State Rep. Kathy Schmaltz | Michigan House Republicans
State Rep. Kathy Schmaltz | Michigan House Republicans
State Rep. Kathy Schmaltz testified before the House Families and Veterans Committee in support of legislation aimed at ensuring foster youth in Michigan receive the federal benefits designated for them as they transition into adulthood.
Schmaltz, a Republican representing Jackson, introduced House Bill 4750 following media reports that highlighted how the state uses federal benefits meant for foster children to offset costs in its child welfare system. She argued that these funds should be directed to the children themselves.
“When a child in foster care qualifies for federal benefits, that money should be used to support their future,” Schmaltz said. “These kids already face enough challenges. We need to make sure they can step into adulthood with the resources they deserve.”
Currently, Michigan collects federal benefits such as Veterans Administration payments, Supplemental Security Income, and Social Security on behalf of foster children and applies those funds toward state reimbursement for care costs.
House Bill 4750 proposes setting aside portions of these benefits specifically for each child's future needs. The bill would require at least 40% of such funds to be reserved for children aged 14 and 15, at least 80% for those aged 16 and 17, and all (100%) of the benefits for foster youth between ages 18 and 20.
The proposal also includes requirements for financial literacy training for foster youth and mandates notification about any federal benefits applied for or collected on their behalf by the state.
Citing Kids Count data, Schmaltz noted that one-third of young people aging out of Michigan's foster care system experience homelessness between ages 19 and 21. She stated her plan aims to address this issue by providing necessary tools and resources.
“This is about fairness and giving foster kids a fighting chance,” Schmaltz said. “If we expect them to thrive as adults, we must give them the same opportunities we would want for our own children.”
The committee continues to review House Bill 4750.
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