Bill Sponsors
Casimiro, Donovan, Spears, Shallcross Smith, Kislak, Speakman, Roberts, Hopkins, Alzate, and Solomon
Committee
House Finance
Summary
Select
This legislation mandates that the Department of Children, Youth and Families (DCYF) identify children in their care who are eligible for federal benefits, such as Social Security or Veterans benefits, and apply on their behalf. Crucially, the bill requires DCYF to conserve a significant portion of these funds (40% to 100%, depending on the child's age) in protected savings accounts for the child's future use, rather than using the money to pay for the child's current foster care. It also requires DCYF to provide financial literacy training to these youths to help them manage their assets.
Sponsor
Analysis
Pros for Progressives
- Ensures that vulnerable foster youth enter adulthood with financial assets, helping to break the cycle of poverty and homelessness often experienced by those aging out of the system.
- Prevents the state from seizing children's personal federal benefits to pay for their own foster care, ensuring these funds are used for the child's unique needs and future well-being.
- Mandates financial literacy training, empowering marginalized youth with the knowledge and skills necessary to manage their resources and navigate the economic system independently.
Cons for Progressives
- Delays the mandatory conservation of funds until 2027, meaning current foster youth will miss out on these financial protections and asset-building opportunities for several more years.
- Allows the department to continue using a portion of the child's benefits (up to 60% for younger teens) for current maintenance rather than immediately conserving 100% of the child's personal property.
- Relies on complex federal asset limits and specific account types (like ABLE accounts), which might create bureaucratic hurdles that could complicate access to the funds for the youth later on.
Pros for Conservatives
- Protects private property rights by ensuring that federal benefits belonging to the individual are conserved for them rather than being absorbed by the state government to balance its budget.
- Promotes individual responsibility and self-sufficiency by mandating financial literacy training, preparing youth to manage their own finances without relying on indefinite government assistance.
- Reduces the likelihood of these individuals becoming long-term burdens on the state welfare system as adults by ensuring they leave care with their own financial safety net.
Cons for Conservatives
- Increases the administrative burden and size of the state bureaucracy by requiring the Department of Children, Youth and Families to manage complex financial portfolios and reporting requirements.
- Removes a source of revenue that currently offsets the cost of foster care, potentially requiring an increase in taxpayer funding to cover the operating expenses of the department.
- Involves the government deeply in the private financial affairs of individuals, mandating specific types of investment vehicles and savings rates rather than allowing for flexible, case-by-case decisions.
Constitutional Concerns
None Likely
Impact Overview
Groups Affected
- Foster youth
- Department of Children Youth and Families (DCYF)
- Guardians ad litem
- Social workers
- Attorneys for youth
Towns Affected
All
Cost to Taxpayers
Amount unknown
Revenue Generated
None
BillBuddy Impact Ratings
Importance
Measures population affected and overall level of impact.
Freedom Impact
Level of individual freedom impacted by the bill.
Public Services
How much the bill is likely to impact one or more public services.
Regulatory
Estimated regulatory burden imposed on the subject(s) of the bill.
Clarity of Bill Language
How clear the language of the bill is. Higher ambiguity equals a lower score.
Enforcement Provisions
Measures enforcement provisions and penalties for non-compliance (if applicable).
Environmental Impact
Impact the bill will have on the environment, positive or negative.
Privacy Impact
Impact the bill is likely to have on the privacy of individuals.
Bill Status
Current Status
Held
Comm Passed
Floor Passed
Law
History
• 01/09/2026 Introduced, referred to House Finance
Bill Text
SECTION 1. Chapter 42-72 of the General Laws entitled "Department of Children, Youth and Families" is hereby amended by adding thereto the following section:
42-72-37. Application for social security benefits, supplemental security income, and veterans benefits.
(a) Definitions. For the purposes of this section:
(1) "Benefits" means social security benefits, supplemental security income, veterans benefits, and railroad retirement benefits; and
(2) "Youth's attorney" and "guardian ad litem" means the person appointed as the youth's attorney or guardian ad litem in the proceeding in which the department is appointed as the youth's guardian or custodian.
(b) Application for benefits.
(1) Upon receiving temporary custody or guardianship of a youth in care, the department shall assess the youth to determine whether the youth may be eligible for benefits. If, after the assessment, the department determines that the youth may be eligible for benefits, the department shall ensure that an application is filed on behalf of the youth. The department shall prescribe by rules and regulations how it will review cases of youth in care at regular intervals to determine whether the youth may have become eligible for benefits after the initial assessment. The department shall make reasonable efforts to encourage youth in care over the age of eighteen (18) who are likely eligible for benefits to cooperate with the application process and to assist youth with the application process.
