House Finance panel advances bill to set aside foster youths' federal benefits into ABLE accounts
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Summary
The House Finance Committee adopted an amendment to House Bill 661 to place Social Security/disability benefits for certain foster children into separate ABLE-style accounts so funds can follow youth when they age out of care; proponents said it helps transitions, opponents pushed for further study. The committee voted to report the bill as 'ought to pass' with a minority report expected.
Representative Mooney, speaking for Division 3, moved and explained an amendment to House Bill 661 that would create separate, interest-bearing accounts (referred to in the amendment as ABLE accounts) to hold federal Social Security and disability benefits paid on behalf of certain children in foster care. "House bill 6 61 may look familiar to you," Mooney said, and described four years of committee work to reach the current, more limited approach. He said the bill would move the roughly 250 of about 1,500 foster children who receive federal benefits into accounts so that "when those children leave foster care, they can take an account with them." (Representative Mooney)
Why it matters: Mooney and Division 3 framed the change as a way to give youth resources at emancipation and reduce longer-term demand on state services. He told the committee the measure is complex and the amendment breaks the implementation into stages: the amendment prioritizes finding non-state payees when possible, establishing ABLE accounts, and asks the Department of Health and Human Services to pursue any federal resources identified in a recent executive order and an HHS letter encouraging states to create accounts.
Key details from committee debate: Mooney told the committee the federal executive order referenced was issued 11/13/2025 and that the U.S. Department of Health and Human Services had sent letters in early December urging states to adopt infrastructure to separate such funds. He also provided an implementation cost estimate: "the total cost of this bill is approximately $280,000 out of general funds, and that is for consultant fees to set this up," Mooney said, noting the department lacks experience and will need outside help to build the system.
Supporters described the policy as targeted and pragmatic. Representative Walner, who has worked on the issue across terms, said the accounts could give foster youth a better start on independence and reduce the risk of homelessness. "These children... need to get a start as they move through adulthood," she said.
Opposition and concerns: Representative McGuire said she would vote against the motion not because of the concept but because of unresolved questions about long-term commitments, federal approval and oversight arrangements; she urged an interim study. McGuire cited an example from Massachusetts where a contracted payee arrangement resulted in a large share of benefit income being paid to a contractor and said the committee should study how payee contracts would work.
Outcome and next steps: The committee adopted amendment 2026821h by show of hands and then voted to report HB661 "ought to pass" as amended on a roll call. The transcript records counting confusion during the roll but records the motion as adopted and notes a minority report will be filed. The bill will move to the House floor with the committee majority's report and an expected minority report from dissenting members.
Provenance: The article summarizes testimony and roll-call discussion beginning when Representative Mooney moved amendment 2026821h and explained HB661's provisions (transcript segments beginning SEG 028 through SEG 133) and records discussion, fiscal estimates, and the roll call (SEG 232–SEG 409).
