Existing law provides for the out-of-home placement, including foster care placement, of children who are unable to remain in the custody and care of their parents. Existing law, the federal Social Security Act, provides for benefits for eligible beneficiaries, including survivorship and disability benefits and Supplemental Security Income (SSI) benefits for, among others, blind and disabled children. Existing law requires every youth who is in foster care to be screened by the county for potential eligibility for SSI and requires that screening to occur when the foster youth is at least 16 years of age and not older than 17 years of age. Existing law requires the county placing agency, for foster youth whose applications for federal Social Security Administration benefits have been denied, to file, or cause to be filed, a request for reconsideration with the federal Social Security Administration and, if the request for reconsideration is denied, to file an appeal, as specified.

This bill would also require the county placing agency to take those actions for a foster youth for whom eligibility for federal Social Security Administration benefits has been terminated.

Existing law requires a placing agency to act in accordance with specified guidelines and pursuant to certain requirements when acting as the representative payee or in any other fiduciary capacity for a child or youth receiving federal Social Security Administration survivors benefits, including, among other requirements, monitoring any applicable federal asset, resource, or income limits for the childs benefits and ensure that the childs best interests are served by conserving the benefits in a way that avoids termination of those benefits as a result of exceeding the federal asset, resource, or income limits, including establishing and maintaining a dedicated account on behalf of the child and preserves eligibility for other benefits to which the child may be entitled.

This bill would generally expand the application of the placing agency guidelines and requirements described above to all circumstances in which the placing agency acts as the representative payee or in any other fiduciary capacity for a foster youth who receives benefits any type of benefit from the federal Social Security Administration. The bill would also expand the list of accounts that may be established and maintained by the placing agency to conserve the childs benefits, including, among others, a Plan to Achieve Self-Support account and a 529A plan. Administration, as specified.

Existing law requires a county, when serving as representative payee for a child or nonminor dependent receiving federal Social Security Administration benefits, to use those benefits for, among other purposes, purposes determined by the county to be in the childs or nonminors best interests.

This bill would require the county to make that determination with input from the childs or nonminor dependents child and family team.

Existing law requires the county placing agency, for nonminor dependents who have been approved for SSI benefits, but who are receiving federally funded AFDC-FC benefits in an amount that exceeds the SSI payment, causing the SSI payment to be placed in suspense, to forego the federally funded AFDC-FC benefits during at least one month of every 12-month period, in order to permit the nonminor dependent to receive an SSI benefit during a single month in every 12-month benefit.

This bill would expand that requirement to apply to all youth.

This bill would also make various technical and conforming changes.

By increasing county duties with respect to foster youth, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Existing law provides for the out-of-home placement, including foster care placement, of children who are unable to remain in the custody and care of their parents. Existing law, the federal Social Security Act, provides for benefits for eligible beneficiaries, including survivorship and disability benefits and Supplemental Security Income (SSI) benefits for, among others, blind and disabled children. Existing law requires every youth who is in foster care to be screened by the county for potential eligibility for SSI and requires that screening to occur when the foster youth is at least 16 years of age and not older than 17 years of age. Existing law requires the county placing agency, for foster youth whose applications for federal Social Security Administration benefits have been denied, to file, or cause to be filed, a request for reconsideration with the federal Social Security Administration and, if the request for reconsideration is denied, to file an appeal, as specified.

Existing law requires a placing agency to act in accordance with specified guidelines and pursuant to certain requirements when acting as the representative payee or in any other fiduciary capacity for a child or youth receiving federal Social Security Administration survivors benefits, including, among other requirements, monitoring any applicable federal asset, resource, or income limits for the childs benefits and ensure that the childs best interests are served by conserving the benefits in a way that avoids termination of those benefits as a result of exceeding the federal asset, resource, or income limits, including establishing and maintaining a dedicated account on behalf of the child and preserves eligibility for other benefits to which the child may be entitled.

This bill would expand the application of the placing agency guidelines and requirements described above to all circumstances in which the placing agency acts as the representative payee or in any other fiduciary capacity for a foster youth who receives benefits from the federal Social Security Administration. The bill would also expand the list of accounts that may be established and maintained by the placing agency to conserve the childs benefits, including, among others, a Plan to Achieve Self-Support account and a 529A plan. By increasing county duties with respect to foster youth, the bill would impose a state-mandated local program.

This bill would also make various technical and conforming changes.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Existing law provides for the out-of-home placement, including foster care placement, of children who are unable to remain in the custody and care of their parents. Existing law, the federal Social Security Act, provides for benefits for eligible beneficiaries, including survivorship and disability benefits and Supplemental Security Income (SSI) benefits for, among others, blind and disabled children. Existing law requires every youth who is in foster care to be screened by the county for potential eligibility for SSI and requires that screening to occur when the foster youth is at least 16 years of age and not older than 17 years of age.

Existing law requires a placing agency to act in accordance with specified guidelines and pursuant to certain requirements when acting as the representative payee or in any other fiduciary capacity for a child or youth receiving federal Social Security Administration survivors benefits, including, among other requirements, monitoring any applicable federal asset, resource, or income limits for the childs benefits and ensure that the childs best interests are served by conserving the benefits in a way that avoids termination of those benefits as a result of exceeding the federal asset, resource, or income limits, including establishing and maintaining a dedicated account on behalf of the child and preserves eligibility for other benefits to which the child may be entitled.

This bill would expand the application of the placing agency guidelines and requirements described above to all circumstances in which the placing agency acts as the representative payee or in any other fiduciary capacity for a foster youth who receives benefits from the federal Social Security Administration. The bill would also expand the list of accounts that may be established and maintained by the placing agency to conserve the childs benefits, including, among others, a Plan to Achieve Self-Support account and a 529A plan. By increasing county duties with respect to foster youth, the bill would impose a state-mandated local program.

This bill would also make various technical and conforming changes.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

SENATE COMMITTEE ON

Senator Sabrina Cervantes, Chair

2025 - 2026 Regular Session

AB 1080 (Bryan) - Foster care payments

Bill Summary:

AB 1080 would impose requirements on counties regarding federal social security benefits for foster youth.

Fiscal Impact:

• The California Department of Social Services estimates the following:
• Ongoing costs, approximately high hundreds of thousands, for county administration (General Fund and federal funds).
• One-time General Fund costs of $1.1 million for automation updates.
• One-time General Fund costs of $500,000 for intergovernmental MOUs with tribal governments to establish tribal participation and to clarify their roles and responsibilities.
• Unknown ongoing General Fund costs to offset the loss of reimbursements to counties to pay for the costs of foster care placements.

• To the extent the bill increases county costs already borne by a local agency for programs or levels of service mandated by the 2011 Realignment, the bill would apply to local agencies only to the extent that the state provides annual funding for the cost increases.

Background:

Foster youth may be eligible for different types of federal Social Security Administration (SSA) benefits, such as survivor benefits and Supplemental Security Income (SSI) benefits. SSI benefits are available to qualified low-income blind or disabled children. State law requires counties to screen foster youth over the age of 16 for potential eligibility for federal SSA benefits. Counties must also file a request for reconsideration with the federal SSA for foster youth whose applications for federal SSA benefits are denied.

Current law requires the county to apply to be the appointed representative payee for SSA benefits on behalf of a child beneficiary in its custody when no other appropriate party is available to serve. Counties serving as representative payees must follow certain practices, including the creation of no-cost, interest bearing maintenance accounts for each child. Moneys from the accounts must be used by the county for: 1) the use and benefit of the child or nonminor dependent, and 2) purposes determined by the county to be in the child’s or nonminor’s best interests. Current law also requires that when the county serves as the representative payee for SSA survivor benefits, the county cannot use the child’s survivor benefits to pay for, or to reimburse for, any costs of the child’s care and supervision.

