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S 2841Children

State Affairs and Government - Department of Children, Youth and Families

This bill prevents the state from using foster children's Social Security benefits to pay for their care, requiring savings instead.

On the floor38 Yea0 Nay0 Not voting
Population
Affected
8
Introduced Mar 4, 2026Committee Senate Finance

Plain-English Summary

This legislation mandates that the Rhode Island Department of Children, Youth and Families (DCYF) identify foster children who are eligible for federal benefits, such as Social Security. If a child is eligible, DCYF must apply for these benefits on the child's behalf. Crucially, the bill prohibits DCYF from using these funds to pay for the child's foster care. Instead, the money must be saved in specific accounts for the child's future use. The bill also requires DCYF to provide financial literacy training to these children starting at age 14 and establishes reporting requirements regarding these funds.

For younger readers

Sometimes, children in foster care receive money from the government because of a disability or because a parent passed away. Currently, the state might use that money to pay for the child's room and food. This new rule says the state cannot take that money anymore. Instead, they must put the money into a special savings account just for the child. When the child grows up, they will get that money to help them start their life. The state must also teach these children how to manage money and use banks starting when they are 14 years old.

Who & Where It Applies

Impacted groups
Foster childrenDepartment of Children Youth and Families staffTaxpayersGuardians ad litemBiological parents
Impacted communities
All

Constitutional & Fiscal Check

None Likely

Estimated cost
Amount unknown
Estimated revenue
None

Bill Analysis

Both viewpoints
For Progressives
  • Ends the practice of the state "skimming" federal disability and survivor benefits from foster youth to pay for their own care, correcting a systemic injustice that disproportionately affects poor and disabled children.
  • Mandates the conservation of funds in protected vehicles like ABLE accounts, allowing marginalized youth to build assets and financial stability before transitioning out of the foster care system.
  • Requires financial literacy training and transparent accounting, empowering vulnerable youth with the knowledge and resources necessary to navigate independent living and break cycles of poverty.
  • The reliance on federal asset limits for SSI recipients might still restrict the total amount of wealth a child can accumulate, potentially penalizing them for saving too much despite the use of ABLE accounts.
  • The implementation timeline allows until 2028 for full notice compliance, which may delay necessary transparency and advocacy for children currently in the system.
  • While it protects federal benefits, the bill does not explicitly mandate additional state funding to fill the budgetary hole left by the loss of these reimbursements, potentially threatening other social service budgets if not properly funded.
For Conservatives
  • Protects private property rights by preventing the government from seizing individual federal benefits belonging to children to subsidize state budget obligations.
  • Promotes individual responsibility and independence by mandating financial literacy training, ensuring young adults are better prepared to manage their own finances without state reliance.
  • Increases government accountability and transparency by requiring detailed accounting of funds and annual reports to the legislature regarding the management of these assets.
  • Increases the financial burden on state taxpayers, as the Department of Children, Youth and Families can no longer use federal funds to offset the cost of foster care, likely requiring higher state appropriations.
  • Expands government bureaucracy by mandating the creation and management of complex financial accounts and requiring detailed reporting and oversight mechanisms.
  • Imposes new administrative mandates and regulations on a state agency, potentially decreasing efficiency and increasing the size and scope of the public sector workforce.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 128 additions · 1 deletion

SECTION 1. Chapter 42-72 of the General Laws entitled "Department of Children, Youth and Families" is hereby amended by adding thereto the following section: 42-72-5.4. Benefits owed to foster children.

(a) Definitions. As used in this section, the following words and terms shall have the following meanings unless the context shall clearly indicate another or different meaning or intent:

(1) “Benefits” means income and other services pursuant to Title XVI of the federal Social Security Act, 42 U.S.C. §§ 1381–1383(f), also referred to as “supplemental security income” or “SSI”; and benefits under Title II of the Social Security Act, 42 U.S.C. §§ 401–434, also referred to as “retirement, survivors or disability insurance benefits” or “RSDI”; or other federal benefits.

(2) “Representative payee or fiduciary” means any person or entity designated to receive benefits for a minor child under the department rules governing such benefits.

