amended by sections 2(c) and 3(a) of this Act, is amended-- (1) by striking ``and'' at the end of paragraph (38); (2) by striking the period at the end of paragraph (39) and inserting ``; and''; and (3) by adding at the end the following: ``(40) provides that, with respect to each child in foster care under the responsibility of the State on whose behalf the State manages any assets or Federal, State, or local benefits, the State agency shall do the following: ``(A) Develop a plan, developed specifically for the child, that is designed to best meet the unmet current and future needs of the child that are not covered by assistance available from the Federal, State, and local governments, that stabilizes the child, in accordance with the following: ``(i)(I) The plan shall set forth a strategy to conserve benefits not necessary for the immediate unmet needs of the child, determined as provided for pursuant to clause (ii) of this subparagraph, in a manner that best meets the future health, educational, housing, financial, and employment needs of the child, and for the placement of any such benefits in 1 or more accounts that are not subject to any asset limits under title XVI of this Act, such as-- ``(aa) an account of the type described in section 1631(a)(2)(F) of this Act; ``(bb) an ABLE account established under section 529A of the Internal Revenue Code of 1986; ``(cc) a trust exempt from resource limitations under section 1613 of this Act; ``(dd) an individual development account established pursuant to Federal or State law; or ``(ee) another account in which benefits for the child may be conserved in a manner that the State determines, consistent with this paragraph, is in the best interests of the child. ``(II) The plan shall ensure that a reasonable amount of the assets of the child are available for the child's immediate unmet personal needs for which the benefits should be used to serve the best interests of the child consistent with sections 205(j)(10)(B) and 1631(a)(2)(A)(iv)(II), if applicable. ``(III) The plan shall provide for a determination of any additional assets, or benefits for current or former foster youth, to which the child may be entitled, including civil judgments, inheritances, or earnings, and shall provide for the assets to be conserved as part of the plan as described in clause (i). ``(IV) Any funds conserved in accordance with the plan shall be used to supplement and not supplant any other Federal, State, or local funds or programs that are or become available for the benefit of the child. ``(V) The plan shall provide that any assets set aside under the plan shall be conserved (except for a use of funds described in items (aa) through (gg) of section 1631(a)(2)(F)(ii)(II)), and placed in an account described in subclause (I) of this clause, until the date the child ceases to be in foster care under the responsibility of the State. ``(ii) The State agency shall-- ``(I) develop and implement the plan in collaboration with the child (on an age-appropriate basis) if the child has attained 14 years of age, and any attorney or guardian ad litem appointed to represent the individual in any foster care proceeding or proceeding in which a decision referred to in section 422(b)(8)(B) may be made; and ``(II) provide plan information to the social worker for the child and the parents and caretakers of the child. ``(iii)(I) Within 60 days after the status of the child is first reviewed pursuant to section 475(5)(B), the State agency shall complete the plan. ``(II) The State agency shall ensure that each subsequent such review of such status shall include consideration of an updated version of the plan and a report on the progress made in implementing the plan. ``(iv)(I) Not later than 30 days before the status of the child is first reviewed pursuant to section 475(5)(B) after completion of the plan, the State agency shall provide a copy of the plan to any attorney or guardian ad litem appointed to represent the individual in any foster care proceeding or proceeding in which a decision referred to in section 422(b)(8)(B) may be made. ``(II) Not later than 30 days before each subsequent such review, the State agency shall provide an updated copy of the plan to the attorney or guardian ad litem so appointed. ``(v)(I) The State agency shall create a simple process by which the child, parent, relative caregiver, or attorney or guardian ad litem appointed to represent the individual in any foster care proceeding or proceeding in which a decision referred to in section 422(b)(8)(B) may be made may request the plan to be modified to meet needs of the child, and for expedited consideration of any such request. ``(II) The plan shall not be treated, in any administrative or judicial review proceeding, as meeting the requirements of this paragraph with respect to a child unless the plan is determined by the reviewer to be the best available means of meeting the current and future health, educational, housing, financial, and employment needs of the child. ``(B) Assist the child in developing a plan to manage the benefits so as to meet the current and future needs of the child that are not covered by assistance available from the Federal, State, and local governments.''. (b) Provisions Relating to Representative Payees.-- (1) Amendments to title ii.--Section 205(j) of such Act (42 U.S.C. 405(j)) (as amended by the preceding provisions of this Act) is amended further-- (A) by redesignating paragraphs (8), (9), (10), (11), and (12) as paragraphs (9), (10), (11), (12), and (13), respectively; and (B) by inserting after paragraph (7) the following new paragraph: ``(8) A representative payee who is a State shall manage the benefits paid to the representative payee under paragraph (1) on behalf of an individual who is in foster care under the responsibility of the State, in accordance with the plan developed for the child pursuant to section 471(a)(40).''. (2) Amendment to title xvi.