State law requires that when a nonminor dependent has been approved for SSI payments, but is receiving a federally-funded foster care benefit in an amount that exceeds the SSI payment (causing the SSI payment to be placed in suspense) the county must, during at least 1 month of every 12-month period, forego the federally-funded foster care benefit and instead use nonfederal foster care resources to supplement the SSI benefit that the youth receives during that month.

Proposed Law:

Specific provisions of the bill would:

• Require counties serving as representative payees to include input from the child’s or nonminor dependent’s child and family team when determining whether use of SSA funds is in the child’s or nonminor’s best interests.
• Prohibit counties serving as representative payees from using specified SSA benefits (not just SSA survivor benefits) to pay for, or to reimburse for, any costs of the child’s care and supervision.
• Require counties to provide information and documentation, upon request, to the child, the child’s attorney, and the child’s parents or guardians regarding whether the child is currently receiving, entitled to receive, or has established eligibility for, any federal SSA benefits.
• Require counties to file a request for reconsideration with the federal SSA for foster youth for whom eligibility for federal SSA benefits has been terminated.
• Expand the existing requirement that counties forego foster care benefits for SSI benefits during at least 1 month of every 12-month period, to apply to all foster youth (not just nonminor dependents) eligible for SSI benefits.

-- END --

SENATE COMMITTEE ON HUMAN SERVICES

Senator Becker, Chair

2025 - 2026 Regular

Subject: Foster care payments

SUMMARY

This bill prohibits a county serving as the representative payee for a foster youth receiving federal Social Security Administration (SSA) benefits from using those funds to offset the cost of foster care placement and expands the types of maintenance accounts the county may establish on behalf of the youth to conserve benefits.

ABSTRACT

Existing Law:

1. Establishes in federal law the Supplemental Security Income (SSI) for the Aged, Blind, and Disabled Program to provide cash assistance to meet the basic needs of aged and blind individuals and individuals with disabilities. (42 United States Code [U.S.C.] 1381-1383(f))
2. Provides that if payments are not needed for the beneficiary’s current maintenance or reasonably foreseeable needs, they shall be conserved or invested on behalf of the beneficiary. (20 Code of Federal Regulations [CFR] 416.645)
3. Establishes the State Supplementary Payment (SSP) for people who are aged, blind, or disabled, which is intended to supplement federal SSI and provide persons whose results from age, blindness or disability with assistance and services that help them meet basic needs and maintain or increase independence. Further provides that eligibility requirements for SSP match federal SSI criteria and requires a minimum level of SSP benefits to be provided in order to maintain federal Medicaid funding, as specified. (Welfare and Institutions Code [WIC] 12000 et seq.)
4. Provides that a child who has suffered, or is at substantial risk of suffering, abuse or neglect, as defined, by the child’s parent or guardian is within the jurisdiction of the juvenile court, which may adjudge the child a dependent child. (WIC 300)
   
5. States that the purpose of foster care law is to provide maximum safety and protection for children who are currently being physically, sexually, emotionally abused, neglected, or exploited, and to ensure the safety, protection, and physical and emotional well-being of children who are at risk of harm. (WIC 300.2)
6. Defines “nonminor dependent” (NMD) as a current or former foster youth who is a current dependent child or ward of the juvenile court, or who is a nonminor under transition jurisdiction of the juvenile court, who is between 18 and 21 years of age, in foster care under the responsibility of the county welfare department, county probation department, or Indian tribe, and participating in a transitional independent living plan, as specified. (WIC 11400(v))
7. Requires the county to apply to be the appointed representative payee on behalf of a child beneficiary in its custody when no other appropriate party is available to serve. Further requires the county to provide information to NMDs and assist NMDs with becoming their own payee or finding and designating an appropriate representative. (WIC 13754(b)(1)-(2))
8. Requires counties serving as representative payees for a foster child or youth’s SSI benefits to follow certain best practices, including the creation of no-cost, interest bearing maintenance accounts for each child the county serves as representative payee for, itemized expenditures from the account, creation of procedures for disbursing money from the account, limitations on the purposes for which deductions may be made from the accounts, as provided. (WIC 13754(c))
9. Requires the county to screen every youth in foster care who is nearing emancipation for potential eligibility for the federal SSI program, utilizing best practice guidelines, as provided. (WIC 13757(a)(1))
10. Requires the county SSI screening only to occur when the foster youth is at 16 to 17 years of age and requires an application be submitted to the SSA on behalf of a youth who is screened as being likely to be eligible for SSI. Further requires, to the extent possible, the application be timed to allow for a determination of eligibility by the SSA prior to the youth’s emancipation from care including, if appropriate, the suspension of SSI benefits for no more than 12 months. (WIC 13757(a)(2))

This Bill:

1. Expands the requirement that a county, in its capacity as representative payee, must use (SSI/SSP) benefits for the purposes determined by the county to be in the child’s or nonminor dependent’s (NMD) best interest, to also require input from the youth’s Child and Family Team.
2. Expands the requirement that a county ensure federal survivors’ benefits are not used to pay for, or to reimburse the placing agency for, any costs of the foster youth’s care and supervision, to include all federal SSA Title II benefits.
3. Expands the list of accounts a county acting as a representative payee may establish and maintain on behalf of a foster youth.
4. Requires a county placing agency to also provide information and documentation, upon request, to the child, the child’s attorney, and the child’s parents or guardians regarding whether the child is currently receiving, entitled to receive, or has established eligibility for, any federal SSA benefits.
   
5. Requires a county placing agency to file a request for reconsideration for a foster youth for whom eligibility for federal SSA benefits has been terminated.
   
6. Expands provisions related to NMDs receiving SSI and the associated requirements for counties to also apply to minor foster youth.

FISCAL IMPACT

According to the Assembly Appropriations Committee:

The California Department of Social Services (CDSS) estimates total General Fund costs ranging from $11.6 million to multiple tens of millions of dollars annually to reimburse counties for the loss of SSI benefit payments and for administrative and automation costs of expanding current survivor benefit protections and services to all foster youth who are federal SSA beneficiaries, including those receiving SSI.  

Specifically:

1. Estimated ongoing General Fund (GF) costs of approximately $9.2 million annually to offset the loss of SSA/SSI benefit reimbursement to counties, and approximately $700,000 annually for increased county social worker duties, including applying for reconsideration when SSA benefits are terminated, maintaining specified dedicated accounts for recipients, providing an accounting of resources upon request, and documenting and providing information on whether the child is currently receiving, entitled to receive, or has established eligibility for SSA benefits.  

Although these county costs are mandated by the state, they are not reimbursable but instead must be paid by the state pursuant to Proposition 30 of 2012. Proposition 30 requires legislation enacted after September 30, 2012, that has an overall effect of increasing the costs already borne by a local agency for programs or levels of service mandated by realignment (including child welfare services and foster care) applies to local agencies only to the extent the state provides annual funding for the cost increase.

1. One-time costs of $1.6 million (GF) in fiscal year 2027-28 for automation updates to the Child Welfare Services California Automated Response and Engagement System (CWS-CARES), and for an intergovernmental MOU with tribal governments to establish tribal participation.

BACKGROUND AND DISCUSSION

Purpose of the Bill:

According to the author, “AB 1080 continues years of progress away from the archaic practice of recouping the costs of a child's time in foster care through collecting their federal Social Security Administration Title II benefits. Federal law explicitly places the financial responsibility for care on foster care agencies, but for decades, agencies have used survivors' benefits and Title II benefits to reimburse themselves. California stopped this practice for survivors' benefits, but agencies can continue to use a child's Title II benefits as a way to backfill their costs.  AB 1080 will end this practice for federal Social Security Administration Title II benefits and ensure they are used in the best interest of a foster youth, or conserved for the youth to access once they have exited the system." 