(2) When applying for benefits under this section for a youth in care the department shall identify a representative payee in accordance with the requirements of 20 CFR 404.2021 and 416.621. If the department is seeking to be appointed as the youth's representative payee, the department shall consider input, if provided, from the youth's attorney and guardian ad litem regarding whether another representative payee, consistent with the requirements of 20 CFR 404.2021 and 416.621, is available. If the department serves as the representative payee for a youth over the age of eighteen (18), the department shall request a court order, as described in subsection (d) of this section.
(c) Notifications. The department shall immediately notify a youth over the age of sixteen (16), the youth's attorney and guardian ad litem, and the youth's parent or legal guardian or another responsible adult of:
(1) Any application for or any application to become representative payee for benefits on behalf of a youth in care;
(2) Any communications from the Social Security Administration, the U.S. Department of Veterans Affairs, or the Railroad Retirement Board pertaining to the acceptance or denial of benefits or the selection of a representative payee; and
(3) Any appeal or other action requested by the department regarding an application for benefits.
(d) Use of benefits. Consistent with federal law, when the department serves as the representative payee for a youth receiving benefits and receives benefits on the youth's behalf, the department shall:
(1) Beginning January 1, 2027, except as provided in a request for the disbursement of funds pursuant to subsection (f)(4) of this section, ensure that when the youth attains the age of fourteen (14) years and until the department no longer serves as the representative payee, a minimum percentage of the youth's supplemental security income benefits are conserved in accordance with subsection (d)(4) of this section as follows:
(i) From the age of fourteen (14) through the age of fifteen (15), at least forty percent (40%);
(ii) From the age of sixteen (16) through the age of seventeen (17), at least eighty percent (80%); and
(iii) From the age of eighteen (18) through the age of twenty (20), one hundred percent (100%), when a court order has been entered expressly allowing the department to have the LC003137 - Page 2 of 7 authority to establish and serve as an authorized agent of the youth over the age of eighteen (18) with respect to an account established in accordance with subsection (d)(4) of this section.
(2) Beginning July 1, 2027, except as provided in a request for the disbursement of funds pursuant to subsection (f)(4) of this section, ensure that when the youth attains the age of fourteen (14) years and until the department no longer serves as the representative payee, a minimum percentage of the youth' s social security benefits, veterans benefits, or railroad retirement benefits are conserved in accordance with subsection (d)(4) of this section as follows:
(i) From the age of fourteen (14) through the age of fifteen (15), at least forty percent (40%);
(ii) From the age of sixteen (16) through the age of seventeen (17), at least eighty percent (80%); and
(iii) From the age of eighteen (18) through the age of twenty (20), one hundred percent (100%), when a court order has been entered expressly allowing the department to have the authority to establish and serve as an authorized agent of the youth over the age of eighteen (18) with respect to an account established in accordance with subsection (d)(4) of this section.
(3) Exercise discretion in accordance with federal law and in the best interests of the youth when making decisions to use or conserve the youth's benefits that are less than or not subject to asset or resource limits under federal law, including using the benefits to address the youth's special needs and conserving the benefits for the youth's reasonably foreseeable future needs.
(4) Appropriately monitor any federal asset or resource limits for the benefits and ensure that the youth's best interest is served by using or conserving the benefits in a way that avoids violating any federal asset or resource limits that would affect the youth's eligibility to receive the benefits, including:
(i) Applying to the Social Security Administration to establish a Plan to Achieve Self- Support (PASS) Account for the youth under the Social Security Act and determining whether it is in the best interest of the youth to conserve all or parts of the benefits in the PASS account;
(ii) Establishing a 529 plan for the youth and conserving the youth's benefits in that account in a manner that appropriately avoids any federal asset or resource limits;
(iii) Establishing an individual development account for the youth and conserving the youth's benefits in that account in a manner that appropriately avoids any federal asset or resource limits;
(iv) Establishing an ABLE account authorized by § 26 U.S.C.E 529A of the Internal Revenue Code of 1986 for the youth and conserving the youth's benefits in that account in a manner that appropriately avoids any federal asset or resource limits; LC003137 - Page 3 of 7
(v) Establishing a Social Security Plan to Achieve Self-Support account for the youth and conserving the youth's benefits in a manner that appropriately avoids any federal asset or resource limits;
(vi) Establishing a special needs trust for the youth and conserving the youth's benefits in the trust in a manner that is consistent with federal requirements for special needs trusts and that appropriately avoids any federal asset or resource limits;
(vii) If the department determines that using the benefits for services for current special needs not already provided by the department is in the best interest of the youth, using the benefits for those services;
(viii) If federal law requires certain back payments of benefits to be placed in a dedicated account, complying with the requirements for dedicated accounts under 20 CFR 416.640(e); and
(ix) Applying any other exclusions from federal asset or resource limits available under federal law and using or conserving the youth' s benefits in a manner that appropriately avoids any federal asset or resource limits.
