Dominic was removed from his mother’s care three months after his premature birth. He was born four months early, crack addicted, and with congenital hydrocephalus. He spent the rest of his young life in and out of foster-care placements. While in one of his first foster home placements, he was emotionally, physically and sexually abused. At age five he began experiencing grand mal seizures, which have continued into his adult life. At the age of twenty Dominic began experiencing vision problems and at twenty-one was diagnosed with a rare genetic eye disorder that has left him legally blind.
Somewhere, during Dominic’s time in foster care, the state of Colorado applied for Social Security disability benefits on his behalf, then used the funds to reimburse itself for his foster care costs. After he “”aged-out” of foster care and was on his own, he was told his social security benefits would not continue because the state had seriously mishandled his funds.
His local mental health agency fought for reinstatement and this time Dominic received the checks directly. He is now able to pay rent to the transitional living program where he resides, pay for his monthly medications, put nutritious meals on his table and he has begun a plan to repair his dismal credit history, which includes over $5,000 in debt he accrued trying to survive without the aid of any benefits.
This story illustrates how these benefits can be a lifeline for these young adults. But across the country, states are intercepting close to $200 million annually in social security survivor and disability benefits that foster children like Dominic are entitled to. Frequently, states apply for these benefits without even telling the children they’re eligible. For the states, this money is pocket change, but for the kids it’s the difference between self-sufficiency and a life on the streets.
Rather than create financially independent young adults who can stand on their own when they age out of the system, states are helping to create impoverished youth who frequently end up needing publicly supported shelter, job training, medical care, clothes and other basic necessities.
In addition, foster children are increasingly becoming the victims of identity theft, because their personal information passes through many hands, increasing the chances that someone will open an account in their name or use their Social Security number (SSN). Many foster children leave care with ruined credit histories – saddled with defaulted car loans, mortgages and credit cards they never had.
A new report from the Children’s Advocacy Institute at the University of San Diego School of Law and First Star, “The Fleecing of Foster Children: How We Confiscate Their Assets and Undermine Their Financial Security,” highlights these callous and counterproductive practices, and recommends legislation to protect the 30,000 teenagers a year who age out of foster care.
A bill before the Colorado Legislature and two bills in Congress would give these kids a better chance at self-sufficiency.
The Federal Foster Youth Self-Support Act would ensure that states determine if foster kids are eligible for benefits, and then use the funds for their needs, rather than as a source of revenue. By safeguarding benefits, the state would create a basic safety net for children when they age out of care. States would also have to create “Individual Development Accounts” to help these children secure housing, education or job training.
In Colorado, proposed legislation, supported by Protections for Youth In Foster Care Colorado, would end the use of social security numbers as an identifier and require that all foster children have their credit histories cleared of inaccuracies prior to leaving state care. A similar federal proposal has been filed in Congress.
It is important to note that these bills carry few real costs, and in fact, would result in long-term savings. The changes will make it much easier for foster kids to get on their feet financially and become productive members of society and the economy. States would forgo the miniscule amounts of money they are grabbing from foster kids, but recoup the funds many times over when these kids get jobs, pay taxes, and stay out of trouble.
The foster care system never intended to crush children’s dreams, but that is happening every day. Restoring sanity to a system that trips up kids like Dominic will inject true family values into foster care agencies that need to be reminded whose interests they represent.
Kippi Clausen is director of policy and population-based strategies at Mile High United Way. Maureen Farrell-Stevenson is president of the National Association of Counsel for Children based in Aurora.
Editor’s note: This is an online-only guest commentary. It has not been edited.
