HB578 • 2026

Foster care; federal benefits, representative payees.

<p class=ldtitle>A BILL to amend and reenact § 63.2-905.6 of the Code of Virginia, relating to foster care; federal benefits; representative payees.</p>

Children

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: Glass
Last action: 2026-02-18
Official status: Failed
Effective date: Not listed

Plain English Breakdown

The official source material does not provide specific details on funding, consequences of non-compliance, or what happens if a suitable representative payee cannot be found.

Foster Care; Federal Benefits and Representative Payees

This bill requires local social services departments to screen foster children for federal benefits eligibility, apply for these benefits when needed, review representative payee arrangements, and provide training on managing such benefits.

What This Bill Does

Requires local social service departments to check if foster children are eligible for certain federal benefits within two months of entering foster care and at least once a year after that.
Local departments must apply for these benefits on behalf of the child if they find out the child is eligible.
If a child already has someone managing their benefits (a representative payee), local departments need to make sure this person is doing a good job. If not, they should appoint a new one.
When local departments act as representative payees themselves, they must keep detailed records and give yearly reports about how the money was used to the child and other important people involved in the case.
The state social services department needs to teach both children aged 14 or older and their benefit managers (representative payees) about managing these federal benefits properly.

Who It Names or Affects

Children in foster care
Local departments of social services
Representative payees for foster children

Terms To Know

Representative Payee: A person or organization that manages federal benefits on behalf of a child who cannot manage their own money.
Fiduciary Obligations: The legal duty to act in the best interest of another person, especially when managing their financial affairs.

Limits and Unknowns

It is not clear how much funding will be provided for training programs.
The bill does not specify what happens if a suitable representative payee cannot be found.
Details about the enforcement and penalties for non-compliance are not included in the summary.

Bill History

2026-02-18 House
Left in Committee Appropriations
2026-02-11 Health & Human Resources
Subcommittee recommends laying on the table (7-Y 0-N)
2026-02-10 Health & Human Resources
Assigned HAPP sub: Health & Human Resources
2026-02-10 Health and Human Services
Reported from Health and Human Services and referred to Appropriations (21-Y 1-N)
2026-02-05 Social Services
Subcommittee recommends reporting and referring to Appropriations (8-Y 0-N)
2026-02-04 House
Fiscal Impact Statement from Department of Planning and Budget (HB578)
2026-01-21 Social Services
Assigned sub: Social Services
2026-01-13 House
Prefiled and ordered printed; Offered 01-14-2026 26103251D
2026-01-13 Health and Human Services
Referred to Committee on Health and Human Services

Official Summary Text

Foster care; federal benefits; representative payees.
Requires local departments of social services to screen any child in foster care for eligibility for certain federal benefits and to apply for such benefits for which the child may be eligible. Under the bill, local departments are required to review existing representative payees to ensure that the representative payee is adequately representing the child's best interests and take appropriate actions necessary to appoint a different representative payee if necessary. The bill specifies that a local department shall only serve as representative payee when no other suitable candidate is available. The bill places limitations on the use of such federal benefits by local departments. Under the bill, if the local department serves as representative payee, it is required to provide an annual accounting detailing the use of such benefits to the child and certain individuals. The bill requires the Department of Social Services to develop and provide training sessions for (i) representative payees serving children in foster care regarding fiduciary obligations associated with serving as a representative payee and (ii) children in foster care who are age 14 and older regarding accessing, managing, and using certain federal benefits.

Current Bill Text

Read the full stored bill text

A BILL to amend and reenact §
63.2-905.6
of the Code of Virginia, relating to foster care; federal benefits; representative payees.

Be it enacted by the General Assembly of Virginia:

1. That §
63.2-905.6
of the Code of Virginia is amended and reenacted as follows:

§
63.2-905.6
. Eligibility for certain federal benefits.

A.
The l
ocal

d
epartment
s
shall
screen
a
ny

child in foster care
for eligibility for
benefits from the Social Security Administration, the U.S. Department of Veterans Affairs, or the
U.S.
Railroad Retirement Board
within 60 days of
such child entering foster care and at least annually thereafter.

The local departments shall apply for any such benefits
on behalf
of
a child
in foster care
for which
such child
may
be eligible
.
If a
local department applies for such benefits on behalf of a c
hild in foster care, the
local
department shall provide written notice of
the
application

and the
determination of such application
to
(i)
the

child
; (ii) the child's parent, prior guardian, or prior custodian, or, if there is no legal parent or prior guardian or custodian, the child's next of kin; (iii) the guardian ad litem appointed pursuant to §
16.1-266
, if applicable; and (iv) the counsel appointed for the child pursuant to §
16.1-266
, if applicable.

