Imagine turning 18, officially an adult and released into the world, with 25 dollars in your pocket and no family or friends to turn to. This isn’t just a nightmare. It’s a harsh reality, faced by thousands of foster children annually and worsened by the systems designed to protect them, most notably child welfare agencies misusing federal benefits meant for these children, benefiting themselves.
This practice, while often legally permissible, is ethically controversial and continues to rob already vulnerable youth of the financial foundation essential to carry them into the start of their adult lives. These important funds come from various programs, such as Social Security Survivor Benefits and Supplemental Security Income. Reports from organizations such as the Children’s Advocacy Institute and The Marshall Project show a truly shocking reality: many child welfare agencies apply to become the “representative payee” for foster youth, basically intercepting funds without the knowledge of the child.
[Related: What back-to-school season reveals about youth in foster care — and the attendance crisis]
Not only do these children not gain access to the money that they deserve, but they are often not even informed that they are entitled to it in the first place. The system’s secrecy is a violation of trust, at a time when these youth are in desperate need of it. Shockingly, a 2022 report by the Marshall project and NPR found that in at least 49 states, state foster agencies search case files in order to find children with these benefits, and then apply to Social Security to become each child’s “financial representative.” These states eventually collected more than $165 million in 2018 alone. These benefits, which can amount to over 900 a month for some foster youth, could total to over tens of thousands during their time in the system, truly a life-changing amount of money possibly being stripped away from the future of the child.
Although this practice may seem to be just a loophole, in reality it’s a profound ethical breach,
leaving thousands of vulnerable youth financially crippled at the start of their adult lives.
Critical money that could be used for college or a down payment on an apartment is used to cover their “daily room and board,” something the state is already mandated to cover. The Social Security Administration’s guidelines clearly state that these funds must be used for a child’s “current and future needs,” implying savings for the long-term benefit of the child, not for the benefit of the state. When these benefits are withheld, youth are often left with many disadvantages.
Courtesy of William Kang
William Kang
The consequences are obvious, with the Annie E. Casey Foundation showing that youth who age out of foster care often experience many difficulties, including homelessness and future academic difficulties. Apart from losing benefits such as housing, medical care, and caseworker support once they become of age, they face higher risks of housing instability, have impacted credit scores, hindering their ability to succeed in their future lives.
The problem is clear, but so is the solution. We must end this exploitation, starting with lawmakers at the state and federal level enacting legislation that prohibits this extreme use of federal benefits.
The good news is that this change is possible and achievable. Many states, including Massachusetts, have recently begun to enact reforms, providing that safeguarding these funds is not only achievable but essential. Numerous other options are available, including using protecting accounts that youth can access upon their transition to adulthood and independence.
Only by ensuring and securing these benefits can we truly serve these children with the money that was intended for them, and provide an equitable and strong foundation that every young person deserves.
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William Kang is a high school senior at Whitney High School wo is deeply interested in civic engagement, education and exploring the ways young people can impact society. He enjoys connecting classroom learning to real-world issues and using writing as a tool to share thoughtful perspectives and inspire conversation. Outside of writing, He enjoy playing basketball, spending time with my friends and learning new skills.