Child Welfare System

The Child Welfare System is the system of intervention of child abuse and neglect. This system provides services to children who have been abused or neglected and their families. The goal of this system is to keep children in their home when it is safe, and when the child is at risk, to develop an alternative plan as quickly as possible^[1]. Social workers in each county receive reports of abuse or neglect, and work to investigate and resolve those reports. When the investigation substantiates the allegations of abuse or neglect, a family is either provided with services to ensure a child’s wellbeing and avoid court involvement, or a child is removed from the family and placed into foster care. In 2025, the state’s child welfare agencies received 398,861 reports of abuse or neglect. Of these, 45,856 reports contained substantiated allegations, and 17,886 children were removed from their homes and placed into foster care via the CWS system.

Social Security Income/State Supplementary Payments (SSI/SSP)

SSI is a federally funded federal assistance program designed to provide financial support to the elderly, blind, and disabled individuals with limited income and resources, and to help recipients meet basic needs such as food, shelter, and clothing. SSP is a supplemental payment added to the SSI benefit and is funded by the state General Fund.

Title II of the Social Security Act authorizes the Old-Age, Survivors, and Disability Insurance program. These benefits are not need-based, so there is no income or asset restrictions, and the program is funded through payroll taxes. Title II benefits act as “insurance” to replace income lost to a family due to the worker’s retirement, disability, or death. A child in foster care may be eligible to receive Title II benefits if they have a parent that has earned enough income, as determined by the Social Security Act, and is disabled, deceased, or entitled to old-age insurance benefits.

Under current law, California’s counties are required to screen foster youth over the age of 16 for potential eligibility for SSI benefits. Foster youth may be eligible for federal benefits under the Social Security Act, including SSI benefits, survivor benefits and disability benefits. Typically foster youth under 18 do not receive their benefits directly, instead having a representative payee receive the checks. A representative payee can by the county, though the law suggests they should be the payee of last resort. The representative payee must use the money to pay for the basic needs of the youth. If all of the money is not needed for the youth’s basic needs, the remaining money must be deposited into a “maintenance account” which the youth cannot access until the are 18. AB 2906 (Bryan, Chapter 623, Statutes of 2024) requires when a county serves as the representative payee for a foster youth receiving federal SSA survivors’ benefits, to ensure that their benefits are not used to pay for, or to reimburse the county for, any costs of the child’s care and supervision. This bill extends this prohibition to all SSA Title II benefits.

Related/Prior Legislation:

AB 2906 (Bryan, Chapter 623, Statutes of 2024) requires, when a county serves as the representative payee for a foster youth receiving federal SSA survivors’ benefits, to ensure that their benefits are not used to pay for, or to reimburse the county for, any costs of the child’s care and supervision. Requires counties to notify the child, their attorney, and parents or guardians, if an application for survivors’ benefits has been made on the child’s behalf.

AB 1512 (Bryan, 2023) would have expanded the information counties are required to provide to foster youth receiving SSI benefits who are approaching their 18th birthday, to include information regarding all federal SSA benefits, and required counties to ensure that the child’s benefits are not used to pay for, or to reimburse the placing agency for, any costs of the child’s care and supervision. The bill would have required the county, prior to applying to be appointed representative payee, to send a written notice of the intent to be appointed to the child’s counsel and parents or legal guardians. AB 1512 was vetoed by Governor Newsom.

COMMENTS

This bill builds on previous legislation, AB 2906 (Bryan, 2024) which prohibits survivor benefits from being used to pay for the cost of a child’s care or to reimburse the county for the cost of a child’s care. This bill extends that prohibition to all Title II payments, which includes retirement benefits, disability, in addition to survivor benefits—all programs that the parent would have paid into. Children in foster care often face many challenges when they emancipate, including heightened rates of homelessness, struggles to stay in college and other financial challenges. By prohibiting Title II payments from being used for the cost of a child’s care, this bill could result in more children exiting foster care with more money in savings.

PRIOR VOTES

POSITIONS

Support:

Alliance for Children's Rights (Co-Sponsor)

Center for Public Interest Law/Children's Advocacy Institute/University of San Diego (Co-Sponsor)
Children's Law Center of California (Co-Sponsor)

Youth Law Center (Co-Sponsor)
Aspiranet
California Alliance of Child and Family Services
California Coalition for Youth
Coalition of California Welfare Rights Organizations
Dependency Legal Services
Public Counsel

Oppose:

None received

-- END --

1. https://www.cdss.ca.gov/inforesources/child-welfare-protection/policies ↑

ASSEMBLY THIRD READING

ATR Bill Id:AB 1080

Author:(Bryan)

As Amended Ver:January 22, 2026

Majority vote

SUMMARY

Prohibits counties serving as the representative payee for a foster youth receiving federal Social Security Administration (SSA) Title II benefits based on the work record of a parent who is retired, has a disability, or is deceased, from using those funds to offset the cost of foster care placement.

Major Provisions

1. Clarifies that the county, in its capacity as representative payee, is required to use Supplemental Security Income/State Supplementary Payment (SSI/SSP) benefits only for the use and benefit of the child or nonminor dependent (NMD) and/or for the purposes determined by the county, with input from the youth's Child and Family Team, to be in their best interests; and, broadens the requirement to ensure the child or NMD's federal benefits are used for the youth, consistent with existing law, to include SSA benefits under Title II (Retirement, Survivors, Disability Insurance), not just survivors' benefits.
2. Expands requirements placed on counties to ensure federal survivors' benefits are not used to pay for, or to reimburse the placing agency for, any costs of the foster youth's care and supervision, by including all federal SSA benefits provided under Title II.
3. Requires the county placing agency to also provide information and documentation, upon request, to the child, the child's attorney, and the child's parents or guardians regarding whether the child is currently receiving, entitled to receive, or has established eligibility for, any federal SSA benefits.
4. Clarifies that county placing agencies are required to file requests for reconsideration for foster youth for whom eligibility for federal SSA benefits has been terminated.
5. Makes technical and conforming changes.

COMMENTS

Background: Previous Efforts. This bill is similar to AB 1512 (Bryan) of 2023, which was vetoed by Governor Newsom. The Governor's veto message stated:

This bill would require counties to take additional actions relating to foster youth eligibility for all federal Social Security Administration (SSA) benefits and would prohibit using a child's benefits to pay for any costs of the child's care.

I share the author's commitment to ensure that foster youth receive the benefits and support services they need. However, this bill creates implementation challenges that should be considered as part of the annual budget process. Both Supplemental Security Income (SSI) and foster care benefits are intended to provide for the daily care and supervision of youth, including costs for housing and food. If counties are not permitted to use SSI to cover the cost of providing care to foster youth, the General Fund will need to offset those costs. This was not contemplated as part of the budget process.

In partnership with the Legislature, we enacted a budget that closed a shortfall of more than $30 billion through balanced solutions that avoided deep program cuts and protected education, health care, climate, public safety, and social service programs that are relied on by millions of Californians. This year, however, the Legislature sent me bills outside of this budget process that, if all enacted, would add nearly $19 billion of unaccounted costs in the budget, of which $11 billion would be ongoing.

In order to address Governor Newsom's concerns stated above, the author of this bill introduced a subsequent bill that was signed into law, AB 2906 (Bryan), Chapter 623, Statutes of 2024, that narrowed the provisions of AB 1512 to only pertain to restricting counties from using federal SSA survivors' benefits, and submitted a budget request to supplement county foster care costs to account for counties no longer collecting and redeeming SSA survivor benefits on behalf of foster youth in their care.

