Kansas joins states that prohibit ‘intercepting’ of foster care children’s federal benefits

A first-in-the-nation executive order in Kansas aims to protect the rights of foster care youths to their federal benefits, a policy move that a handful of other states, all outside the Midwest, have taken through the recent enactment of laws or agency-directed initiatives.

According to the Children’s Advocacy Institute (housed at the University of San Diego), between 40,000 and 80,000 young people in the nation’s foster care systems are eligible for or are receiving Social Security disability, survivor or other benefits, which can amount to more than $900 per month.

The executive order in Kansas, signed by Gov. Laura Kelly in January, directs the Department for Children and Families to stop using these federal benefits to reimburse itself for the cost of providing basic needs for foster care youths in the agency’s care.

The Children’s Advocacy Institute notes that legislatures in states such as Arizona, California, Colorado, Connecticut, Maryland and Oregon have passed laws to prevent the “intercepting” of federal benefits by foster care agencies. In Massachusetts and New Mexico, agencies themselves prohibit the practice.

No such blanket bans were in place in the Midwest prior to Kansas’ executive order. However, states such as Illinois (SB 3470 of 2022), Minnesota (HF 5237 of 2024) and Nebraska (LB 1173 of 2022) require notification about the federal benefits to the child, the child’s parents or guardian, and/or the child’s legal advocate. The Illinois law also requires that a minimum percentage of an older foster care youth’s federal benefits be saved or invested: 40 percent for ages 14 and 15; 80 percent for ages 16 and 17; and 100 percent for 18 and older.

In Kansas, the Department for Children and Families must screen all children in its care for eligibility, provide notification, open accounts to preserve their benefits, and provide financial counseling for those 14 and older. One of the goals is to help youths as they leave or age out of foster care. These individuals often face financial challenges related to housing, transportation and health care.