Schmaltz bill ensures young people in system access resources they’re owed

State Rep. Kathy Schmaltz and the Michigan House this week approved a plan to ensure young people in Michigan’s foster care system can access the financial support they’re entitled to as they age out of the system and transition into adulthood.

Schmaltz, R-Jackson, introduced House Bill 4750 to help young people as they age out of the foster care system. Her plan addresses a problem highlighted by recent reports in the Detroit Free Press and Detroit News about the state’s practice of diverting federal benefits intended for foster children to fund its child welfare program. Schmaltz said the money should go to foster kids.

“Too often, young people who grow up in foster care are left to face adulthood alone and without the resources that were meant to be theirs all along,” Schmaltz said. “This plan makes sure that money intended for foster kids actually goes to them. It’s about giving them a fair shot at success and a future with stability.”

Under current practice, any federal benefits awarded to a child in the Michigan foster care system are collected by the state and used to reimburse the state for the cost of care. This includes income such as Veterans Administration benefits, Supplemental Security Income, and Social Security benefits.

Schmaltz’s plan, House Bill 4750, will set aside a portion of these federal benefits for the child’s future needs. For children aged 14 and 15, at least 40% of these benefits must be set aside; children aged 16 and 17 would have at least 80% set aside; and foster youth aged 18 to 20 would have 100% set aside.

The measure also provides children in foster care with financial literacy training and ensures they are notified about all the federal benefits the state applies for and collects on their behalf.

According to Kids Count data, 33% of young people aging out of foster care in Michigan experience homelessness between the ages of 19 and 21. Schmaltz said her plan will help prevent this by giving youth the tools and resources they need to build stable futures.

“These kids have endured so much already,” Schmaltz said. “We owe it to them to make sure they don’t start adulthood empty-handed. My plan will help equip foster youth with the tools and the funds they need to stand on their own two feet and be successful.”