Children in Indiana foster care will now be able to take advantage of their federal survivor benefits once they leave the system.
Gov. Mike Braun signed an executive order on Wednesday that directs the Department of Child Services to set up accounts for those eligible in foster care to be able to receive earned benefits. This could include social security or survivor benefits from the U.S. Department of Veterans Affairs and the U.S. Railroad Retirement Board.
The order takes effect immediately.
Historically, Indiana has kept those benefits to fund foster care services to the tune of $3.2 million annually.
At the beginning of this year, the Trump administration told states to stop the long-standing practice of pocketing the survivor benefits. Now Indiana joins 10 other states that have moved to take similar action this year.
Alex Adams, an assistant secretary of the U.S. Department of Health and Human Services, attended Wednesday's signing and said the practice was essentially a tax on orphans.
“We are going to end this, and we are going to ensure that these benefits derive to the youth, so that when they age out, they have access to these and they can set themselves up for success in life,” Adams said.
When foster children age out of the system then they will be able to access the funds that have been kept aside for them in accounts set up by DCS.
Director of DCS, Jennifer Dorfmeyer, said that on average Indiana foster children would see just under $800 a month in survivor benefits. This change in policy would only apply to children currently in foster care.
Gov. Mike Braun said that the $3 million loss would not make a significant impact on DCS’s budget, which for this fiscal year is more than $1 billion.
“But it is significant for the families to get that instead of what's been done just out of customary practice, states holding on to it,” Braun said.
The executive order also directs DCS to provide annual accountings, financial literacy education and procedures for youth to request distribution of funds while in care.
Wednesday’s signing also marked Indiana’s official joining of the “A Home for Every Child” initiative which aims to level the ratio of foster homes to the number of kids in the foster care system. Indiana is the 20th state to join the initiative.
Contact Government Reporter Caroline Beck at cbeck@wfyi.org
