California Governor Gavin Newsom has signed into law AB 2906, a groundbreaking bill aimed at ensuring Social Security benefits reach California’s foster youth, offering these vulnerable young people the financial security they deserve. AB 2906, which gained unanimous support in the state legislature, mandates that foster children and their legal guardians are informed if Social Security survivor benefits are applied for on behalf of these minors. This move ensures transparency and allows benefits to be used as intended—for the foster children themselves, rather than being absorbed by the state.
The Problem: Diverted Social Security Benefits for Foster Youth
Previously, California foster agencies intercepted Social Security survivor benefits intended for foster children, using these funds to offset agency costs. This practice deprived foster youth of resources crucial for a secure start as they transitioned into adulthood. Many foster children, once they reached 18 and aged out of the foster system, faced homelessness or severe poverty due to the absence of these funds. According to the Children’s Advocacy Institute (CAI), nearly 29% of former foster youth aged 19-21 experienced homelessness— a staggering statistic that advocates say could have been mitigated if foster youth had access to their Social Security benefits.
AB 2906 directly addresses this issue by requiring agencies to notify foster youth and their guardians if Social Security benefits are being collected on their behalf. This transparency marks a significant shift, allowing foster children to have a say in their benefits and fostering accountability within the system.
Growing Support for Protecting Foster Youth Benefits
This legislation has gained robust support across California, reflecting a broader awareness of the challenges facing foster youth. Local government bodies, including the Boards of Supervisors in Los Angeles and San Diego, publicly supported the bill, and around 70 California judges signed a letter urging Governor Newsom to take action. Amy Harfeld, National Policy Director at CAI, emphasized the potential impact, saying the funds would provide a critical safety net, offering foster youth a better shot at housing stability, food security, and educational opportunities.
California is not alone in this effort. Currently, 30 states and jurisdictions, including Arizona, Washington D.C., Oregon, and Massachusetts, have introduced similar protections to prevent foster system agencies from withholding benefits from eligible foster youth. This momentum across states is building an essential safety net for this often-overlooked population.
Background: How the System Worked Until Now
Federal law mandates that county agencies prioritize foster children’s best interests when allocating Social Security funds. However, counties often filed for Social Security benefits on behalf of foster children without notifying them or their guardians, resulting in a lack of accountability. In some cases, benefits were collected and spent by agencies without oversight, contributing to the broader issue of homelessness and financial insecurity among former foster youth.
Social Security benefits for foster children typically apply in cases where a parent is disabled, deceased, or has paid into the Social Security system. For many of these children, these benefits represent a critical lifeline. By signing AB 2906, Newsom has effectively ensured that foster children’s benefits will serve their intended purpose—helping these young people transition to self-sufficiency and stability.
The Broader Impact of AB 2906
The passing of AB 2906 is a step toward addressing California’s homelessness crisis by focusing on one of its root causes: the vulnerability of former foster youth. According to Robert Fellmeth, executive director of CAI, granting access to these funds could mean “a completely different life for eligible foster youngsters.” These benefits, which represent a small amount in the state’s budget, can make an enormous difference in the lives of foster youth, giving them access to housing, education, and essential services that are often out of reach.
Alex Beene, a financial literacy instructor, noted that this law brings attention to a frequently overlooked group within Social Security discussions—foster youth survivors. These individuals often depend heavily on Social Security funds, and AB 2906 sets an example for other states considering similar protections.
What’s Next for Foster Youth Social Security Benefits
With the signing of AB 2906, California has joined a growing number of states prioritizing protections for foster youth Social Security benefits. Advocates hope that the successful passage of this law will continue to inspire similar initiatives nationwide, helping build a stronger financial future for foster youth everywhere. The new law’s implementation will likely involve close monitoring to ensure that counties fully comply with the notification and transparency requirements set forth by AB 2906.
Why were Social Security benefits diverted from foster children?
Foster care agencies in California historically intercepted Social Security benefits meant for foster children to fund their operations, leaving many foster youth without critical support as they transitioned out of the system.
What are the requirements of AB 2906?
The new law mandates that foster children and their guardians are notified if Social Security survivor benefits are applied for on their behalf, preventing agencies from intercepting these funds without accountability.
How will this law impact California’s homelessness crisis?
By allowing foster youth access to Social Security funds, AB 2906 aims to reduce homelessness among former foster youth, providing financial stability as they transition to adulthood.
