Michigan committee hears bill to preserve federal benefits for foster youth

The Michigan House Families and Veterans Committee heard testimony on House Bill 4570 on Aug. 12 regarding how the state handles federal benefits for children in foster care.

Representative Schmaltz, sponsor of House Bill 4570, told the committee that federal benefits collected on behalf of children in foster care — including Social Security, Supplemental Security Income (SSI) and Veterans Administration benefits — “are really the child's money and should go to the child.” The bill would set those funds aside for the child’s future needs rather than using them to reimburse the state for the cost of care, and would require financial literacy training and notice to the child’s representative about benefits applied for and collected on the child’s behalf.

The bill’s sponsor said the change aims to create a “financial nest egg” for young people who age out of foster care. “Many of these young people have nothing, especially financially,” the sponsor said, and cited…