Preservation of Federal Benefits for Children and Youth
in Care
The use of federal cash support benefits, such as supplemental security income (SSI) disability, Social Security Administration (SSA) survivor benefits, and Department of Veterans Affairs (VA) benefits, to supplement the cost of providing essential food, clothing and shelter for children and youth in care is a longstanding practice in most states, including Kansas.
Through Executive Order no. 25-01, Kansas Governor Laura Kelly redirected the allocation of federal cash benefits of children and youth in foster care to accounts preserving the financial resources for the children and youth in care, rather than using the funding to reimburse the state for needs while in care. The practice will be fully implemented by July 1, 2025.
The preservation of the federal cash support benefits could be an important resource to support the unique needs of children and youth who have a disability or prematurely lost a parent. The funds could be used for extracurricular activities and school trips while a child or youth is in care or saved for expenses such as a car or apartment deposit for young adults exiting care.
The implementation of the new approach is in partnership with the Kansas State Treasurer’s Office, which administers the Kansas ABLE Savings Plan. Learn more about the ABLE Savings Plan.
Additional information:
Executive Order No. 25-01
Kansas ABLE Savings Plan
Frequently Asked Questions
As of Jan. 21, 2025
How will DCF identify which children and youth are eligible for federal cash benefits?
DCF will routinely screen every child entering foster care, in addition to those already in care, to determine their potential eligibility for federal benefits. If DCF determines a child may be eligible for benefits, an application will be filed on their behalf.
What types of accounts will be used?
During the time DCF serves as representative payee for children or youth in the custody of the Secretary, the following account types will be used:
- All children and youth receiving federal benefits will have up to $2,000 conserved in a Personal Needs Account (PNA) administered by DCF and housed at Capitol Federal Savings Bank.
- Youth with disabilities who qualify for Kansas ABLE Savings accounts will have additional funds conserved within an ABLE Account. ABLE accounts allow children and youth to conserve funds for Qualified Disability Expenses (QDE) without jeopardizing their eligibility for programs with resource limits. Programs where a resource limits or considerations may apply include the Free Application for Federal Student Aid (FAFSA), Supplemental Nutrition Assistance Program (SNAP), Medicaid, and SSI.
What type of account will a youth in care who is receiving survivor benefits (SSA or VA) and does not have a disability be provided?
These will be maintained within a Personal Needs Account (PNA) administered by DCF and housed at Capitol Federal Savings Bank. Survivor benefits do not have a resource limit so the PNA for these youth does not need to be kept at under $2,000 for them to continue receiving benefits.
Who manages Kansas ABLE Savings accounts?
Kansas ABLE Savings accounts are administered by the Kansas State Treasurer’s Office. While DCF serves as representative payee the monies will accrue interest at a conservative rate. If, however, another representative payee becomes responsible for the child’s funds, they may transfer these funds in a more-aggressive investment pool or a checking account that may be used for Qualified Disability Expenses (QDE).
Will youth receive any type of financial literacy education about the accounts?
DCF provides general financial literacy training to all youth aged 14 and up. The agency will convene a group of relevant stakeholders, including the State Treasurer’s Office, to develop additional educational materials tailored to the needs of children receiving federal benefits.
How can you make sure the alternative adult representative payee does not take advantage of the child’s funds?
Becoming a representative payee for an SSI/SSA recipient is a serious responsibility. Because of this, it involves an extensive application process with the Social Security Administration (SSA). Any adult that is interested in taking this responsibility must apply to the SSA, provide documents for identity verification, then participate in a face-to-face interview at a local SSA office. Then, the SSA performs a criminal background check to ensure that the adult individual can be entrusted with a child’s benefits. Some, but not all, representative payees are required to submit yearly reports showing how funds were utilized.
All representative payees are responsible for keeping records of how the payments are spent or saved and making the records available for review if requested by SSA. While DCF, CMPs, Courts, Guardians ad Litem, and others may make recommendations regarding appropriate individuals to serve as representative payee only SSA can approve someone to serve as a representative payee for federal benefits.
Additional guidance is to be posted on a regular basis including specific to current youth in care and notification of benefits.