(e) By January 1, 2028, the department shall provide a report to the general assembly regarding youth in care who receive benefits who are not subject to this section. The report shall discuss a goal of expanding conservation of children's benefits to all benefits of all children of any age for whom the department serves as representative payee. The report shall include a description of any identified obstacles, steps to be taken to address the obstacles, and a description of any need for statutory, rule, regulation, or procedural changes.
(f)(1) Annual accounting. The department shall provide an annual accounting to the youth's attorney and guardian ad litem of how the youth's benefits have been used and conserved. In addition, within ten (10) business days of a request from a youth or the youth's attorney and guardian ad litem, the department shall provide an accounting to the youth of how the youth's benefits have been used and conserved. The accounting shall include:
(i) The amount of benefits received on the youth's behalf since the most recent accounting and the date the benefits were received;
(ii) Information regarding the youth's benefits and resources, including the youth's benefits, insurance, cash assets, trust accounts, earnings, and other resources;
(iii) An accounting of the disbursement of benefit funds, including the date, amount, identification of payee, and purpose; and
(iv) Information regarding each request by the youth, the youth's attorney and guardian ad litem, or the youth's caregiver for disbursement of funds and a statement regarding the reason for not granting the request if the request was denied. LC003137 - Page 4 of 7
(2) Final accounting. When the department's guardianship of the youth is being terminated, the department shall provide:
(i) A final accounting to the Social Security Administration, to the youth's attorney and guardian ad litem, and to either the person or persons who will assume guardianship of the youth or who is in the process of adopting the youth, if the youth is under eighteen (18), or to the youth, if the youth is over eighteen (18); and
(ii) Information to the parent, guardian, or youth regarding how to apply to become the representative payee. The department shall adopt rules and regulations to ensure that the representative payee transitions occur in a timely and appropriate manner.
(g) Financial literacy. The department shall provide the youth with financial literacy training and support, including specific information regarding the existence, availability, and use of funds conserved for the youth in accordance with this subsection, beginning by age fourteen (14). The literacy program and support services shall be developed in consultation with input from the department's statewide speak advisory board.
(h) Adoption of rules and regulations. The department shall adopt rules and regulations to implement the provisions of this section by October 1, 2026.
(i) Reporting.
No later than January 1, 2029, the department shall file a report with the general assembly providing the following information for state fiscal years 2027 and 2028 and annually beginning January 1, 2030, for the preceding fiscal year:
(1) The number of youth entering care.
(2) The number of youth entering care receiving each of the following types of benefits: social security benefits, supplemental security income, veterans benefits, and/or railroad retirement benefits.
(3) The number of youth entering care for whom the department filed an application for each of the following types of benefits: social security benefits, supplemental security income, veterans benefits, and/or railroad retirement benefits.
(4) The number of youth entering care who were awarded each of the following types of benefits based on an application filed by the department: social security benefits, supplemental security income, veterans benefits, and/or railroad retirement benefits.
(j) Annually beginning January 1, 2029, the department shall file a report with the general assembly with the following information regarding the preceding fiscal year:
(1) The number of conserved accounts established and maintained for youth in care;
(2) The average amount conserved by age group; and LC003137 - Page 5 of 7
(3) The total amount conserved by age group.
SECTION 2. This act shall take effect upon passage.
42-72-37. Application for social security benefits, supplemental security income, and veterans benefits.
(a) Definitions. For the purposes of this section:
(1) "Benefits" means social security benefits, supplemental security income, veterans benefits, and railroad retirement benefits; and
(2) "Youth's attorney" and "guardian ad litem" means the person appointed as the youth's attorney or guardian ad litem in the proceeding in which the department is appointed as the youth's guardian or custodian.