B. If a child in foster care is
receiving benefits from the Social Security Administration, the U.S. Department of Veterans Affairs, or the
U.S.
Railroad Retirement Board, the local department shall review the child's
existing
representative payee
to ensure that the representative payee is adequately representing the child's best interests
. If the local department determines that the
existing representative payee is not adequately representing the child's best interests, the local department shall take
appropriate
actions necessary to
appoint

a different
representative
payee
.

C. If a chi
ld in foster care is found eligible for benefits from the Social Security Administration, the U.S. Department of Veterans Affairs, or the
U.S.
Railroad Retirement Board, the local department
shall to the extent possible, collaborate with (i)
the
child; (ii) the child's parent, prior guardian, or prior custodian, or, if there is no legal parent or prior guardian or custodian, the child's next of kin; (iii) the guardian ad litem appointed pursuant to §
16.1-266
, if applicable; and (iv) the counsel appointed for the child pursuant to §
16.1-266
, if applicable
, to identify a suitable representative payee
.
The local department shall
only
serve
as representative payee
when no other suitable candidate is available.

D.
If the local department
of social services (the local department)
serves as representative payee for a child receiving benefits from the Social Security Administration
or
,
the U.S. Department of Veterans Affairs,
or the
U.S.
Railroad Retirement Board
,
the local department shall provide written notice in person or by certified mail, return receipt requested, that it is acting as the child's representative payee within 30 days after receiving the first benefit payment on behalf of the child to:

1. The child, in an age-appropriate manner, if the child is 12 years of age or older;

2. The child's parent, prior guardian, or prior custodian, or, if there is no legal parent or prior guardian or custodian, the child's next of kin;

3. The guardian ad litem appointed pursuant to §
16.1-266
, if applicable; and

4. The counsel appointed for the child pursuant to §
16.1-266
, if applicable.

E.
If the local department serves as representative payee for a child receiving benefits from the Social Security Administration
,
the U.S. Department of Veterans Affairs,
or the
U.S.
Railroad Retirement Board,
the local department shall
use
such benefits only for expenses necessary to meet the child's current, individual, and unmet needs. Such benefits shall not be us
ed
to pay for the care and support of children in foster care that the Commonwealth is otherwise obligated to pay for,
including maintenance payments or special allowances as defined in 42 U.S.C
.
§ 675(4)(A).
To the extent possible, d
ecisions to utilize such benefits shall be made

in consultation
with (i) the child, in an age-appropriate manner; (ii) the child's parent, prior guardian, or prior custodian, or, if there is no legal parent or prior guardian or custodian, the child's next of kin; (iii) the guardian ad litem appointed pursuant to §
16.1-266
, if applicable; and (iv) the counsel appointed for the child pursuant to §
16.1-266
, if applicable
.

F. If the local department serves as representative payee for a child receiving benefits from the Social Security Administration, the U.S. Department of Veterans Affairs, or the
U.S.
Railroad Retirement Board, the local department shall

conserve such benefits in an appropriate trust instrument or protected account that is exempt from federal asset and resource limits, such as an ABLE
savings trust
account pursuant to Chapter 7 (§
23.1-700
et seq.) of Title 23.1.
All conserved benefits shall be released to the child in a manner
determined appropriate by the Department when the child leaves foster care.

G
.
If the local department serves as representative payee for a child receiving benefits from the Social Security Administration, the U.S. Department of Veterans Affairs, or the
U.S.
Railroad Retirement Board, the local department
shall provide
an annual accounting detailing the use of
such benefits to
(i)

the child
; (ii) the child's parent, prior guardian, or prior custodian, or, if there is no legal parent or prior guardian or custodian, the child's next of kin; (iii) the guardian ad litem appointed pursuant to §
16.1-266
, if applicable; and (iv) the counsel appointed for the child pursuant to §
16.1-266
, if applicable.

H. The Department shall develop and provide training for
representative payees serving children in foster care
regarding fiduciary obligations associated with serving as
a
representative payee that includes information on the establishment, monitoring, and appropriate use of trust instrument
s
and protected account
s
.

I. The Department shall develop and
provide
training for
children in foster care
who are
age 14 and older
regarding accessing, managing
,
and using
benefits from the Social Security Administration, the U.S. Department of Veterans Affairs, or the
U.S.
Railroad Retirement Board.