House committee narrows bill to stop use of survivor Social Security benefits to pay foster-care costs and advances it to appropriations

The House Health and Human Services Committee on Wednesday adopted a strike‑below amendment to House Bill 25-1271 and voted 10–3 to send the narrower bill to the Appropriations Committee with a favorable recommendation.

The amended measure prohibits county departments from using Title II survivor benefits (Social Security survivor payments) that are payable to a child in foster care to offset the county’s cost of care; instead, counties must preserve such funds in an identified account and make them available to the child when the child exits care or as otherwise required. Sponsors emphasized the bill targets survivor benefits in this session to allow additional time to resolve implementation questions related to more-complex disability benefits (Title XVI). Rep. Gilchrist, the prime sponsor, said the strike‑below was a negotiated compromise reached with counties and other stakeholders.

Supporters included the Office of the Child's Representative (OCR), disability advocates and several people with lived experience in foster care. OCR staff attorney Ashley Chase testified: "When the state uses the child's funds to pay for the cost of foster care, it benefits the state, not the child and family." Independent researcher John Farnham told the committee his analysis of 2022 cohorts showed 213 youth who aged out of foster care produced an estimated $73 million in downstream public costs over time (incarceration, homelessness, early parenting and missed education), an example proponents used to argue that preserving small federal benefits for youth can reduce long-term public costs.

Counties and county associations urged caution. Colorado Counties Inc. and county human-services directors said the child-welfare block is already strained and that implementing preserved accounts and related administrative duties would require state technical assistance and additional resources. Kevin Neiman of Colorado Counties Inc. pointed to a projected overspend in the child-welfare block and warned that without backfill the change could force cuts in services. County witnesses and legal advisers emphasized the administrative complexity of managing representative-payee responsibilities, trust accounts and annual accounting; county attorneys said prior implementations in other states required additional funded staffing.

The strike‑below adopted in committee narrows the bill to Title II survivor benefits this year while preserving legislative intent language indicating sponsors will continue work toward protecting Title XVI (disability) benefits in future sessions. The amendment also expands requirements for notice, annual reassessment of benefit eligibility, case-level accounting and a requirement that counties return funds held on a child's behalf when the child's custody status changes.

Why it matters: Supporters argued that survivor and disability benefits belong to the child and that preserving those funds will improve educational, housing and employment outcomes after exit from care; opponents said implementation requires funding, technical assistance, and statewide administrative guidance to avoid unintended harms or fiscal shocks to county budgets.

Votes at a glance: The committee adopted amendment L002 and recommended House Bill 25-1271, as amended, be sent to Appropriations (10 yes, 3 no). The amended bill focuses on Title II survivor benefits; sponsors said they will continue stakeholder work on Title XVI disability benefits.

What's next: House Bill 25-1271, as amended, is scheduled for review by the House Appropriations Committee.