Protecting Foster Youth Resources to Promote Self-Sufficiency Act
This bill addresses matters concerning Social Security benefit and Supplemental Security Income (SSI) payments for children in foster care, including by (1) prohibiting states from using payments that are received on behalf of a child in foster care to recoup or recover costs associated with the child's foster care, and (2) excluding any support received by a child in foster care from income calculations for purposes of SSI.
To ensure that foster children are able to use their Social Security 
 and Supplemental Security Income benefits to address their needs and 
                          improve their lives.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Protecting Foster Youth Resources to 
Promote Self-Sufficiency Act''.

SEC. 2. LIMITATION ON USE OF SOCIAL SECURITY OR SUPPLEMENTAL SECURITY 
              INCOME BENEFITS PAID TO REPRESENTATIVE PAYEES ON BEHALF 
              OF FOSTER CHILDREN FOR STATE COSTS.

    (a) Amendments to Title II.--Section 205(j)(9) of the Social 
Security Act (42 U.S.C. 405(j)(9)) is amended--
            (1) by inserting ``(A)'' after ``(9)''; and
            (2) by adding at the end the following:
    ``(B)(i) A State or local government agency serving in any State as 
a representative payee under this subsection with respect to an 
individual who is in foster care under the responsibility of the State 
shall not use any benefits paid to the representative payee pursuant to 
paragraph (1) of this subsection to reimburse the State for--
            ``(I) foster care maintenance payments made pursuant to 
        section 472, or
            ``(II) other payments made by the State or political 
        subdivision of the State to cover any other cost or expense for 
        an individual who is in foster care under the responsibility of 
        the State.
    ``(ii) An expense described in paragraph (4)(A)(i) of this 
subsection or section 1631(a)(2)(D) shall not be considered a cost or 
expense for purposes of clause (i) of this subparagraph.''.
    (b) Amendments to Title XVI.--Section 1631(a)(2)(A)(iv) of such Act 
(42 U.S.C. 1383(a)(2)(A)(iv)) is amended--
            (1) by inserting ``(I)'' after ``(iv)'';
            (2) by adding ``and'' at the end; and
            (3) by adding after and below the end the following:
    ``(II) A State or local government agency serving in any State as a 
representative payee under this subsection with respect to an eligible 
individual who is in foster care under the responsibility of the State 
shall not use any benefits paid to the representative payee pursuant to 
clause (ii) of this subparagraph to reimburse the State for--
            ``(aa) foster care maintenance payments made pursuant to 
        section 472; or
            ``(bb) other payments made by a State or political 
        subdivision of a State to cover any other cost or expense for 
        an individual who is in foster care under the responsibility of 
        the State.
    ``(III) An expense described in subparagraph (D) of this paragraph 
or section 205(j)(4)(A)(i) shall not be considered a cost or expense 
for purposes of subclause (II) of this clause.''.

SEC. 3. SCREENING OF FOSTER CHILDREN FOR ELIGIBILITY FOR SOCIAL 
              SECURITY AND SUPPLEMENTAL SECURITY INCOME BENEFITS.

    (a) State Plan Requirement.--Section 471(a) of the Social Security 
Act (42 U.S.C. 671(a)) is amended--
            (1) by striking ``and'' at the end of paragraph (36)(D);
            (2) by striking the period at the end of paragraph (37) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(38) provides that, not later than the beginning of the 
        first calendar quarter that begins after the 3-year period that 
        begins with the date of the enactment of this paragraph, the 
        State agency referred to in paragraph (2) of this subsection 
        shall--
                    ``(A) develop and implement procedures to ensure 
                that, within 60 days after the status of a child who is 
                in foster care under the responsibility of the State is 
                first reviewed pursuant to section 475(5)(B), and after 
                any material change in the circumstances of the child 
                that could affect the potential eligibility of the 
                child for such benefits, the child is screened to 
                determine the potential eligibility of the child for 
                benefits under title II and for supplemental security 
                income benefits under title XVI;
                    ``(B) if the screening results in a determination 
                that the child is potentially eligible for any of such 
                benefits--
                            ``(i) provide the child with assistance in 
                        applying for, and (if necessary) appealing any 
                        decisions made with respect to, the benefits; 
                        and
                            ``(ii) if there is no other suitable 
                        candidate available, apply to become the 
                        representative payee for the child with respect 
                        to the benefits; and
                    ``(C) develop and implement procedures to ensure 
                that any such child who is potentially eligible for, or 
                is a recipient of, benefits under title II or 
                supplemental security income benefits under title XVI, 
                is assisted with applying for such benefits not later 
                than 120 days (or, if the child has attained 17 years 
                of age, 1 year) before the child exits foster care.''.
    (b) GAO Study.--
            (1) In general.--Within 4 years after the date of the 
        enactment of this Act, the Comptroller General of the United 
        States shall conduct a study to determine whether the States 
        have substantially complied with the amendments made by this 
        section, including specifically whether the States have--
                    (A) established successful procedures that screen 
                all foster children under the responsibility of the 
                States for their potential eligibility for benefits 
                under title II of the Social Security Act and for 
                supplemental security income benefits under title XVI 
                of such Act;
                    (B) provided all such potentially eligible foster 
                children assistance in applying for, and appealing 
                decisions made with respect to, the benefits; and
                    (C) implemented procedures to identify suitable 
                nongovernmental candidates to serve as representative 
                payees for children in foster care with respect to the 
                benefits.
            (2) Report to the congress.--Within 1 year after completing 
        the study required by paragraph (1), the Comptroller General 
        shall submit to the Congress a written report that contains the 
        results of the study.