(b) When a child is placed in foster care under a voluntary placement agreement or court- ordered custody, the department shall make all reasonable efforts to identify within sixty (60) days of the child being committed to custody of the department whether the child is already receiving or may be eligible to receive benefits. In reviewing eligibility, the department shall consult with the parents and others who may have information about the child’s eligibility. If the department determines, or has cause to believe, that the child may be eligible for benefits, it shall apply for benefits on the child’s behalf. If the agency administering such benefits denies the application, the department may appeal the decision. The department shall review cases of children in foster care annually to determine whether the child may have become eligible for benefits after the initial assessment. The department shall only seek federal foster care reimbursement for a child if such reimbursement will not impact the child’s eligibility for benefits or the amount of benefits.

(c) If the child is already receiving benefits prior to entering department custody, the department may apply to be the child’s representative payee or fiduciary. If the department is applying for benefits for the child, the department may also apply to be the representative payee or fiduciary. Where the goal is reunification, the department shall consider whether applying to become the child’s representative payee or fiduciary will undermine the goal of reunification and be contrary to the child’s best interests. (d)(1) On and after January 1, 2028, the department shall provide timely notice pursuant to the provisions of subsection (d)(2) of this section for each of the following events:

(i) The department has submitted an application for benefits;

(ii) The department has submitted a request to become the child’s representative payee;

(iii) The department has received notice of the agency’s decision regarding benefits including denial, termination or reduction in benefits;

(iv) The department has decided whether or not to appeal an adverse determination, including the outcome of any appeal filed; and

(v) The department has received notice of an eligibility redetermination.

(2) Notice, pursuant to this subsection, shall be provided to the court appointed special advocate (CASA) or a guardian ad litem (GAL) for the child, as well as counsel for the parent or parents, except that no notice shall be provided to a parent for whom there has been an involuntary termination of parental rights (TPR) pursuant to § 15-7-7. Until January 1, 2028, the department shall make best efforts to ensure compliance with the notice requirements of this subsection.

(e) When the department is the child’s representative payee or fiduciary, the department shall maintain an accounting of the child’s benefits and shall make available to CASA or GAL current accounting information electronically or by other means. The accounting information shall include the following:

(1) The amount and source of benefits collected by the department and credited to any account maintained on behalf of the child;

(2) The balance of any account maintained on behalf of the child;

(3) Any amounts deducted by the department and the reasons for the deductions; and

(4) Information regarding all the child’s assets and resources, including benefits, insurance, cash assets, trust accounts, and earnings if such assets or resources are controlled by the department. The department shall provide such accounting information to the court, as necessary, or upon request.

(5) If the department is the child’s representative payee or fiduciary, the department shall not use such benefits to reimburse the state for the child’s placement in foster care. If the child is receiving SSI benefits, the department shall ensure that any funds retained on the child’s behalf are kept in a manner that does not exceed any federal asset or resource limit that would affect the child’s eligibility to continue receiving SSI benefits. Benefits held by the department as a representative payee or fiduciary may be spent on the child’s unmet needs, which would not ordinarily be funded by another source, or otherwise conserved for the child. Any funds administered for SSI recipients above the federal asset or resource limits shall be conserved in an Achieving a Better Life Experience (ABLE) account, authorized by Section 529A of the Internal Revenue Code of 1986 (26 U.S.C.§529A), or another account for the child determined not to interfere with federal asset or resource limits for any other federal means-tested benefit program. If the child is not receiving SSI or other federal means-tested benefits with an asset or resource limit, the department shall place excess funds in an interest-bearing account or other savings or investment vehicle for the benefit of the child. If the department is the child’s representative payee or fiduciary and receives retroactive benefits for the child, those funds shall be kept as required by the program rules of the agency administering such benefits.

(g) The department shall take steps to conserve the benefits of children receiving benefits under this section to assist them in the transition to adulthood and living independently. The department shall establish accounts as specified in subsection (f) of this section in conserving a child’s benefits. The department shall work actively with the agency administering such benefits and the child to ensure that when the child leaves foster care, becomes eligible for direct payment, or another representative payee is identified, all payments of benefits or conserved funds shall be:

(1) Returned to the agency following program rules; or

(2) Upon agreement by the agency, if necessary, transferred to the child or to a new representative payee or fiduciary.