(b) Application for benefits.
(1) Upon receiving temporary custody or guardianship of a youth in care, the department shall assess the youth to determine whether the youth may be eligible for benefits. If, after the assessment, the department determines that the youth may be eligible for benefits, the department shall ensure that an application is filed on behalf of the youth. The department shall prescribe by rules and regulations how it will review cases of youth in care at regular intervals to determine whether the youth may have become eligible for benefits after the initial assessment. The department shall make reasonable efforts to encourage youth in care over the age of eighteen (18) who are likely eligible for benefits to cooperate with the application process and to assist youth with the application process.
(2) When applying for benefits under this section for a youth in care the department shall identify a representative payee in accordance with the requirements of 20 CFR 404.2021 and 416.621. If the department is seeking to be appointed as the youth's representative payee, the department shall consider input, if provided, from the youth's attorney and guardian ad litem regarding whether another representative payee, consistent with the requirements of 20 CFR 404.2021 and 416.621, is available. If the department serves as the representative payee for a youth over the age of eighteen (18), the department shall request a court order, as described in subsection (d) of this section.
(c) Notifications. The department shall immediately notify a youth over the age of sixteen (16), the youth's attorney and guardian ad litem, and the youth's parent or legal guardian or another responsible adult of:
(1) Any application for or any application to become representative payee for benefits on behalf of a youth in care;
(2) Any communications from the Social Security Administration, the U.S. Department of Veterans Affairs, or the Railroad Retirement Board pertaining to the acceptance or denial of benefits or the selection of a representative payee; and
(3) Any appeal or other action requested by the department regarding an application for benefits.
(d) Use of benefits. Consistent with federal law, when the department serves as the representative payee for a youth receiving benefits and receives benefits on the youth's behalf, the department shall:
(1) Beginning January 1, 2027, except as provided in a request for the disbursement of funds pursuant to subsection (f)(4) of this section, ensure that when the youth attains the age of fourteen (14) years and until the department no longer serves as the representative payee, a minimum percentage of the youth's supplemental security income benefits are conserved in accordance with subsection (d)(4) of this section as follows:
(i) From the age of fourteen (14) through the age of fifteen (15), at least forty percent (40%);
(ii) From the age of sixteen (16) through the age of seventeen (17), at least eighty percent (80%); and
(iii) From the age of eighteen (18) through the age of twenty (20), one hundred percent (100%), when a court order has been entered expressly allowing the department to have the LC003137 - Page 2 of 7 authority to establish and serve as an authorized agent of the youth over the age of eighteen (18) with respect to an account established in accordance with subsection (d)(4) of this section.
(2) Beginning July 1, 2027, except as provided in a request for the disbursement of funds pursuant to subsection (f)(4) of this section, ensure that when the youth attains the age of fourteen (14) years and until the department no longer serves as the representative payee, a minimum percentage of the youth' s social security benefits, veterans benefits, or railroad retirement benefits are conserved in accordance with subsection (d)(4) of this section as follows:
(i) From the age of fourteen (14) through the age of fifteen (15), at least forty percent (40%);
(ii) From the age of sixteen (16) through the age of seventeen (17), at least eighty percent (80%); and
(iii) From the age of eighteen (18) through the age of twenty (20), one hundred percent (100%), when a court order has been entered expressly allowing the department to have the authority to establish and serve as an authorized agent of the youth over the age of eighteen (18) with respect to an account established in accordance with subsection (d)(4) of this section.
(3) Exercise discretion in accordance with federal law and in the best interests of the youth when making decisions to use or conserve the youth's benefits that are less than or not subject to asset or resource limits under federal law, including using the benefits to address the youth's special needs and conserving the benefits for the youth's reasonably foreseeable future needs.
