Prohibits DCF from using federal benefits received by a child in out of home placement to reimburse State for cost of child's care, except under certain circumstances.

A2053

ASSEMBLY, No. 2053

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblywoman SHAMA A. HAIDER

District 37 (Bergen)

Assemblywoman SHANIQUE SPEIGHT

District 29 (Essex and Hudson)

Co-Sponsored by:

Assemblywoman Reynolds-Jackson

SYNOPSIS

���� Prohibits DCF from using federal benefits received by
a child in out of home placement to reimburse State for cost of child's care,
except under certain circumstances.

CURRENT VERSION OF TEXT

���� Introduced Pending Technical Review by Legislative
Counsel.

��

An Act

concerning federal benefits for a child in out
of home placement and supplementing P.L.1991, c.290 (C.9:6B-1 et seq.).

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� a.� In any case of a
child in the custody of the division, the department is prohibited from
utilizing any portion of the child�s property or benefits to offset the State�s
costs for the child�s maintenance, except to maintain the child�s eligibility
for federal Supplemental Security Income Program benefits and to avoid a
violation of federal asset or resource limits under the Supplemental Security
Income Program, as provided in subsection c. of this section.

���� b.��� If the department has
been appointed as the representative payee for the federal benefits of a child
in the custody of the division, the department may utilize such benefits of a
child in the custody of the division for the child�s unmet needs beyond the
amount that the State is obligated, required, or agrees to pay after notifying
the child, the child�s parent, legal guardian, counsel, and the Family Part of
the Chancery Division of the Superior Court.

���� c.��� If the department has
been appointed as the representative payee for the federal benefits of a child
in the custody of the division, the department shall appropriately monitor any
federal asset or resource limits for the benefits, establish a qualified ABLE
account, or other trust account, for every child who is eligible, and ensure
that the child�s best interest is served by using the benefits for the child�s
unmet needs or conserving the benefits in a way that avoids violating any
federal asset or resource limits that would affect the child�s ability to
receive the benefits.

���� d.��� For any child in the
custody of the division, the department shall determine whether the child is
receiving or is eligible to receive federal benefits.� If the department
determines that a child is eligible or may be eligible for federal benefits,
the department shall apply for the benefits on behalf of the child with notice
to the child, the child�s parent, legal guardian, counsel, and the Family Part
of the Chancery Division of the Superior Court.

���� e.��� If the department has
been appointed as representative payee for a child�s benefits, it shall provide
an annual accounting as to the use, application, or conservation of such
benefits to the child, the child�s parent, legal guardian, counsel, and the
Family Part of the Chancery Division of the Superior Court.

���� f.���� As used in this
section:

���� �Department� means the
Department of Children and Families.

���� �Division� means the Division
of Child Protection and Permanency in the Department of Children and Families.

���� �Federal benefits� means any
cash payments from the federal government for which a child may be eligible,
including but not limited to, Social Security benefits pursuant to Title II of
the Social Security Act (42 U.S.C. s.401 et seq.) and Title XVI of the Social
Security Act (42 U.S.C. s.1381 et seq.), and Veterans Administration benefits.

���� �Qualified ABLE account� means
an account established pursuant to P.L.2015, c.185 (C.52:18A-250 et al.) or an
account established pursuant to any qualified State ABLE Program established
pursuant to section 529A of the federal Internal Revenue Code of 1986, 26
U.S.C. s.529A.

���� �Supplemental Security Income
Program� has the same meaning as provided in section 1 of P.L.1973, c.256
(C.44:7-85 et seq.).

���� 2.� The Commissioner of
Children and Families shall apply for any federal waivers as may be necessary
to implement the provisions of this act and ensure continued federal
reimbursement for State expenditures for child welfare services under Part E of
Title IV of the Social Security Act (42 U.S.C. s.670 et seq.),
except that if a
child is
or may be eligible for federal Supplemental Security Income Program benefits,
the department shall, if necessary for benefits eligibility, forego claiming
that child for purposes of any federal Title IV-E maintenance payments under
section 475(4) of the Social Security Act (42 U.S.C. s.675(4)
.

���� 3.��� The Commissioner of
Children and Families, in accordance with the "Administrative Procedure
Act," P.L.1968, c.410 (C.52:14B-1 et seq.), shall adopt rules and
regulations necessary to implement the provisions of this act.

���� 4.� This act shall take effect
on the first day of the twelfth month next following enactment, except that the
Commissioner of Children and Families may take any anticipatory administrative
action in advance as shall be necessary for the implementation of this act.

STATEMENT

����� This bill prohibits the Department of Children and
Families from using the property or benefits of any child under the custody of
the Division of Child Protection and Permanency to offset the State�s costs for
the child�s maintenance, except to maintain the child�s eligibility for federal
Supplemental Security Income Program (SSI) benefits and to avoid a violation of
federal asset or resource limits under the SSI program.

����� The bill also stipulates that the department must
appropriately monitor any federal asset or resource limits for the child�s
relevant benefits, establish a qualified ABLE account or other trust account
for every child who is eligible, and ensure that the child�s best interest is
served by using the benefits for the child�s unmet needs or conserving the
benefits in a way that avoids violating federal asset or resource limits that
would affect the child�s ability to receive the benefits.

����� The bill requires the Commissioner of Children and
Families to apply for any federal waivers necessary to implement the provisions
of the bill and ensure continued federal reimbursement for State expenditures
for child welfare services under Title IV-E of the Social Security Act.� The bill
stipulates that if a child is or may be eligible for SSI benefits, the
department will, if necessary for the child�s eligibility for such benefits,
forego claiming the child for the purposes of federal reimbursement for State
child welfare services.

����� Authorized under �The Stephen Beck, Jr., Achieving a
Better Life Experience Act,� Pub.L.113-295, ABLE accounts are tax-exempt
savings accounts intended to help individuals with disabilities and their
families to save private funds for disability-related expenses, while still
maintaining eligibility for means-tested federal benefits under Medicaid and
the Supplemental Security Income Program.� New Jersey�s qualified State ABLE
program allows individuals with disabilities and their families to save up to $18,000
annually, and a maximum of $305,000 over a lifetime, for disability-related
expenses; balances under $100,000 are excluded from the SSI resource limit.

����� The federal Social Security Administration typically
will appoint the department as the representative payee for a child under the
division�s custody to manage any federal benefits to which the child is
entitled.� These federal benefits include, but are not limited to:

����� (1) Social Security Disability Insurance benefits,
based on the work history of a disabled or deceased parent;

����� (2) Supplemental Security Income benefits for a child
who is under the age of 18 years, has a disability, and who meets certain
income and resource limits established by the Social Security Administration;

����� (3) Survivor benefits for children of deceased
military veterans, which are provided by the Veterans Administration; and

����� (4) Railroad Retirement Benefits.

����� These federal benefits are provided in the child�s
name, but are intended to be used to support the costs associated with the
child�s care.� In the case of a child in an out-of-home placement, the
department is the child�s caregiver and, under federal law, may be allowed to
use the child�s federal benefits to offset the State�s costs to maintain the
child in an out-of-home placement.