(h) The department shall provide the child with ongoing financial information regarding the eligibility for benefits, as well as the existence, amount, availability, use, and limitations of funds conserved for the child, beginning at fourteen (14) years of age and tailored to the individual child. For youth ages seventeen (17) years of age or older, financial information shall also include basic assistance with understanding budgeting and money management, checking and savings accounts, tailored to the individual child.

(i) The department shall provide the child with ongoing financial literacy training and support, beginning at fourteen (14) years of age and tailored to the individual child. This program may include, but need not be limited to, topics such as: budgeting; money management; informed decision-making; banking, checking and savings accounts; credit card counseling; managing debt; planning for financial security and stability; financing post-secondary education or training; long term asset-building; and community and agency services. Financial literacy resources concerning the use of conserved funds shall also be made available to all parents, guardians, and adoptive parents gaining access to funds conserved by the department. The financial literacy requirements set forth in this subsection shall go into effect eighteen (18) months after the enactment of this section. Until the effective implementation date, the department shall make best efforts to ensure compliance with the financial literacy requirements set forth in this subsection.

(j) The department shall provide an annual report to the speaker of the house and senate president, not later than December 31; provided, the report shall set forth:

(1) The numbers of children in the department’s care and custody receiving benefits for which the department is the representative payee or fiduciary;

(2) The numbers of children in the department’s care or custody who are receiving SSI, RSDI or other federal benefits;

(3) The amount of benefits being conserved by the department; and

(4) The number and type of accounts established by the department on behalf of such children.

(k) To the extent such data is available, the report shall also set forth the numbers of children in the department’s care or custody:

(1) Who were screened for eligibility for benefits; and whether such screening occurred within sixty (60) days of being committed to the department’s custody, and if not, the date of the screening and reasons for the delay;

(2) Who were already receiving benefits after screening; and

(3) For whom the department submitted applications for benefits, by type of application, and the outcome of those applications, including the number of appeals filed; provided, however, that if such data is not available, the department shall provide information as to its ongoing efforts to be able to gather and report upon such information.

(l) In administering the benefits of young adults ages eighteen (18) to twenty-two (22) for whom the department is acting as a representative payee or fiduciary, the department shall comply with the requirements for children under subsections (b) through (k) of this section. The department shall continue to provide financial literacy training under subsection (h) of this section to young adults who become eligible for direct payment of benefits and continue to receive young adult services from the department.

(m) Not later than October 1, 2026, the secretary of the executive office of health and human services (EOHHS) shall promulgate regulations as necessary to implement this section.

SECTION 2. Section 42-72-5 of the General Laws in Chapter 42-72 entitled "Department of Children, Youth and Families" is hereby amended to read as follows: 42-72-5. Powers and scope of activities.

(a) The department shall be the principal agency of the state to mobilize the human, physical, and financial resources available to plan, develop, and evaluate a comprehensive and integrated statewide program of services designed to ensure the opportunity for children to reach their full potential. The services shall include prevention, early intervention, outreach, placement, care and treatment, and after-care programs; provided, however, that the department shall notify the state police and cooperate with local police departments when it receives and/or investigates a complaint of sexual assault on a minor and concludes that probable cause exists to support the allegation(s). The department also shall serve as an advocate for the needs of children. Additionally, on or before October 1, 2023, the department shall implement the hiring process developed by the director pursuant to subsection (f) of this section.

(b) To accomplish the purposes and duties, as set forth in this chapter, the director is authorized and empowered:

(1) To establish those administrative and operational divisions of the department that the director determines is in the best interests of fulfilling the purposes and duties of this chapter;

(2) To assign different tasks to staff members that the director determines best suit the purposes of this chapter;

(3) To establish plans and facilities for emergency treatment, relocation, and physical custody of abused or neglected children that may include, but are not limited to, homemaker/educator child-case aides, specialized foster-family programs, daycare facilities, crisis teams, emergency parents, group homes for teenage parents, family centers within existing community agencies, and counseling services;

(4) To establish, monitor, and evaluate protective services for children including, but not limited to, purchase of services from private agencies and establishment of a policy and procedure manual to standardize protective services;

(5) To plan and initiate primary- and secondary-treatment programs for abused and neglected children;

(6) To evaluate the services of the department and to conduct periodic, comprehensive- needs assessment;