(4) Appropriately monitor any federal asset or resource limits for the benefits and ensure that the youth's best interest is served by using or conserving the benefits in a way that avoids violating any federal asset or resource limits that would affect the youth's eligibility to receive the benefits, including:
(i) Applying to the Social Security Administration to establish a Plan to Achieve Self- Support (PASS) Account for the youth under the Social Security Act and determining whether it is in the best interest of the youth to conserve all or parts of the benefits in the PASS account;
(ii) Establishing a 529 plan for the youth and conserving the youth's benefits in that account in a manner that appropriately avoids any federal asset or resource limits;
(iii) Establishing an individual development account for the youth and conserving the youth's benefits in that account in a manner that appropriately avoids any federal asset or resource limits;
(iv) Establishing an ABLE account authorized by § 26 U.S.C.E 529A of the Internal Revenue Code of 1986 for the youth and conserving the youth's benefits in that account in a manner that appropriately avoids any federal asset or resource limits; LC003137 - Page 3 of 7
(v) Establishing a Social Security Plan to Achieve Self-Support account for the youth and conserving the youth's benefits in a manner that appropriately avoids any federal asset or resource limits;
(vi) Establishing a special needs trust for the youth and conserving the youth's benefits in the trust in a manner that is consistent with federal requirements for special needs trusts and that appropriately avoids any federal asset or resource limits;
(vii) If the department determines that using the benefits for services for current special needs not already provided by the department is in the best interest of the youth, using the benefits for those services;
(viii) If federal law requires certain back payments of benefits to be placed in a dedicated account, complying with the requirements for dedicated accounts under 20 CFR 416.640(e); and
(ix) Applying any other exclusions from federal asset or resource limits available under federal law and using or conserving the youth' s benefits in a manner that appropriately avoids any federal asset or resource limits.
(e) By January 1, 2028, the department shall provide a report to the general assembly regarding youth in care who receive benefits who are not subject to this section. The report shall discuss a goal of expanding conservation of children's benefits to all benefits of all children of any age for whom the department serves as representative payee. The report shall include a description of any identified obstacles, steps to be taken to address the obstacles, and a description of any need for statutory, rule, regulation, or procedural changes.
(f)(1) Annual accounting. The department shall provide an annual accounting to the youth's attorney and guardian ad litem of how the youth's benefits have been used and conserved. In addition, within ten (10) business days of a request from a youth or the youth's attorney and guardian ad litem, the department shall provide an accounting to the youth of how the youth's benefits have been used and conserved. The accounting shall include:
(i) The amount of benefits received on the youth's behalf since the most recent accounting and the date the benefits were received;
(ii) Information regarding the youth's benefits and resources, including the youth's benefits, insurance, cash assets, trust accounts, earnings, and other resources;
(iii) An accounting of the disbursement of benefit funds, including the date, amount, identification of payee, and purpose; and
(iv) Information regarding each request by the youth, the youth's attorney and guardian ad litem, or the youth's caregiver for disbursement of funds and a statement regarding the reason for not granting the request if the request was denied. LC003137 - Page 4 of 7
(2) Final accounting. When the department's guardianship of the youth is being terminated, the department shall provide:
(i) A final accounting to the Social Security Administration, to the youth's attorney and guardian ad litem, and to either the person or persons who will assume guardianship of the youth or who is in the process of adopting the youth, if the youth is under eighteen (18), or to the youth, if the youth is over eighteen (18); and
(ii) Information to the parent, guardian, or youth regarding how to apply to become the representative payee. The department shall adopt rules and regulations to ensure that the representative payee transitions occur in a timely and appropriate manner.
(g) Financial literacy. The department shall provide the youth with financial literacy training and support, including specific information regarding the existence, availability, and use of funds conserved for the youth in accordance with this subsection, beginning by age fourteen (14). The literacy program and support services shall be developed in consultation with input from the department's statewide speak advisory board.
(h) Adoption of rules and regulations. The department shall adopt rules and regulations to implement the provisions of this section by October 1, 2026.
(i) Reporting.
No later than January 1, 2029, the department shall file a report with the general assembly providing the following information for state fiscal years 2027 and 2028 and annually beginning January 1, 2030, for the preceding fiscal year:
(1) The number of youth entering care.
(2) The number of youth entering care receiving each of the following types of benefits: social security benefits, supplemental security income, veterans benefits, and/or railroad retirement benefits.
(3) The number of youth entering care for whom the department filed an application for each of the following types of benefits: social security benefits, supplemental security income, veterans benefits, and/or railroad retirement benefits.
(4) The number of youth entering care who were awarded each of the following types of benefits based on an application filed by the department: social security benefits, supplemental security income, veterans benefits, and/or railroad retirement benefits.
(j) Annually beginning January 1, 2029, the department shall file a report with the general assembly with the following information regarding the preceding fiscal year:
(1) The number of conserved accounts established and maintained for youth in care;
(2) The average amount conserved by age group; and LC003137 - Page 5 of 7
(3) The total amount conserved by age group.
SECTION 2. This act shall take effect upon passage.