Foster youth Social Security reforms approved

Senators passed a bill May 30 that seeks to reform the use of Social Security benefits received by eligible Nebraska foster children.

Current Nebraska law allows the state Department of Health and Human Services to apply for Social Security benefits on behalf of eligible state wards and act as their representative payee. The department then is authorized to use a portion of those funds to reimburse the state for the foster youth’s care.

Among other reforms, LB275, sponsored by Omaha Sen. Megan Hunt, requires the department to conserve at least 20% of all Social Security benefits in a separate trust fund, beginning when a foster child is 14 years old. The percentage will gradually increase as the child ages until reaching 50% for beneficiaries who are 18 and older.

The bill also allows an adult known to a foster child to serve as their Social Security representative payee and requires the department to use all available Title IV-E funding prior to the use of state general funds for a beneficiary’s care.

LB275 passed on a 29-19 vote.