SEC. 4. NOTICE TO ATTORNEY OR GUARDIAN AD LITEM FOR FOSTER CHILD OF 
              DETERMINATION TO PAY SOCIAL SECURITY OR SUPPLEMENTAL 
              SECURITY INCOME BENEFITS TO REPRESENTATIVE PAYEE.

    (a) Amendment to Title II.--Section 205(j)(2)(E)(ii) of the Social 
Security Act (42 U.S.C. 405(j)(2)(E)(ii)) is amended by inserting ``, 
except that, in the case of an individual who is in foster care under 
the responsibility of a State or in a legal guardianship, such notice 
shall also be provided to the attorney or guardian ad litem appointed 
to represent the individual pursuant to section 106(b)(2)(B)(xiii) of 
the Child Abuse Prevention and Treatment Act and, if the individual has 
attained 14 years of age, to the individual'' before the period.
    (b) Amendment to Title XVI.--Section 1631(a)(2)(B)(xii) of such Act 
(42 U.S.C. 1383(a)(2)(B)(xii)) is amended by inserting ``, except that, 
in the case of an individual who is in foster care under the 
responsibility of a State or in a legal guardianship, such notice shall 
also be provided to the attorney or guardian ad litem appointed to 
represent the individual pursuant to section 106(b)(2)(B)(xiii) of the 
Child Abuse Prevention and Treatment Act and, if the individual has 
attained 14 years of age, to the individual'' before the period.

SEC. 5. MANAGEMENT OF SOCIAL SECURITY AND SUPPLEMENTAL SECURITY INCOME 
              BENEFITS FOR FOSTER CHILDREN.