(7) To license, approve, monitor, and evaluate all residential and nonresidential group homes, foster homes, and programs;

(8) To recruit and coordinate community resources, public and private;

(9) To promulgate rules and regulations concerning the confidentiality, disclosure, and expungement of case records pertaining to matters under the jurisdiction of the department;

(10) To establish a minimum mandatory level of twenty (20) hours of training per year and provide ongoing staff development for all staff;

(11) To establish procedures for reporting suspected child abuse and neglect pursuant to chapter 11 of title 40;

(12) To promulgate all rules and regulations necessary for the execution of departmental powers pursuant to the administrative procedures act, chapter 35 of this title;

(13) To provide and act as a clearinghouse for information, data, and other materials relative to children;

(14) To initiate and carry out studies and analysis that will aid in solving local, regional, and statewide problems concerning children;

(15) To represent and act on behalf of the state in connection with federal-grant programs applicable to programs for children in the functional areas described in this chapter;

(16) To seek, accept, and otherwise take advantage of all federal aid available to the department, and to assist other agencies of the state, local agencies, and community groups in taking advantage of all federal grants and subventions available for children;

(17) To review and coordinate those activities of agencies of the state, and of any political subdivision of the state, that affect the full and fair utilization of community resources for programs for children, and initiate programs that will help ensure utilization;

(18) To administer the pilot juvenile-restitution program, including the overseeing and coordinating of all local community-based restitution programs, and the establishment of procedures for the processing of payments to children performing community service;

(19) To adopt rules and regulations that:

(i) For the twelve-month (12) period beginning on October 1, 1983, and for each subsequent twelve-month (12) period, establish specific goals as to the maximum number of children who will remain in foster care for a period in excess of two (2) years; and

(ii) Are reasonably necessary to implement the child-welfare services and foster-care programs;

(20) May establish and conduct seminars for the purpose of educating children regarding sexual abuse;

(21) To establish fee schedules by regulations for the processing of requests from adoption placement agencies for adoption studies, adoption study updates, and supervision related to interstate and international adoptions. The fee shall equal the actual cost of the service(s) rendered, but in no event shall the fee exceed two thousand dollars ($2,000);

(22) To be responsible for the education of all children who are placed, assigned, or otherwise accommodated for residence by the department in a state-operated or -supported community residence licensed by a Rhode Island state agency. In fulfilling this responsibility, the department is authorized to enroll and pay for the education of students in the public schools or, when necessary and appropriate, to itself provide education in accordance with the regulations of the council on elementary and secondary education either directly or through contract;

(23) To develop multidisciplinary service plans, in conjunction with the department of health, at hospitals prior to the discharge of any drug-exposed babies. The plan requires the development of a plan using all healthcare professionals;

(24) To be responsible for the delivery of appropriate mental health services to seriously emotionally disturbed children and children with functional developmental disabilities. Appropriate mental health services may include hospitalization, placement in a residential treatment facility, or treatment in a community-based setting. The department is charged with the responsibility for developing the public policy and programs related to the needs of seriously emotionally disturbed children and children with functional developmental disabilities. In fulfilling its responsibilities the department shall:

(i) Plan a diversified and comprehensive network of programs and services to meet the needs of seriously emotionally disturbed children and children with functional developmental disabilities;

(ii) Provide the overall management and supervision of the state program for seriously emotionally disturbed children and children with functional developmental disabilities;

(iii) Promote the development of programs for preventing and controlling emotional or behavioral disorders in children;

(iv) Coordinate the efforts of several state departments and agencies to meet the needs of seriously emotionally disturbed children and children with functional developmental disabilities and to work with private agencies serving those children;

