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Senate Finance committee reviews amendment to phase out sweeping foster youths’ Social Security payments
Summary
A committee sponsor outlined an amendment to House Bill 661 to phase out the states practice of sweeping foster youths Social Security benefits and instead conserve them in conservatorships (for example ABLE accounts); members raised fiscal, federal-SSI-limit and implementation questions and asked the department for follow-up information.
A sponsor of House Bill 661 explained to the Senate Finance Committee that an amendment in members binders would gradually stop the state from sweeping Social Security benefits from children in foster care and instead require agencies to conserve increasing shares of those benefits for the youths.
"Starting in line 10 is every other biennium in the second year of the biennium slowly increase the amount of money that the agencies are required to conserve," the sponsor said, describing a schedule that begins with conserving 25 percent and increases by 25 percentage points every two years until the funds are no longer swept and are instead placed in conservatorships such as ABLE accounts.
The sponsor said the amendment also anticipates the department might need authority to hire a consultant to create the conservatorship accounts for children, and asked the committee not to vote this week so members could review the amendment.
Senator Waters said she supported the effort but urged caution about the human impact of a phased approach: "Let's not lose sight of the young people who are involved here," she said, noting that a 16-year-old would receive only a portion when they turn 18 under the phase-in and that some youth age out with little housing or employment stability.
Committee members pressed for fiscal clarity and implementation detail. One member summarized the long-term budget effect: the phased change would culminate in roughly a $2.4–$2.5 million annual general fund commitment once fully implemented. Members also asked whether federal Supplemental Security Income resource rules (commonly limiting countable resources to about $2,000) would create conflicts if a conserved account exceeded federal limits; the committee requested that the department supply information about how conservatorship accounts would interact with federal rules.
The committee also discussed whether financial literacy training required in some federal foster-care programs would adequately prepare youths to manage funds at emancipation; one senator noted that a required financial-literacy course exists but questioned its effectiveness based on classroom observations.
No formal vote was taken on the amendment. Members agreed to hold the bill for one week, request the departments technical information on SSI limits and account structures, and return with more detailed fiscal and operational numbers before deciding whether to advance the amendment or schedule a vote.