Under current law, counties are still able to use Social Security SSI benefits to recoup the costs of a child's foster care. This bill would require counties to ensure that no federal SSA benefits under Title II are being used to pay for, or to reimburse the placing agency for, any costs of the foster youth's care and supervision.

Federal Social Security benefits under Title II of the SSA Act are insurance programs funded by payroll taxes. These are benefits that are earned based on a worker's employment history and are not means-tested.

Federal Social Security Administration Benefits and Foster Youth. Foster youth can be eligible for different types of federal benefits under the SSA, which administers different benefit programs that include survivor benefits, SSI benefits, and social security disability benefits (SSDI). Foster youth can become eligible for SSA benefits because of the disability, retirement, or death of a parent, and can become eligible for SSI because of their own disability.

1. Survivor Benefits: If a foster youth in care has a biological parent who has died, then they may be eligible to receive survivors' benefits, which are based on the work history of their deceased parent.
2. SSI Benefits: Some youth with disabilities nearing their transition out of foster care are eligible for SSI, which is a needs-based program administered by the SSA. SSI provides payments to people with low-income who are 65 years of age or older, blind, or disabled and who meet strict eligibility rules.
3. SSDI: This program is for individuals who have worked in jobs covered by Social Security and have earned enough "work credits" through their working life.

Typically, foster youth under 18 years of age who receive federal SSA benefits do not receive their benefits check directly. Instead, a person called a "representative payee,"—which can be a relative, adult friend, or the county—receives the check. Existing law states that the county should be the payee of last resort, applying only when no other appropriate party is available to serve.

As the representative payee, the county may use the child's SSA benefit to offset the cost of the care it provides to the child in foster care. In fact, in 2003 the Supreme Court unanimously upheld the right of the states to offset the costs of foster care with its ruling in Washington State Department of Social and Health Services v. Guardianship Estate of Danny Keffeler, 537 U.S. 371. The Court noted in its ruling that prohibiting a state from doing so could disadvantage children in foster care because the state would not maintain the child's SSI eligibility.

County Requirements to Establish and Maintain Accounts. Current law requires counties to monitor any applicable federal asset, resource, or income limits for the foster youth's benefits and ensure that their best interests are served by conserving the benefits in a way that avoids termination of those benefits as a result of exceeding the federal asset, resource, or income limits, including establishing and maintaining a dedicated account on behalf of the foster youth to preserve eligibility for other benefits to which the child may be entitled.

In its capacity as a representative payee, the county has a list of requirements to follow that include establishing a no-cost, interest-bearing maintenance account for each foster youth. Interest earned is required to be credited to the account and the county must keep an itemized current account, in the manner required by federal law, of all income and expense items for each foster youth's maintenance account.

This bill clarifies the county must establish and maintain an individual maintenance account, or any other appropriate account type, on behalf of the child and preserving eligibility for other benefits to which the child may be entitled.

According to the Author

"[This bill] continues years of progress away from the archaic practice of recouping the costs of a child's time in foster care through collecting their federal Social Security Administration benefits. Federal law explicitly places the financial responsibility of care on foster care agencies, but for decades agencies have used survivors benefits and disability benefits to reimburse themselves. California stopped this practice for survivors benefits, but agencies can continue to use a child's disability benefits as a way to backfill their costs. [This bill] will end this practice completely and ensure that all federal Social Security Administration benefits are used in the best interest of a foster youth, or conserved for the youth to access once they have exited the system."

Arguments in Support

According to co-sponsor, the Children's Law Center of California, "Currently, many youth in foster care who qualify for federal Supplemental Security Income (SSI) or Retirement, Survivors, Disability Insurance (RSDI) benefits have these funds managed by county placing agencies acting as their representative payee. However, these funds are too often used to offset foster care system costs rather than conserved for the youth's personal needs and future financial security. Additionally, many county placing agencies allow SSA benefits eligibility to lapse while a child is in foster care. These practices undermine the intended purpose of these benefits, leaving many youth in foster care without financial resources when they age out of care or exit foster care to permanency.

Arguments in Opposition

None on file.

FISCAL COMMENTS

According to the Assembly Appropriations Committee on January 22, 2025:

1. Estimated ongoing General Fund (GF) costs to the California Department of Social Services (CDSS) of an unknown amount annually to offset the loss of SSA Title II benefit reimbursement to counties, and approximately $700,000 annually for increased county social worker duties, including applying for reconsideration when SSA benefits are terminated, providing an accounting of resources upon request, and documenting and providing information on whether the child is currently receiving, entitled to receive, or has established eligibility for SSA benefits.  

Although these county costs are mandated by the state, they are not reimbursable but instead must be paid by the state pursuant to Proposition 30 of 2012. Proposition 30 requires legislation enacted after September 30, 2012, that has an overall effect of increasing the costs already borne by a local agency for programs or levels of service mandated by realignment (including child welfare services and foster care) applies to local agencies only to the extent the state provides annual funding for the cost increase.

1. One-time costs to CDSS of approximately $1.6 million (GF) in fiscal year 2027-28 for automation updates to the Child Welfare Services California Automated Response and Engagement System (CWS-CARES), and for an intergovernmental MOU with tribal governments to establish tribal participation.

VOTES

ASM HUMAN SERVICES: 7-0-0

YES: Lee, Castillo, Calderon, Elhawary, Jackson, Celeste Rodriguez, Tangipa

ASM APPROPRIATIONS: 11-0-4

YES: Wicks, Stefani, Calderon, Caloza, Fong, Mark González, Krell, Bauer-Kahan, Pacheco, Pellerin, Solache

ABS, ABST OR NV: Hoover, Dixon, Ta, Tangipa

UPDATED

VERSION: January 22,2026

CONSULTANT: Jessica Langtry / HUM. S. / (916) 319-2089 FN: 0002267

Date of Hearing: January 22, 2026

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Buffy Wicks, Chair

ABPCA Bill Id:AB 1080

Author:(Bryan) – As Amended Ver:April 22, 2025

Urgency: No State Mandated Local Program: Yes Reimbursable: No

SUMMARY:

This bill prohibits a county serving as the representative payee for a foster youth receiving federal Social Security Administration (SSA) benefits from using those funds to offset the cost of foster care placement and expands the types of maintenance accounts the county may establish on behalf of the youth to conserve benefits.

Specifically, this bill:

1. Expands the requirement that a county, in its capacity as representative payee, must use Supplemental Security Income/State Supplementary Payment (SSI/SSP) benefits for the purposes determined by the county to be in the child’s or nonminor dependent’s (NMD) best interest, to also require input from the youth’s Child and Family Team.
2. Expands the requirement that a county ensure federal survivors’ benefits are not used to pay for, or to reimburse the placing agency for, any costs of the foster youth’s care and supervision, to include all federal SSA benefits.
3. Expands the list of accounts a county acting as a representative payee may establish and maintain on behalf of a foster youth to conserve their benefits in a way that avoids termination of those benefits as a result of exceeding the federal asset, resource, or income limits, to include a Plan to Achieve Self-Support account, a 529A plan, among others.
4. Requires a county placing agency to also provide information and documentation, upon request, to the child, the child’s attorney, and the child’s parents or guardians regarding whether the child is currently receiving, entitled to receive, or has established eligibility for, any federal SSA benefits.
5. Requires a county placing agency to file a request for reconsideration for a foster youth for whom eligibility for federal SSA benefits has been terminated.
6. Expands provisions related to NMDs receiving SSI and the associated requirements for counties to also apply to minor foster youth.