    (a) Plan for Achieving Self-Support.--Section 471(a) of the Social 
Security Act (42 U.S.C. 671(a)), as amended by section 3(a) of this 
Act, is amended--
            (1) by striking ``and'' at the end of paragraph (37);
            (2) by striking the period at the end of paragraph (38) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(39) provides that, with respect to each child in foster 
        care under the responsibility of the State and on whose behalf 
        the State receives benefits under title II or supplemental 
        security income benefits under title XVI, the State agency 
        shall--
                    ``(A) develop a plan, developed specifically for 
                the child, which is designed to best meet the current 
                and future needs of the individual and enable the child 
                to achieve self-support after leaving foster care, in 
                accordance with the following:
                            ``(i)(I) The plan shall set forth a 
                        strategy to conserve benefits not necessary for 
                        the immediate needs of the child, determined as 
                        provided for pursuant to clause (ii) of this 
                        subparagraph, in a manner that best meets the 
                        future needs and educational and employment 
                        interests of the child, and for the placement 
                        of any such benefits in--
                                    ``(aa) an account of the type 
                                described in section 1631(a)(2)(F) of 
                                this Act;
                                    ``(bb) an ABLE account established 
                                under section 529A of the Internal 
                                Revenue Code of 1986;
                                    ``(cc) an individual development 
                                account established pursuant to Federal 
                                or State law; or
                                    ``(dd) such other account in which 
                                benefits for the child may be conserved 
                                in a manner that the State determines, 
                                consistent with this paragraph, is in 
                                the best interests of the child.
                            ``(II) The plan shall provide for a 
                        determination as to whether the child has 
                        immediate needs for which the benefits should 
                        be used to serve the best interests of the 
                        child consistent with sections 205(j)(10)(B) 
                        and 1631(a)(2)(A)(iv)(II).
                            ``(III) The plan shall provide for a 
                        determination of any additional assets to which 
                        the child may be entitled, including civil 
                        judgments, inheritances, or earnings, and shall 
                        provide for the assets to be conserved as part 
                        of the plan as described in clause (i).
                            ``(IV) Any funds conserved in accordance 
                        with the plan shall be used to supplement and 
                        not supplant any other Federal funds or 
                        programs that may be available for the benefit 
                        of the child.
                            ``(V) The plan shall provide that any 
                        assets set aside under the plan shall be 
                        conserved and inaccessible to the child (except 
                        for a use of funds described in items (aa) 
                        through (gg) of section 1631(a)(2)(F)(ii)(II), 
                        or for another use approved by the Secretary as 
                        being in the best interests of the child), and 
                        placed in an account described in clause (i) of 
                        this subparagraph, until the later of the date 
                        the child attains 18 years of age or ceases to 
                        be under the responsibility of the State.
                            ``(ii) The State agency shall--
                                    ``(I) develop and implement the 
                                plan in collaboration with the child 
                                (on an age-appropriate basis), the 
                                social worker for the child, the person 
                                acting as the representative payee for 
                                the child pursuant to section 205(j) or 
                                1631(a)(2) of this Act, and the 
                                attorney or guardian ad litem appointed 
                                to represent the child pursuant to 
                                section 106(b)(2)(B)(xiii) of the Child 
                                Abuse Prevention and Treatment Act; and
                                    ``(II) in developing and 
                                implementing the plan, make reasonable 
                                efforts to seek input from the parents 
                                and caretakers of the child.
                            ``(iii)(I) Within 60 days after the status 
                        of the child is first reviewed pursuant to 
                        section 475(5)(B), the State agency shall 
                        complete the plan.
                            ``(II) The State agency shall ensure that 
                        each subsequent such review of such status 
                        shall include consideration of an updated 
                        version of the plan and a report on the 
                        progress made in implementing the plan.
                            ``(iv)(I) Not later than 30 days before the 
                        status of the child is first reviewed pursuant 
                        to section 475(5)(B) of this Act after 
                        completion of the plan, the State agency shall 
                        provide a copy of the plan to the attorney or 
                        guardian ad litem appointed to represent the 
                        child pursuant to section 106(b)(2)(B)(xiii) of 
                        the Child Abuse Prevention and Treatment Act.
                            ``(II) Not later than 30 days before each 
                        subsequent such review, the State agency shall 
                        provide an updated copy of the plan to the 
                        attorney or guardian ad litem so appointed.
                            ``(v)(I) The child may request the plan to 
                        be modified in a review of the status of the 
                        child pursuant to section 475(5)(B), in a 
                        separate hearing, or in a permanency hearing 
                        pursuant to section 475(5)(C).
                            ``(II) The plan shall not be treated, in 
                        any administrative or judicial review 
                        proceeding, as meeting the requirements of this 
                        paragraph with respect to a child unless the 
                        plan is determined by the reviewer to be the 
                        best available means of meeting the current and 
                        future needs and educational and employment 
                        interests of the child;
                    ``(B) assist the child in developing a plan to 
                manage the benefits so as to meet the current and 
                future needs of the child; and
                    ``(C) provide the child financial literacy 
                training, including regarding budgeting, saving, 
                investing, managing credit, student loans, consumer 
                debt and installment purchasing (including credit 
                scoring, managing credit debt, and completing a loan 
                application), banking (including balancing a checkbook, 
                opening a deposit account, and the use of interest 
                rates), State and Federal income taxation, personal 
                insurance policies, identity theft security, and home 
                ownership (including the basic process of obtaining a 
                mortgage and the concepts of fixed and adjustable rate 
                mortgages, subprime loans, and predatory lending).''.
    (b) Provisions Relating to Representative Payees.--
            (1) Amendments to title ii.--Section 205(j) of such Act (42 
        U.S.C. 405(j)) (as amended by the preceding provisions of this 
        Act) is amended further--
                    (A) by redesignating paragraphs (8), (9), (10), 
                (11), and (12) as paragraphs (9), (10), (11), (12), and 
                (13), respectively; and
                    (B) by inserting after paragraph (7) the following 
                new paragraph:
    ``(8) A representative payee who is a State shall manage the 
benefits paid to the representative payee under paragraph (1) on behalf 
of an individual who is in foster care under the responsibility of the 
State, in accordance with the plan developed for the child pursuant to 
section 471(a)(39).''.
            (2) Amendment to title xvi.--Section 1631(a)(2) of such Act 
        (42 U.S.C. 1383(a)(2)) is amended by adding at the end the 
        following:
    ``(J) A representative payee who is a State shall manage the 
benefits paid to the representative payee under subparagraph (A)(ii) of 
this paragraph on behalf of an individual who is in foster care under 
the responsibility of the State, in accordance with the plan developed 
for the child pursuant to section 471(a)(39).''.
    (c) Exclusion From Resources Under the SSI Program.--Section 
1613(a) of such Act (42 U.S.C. 1382b(a)) is amended--
            (1) by striking ``and'' at the end of paragraph (16);
            (2) by striking the period at the end of paragraph (17) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (17) the following:
            ``(18) any assets managed on behalf of an eligible 
        individual in accordance with a plan developed for the 
        individual pursuant to section 471(a)(39).''.

