(Source: MIRS.news, Published 11/08/2024) When a child in foster care receives federal benefits, the money currently goes into the State of Michigan's pocket. On Thursday, the Senate unanimously passed SB 823, also known as the Foster Care and Adoption Services Act, legislation that would direct the money to the child's care, instead of to the state.
Lisa Ruby of The Michigan Poverty Law Program testified in support of SB 823 when it was introduced by Sen. Jeff Irwin (D-Ann Arbor) in May. Ruby said this legislation is not a new concept, but it strengthens an existing rule that has not been in practice.
The Department of Health and Human Services' foster care manual mandates excess funds not directly used for childcare to be placed in an account for the child. The manual also states children entering the foster care system must be screened for potential benefits.
“For the past at least 10 years, none of that has been going towards the children,” Ruby said. “It’s true. It’s not hyperbole.”
In addition to the money going directly to the state, Ruby said children are also not getting screened for potential benefits.
When they leave the foster care system, applying for disability benefits becomes much more difficult compared to if they received them in the past, she said.
When Ruby began researching this legislation, she said there was a constant pattern of a lack of knowledge concerning this rule being in place.
“They didn't know it existed. They didn't know where the money went. It was just sort of behind this dark curtain,” she said.
Children who are never adopted and age out of the foster care system often have an extremely difficult time paying for basic living necessities and turn to petty crime as a result. This money could help alleviate that financial burden, Ruby said.
Ruby said the proposed legislation poses a unique opportunity for legislators on both sides of the aisle. Kids Count Policy Director for the Michigan League for Public Policy Anne KUHNEN and National Policy Director for the Children’s Advocacy Institute Amy HARFELD also testified in favor of the legislation in May.
Irwin said he is hopeful the bill will gain majority support in the House in a video statement posted on Instagram Thursday.