FISCAL EFFECT:

The California Department of Social Services (CDSS) estimates total General Fund costs ranging from $11.6 million to multiple tens of millions of dollars annually to reimburse counties for the loss of SSI benefit payments and for administrative and automation costs of expanding current survivor benefit protections and services to all foster youth who are federal SSA beneficiaries, including those receiving SSI.  

Specifically:

1. Estimated ongoing General Fund (GF) costs of approximately $9.2 million annually to offset the loss of SSA/SSI benefit reimbursement to counties, and approximately $700,000 annually for increased county social worker duties, including applying for reconsideration when SSA benefits are terminated, maintaining specified dedicated accounts for recipients, providing an accounting of resources upon request, and documenting and providing information on whether the child is currently receiving, entitled to receive, or has established eligibility for SSA benefits.  

Although these county costs are mandated by the state, they are not reimbursable but instead must be paid by the state pursuant to Proposition 30 of 2012. Proposition 30 requires legislation enacted after September 30, 2012, that has an overall effect of increasing the costs already borne by a local agency for programs or levels of service mandated by realignment (including child welfare services and foster care) applies to local agencies only to the extent the state provides annual funding for the cost increase.

1. One-time costs of $1.6 million (GF) in fiscal year 2027-28 for automation updates to the Child Welfare Services California Automated Response and Engagement System (CWS-CARES), and for an intergovernmental MOU with tribal governments to establish tribal participation.

COMMENTS:

1. Purpose. According to the author:

Federal law explicitly places the financial responsibility of care on foster care agencies, but for decades agencies have used survivors’ benefits and disability benefits to reimburse themselves. California stopped this practice for survivors’ benefits, but agencies can continue to use a child's disability benefits as a way to backfill their costs. [This bill] will end this practice completely and ensure that all federal SSA benefits are used in the best interest of a foster youth or conserved for the youth to access once they have exited the system.

1. Background. Under existing federal and state laws, foster youth may be eligible for federal benefits under the SSA, including SSI benefits, survivor benefits, and disability benefits. County placing agencies in California are required to screen and apply for SSI benefits on behalf of eligible youth in their care who are over the age of 16.

Typically, foster youth under 18 years of age who receive federal SSA benefits do not receive their benefits check directly. Instead, a "representative payee," a relative, adult friend, or the county, receives the check. Existing law suggests the county should be the payee of last resort - applying only when no other appropriate party is available to serve.

The representative payee must use the benefit money to pay for basic needs, such as medical care, housing, clothing, food and personal comfort items, for the youth. If SSA payments are not needed for such items, the payee must deposit the money into a "maintenance account" which can be accessed by the youth when they reach 18 years of age. Per federal rules, a maintenance account cannot exceed $2,000. Counties work with the youth and caregiver to spend down the funds in the maintenance account to meet youth’s basic needs pursuant to state and federal requirements.

AB 1512 (Bryan), of the 2023-24 Legislative Session, was similar to this bill, but was vetoed by the Governor, who was concerned that the costs were not contemplated as part of the budget process. In response, the author introduced a narrowed bill, AB 2906 (Bryan), Chapter 623, Statutes of 2024, requiring a county serving as the representative payee for a foster youth to ensure only federal SSA survivors' benefits are not used to pay for, or to reimburse the county for, any costs of the child's care and supervision.

This bill, like AB 1512, requires a county to ensure no federal SSA benefits are used to pay for, or to reimburse the placing agency for, any costs of the foster youth’s care and supervision.

Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081

Date of Hearing: April 29, 2025

ASSEMBLY COMMITTEE ON HUMAN SERVICES

Alex Lee, Chair

ABPCA Bill Id:AB 1080 (

Author:Bryan) – As Amended Ver:April 22, 2025

SUBJECT: Foster care payments

SUMMARY: Prohibits counties serving as the representative payee for a foster youth receiving federal Social Security Administration (SSA) benefits, from using those funds to offset the cost of foster care placement, and expands the types of maintenance accounts the county can establish on behalf of the youth in order to conserve benefits. Specifically, this bill:

1. Clarifies that the county, in its capacity as representative payee, is required to use Supplemental Security Income/State Supplementary Payment (SSI/SSP) benefits only for the use and benefit of the child or nonminor dependent (NMD) and/or for the purposes determined by the county, with input from the youth’s Child and Family Team, to be in their best interests; and, broadens the requirement to ensure the child or NMD’s federal benefits are used for the youth, consistent with existing law, to include all SSA benefits, not just survivors’ benefits.
2. Expands requirements placed on counties to ensure federal survivors’ benefits are not used to pay for, or to reimburse the placing agency for, any costs of the foster youth’s care and supervision, by including all federal SSA benefits.
3. Expands the type of accounts counties acting as a representative payee, are required to establish on behalf of the foster youth in order to conserve their benefits in a way that avoids termination of those benefits as a result of exceeding the federal asset, resource, or income limits, to include a Plan to Achieve Self-Support (PASS) account, a 529A plan, including a CalABLE account (established by the federal Achieving a Better Life Experience [ABLE] Act), an individual development account (IDA), an individual or pooled special needs trust, or other appropriate account type.
4. Requires the county placing agency to also provide information and documentation, upon request, to the child, the child’s attorney, and the child’s parents or guardians regarding whether the child is currently receiving, entitled to receive, or has established eligibility for, any federal SSA benefits.
5. Clarifies that county placing agencies are required to file requests for reconsideration for foster youth for whom eligibility for federal SSA benefits has been terminated.
6. Expands provisions related to NMDs receiving Supplemental Security Income (SSI) and the associated requirements for counties, during at least 1 month of every 12-month period, beginning with the date that the SSI benefit is placed in suspense, to forego the federally funded AFDC-FC benefit and instead use nonfederal Aid to Families with Dependent Children-foster Care (AFDC-FC) resources to supplement the SSI benefit that the youth receives during that month, to also apply to minor foster youth.
7. Makes technical and conforming changes.

EXISTING LAW:

State law:

1. Provides that a child who has suffered, or is at substantial risk of suffering, abuse or neglect, as provided, by the child’s parent or guardian is within the jurisdiction of the juvenile court, which may adjudge the child a dependent child. (Welfare and Institutions Code [WIC] § 300)
2. States that the purpose of foster care law is to provide maximum safety and protection for children who are currently being physically, sexually, emotionally abused, neglected, or exploited, and to ensure the safety, protection, physical, and emotional well-being of children who are at risk of harm. (WIC § 300.2)
3. Defines “nonminor dependent” as a current or former foster youth who is a current dependent child or ward of the juvenile court, or who is a nonminor under transition jurisdiction of the juvenile court, who is between 18 and 21 years of age, in foster care under the responsibility of the county welfare department, county probation department, or Indian tribe, and participating in a transitional independent living plan, as specified. (WIC § 11400(v))
4. Defines “eligible for financial participation” to mean that the payment is consistent with a federally approved state plan authorizing federal financial participation in the AFDC-FC payment. Further, prohibits, until and unless federal financial participation is obtained, no payment of AFDC-FC to be made from either state or county funds on behalf of a child determined to be eligible for AFDC-FC solely as a result of certain litigation, as specified. (WIC § 11402.1)
5. States it is the intent of the Legislature that individuals who have had their eligibility for federal SSI benefits established be able to maintain that eligibility even when they remain in the state’s care as an NMD. In order to facilitate this, it is the intent of the Legislature that the county placing agency ensure that the youth receives an SSI payment during at least 1 month of each 12-month period while the youth is an NMD. It is further the intent of the Legislature that the county placing agency supplement the SSI payment that a youth receives during this 1-month period with nonfederal AFDC-FC benefits. (WIC § 13754(a))
6. Makes the following legislative findings: that the State of California has utilized federal benefits administered by the federal SSA to offset the cost of foster care placement and that the utilization of these funds to support youth and young adults with their transition to adulthood would meet an urgent need for a population that is at high risk of homelessness; and that it is in a child’s best interests to ensure that federal survivors’ benefits for which they are eligible are available for their current and future use. Declares legislative intent that federal SSA survivors’ benefits received by a child or youth in foster care shall not be utilized by the county placing agency to offset the cost of the child or youth’s care, and that placing agencies shall instead conserve those funds for the future use of the beneficiary. (WIC § 13756(a))
7. Requires the county, in its capacity as representative payee, to do all of the following:
8. Establish a no-cost, interest-bearing maintenance account for each child in the department’s custody, and NMD in the department’s placement and care responsibility, for whom the department serves as representative payee. Requires interest earned to be credited to the account and for the county to keep an itemized current account, in the manner required by federal law, of all income and expense items for each child’s and NMD’s maintenance account;
9. Establish procedures for disbursing money from the accounts, including disbursing the net balance to the beneficiary upon release from care. Requires the county to use federal SSA funds, including benefits only for the following purposes:
10. The use and benefit of the child or NMD; and,
    
