House approves bill to change foster-care benefits and add financial-literacy requirements

Lansing — The Michigan House of Representatives passed House Bill 4750 on third reading on Sept. 10, 2025, a bill that would change how certain federal and other benefits for children in foster care are held and add financial-literacy requirements for foster youth. The measure passed by a 60-45 roll call vote.

Supporters and opponents debated both policy and implementation. Representative Schmaltz, the bill sponsor, said the proposal “would set aside money, my financial nest egg, so when they age out of foster care, they have money to get them started on their own.” Schmaltz told colleagues that federal benefits such as Social Security, Supplemental Security Income and Veterans Administration payments currently collected by the state should go to the children.

The bill also includes new financial-literacy training covering personal finance topics, savings, credit and taxes. Schmaltz said the provisions are intended to give youth “the knowledge they need” as they transition out of care and noted state outcomes prompting action, citing figures that, he said, show about 33% of young people who age out report homelessness, 23% report incarceration, 27% become parents, and that “up to 16,100 young people are out of the Michigan foster care system every year” as they age out.

Representative Young spoke in opposition to the substitute version of the bill, saying the added education requirements risk imposing “additional levels of complexity” on children already experiencing trauma and frequent school disruption. “These are kids living with trauma already, and adding these additional levels of complexity … is an undue burden,” Young said, while affirming support for foster children receiving benefits intended for them.

After the roll call, several members asked to have their names removed as cosponsors; the clerk recorded those requests on the floor. The final tally announced by the clerk was 60 ayes and 45 nays. Representative DeSana’s vote was recorded as aye; Representative Pai was recorded as a nay during the vote tally sequence.

The House moved the bill into immediate effect following passage.

The action on HB 4750 amends the Foster Care and Adoption Services Act; the text of the H-1 substitute and any implementing guidance or administrative rules were discussed but not detailed on the floor. The House did not provide a line-item funding breakdown during floor debate, and implementation timelines were not specified on the record.

What happens next: with the House vote concluded and immediate effect ordered, the bill will proceed to the next steps required by legislative process (enrollment for transmittal to the Senate or to the governor), subject to whatever scheduling and coordination the chamber follows.