South Michigan News

State Representative Kathy Schmaltz and the Michigan House have approved legislation aimed at improving support for young people in the state’s foster care system as they transition into adulthood.

House Bill 4750, introduced by Schmaltz, responds to concerns raised in recent media reports about Michigan's practice of using federal benefits intended for foster children to offset costs within its child welfare program. Under current policy, benefits such as Veterans Administration payments, Supplemental Security Income, and Social Security are collected by the state and used to reimburse itself for care expenses.

Schmaltz stated: “Too often, young people who grow up in foster care are left to face adulthood alone and without the resources that were meant to be theirs all along. This plan makes sure that money intended for foster kids actually goes to them. It’s about giving them a fair shot at success and a future with stability.”

The proposed legislation would require that a portion of these federal benefits be set aside specifically for the child’s future needs. The bill stipulates that children aged 14 and 15 would have at least 40% of their benefits reserved; those aged 16 and 17 would see at least 80% set aside; and youth aged 18 to 20 would have all (100%) of their benefits allocated for their use.

Additionally, House Bill 4750 includes provisions for financial literacy training for children in foster care. It also mandates that these youths be informed about any federal benefits applied for or collected on their behalf by the state.

Citing Kids Count data showing that one-third of young people aging out of Michigan's foster care system experience homelessness between ages 19 and 21, Schmaltz emphasized the importance of providing resources directly to those leaving foster care.

“These kids have endured so much already,” Schmaltz said. “We owe it to them to make sure they don’t start adulthood empty-handed. My plan will help equip foster youth with the tools and the funds they need to stand on their own two feet and be successful.”