11. For purposes determined by the county to be in the child’s or NMD’s best interests.
12. Establish and maintain a dedicated account in a financial institution for past-due monthly benefits that exceed six times the maximum monthly benefit payable, in accordance with federal law. Authorizes the representative payee to deposit into the account any other funds representing past due benefits to the eligible individual, provided that the amount of the past due benefits is equal to or exceeds the maximum monthly benefit payable. Prohibits funds from the dedicated account from being used for basic maintenance costs. The use of funds from the dedicated account must be for the benefit of the child and are limited to expenditures for the following purposes:
13. Medical treatment;
    
14. Education or job skills training;
    
15. Personal needs assistance;
    
16. Special equipment;
    
17. Housing modification;
    
18. Therapy or rehabilitation; and,
    
19. Other items or services, deemed appropriate by the federal SSA.
20. Ensure the child’s or NMD’s federal survivors’ benefits are used for the child or NMD, consistent with existing law as described in 5) above. (WIC § 13754(d))
21. Requires the county to apply to be the appointed representative payee on behalf of a child beneficiary in its custody when no other appropriate party is available to serve. Further requires the county to provide information to NMDs, and assist NMDs with becoming their own payee or finding and designating an appropriate representative. (WIC § 13754(b)(1)-(2))
22. Requires counties serving as representative payees for a foster child or youth’s SSI benefits to follow certain best practices, including the creation of no-cost, interest bearing maintenance accounts for each child the county serves as representative payee for, itemized expenditures from the account, creation of procedures for disbursing money from the account, limitations on the purposes for which deductions may be made from the accounts, as provided. (WIC § 13754(c))
    
23. Requires the county to screen every youth in foster care who is nearing emancipation for potential eligibility for the federal SSI program, utilizing best practice guidelines, as provided. (WIC § 13757(a)(1))
24. Requires the county SSI screening only to occur when the foster youth is at 16 to 17 years of age and requires an application be submitted to the SSA on behalf of a youth who is screened as being likely to be eligible for SSI. Further requires, to the extent possible, the application be timed to allow for a determination of eligibility by the SSA prior to the youth’s emancipation from care including, if appropriate, the suspension of SSI benefits for no more than 12 months. (WIC § 13757(a)(2))
25. Requires, in the case of a youth receiving federally funded AFDC-FC benefits, the county to forego federally funded AFDC-FC and instead use nonfederal AFDC-FC resources to fund the placement in the month of the SSI application or in the month after making an application, and to subsequently reclaim federally funded AFDC-FC in order to ensure the youth meets all of the SSI eligibility requirements in a single month while the application is pending, as provided by federal law and regulation. Further requires the county child welfare agency to forego the federally funded AFDC-FC benefit and instead use nonfederal AFDC-FC resources to supplement the SSI benefit that the youth receives during at least one month of every 12-month period, in instances where an NMD has been approved for SSI benefits. (WIC § 13757(b)-(c))

Federal law:

1. Provides that if payments are not needed for the beneficiary's current maintenance or reasonably foreseeable needs, they shall be conserved or invested on behalf of the beneficiary. (20 Code of Federal Regulations § 416.645)
2. Establishes eligibility criteria for child survivors’ benefits for certain children of individuals who are deceased and were insured under the SSA program. (42 United States Code § 402(d))

FISCAL EFFECT: Unknown, this bill has not been analyzed by a fiscal committee.

COMMENTS:

Background: Child Welfare Services (CWS). California’s CWS system exists to protect children from abuse and neglect, and in doing so, provides for their health, safety, and overall well-being. When suspicions of abuse or neglect arise, often as a result of a report by a mandated reporter like a doctor or teacher, Child Protective Services is tasked with investigating the report. If the allegation of abuse or neglect is substantiated, it is then determined whether it is in the best interest of the child to remain in their parent’s custody or be placed within the CWS system. If a child is suspected to be at risk of neglect, abuse, or abandonment, the juvenile court holds legal jurisdiction, and the CWS system appoints a social worker to ensure that the needs of a youth are met.

The California Department of Social Services (CDSS) secures federal funding to support child welfare services programs, provides statewide best practices training for social workers, conducts program regulatory oversight and administration, and is responsible for the development of policy, while also providing direct services such as adoption placements.

As of January 1, 2025, there are 38,894 youth between birth and 20 years of age in foster care in California.

Previous Efforts. This bill is similar to AB 1512 (Bryan) of 2023, which was vetoed by Governor Newsom. The Governor’s veto message stated:

This bill would require counties to take additional actions relating to foster youth eligibility for all federal Social Security Administration (SSA) benefits and would prohibit using a child's benefits to pay for any costs of the child's care.

I share the author's commitment to ensure that foster youth receive the benefits and support services they need. However, this bill creates implementation challenges that should be considered as part of the annual budget process. Both Supplemental Security Income (SSI) and foster care benefits are intended to provide for the daily care and supervision of youth, including costs for housing and food. If counties are not permitted to use SSI to cover the cost of providing care to foster youth, the General Fund will need to offset those costs. This was not contemplated as part of the budget process.

In partnership with the Legislature, we enacted a budget that closed a shortfall of more than $30 billion through balanced solutions that avoided deep program cuts and protected education, health care, climate, public safety, and social service programs that are relied on by millions of Californians. This year, however, the Legislature sent me bills outside of this budget process that, if all enacted, would add nearly $19 billion of unaccounted costs in the budget, of which $11 billion would be ongoing.

In order to address Governor Newsom’s concerns stated above, the author of this bill introduced a subsequent bill that was signed into law, AB 2906 (Bryan), Chapter 623, Statutes of 2024, that narrowed the provisions of AB 1512 to only pertain to restricting counties from using federal SSA survivors’ benefits, and submitted a budget request to supplement county foster care costs to account for counties no longer collecting and redeeming SSA survivor benefits on behalf of foster youth in their care. However, the Governor’s January 10, 2025, Budget does not identify any specific funding to implement AB 2906.

Under current law, counties are still able to use Social Security SSI benefits to recoup the costs of a child's foster care. This bill would require counties to ensure that no federal SSA benefits are being used to pay for, or to reimburse the placing agency for, any costs of the foster youth’s care and supervision.

