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Panel weighs phased plan to stop using foster youths’ federal benefits for care costs; DHHS warns of budget gap
Summary
Lawmakers reviewed amendment 30‑55‑H to change how DHHS handles federal benefits for children in care. The amendment phases implementation (deadlines in 2027–2028), requires ABLE accounts and annual accountings and carries an estimated $280,000 startup cost and a projected multi‑million annual general fund gap as federal benefits shift back to children.
Aimed at conserving federal benefits for foster children, Representative Wallner’s amendment (30‑55‑H) to HB 6‑61 received detailed review at the Feb. 9 House Finance Division 3 work session. The amendment phases tasks over 2027–2028, directs DHHS to change representative‑payee practices, and requires accounting and procedures to preserve children’s federal benefits rather than using them to offset program costs.
Karen Rosenberg, policy director at the Disability Rights Center, walked members through a timeline embedded in the amendment: by June 30, 2027 the department should establish procedures for ABLE accounts and benefit screening; by July 1, 2027 DHHS should stop automatically seeking to be a child’s representative payee when an appropriate payee exists and should pursue alternatives; and by June 30, 2028 the department should formalize…
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