California Foster Youth and Social Security Benefits: Key Updates on Proposed Legislation

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Foster youth in California are set to experience a major shift in the management of their Social Security benefits. Historically, these benefits, intended to support vulnerable children, have often been redirected by county agencies to cover the costs of foster care. However, Assembly Bill 2906 (AB 2906), signed into law in September 2024 by Governor Gavin Newsom, seeks to change that practice. The new law ensures that Social Security benefits are preserved for the youth’s future, offering them essential financial stability as they transition to adulthood.

Here’s everything you need to know about this groundbreaking legislation and its impact on foster youth, caregivers, and child welfare professionals.

Understanding Social Security Benefits for Foster Youth

Foster youth in California may qualify for Social Security benefits under two primary categories:

  • Survivor Benefits: For children who have lost one or both parents.
  • Disability Benefits: For children with a qualifying mental or physical disability.

These benefits are designed to cover living expenses and promote long-term financial security. Yet, counties in California have often diverted these funds to offset foster care costs, leaving youth with little to no financial resources when they exit the system. This practice has long been criticized for depriving foster youth of the safety net these benefits were meant to provide.

What AB 2906 Changes

Signed into law on September 28, 2024, AB 2906 introduces several critical reforms to ensure foster youth retain access to their Social Security benefits.

Key Provisions

  1. Notification Requirement: Counties are now mandated to inform foster youth and their legal representatives before applying for Social Security benefits on the youth’s behalf.
  2. Conservation of Funds: Funds must be preserved for the youth’s future use, rather than being used to pay for foster care expenses.
  3. Empowering Youth: The law aims to provide financial resources to foster youth as they age out of the system, enabling them to use these funds for essential needs such as housing, education, or employment.

By prioritizing the financial independence of foster youth, AB 2906 establishes a crucial foundation for their journey into adulthood.

Why Preserving These Benefits Matters

Advocates have long argued that redirecting Social Security benefits to cover foster care costs is both unethical and detrimental to the long-term well-being of foster youth. Here’s why safeguarding these benefits is so important:

  • Financial Stability: Access to Social Security funds can provide a crucial safety net for foster youth, many of whom face significant financial challenges upon leaving the system.
  • Autonomy: Allowing youth to retain their benefits fosters independence and empowers them to make decisions about their financial future.
  • Better Outcomes: Studies consistently show that financial security improves foster youth’s chances of success in education, employment, and housing.

How AB 2906 Impacts Key Stakeholders

For Foster Youth

AB 2906 guarantees that their Social Security benefits will be preserved for their future. This ensures they have resources available during the critical transition to independent living.

For Caregivers

Caregivers should stay informed about the law and ensure that the benefits of foster children in their care are managed transparently. Advocacy for the proper use of these funds is essential.

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