Federal and State AFDC-FC. Funding to provide for the needs of youth in California’s foster care system is provided by either the state or federal government. Federal AFDC-FC, also referred to as Title IV-E funding, is the aid provided on behalf of needy children in foster care who meet the eligibility requirements. In order to be eligible for federal AFDC-FC, the home from which a foster youth was removed must meet AFDC-FC eligibility criteria from 1996. Specifically, during the month of removal or one of the six months prior to removal, the youth must have been eligible for or receiving federal public assistance as of July 16, 1996, in that home. In 1996, the monthly income limit for a family of three to qualify for AFDC-FC was $723.

Because the criteria to receive federal AFDC-FC funding is rarely met due to the limit being so low, California created state AFDC-FC, which blends state and county funds to provide for youth who are otherwise ineligible for federal AFDC-FC. Under state AFDC-FC, counties provide payments to foster care providers on behalf of qualified children in foster care according to a schedule of basic rates, administered by CDSS, to pay for the care and supervision of each foster child. In summary, state AFDC-FC is primarily funded and governed by state-specific rules, while federal AFDC-FC involves a combination of federal, state, and county resources.

Current law requires CDSS to administer a state system for establishing rates within the state AFDC-FC program. CDSS has finalized a new, permanent rate structure, set to take effect in 2026, which will be based on the child’s assessed level of needs and strengths, rather than the placement type. Full implementation is anticipated as early as Fiscal Year 2026-27.

Due to federal funding rules for Title IV-E programs, SSI benefits and federal foster care payments cannot be drawn down at the same time for a child in foster care. As a result, counties must choose which funding source to draw down for the care of the foster youth, typically choosing the larger federal foster care rate over SSI payments, which places the SSI payments in suspense. However, in order to maintain SSI eligibility, counties will, at least one month out of every 12-month period, forego the federally funded AFDC-FC benefit and instead use nonfederal AFDC-FC resources to supplement the SSI benefit that the youth receives during that month.

This bill would require counties to instead draw down federal SSI benefits for all children in foster care who may qualify, which, as noted by the County Welfare Directors Association of California, would effectively shift any federally eligible foster youth into state-only funding because counties would not only be required to draw down the SSI funds, but also prohibited from using them for the child’s care.

Federal Social Security Administration Benefits and Foster Youth. Foster youth can be eligible for different types of federal benefits under the SSA, which administers different benefit programs that include survivor benefits, SSI benefits, and social security disability benefits (SSDI). Foster youth can become eligible for SSA benefits because of the disability, retirement, or death of a parent, and can become eligible for SSI because of their own disability.

• Survivor Benefits: If a foster youth in care has a biological parent who has died, then they may be eligible to receive survivors’ benefits, which are based on the work history of their deceased parent. Eligibility and benefit amounts are determined by the worker's contributions to Social Security through either payroll taxes or self-employment taxes. Current state law prohibits counties from using these benefits to offset the cost of care and supervision of a foster youth.
• SSI Benefits: Some youth with disabilities nearing their transition out of foster care are eligible for SSI, which is a needs-based program administered by the SSA. SSI provides payments to people with low-income who are 65 years of age or older, blind, or disabled and who meet strict eligibility rules. SSA determines low-income status based on current income and resources. SSA defines adult disability as the inability to engage in substantial gainful activity because of any medically determinable physical or mental impairment which has lasted for a continuous period of not less than 12 months or is expected to result in death.

SSA defines disability differently for children. Most children in foster care are not eligible for SSI payments, even if they meet the childhood disability definition, because their federal foster care payments exceed the income limit for SSI eligibility. An individual must meet both income and need standards to qualify and provide monthly benefits to qualified retired and disabled workers and their dependents, and to survivors of insured workers. There is a resource limit of $2,000 for individuals receiving SSI.

• SSDI: This program is for individuals who have worked in jobs covered by Social Security and have earned enough "work credits" through their working life. To qualify, an applicant must have a severe disability that lasts at least 12 months or is expected to result in death. Typically, younger applicants require fewer work credits compared to older applicants. Foster youth can be eligible for auxiliary SSDI benefits if a biological parent is receiving SSDI. In those cases, the foster youth would qualify based on their parent’s work record. There are no asset limits for SSDI.

Typically, foster youth under 18 years of age who receive federal SSA benefits do not receive their benefits check directly. Instead, a person called a "representative payee,”—which can be a relative, adult friend, or the county—receives the check. Existing law states that the county should be the payee of last resort, applying only when no other appropriate party is available to serve.

As the representative payee, the county may use the child’s SSA benefit to offset the cost of the care it provides to the child in foster care. In fact, in 2003 the Supreme Court unanimously upheld the right of the states to offset the costs of foster care with its ruling in Washington State Department of Social and Health Services v. Guardianship Estate of Danny Keffeler, 537 U.S. 371. The Court noted in its ruling that prohibiting a state from doing so could disadvantage children in foster care because the state would not maintain the child’s SSI eligibility.

The payee must use that money to pay for things like medical care, housing, clothing, food and personal comfort items. When there is money left over from SSA payments that are not needed to pay for such items, the payee deposits the money into a bank account called a "maintenance account," which can be accessed by the youth when they reach 18 years of age. Maintenance accounts cannot exceed $2,000 (due to federal SSI rules). If assets exceed $2,000, the child/youth can lose SSI eligibility. Counties work with the youth and caregiver to spend down the funds in the maintenance account to meet the youth’s basic needs, pursuant to AB 1633 (Evans), Chapter 641, Statutes of 2005, and federal requirements.

If the county has been serving as a foster youth’s representative payee, when they reach 18 years of age, the county is required to assist these youth in receiving their own SSA checks or to find a responsible adult to be appointed as the representative payee. County social workers are required to help with transition planning, which may include keeping SSA benefits after exiting foster care. If a youth is already receiving SSI when they reach 18 years of age, the SSA will ask for information related to the disability around the time the youth turns 18 to make a determination whether they will qualify for SSI under the adult rules, a practice called an Age 18 Redetermination. For SSA to find that a youth is eligible for SSI as an adult, they must have a medical condition that keeps them from working.

California led the way in the nation in establishing laws that work to ensure youth are appropriately screened for SSI eligibility while in care. AB 1633 established a workgroup whereby counties and child welfare stakeholders developed best practice guidelines for establishing and maintaining social security eligibility for youth in foster care. Recommendations issued by the workgroup were included in a subsequent bill, AB 1331 (Evans), Chapter 465, Statutes of 2007, which required all counties to screen foster youth and submit applications on their behalf between 16 years of age and six months and 17 years of age and six months as a means of ensuring SSI benefits are in place when the youth turns 18. As a result of AB 1331, counties can transfer a foster youth’s case from federal foster care benefits to state foster care benefits for one month to allow the SSA to accept and process a SSI application before a foster youth exits foster care.

Many children who come into CWS custody suffer not only from abuse or neglect, but also have serious physical or mental disabilities. These children with disabilities may qualify for additional assistance through federal social security benefits and/or SSI/SSP. The State Supplemental Program (SSP) is a state-funded program that provides additional cash assistance to individuals already receiving SSI to help them afford basic living costs. Individuals who qualify for SSI automatically qualify for SSP.

Following the legislative efforts to ensure best practices for youth maintaining SSI eligibility in foster care, in 2008, the SSA granted the state approval to allow California's disabled foster youth to apply for SSI/SSP benefits prior to 18 years of age; in early 2010, the SSA issued a nationwide directive allowing other states to follow suit.

SSI and AFDC-FC Benefits. As noted by the November, 2024 Request for Information (RFI) from SSA, the federal Department of Health and Human Services, and the Administration of Children and Families on the use and conservation of Social Security Benefits and SSI payments that representative payees receive for beneficiaries residing in foster care, “Whether these children receive benefits during their stay in foster care, and how benefits are managed on their behalf if they do receive them, have emerged as complex policy and operational issues in recent years.”