SEC. 6. SUPPORT AND MAINTENANCE FURNISHED IN CASH OR IN KIND 
              DISREGARDED IN DETERMINING INCOME OF FOSTER CHILDREN 
              UNDER THE SUPPLEMENTAL SECURITY INCOME PROGRAM.

    Section 1612(a)(2)(A) of the Social Security Act (42 U.S.C. 
1382a(a)(2)(A)) is amended--
            (1) by striking ``and'' at the end of clause (ii); and
            (2) by inserting ``, and (iv) clause (i) shall not apply in 
        the case of a child who is in foster care under the 
        responsibility of a State'' before the last semicolon.

SEC. 7. TECHNICAL ASSISTANCE FOR CHILD WELFARE AGENCIES.

    (a) In General.--On request of a State agency responsible for 
administering, or supervising the administration of, a State program 
authorized by part E of title IV of the Social Security Act, the 
Secretary of Health and Human Services shall provide the State agency 
with technical assistance in carrying out the amendments made by this 
Act, including guidance for informing non-State representative payees 
of children in foster care under the responsibility of the State who 
are recipients of benefits under title II of such Act or supplemental 
security income benefits under title XVI of such Act of the 
availability of appropriate savings vehicles for any part of the 
benefits not required to meet the immediate needs of the children.
    (b) Limitations on Authorization of Appropriations.--To carry out 
this section, there are authorized to be appropriated $4,500,000 for 
fiscal year 2023, and such sums as may be necessary for each of fiscal 
years 2024 through 2028.

SEC. 8. EFFECTIVE DATES.

    (a) In General.--Except as provided in subsection (b) of this 
section, the amendments made by this Act (other than by section 3(a)) 
shall apply to benefits payable for months beginning after the date of 
the enactment of this Act.
    (b) State Plan Requirements Relating to Plans for Achieving Self-
Support.--
            (1) In general.--The amendments made by section 5(a) of 
        this Act shall take effect on the first day of the first 
        calendar quarter beginning after the date of the enactment of 
        this Act, and shall apply to payments under part E of title IV 
        of the Social Security Act for calendar quarters beginning 
        after such first day.
            (2) Delay permitted if state legislation required.--If the 
        Secretary of Health and Human Services determines that State 
        legislation (other than legislation appropriating funds) is 
        required in order for a State plan approved under part E of 
        title IV of the Social Security Act to meet the additional 
        requirements imposed by the amendments made by section 5(a) of 
        this Act, the plan shall not be regarded as failing to meet any 
        of the additional requirements before the first day of the 
        first calendar quarter beginning after the first regular 
        session of the State legislature that begins after the date of 
        the enactment of this Act. If the State has a 2-year 
        legislative session, each year of the session is deemed to be a 
        separate regular session of the State legislature.
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Protecting Foster Youth Resources to Promote Self-Sufficiency Act
To ensure that foster children are able to use their Social Security and Supplemental Security Income benefits to address their needs and improve their lives.
Protecting Foster Youth Resources to Promote Self-Sufficiency Act
Rep. Davis, Danny K.