(v) Promote the development of new resources for program implementation in providing services to seriously emotionally disturbed children and children with functional developmental disabilities. The department shall adopt rules and regulations that are reasonably necessary to implement a program of mental health services for seriously emotionally disturbed children. Each community, as defined in chapter 7 of title 16, shall contribute to the department, at least in accordance with rules and regulations to be adopted by the department, at least its average per-pupil cost for special education for the year in which placement commences, as its share of the cost of educational services furnished to a seriously emotionally disturbed child pursuant to this section in a residential treatment program that includes the delivery of educational services. “Seriously emotionally disturbed child” means any person under the age of eighteen (18) years, or any person under the age of twenty-one (21) years, who began to receive services from the department prior to attaining eighteen (18) years of age and has continuously received those services thereafter; who has been diagnosed as having an emotional, behavioral, or mental disorder under the current edition of the Diagnostic and Statistical Manual and that disability has been ongoing for one year or more or has the potential of being ongoing for one year or more; and the child is in need of multi-agency intervention; and the child is in an out-of-home placement or is at risk of placement because of the disability. A child with a “functional developmental disability” means any person under the age of eighteen (18) years or any person under the age of twenty-one (21) years who began to receive services from the department prior to attaining eighteen (18) years of age and has continuously received those services thereafter. The term “functional developmental disability” includes autism spectrum disorders and means a severe, chronic disability of a person that:

(A) Is attributable to a mental or physical impairment or combination of mental physical impairments;

(B) Is manifested before the person attains age eighteen (18);

(C) Is likely to continue indefinitely;

(D) Results in age-appropriate, substantial, functional limitations in three (3) or more of the following areas of major life activity:

(I) Self-care;

(II) Receptive and expressive language;

(III) Learning;

(IV) Mobility;

(V) Self direction;

(VI) Capacity for independent living; and

(VII) Economic self-sufficiency; and

(E) Reflects the person’s need for a combination and sequence of special, interdisciplinary, or generic care, treatment, or other services that are of life-long or extended duration and are individually planned and coordinated. Funding for these clients shall include funds that are transferred to the department of human services as part of the managed healthcare program transfer. However, the expenditures relating to these clients shall not be part of the department of human services’ caseload estimated for the semi- annual, caseload-estimating conference. The expenditures shall be accounted for separately;

(25) To provide access to services to any person under the age of eighteen (18) years, or any person under the age of twenty-one (21) years who began to receive child welfare services from the department prior to attaining eighteen (18) years of age, has continuously received those services thereafter, and elects to continue to receive such services after attaining the age of eighteen

(18) years. The general assembly has included funding in the FY 2008 DCYF budget in the amount of $10.5 million from all sources of funds and $6.0 million from general revenues to provide a managed system to care for children serviced between 18 to 21 years of age. The department shall manage this caseload to this level of funding;

(26) To initiate transition planning in cooperation with the department of behavioral healthcare, developmental disabilities and hospitals and local school departments for any child who receives services through DCYF; is seriously emotionally disturbed or developmentally delayed pursuant to subsection (b)(24)(v); and whose care may or shall be administered by the department of behavioral healthcare, developmental disabilities and hospitals after the age of twenty-one (21) years; the transition planning shall commence at least twelve (12) months prior to the person’s twenty-first birthday and shall result in a collaborative plan submitted to the family court by both the department of behavioral healthcare, developmental disabilities and hospitals and the department of children, youth and families and shall require the approval of the court prior to the dismissal of the abuse, neglect, dependency, or miscellaneous petition before the child’s twenty- first birthday;

(27) To develop and maintain, in collaboration with other state and private agencies, a comprehensive continuum of care in this state for children in the care and custody of the department or at risk of being in state care. This continuum of care should be family centered and community based with the focus of maintaining children safely within their families or, when a child cannot live at home, within as close proximity to home as possible based on the needs of the child and resource availability. The continuum should include community-based prevention, family support, and crisis-intervention services, as well as a full array of foster care and residential services, including residential services designed to meet the needs of children who are seriously emotionally disturbed, children who have a functional developmental disability, and youth who have juvenile justice issues. The director shall make reasonable efforts to provide a comprehensive continuum of care for children in the care and custody of DCYF, taking into account the availability of public and private resources and financial appropriations and the director shall submit an annual report to the general assembly as to the status of the director's efforts in accordance with the provisions of §  42-72-4(b)(13);

(28) To administer funds under the John H. Chafee Foster Care Independence and Educational and Training Voucher (ETV) Programs of Title IV-E of the Social Security Act [42 U.S.C. § 677] and the DCYF higher education opportunity grant program as outlined in chapter 72.8 of this title, in accordance with rules and regulations as promulgated by the director of the department; and

(29) To process nationwide criminal record checks on prospective foster parents and any household member age 18 or older, prospective adoptive parents and any household member age 18 and older, operators of childcare facilities, persons seeking to act as volunteer court-appointed special advocates, persons seeking employment in a childcare facility or at the training school for youth or on behalf of any person seeking employment at DCYF, who are required to submit to nationwide criminal background checks as a matter of law; and

(30) To comply with § 42-72-5.4 by providing benefit management services to children and young adults in the department’s care, custody, or responsibility, including eligibility screening, representative payee or fiduciary assistance, notice, benefits accounting, conservation of benefits and other services related to benefits.

