HB 254 CYFD & FEDERAL BENEFITS

Rep Tara Jaramillo

Actions: [4] not prntd-HRC

Scheduled: Not Scheduled

 House Bill 254 (HB 254) requires the Children, Youth and Families Department (CYFD) to determine federal benefits eligibility for children in its custody and apply for federal benefits and either act as the child's representative payee or determine an appropriate alternative; sets forth the CYFD’s obligations when acting as a child's representative payee; prohibits the use of federal benefits to pay the CYFD for the child's care; and establishes provisions for the release of federal benefits provided to children in legal custody of the state. 

 House Bill 254 (HB 254) requires the Children, Youth and Families Department (CYFD) to determine federal benefits eligibility for children in its custody and apply for federal benefits and either act as the child's representative payee or determine an appropriate alternative; sets forth the CYFD’s obligations when acting as a child's representative payee; prohibits the use of federal benefits to pay the CYFD for the child's care; and establishes provisions for the release of federal benefits provided to children in legal custody of the state.

New sections of the Children’s Code are enacted to:

•	Require the CYFD to determine a child’s eligibility for federal benefits;
•	if applicable, identify the child’s representative payee, attorney, custodian, guardian or tribe;
•	if there is no appropriate representative, require the CYFD to apply to become the child’s representative; and
•	if applicable, apply for benefits on behalf of the child.

In cases where the CYFD is a child’s representative with regard to federal benefits, procedures and requirements are detailed, with an emphasis on actions taken in the child’s best interest. Use of a child’s benefits to pay for or reimburse CYFD for the cost of the child’s care; however, benefits may be used to pay for the child’s unmet needs beyond what the CYFD is obligated to provide.

Beginning September 1, 2025 and annually thereafter, the CYFD is to submit a report to the legislative health and human services committee that includes: 

•	the number of children in its custody who receive federal benefits; 
•	the type of federal benefits; 
•	the way those benefits are conserved; and 
•	the amounts of federal benefits used and conserved.
 

 CYFD recently worked out new systems for allowing foster children to keep their federal benefits; however, to date there are no comprehensive requirements/guidelines/restrictions regarding children in all other categories and handling of their federal benefits. If the bill does not pass, the existing law will need to be relied upon. 

 House Bill 175 (HB 175) – Sharing of Certain CYFD Information
Senate Bill 152 (SB 152) – CYFD Investigations and Background Checks