New York City foster children with disabilities are being denied individual Social Security payments despite a 2022 policy intended to allow them to use these federal benefits for personal savings. This policy, implemented during the summer of 2022, directed the Administration for Children’s Services to cease using Social Security payments to cover housing and service costs for foster children entitled to these benefits due to qualifying disabilities. Instead, the funds were to be deposited into savings accounts for the children to access upon leaving the foster care system, a measure commended by Jess Dannhauser, the city’s commissioner for children’s services at the time.
However, newly released documents from the Administration for Children’s Services reveal that children eligible for Supplemental Security Income (SSI) have not been allowed to accumulate these funds as envisioned by the policy. Instead, since 2022, the agency has informed the U.S. Social Security Administration to suspend benefits for these children for the duration of their time in city foster care to ensure continued federal funding for overall foster care costs.
One individual affected by this is Shirley, a 20-year-old in foster care since 2016, eligible for SSI due to a learning disability and a mood disorder. She recently discovered that the Administration for Children’s Services had received $27,956 in SSI benefits in her name between 2018 and 2021, funds she never received. Shirley is now working with legal representation to reclaim these benefits retroactively, emphasizing the value they hold for her future stability.
Advocates for foster care youth argue that the city could adopt systems utilized in other states and cities to allow foster children to accrue SSI benefits in specialized savings accounts, rather than suspending these crucial funds. With the potential to legally accumulate up to $100,000 for foster children, such accounts would provide essential resources for these vulnerable individuals. Yet, the Administration for Children’s Services official maintains that the city is exploring alternative savings account options to exceed the $2,000 limit currently in place.
The exact amount of Supplemental Security Income left undistributed due to the suspension rule remains unknown, as does the total number of children in city foster care eligible for SSI benefits. While some foster children receive other forms of Social Security, like survivors’ benefits, these are being handled differently by the Administration for Children’s Services to avoid jeopardizing federal funding.
The debate surrounding the allocation of Social Security payments for foster children underscores the challenges and complexities faced by individuals within the foster care system. Efforts to ensure that vulnerable youth receive the support and resources they are entitled to are ongoing, as stakeholders seek to navigate the balance between financial sustainability and the well-being of those in the city’s care.