(c) In order to assist in the discharge of the director's duties, the director may request from any agency of the state information pertinent to the affairs and problems of children.

(d) [Deleted by P.L. 2008, ch. 9, art. 16, § 2.]

(e) [Deleted by P.L. 2008, ch. 9, art. 16, § 2.]

(f) On or before October 1, 2023, the director shall establish a process for hiring individuals seeking employment at the department as a social caseworker or child protective investigator. The department shall be provided with funding for one full-time employee, or the equivalent, to support the implementation of the hiring process. The process shall be in effect through March 15, 2026.

(1) Generally, the process shall include, but need not be limited to:

(i) Screening and reviewing candidates for eligibility criteria including education and experience;

(ii) Administering the requisite civil service examinations;

(iii) Conducting in-person interviews;

(iv) Determining which applicants will be offered employment; and

(v) Determining the order in which employment offers will be given.

(2) Specifically, the process shall include, but need not be limited to, the following elements:

(i) Eligibility criteria. Candidates must meet the minimum job requirements as defined in the specification with social caseworker IIs and child protective investigators as approved by the department of administration.

(ii) Civil service examinations.

(A) Examinations shall be offered by the department at least three (3) times per month to individuals who meet the eligibility criteria and at times that shall include a weekend, a weekday, and a weeknight option.

(B) The director shall determine the process and administration of the exam. The director is not obligated to schedule an examination if there are no current applicants for the position available by the deadline set by the director pursuant to this subsection.

(C) If an applicant does not pass the examination, the department shall notify the applicant as soon as is practicable. Applicants wishing to re-take the examination are not eligible to do so until sixty (60) days have passed from the date the notification was sent.

(iii) In-person interviews.

(A) Applicants who pass the civil service examination shall be invited to an in-person interview.

(B) The interview shall be conducted by at least two (2) current employees of the department.

(I) One of whom shall have a culturally or racially diverse background; and

(II) One of whom is currently in a supervisory role over social caseworkers or child protective investigators for at least three (3) years.

(III) Satisfying the requirements of subsections (f)(2)(iii)(B)(I) and (f)(2)(iii)(B)(II) of this section does not necessarily require two (2) individuals. One individual may satisfy both requirements.

(C) There shall be a good faith effort to accommodate the availability of the applicant and the individuals on the panel when scheduling the interview.

(iv) Offering employment.

(A) Prior to offering employment, an applicant shall pass both the civil service exam and the in-person interview. Nothing herein is a guarantee of employment to an applicant who meets these criteria.

(B) Determining whether an applicant successfully completes the in-person interview shall be based on criteria established by the director.

(I) The department of administration shall score the civil service exams and provide a pass/fail listing of all candidates to DCYF within five (5) business days of receipt of the exams from DCYF.

(II) The director may create a method of scoring interviews to provide objectivity and uniformity when assessing applicants.

(g) On or before March 15, 2024, the department shall provide an interim report to the senate president and the speaker of the house regarding the hiring process developed and implemented pursuant to subsection (f) of this section. The report shall include, but is not limited to, the following data concerning social caseworkers and child protective investigators at the department:

(1) The number of social caseworkers hired using the process developed pursuant to subsection (f) of this section;

(2) The number of child protective investigators hired using the process developed pursuant to subsection (f) of this section;

(3) The number of terminations or resignations since October 1, 2023;

(4) The number of vacancies that existed on October 1, 2023, and the number of vacancies that exist as of the date of the report; and

(5) Any identified barriers to hiring that exist in spite of, or because of, the process developed pursuant to subsection (f) of this section.

SECTION 3. This act shall take effect upon passage.