Back to Hawaii

HB1229 • 2026

RELATING TO FOSTER CARE.

RELATING TO FOSTER CARE.

Children
Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor
LA CHICA, AMATO, IWAMOTO, KEOHOKAPU-LEE LOY, KILA, KUSCH, OLDS, PERRUSO, POEPOE, SOUZA, TODD, Matsumoto, Muraoka
Last action
2025-12-08
Official status
Carried over to 2026 Regular Session.
Effective date
Not listed

Plain English Breakdown

The bill summary does not provide specific details on how many foster children currently receive Social Security payments or when exactly they will be able to access their savings account.

Foster Care Savings Account Law

This law stops the Department of Human Services from using social security payments meant for foster children to pay for their care, instead putting those funds into a savings account that the child can access when they leave foster care.

What This Bill Does

  • Prohibits the Department of Human Services from using any Social Security income payments it receives on behalf of a child under foster custody to cover the cost of foster care services.
  • Requires the Department of Human Services to deposit all Social Security income payments received for a foster child into a savings account that will be made accessible to the child when they leave foster care.

Who It Names or Affects

  • Foster children who receive Social Security benefits
  • The Department of Human Services

Terms To Know

Social Security Payments
Money given by the government to people who are retired, disabled, or have a family member who is disabled.
Foster Care
A system where children who can't live with their families stay in homes of other adults while getting support from the state.

Limits and Unknowns

  • The bill does not specify when exactly the savings account will be made available to the child.
  • It is unclear how many foster children currently receive Social Security payments and would benefit from this law.

Bill History

  1. 2025-12-08 D

    Carried over to 2026 Regular Session.

  2. 2025-01-27 H

    Referred to HSH, FIN, referral sheet 4

  3. 2025-01-23 H

    Introduced and Pass First Reading.

  4. 2025-01-22 H

    Pending introduction.

Official Summary Text

RELATING TO FOSTER CARE.
DHS; Social Security Payments; Foster Care; Savings Account
Prohibits the Department of Human Services from using any social security income payments, including supplemental income payments it receives on behalf of a child under foster custody of the Department to cover the cost of foster care services. Requires the Department of Human Services to deposit all social security income payments received on behalf of a child under foster custody of the Department into a savings account that shall be made accessible to the child when the child leaves foster care custody.

Current Bill Text

Read the full stored bill text
HB1229

HOUSE OF REPRESENTATIVES

H.B. NO.

1229

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

relating
to foster care
.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

����
SECTION 1.
�
The legislature finds that the United States
Department of Health and Human Services Adoption and Foster Care Analysis and
Reporting System recorded 1,418 children in foster care in Hawaii on September
30, 2021.
�
Approximately ten per cent of
foster youth in the United States are entitled to social security benefits,
either because their parents have died or because they have a physical or
mental disability.

����
The
legislature also finds that the United States Social Security Administration
(SSA) generally appoints representative payees to receive and manage social
security payments on behalf of beneficiaries who are incapable of managing
their social security or supplemental security income, including children.
�
Although the SSA lists child welfare service
agencies as one of the least preferred types of representative payees, many
state child welfare agencies apply to become the representative payee of child
beneficiaries in foster care and intercept and seize their social security
payments, often without notifying the child or other persons who are more
preferred as the child's representative payee.
�

Between 2018 and 2022, the department of human services collected
$1,500,000 on behalf of thirty-seven children in foster care.

����
The
legislature believes that intercepting social security payments meant for
foster children limits their financial well-being as they pursue higher
education or achieve financial independence.
�

In addition, child welfare officials in New York City recently decided
to end the practice of intercepting foster children's social security payments
and plan to deposit the payments into savings accounts, which a foster child
may access when the child is returned to their family, is adopted, or ages out
of foster care.

����
Accordingly,
the purpose of this Act is to:

����
(1)
�
Prohibit the department of human services
from using any social security benefits or funds received for a child under
foster custody of the department to cover the cost of foster care services; and

����
(2)
�
Require the department of human services to d
eposit
all social security funds received for a child under foster custody of the
department into a savings account that may be accessed by the child when the
child returns to their family, is adopted, or ages out of foster care.

����
SECTION
2.
�
Chapter 587A, Hawaii Revised
Statutes, is amended by adding a new section to be appropriately designated and
to read as follows:

����
"
�587A-
�
Social security payments to children in
foster care; savings account.
�
(a)
�

The department shall not use any social security payments, including
supplemental security income payments, it receives from the Social Security
Administration on behalf of a child under foster custody of the department to
cover the cost of any foster care services.

����
(b)
�
The department shall establish
a savings account for each child under foster custody of the department, on
behalf of whom the department receives social security payments, including
supplemental security income payments, and deposit all social security payments
received from the Social Security Administration for the child into the child's
savings account.
�
The department shall
make the savings account accessible to the child when the child is removed from
foster care custody because the child returns to their family, is adopted, or
ages out of foster care.
"

����
SECTION
3.
�
New statutory material is
underscored.

����
SECTION
4.
�
This Act shall take effect upon its
approval.

INTRODUCED BY:

_____________________________

Report Title:

DHS;
Social Security Payments; Foster Care; Savings Account

Description:

Prohibits
the Department of Human Services from using any social security income
payments, including supplemental income payments it receives on behalf of a
child under foster custody of the Department to cover the cost of foster care
services.
�
Requires the Department of Human
Services to deposit all social security income payments received on behalf of a
child under foster custody of the Department into a savings account that shall
be made accessible to the child when the child leaves foster care custody.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.