A recent report has suggested a major change for foster children in New Hampshire: the state may finally allow them to keep their Social Security benefits when they leave foster care, instead of keeping the money for themselves. This recommendation could help these young people avoid financial struggles as they transition out of care, especially when it comes to paying for things like housing and food.
Current Situation in New Hampshire
At the moment, New Hampshire is holding onto about $1 million in Social Security benefits meant for foster children each year. While this practice is legal, experts agree it is not in the best interest of the children. Many other states allow foster children to keep their Social Security benefits, and New Hampshire is one of the few states that does not.
What the Report Says
The report, which was requested by state lawmakers, recommends that the state start giving these benefits directly to the children when they leave foster care. The reasoning is that foster children are more likely to face challenges in life, like struggling to find housing or having enough money to eat. Studies have shown that children who grow up in foster care often have a harder time financially than those who are not in care.
Marie Noonan, the director of the state’s Division for Youth, Children, and Families, said that the report is helpful and gives the agency new ideas for how it can better support foster children. She said, “We’re open to looking at doing things differently. Of course we want to have those we serve to have all the benefits and resources they need to live successfully.”
Costs of the Proposed Changes
Making these changes could cost the state around $6 million over the next two years. This includes about $2 million in Social Security benefits that would be given directly to the children, as well as around $4 million for staff and operational costs. However, if the state decides to keep only 50% of the Social Security benefits instead of giving all of it to the children, the cost could be lower.
This could be a tough decision for lawmakers to make, especially with the state facing financial challenges. This year, New Hampshire lost millions in revenue from the interest and dividends tax, which was completely eliminated, and federal pandemic aid is ending.
How the Money is Currently Used
The state collects Social Security benefits for about 300 foster children. These benefits are used to help cover the cost of their care. For example, the money can be used for medical expenses that are not covered by insurance, out-of-home placements, and even “comfort items.” In one case, the state used the money to buy a child an Xbox for comfort.
The state also sets aside benefits for older children who are aging out of foster care. These funds help them with rent and other essential needs. However, the federal guidelines allow the state to save only up to $2,000, and in some cases, the state has been able to get special waivers to save more. Any benefits that are not spent on the child’s needs or saved for future use are returned to the federal government.
The Consultant’s Recommendations
The consultant who wrote the report recommends that New Hampshire follow the example of most other states and set up a program that allows for more savings. The consultant also suggested that the state start using savings accounts that pay interest for the Social Security benefits, something that is not being done currently.
The report also pointed out that New Hampshire is identifying fewer children who are eligible for Social Security benefits compared to other states. Right now, only about 4% of the state’s foster children in out-of-home placements are being recognized as eligible for benefits, while the national average is 12%. Noonan said that the state needs to improve how it checks for eligibility, ensuring that more children receive the benefits they qualify for.
What’s Next for the State?
Rep. Mary Jane Wallner, a Democrat from Concord, helped push for this report. She and a group of lawmakers are now drafting new legislation based on the recommendations from the report. While she is concerned about the tight budget, she hopes that more savings from federal benefits will make it easier for lawmakers to support the changes.
Wallner believes that the report provides a clear path forward for improving the way foster children are supported in New Hampshire. She said, “The report really did lay out a road map of how the state could go forward and provided the state with some options.”
The state’s next steps will depend on lawmakers and how they choose to move forward with the proposed changes.
(Source: nhpr.org)
