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Committee approves bill to protect federal benefits for children in CYFD custody

5724083 · February 24, 2025
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Summary

The Senate Judiciary Committee advanced a bill requiring CYFD to seek federal benefits for eligible children in its custody, to serve as representative payee only as a last resort, and to restrict use of those benefits to unmet extraordinary needs.

Senator Duhigg sponsored a bill to end routine use of children’s federal benefits by the Children, Youth and Families Department (CYFD) and to require the agency to apply for benefits on behalf of eligible children. Senator Duhigg said the measure would make CYFD the “representative payee of last resort,” ensuring that Social Security and other federal benefits are preserved for the child and used only for unmet extraordinary needs beyond the department’s ordinary obligations.

Disability Rights New Mexico’s CEO, Gary Acepian, testified in support and said the bill would give children in foster care greater financial stability and reduce identity‑theft vulnerability; he cited statistics on homelessness and financial risk for youth leaving care. Committee questions established that roughly 11% of children in New Mexico foster care receive federal benefits, with an average monthly benefit of about $700, representing roughly 150 children in care at the time of the hearing.

Sponsor and committee members described required reporting back to the Legislature on counts and uses of benefits, training for children leaving custody on financial literacy, and an explicit prohibition on using federal benefits to reimburse CYFD for routine costs except for specified extraordinary needs. The CYFD secretary had previously issued a directive stopping the older practice, but the sponsor said the statute is needed to ensure the department will not resume the practice.

The committee approved a do‑pass recommendation on the bill by unanimous consent.