Current law requires the county to, when an NMD has been approved for SSI payments, but is receiving a federally funded AFDC-FC benefit in an amount that exceeds the SSI payment, causing the SSI payment to be placed in suspense, during at least 1 month of every 12-month period, beginning with the date that the SSI benefit is placed in suspense, forego the federally funded AFDC-FC benefit and instead use state-funded AFDC-FC resources to supplement the SSI benefit that the youth receives during that month. The county is subsequently required to reclaim the federally funded AFDC-FC benefit in the following month.

To keep eligibility for SSI benefits, counties only need to forego federal funding one month a year. The remaining months, counties can forego the child's disability benefits and continue to draw down federal AFDC-FC benefits for the costs of the youth's care.

If the county is the foster youth’s representative payee, the county is required to inform the federal SSA that the youth is not receiving any federal financial participation during that month in order to permit the youth to receive an SSI benefit during a single month in every 12-month period.

If the county is not the foster youth’s representative payee, in order to permit the receipt of an SSI benefit during a single month in every 12-month period, the county is required to assist in providing this information to the federal SSA and keeping track of the number of months the SSI payment has been placed in suspense.

This bill makes conforming changes to this statute to apply to all foster youth and not just NMDs and to ensure that a youth’s SSI benefits are not improperly terminated for being in suspense for 12 months.

County Requirements to Establish and Maintain Accounts. Current law requires counties to monitor any applicable federal asset, resource, or income limits for the foster youth’s benefits and ensure that their best interests are served by conserving the benefits in a way that avoids termination of those benefits as a result of exceeding the federal asset, resource, or income limits, including establishing and maintaining a dedicated account on behalf of the foster youth to preserve eligibility for other benefits to which the child may be entitled.

In its capacity as a representative payee, the county has a list of requirements to follow that include establishing a no-cost, interest-bearing maintenance account for each foster youth. Interest earned is required to be credited to the account and the county must keep an itemized current account, in the manner required by federal law, of all income and expense items for each foster youth’s maintenance account.

This bill adds to the types of accounts the county must establish and maintain to include a PASS account, a 529A plan, including a CalABLE account, an IDA, an individual or pooled special needs trust.

A PASS account is a written plan that allows income to be set aside, other than SSI, and other things an individual owns for a specified time to help recipients reach their work goals. A 529A account refers to the ABLE Act, which allows states to create tax-advantaged savings and investment programs for people with disabilities. A CalABLE account implements the ABLE program in California and is a type of investment and savings account designed for individuals with disabilities, allowing them to save and invest money without losing eligibility for certain benefits programs, such as SSI. Eligible individuals can save up to $18,000 a year without jeopardizing their government assistance. An IDA is a type of account that allows recipients to save up money to buy a home, pay for higher education, or fund their own small business. An individual or pooled special needs trusts provide options for preserving settlement funds and maintaining needs-based benefits for individuals with disabilities.

According to the RFI, “Conserving SSI payments for children in foster care can pose challenges. SSI has a resource limit of $2,000, which could include funds in a child's savings account or investments. SSI recipients who exceed the resource limit are suspended and eventually terminated from program participation if their savings remain above the limit for over a year. They (or their payees on their behalf) must repay any benefits paid while they were over the limit. The Achieving a Better Life Experience (ABLE) Act of 2014 allows States to create programs with tax-advantaged savings accounts for eligible people with disabilities; funds held in ABLE accounts up to and including $100,000 do not count toward the SSI resource limits. Account owners may receive tax advantages when funds from an ABLE account are used to pay for a broad set of ‘qualified disability expenses,’ including housing, transportation, health, and basic living expenses. Additionally, special needs trusts may also contain funds that do not count toward the SSI resource limit.

“Generally, if there is a change in payee, the former payee must return any conserved funds to SSA to be reissued to the successor payee.

“If the child stops receiving benefits or no longer needs a payee (typically when they turn 18), the payee must return any conserved funds, including any earned interest, to SSA to be reissued to the beneficiary or recipient. On a case-by-case basis, SSA may permit the former payee to transfer any conserved funds directly to the successor payee or the beneficiary or recipient.”

Some stakeholders have noted that because SSA guidance directs a CalABLE account to be closed and the funds transferred to SSA for reallocation, it could potentially trigger a requirement for taxes to be paid on the accumulated earnings, or could cause the youth’s assets to be reclassified, which could jeopardize SSI eligibility

Author’s Statement: According to the Author, “[This bill] continues years of progress away from the archaic practice of recouping the costs of a child's time in foster care through collecting their federal Social Security Administration benefits. Federal law explicitly places the financial responsibility of care on foster care agencies, but for decades agencies have used survivors benefits and disability benefits to reimburse themselves. California stopped this practice for survivors benefits, but agencies can continue to use a child's disability benefits as a way to backfill their costs. [This bill] will end this practice completely and ensure that all federal Social Security Administration benefits are used in the best interest of a foster youth, or conserved for the youth to access once they have exited the system.”

Equity Implications: Foster youth are among our state’s most vulnerable populations. Close to 31% of transition-age foster youth experience homelessness, another 25% come into contact with the justice system within two years of aging out of foster care, and about 20% report having a health condition or disability that limits their daily activities. Only 50% complete their high school education, and less than 10% attain a college degree. California’s foster youth population is disproportionately Black and Latino. Foster youth face significant barriers while in the system and have even more challenges as they transition out of the child welfare system. The provisions of this bill seek to ensure that eligible foster youth with disabilities have increased resources for an enriched life while in care and after they exit care.

RELATED AND PRIOR LEGISLATION:

AB 2906 (Bryan) Chapter 623, Statutes of 2024, required, when a county serves as the representative payee for a foster youth receiving federal SSA survivors' benefits, to ensure that their benefits are not used to pay for, or to reimburse the county for, any costs of the child's care and supervision. Required counties to notify the child, their attorney, and parents or guardians, if an application for survivors' benefits has been made on the child's behalf.

AB 1512 (Bryan) of 2023, see comments above.

SB 1300 (Durazo) of 2022, would have revised the requirements that counties must complete before, and upon, a foster youth who is receiving federal SSI payments reaches their 18th birthday. SB 1300 was held on the Assembly Committee on Appropriations suspense file.

AB 1331 (Evans), Chapter 465, Statues 2007, required counties to screen emancipating foster youth to determine their potential eligibility for SSI and to make applications for those youth who may be eligible.

AB 212 (Beall), Chapter 459, Statutes of 2011, made various clarifying and substantive changes to the California Fostering Connections to Success Act in order to ensure proper implementation on January 1, 2012, and other changes to existing state law in order to comply with various provisions of federal law.

AB 12 (Beall), Chapter 559, Statutes of 2010, established the California Fostering Connections to Success Act, which provided an option for continued jurisdiction of federally eligible NMDs or former dependents of the juvenile court who are between 18 and 21 years of age.

AB 1633 (Evans), Chapter 641, Statutes of 2005, aided the transition of foster youth to adulthood by developing best practices to improve access to federal disability benefits and extending eligibility for foster care benefits for youth pursuing a high school equivalency certificate.

REGISTERED SUPPORT / OPPOSITION:

Support

Alliance for Children's Rights (Co-Sponsor)

Youth Law Center (UNREG) (Co-Sponsor)

All of US or None Orange County

California Coalition for Youth

California State PTA

Families Inspiring Reentry & Reunification 4 Everyone (FIR4E)

Western Center on Law & Poverty

Opposition

None on file.

Analysis Prepared by: Jessica Langtry / HUM. S. / (916) 319-2089