--Section 1631(a)(2) of such Act (42 U.S.C. 1383(a)(2)) is amended by adding at the end the following: ``(J) A representative payee who is a State shall manage the benefits paid to the representative payee under subparagraph (A)(ii) of this paragraph on behalf of an individual who is in foster care under the responsibility of the State, in accordance with the plan developed for the child pursuant to section 471(a)(40).''. SEC. 6. SHARING OF INFORMATION ABOUT BENEFIT PAYMENTS MADE TO REPRESENTATIVE PAYEES AND ANY PART OF WHICH HAS BEEN PROVIDED TO A STATE. Section 471(a) of the Social Security Act (42 U.S.C. 671(a)), as amended by sections 2(c), 3(a), and 5(a) of this Act, is amended-- (1) by striking ``and'' at the end of paragraph (39); (2) by striking the period at the end of paragraph (40) and inserting ``; and''; and (3) by adding at the end the following: ``(41) provides that the State shall have in effect an agreement entered into pursuant to section 205(j)(12) that includes a provision for the sharing of information about benefits under title II or XVI that have been paid to representative payees and the portion, if any, of such benefit payments that have been provided to, or intercepted by, the State''. SEC. 7. TECHNICAL ASSISTANCE FOR CHILD WELFARE AGENCIES. (a) In General.--On request of a State agency responsible for administering, or supervising the administration of, a State program authorized by part E of title IV of the Social Security Act, the Secretary of Health and Human Services, in consultation with the Commissioner of Social Security, shall provide the State agency with technical assistance in carrying out the amendments made by this Act, including guidance for informing non-State representative payees of children in foster care under the responsibility of the State who are recipients of benefits under title II of such Act or supplemental security income benefits under title XVI of such Act of the availability of appropriate savings vehicles for any part of the benefits not required to meet the immediate unmet needs of the children. (b) Limitations on Authorization of Appropriations.--In addition to any amounts otherwise made available to carry out this section, there are authorized to be appropriated to carry out this section $4,500,000 for fiscal year 2025, and such sums as may be necessary for each of fiscal years 2026 through 2030. SEC. 8. ANNUAL NOTICE OF STATE USE OF FOSTER YOUTH ASSETS. Section 471(a) of the Social Security Act (42 U.S.C. 671(a)), as amended by sections 2(c), 3(a), 5(a), and 6 of this Act, is amended-- (1) by striking ``and'' at the end of paragraph (40); (2) by striking the period at the end of paragraph (41) and inserting ``; and''; and (3) by adding at the end the following: ``(42) provides that the State agency shall-- ``(A) within 1 year after the effective date of this paragraph, provide each child in foster care under the responsibility of the State with an accounting of all assets of, and all amounts payable to or for the benefit of, the child that the State used for maintenance or care of the child, which accounting shall specify the source of each asset or amount so used, the amount so used, and the purpose for which the amount or asset was so used; ``(B) annually thereafter, provide each child who, at any time in the then preceding 12-month period, was in foster care under the responsibility of the State, with such an accounting with respect to all such assets and amounts so used in the 12-month period; and ``(C) on request of any individual who was in foster care under the responsibility of the State for such an accounting, provide the child with the accounting.''. SEC. 9. SIMPLIFYING ADMINISTRATIVE REIMBURSEMENT FOR CARETAKER TRAINING COSTS. Section 474(a)(3)(B) of the Social Security Act (42 U.S.C. 674(a)(3)(B)) is amended by striking ``receiving assistance'' and inserting ``without regard to whether the child is eligible for a benefit''. SEC. 10. ADJUSTMENT OF FEDERAL SHARE OF ADMINISTRATIVE EXPENSES FOR MANAGING FOSTER YOUTH BENEFITS ELIGIBILITY. Section 474(a)(3) of the Social Security Act (42 U.S.C. 674(a)(3)) is amended-- (1) in subparagraph (C)(iv), by striking ``and'' at the end; (2) in subparagraph (D), by striking ``and'' at the end; and (3) by redesignating subparagraph (E) as subparagraph (F) and inserting after subparagraph (D) the following: ``(E) 75 percent of the total amounts expended during such quarter under paragraphs (39) and (40) of section 471(a) for children in foster care under the responsibility of the State, without regard to whether the child is eligible for a benefit funded under this part; and''. SEC. 11. EFFECTIVE DATES. (a) Amendments to Title II or XVI of the Social Security Act.--The amendments made by sections 2(a), 2(b), 4, and 5(b) of this Act shall apply to benefits payable for months beginning after the later of-- (1) the date the Commissioner of Social Security prescribes rules to implement the amendment; or (2) 1 year after the date of the enactment of this Act. (b) State Plan Requirements Relating to Plans for Managing Assets and Benefits for Foster Youth and Sharing of Information About Benefit Payments Made to Representative Payees and Any Part of Which Has Been Provided to a State.-- (1) In general.--The amendments made by sections 5(a) and 6 of this Act shall take effect on the first day of the first calendar quarter beginning after the date of the enactment of this Act, and shall apply to payments under part E of title IV of the Social Security Act for calendar quarters beginning after such first day. (2) Delay permitted if state legislation required.--If the Secretary of Health and Human Services determines that State legislation (other than legislation appropriating funds) is required in order for a State plan approved under part E of title IV of the Social Security Act to meet the additional requirements imposed by the amendments made by section 5(a) or 6 of this Act, the plan shall not be regarded as failing to meet any of the additional requirements before the first day of the first calendar quarter beginning after the first regular session of the State legislature that begins after the date of the enactment of this Act. If the State has a 2-year legislative session, each year of the session is deemed to be a separate regular session of the State legislature. <all>