Foster Youth Earned Benefits Protection for Success Act; enact., the official text

MISSISSIPPI LEGISLATURE

2026 Regular Session

To: Youth and Family Affairs

By: Representatives Yancey,
Hurst, Anthony, Scott

House Bill 1758

(As Sent to Governor)

AN ACT TO ESTABLISH THE FOSTER YOUTH EARNED BENEFITS
PROTECTION FOR SUCCESS ACT; TO PROVIDE THAT WHEN A CHILD ENTERS INTO THE CARE
AND CUSTODY OF THE DEPARTMENT OF CHILD PROTECTION SERVICES (CPS), THE
DEPARTMENT SHALL DETERMINE IF A CHILD IS ELIGIBLE OR RECEIVING EARNED FEDERAL
BENEFITS; TO PROVIDE THAT A REPRESENTATIVE PAYEE MAY BE APPROPRIATE IN CERTAIN
CIRCUMSTANCES; TO REQUIRE CPS TO CONDUCT AN ANNUAL REVIEW REGARDING ELIGIBILITY
OF SUCH BENEFITS FOR A CHILD; TO PROVIDE THAT CPS SHALL DEVELOP AND IMPLEMENT A
SUCCESS SEQUENCE SAVINGS AND DISBURSEMENT PLAN FOR EACH CHILD WITH CONSERVED
EARNED BENEFITS; AND FOR RELATED PURPOSES.

BE
IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION
1.  This act shall be known and
may cited as the "Foster Youth Earned Benefits Protection for Success
Act".

SECTION
2.  (1)  For all children in the
care and custody of the Department of Child Protection Services (CPS), which
may also be referred to as "department" throughout this act, the
department shall determine within sixty (60) days after entry into care whether
each child is receiving or eligible for earned federal benefits administered by
the Social Security Administration or the Department of Veterans Affairs,
including survivors' or dependent benefits.

(2)
If CPS determines that a child is eligible or may be eligible for such earned
benefits, the department shall apply for the benefits on behalf of the child in
accordance with federal law.

SECTION
3.  (1)  If a child is already
receiving earned federal benefits before entering CPS, or if CPS applies for
benefits on behalf of the child, the department shall, in consultation with the
child and the child's attorney, identify an appropriate representative payee
consistent with Title 20 Code of Federal Regulations Sections 404.2021 and
416.621, and shall apply to become the representative payee only if no other
suitable candidate is available.

(2)
If CPS is appointed to serve as the representative payee, the department:

(a)
Shall not use any of the child's earned federal benefits, savings, or assets to
pay for or reimburse the department or this state for any cost of the child's
care, maintenance, supervision, or services.

(b)
May use the child's earned benefits only for unmet needs of the child that are
beyond those the department is obligated or agrees to pay.

(c)
Shall establish and maintain an account to conserve the child's earned benefits
in the child's best interest and consistent with federal and state asset and
resource limits.      Acceptable account types include:

(i)
A special needs trust;

(ii)
A pooled special needs trust;

(iii)
An Achieving a Better Life Experience (ABLE) account established pursuant to 26
United States Code Section 529A; or

(iv)
Any other account or trust vehicle determined not to interfere with eligibility
for public benefits.

(d)
Shall provide an annual accounting of the use, application, or conservation of
the child's earned benefits to the child, the child's attorney, and, if
parental rights have not been terminated, to the child's parents or guardians.

(e)
Shall periodically review whether another qualified person or entity could
serve as representative payee in the child's best interest and, if so, shall
assist in transferring that role.

SECTION
4.  (1)  CPS shall provide
written notice to the child, the child's parents (unless parental rights have
been terminated), the child's guardian, the child's current placement, and the
child's attorney of any application for benefits, decision, appeal, or
appellate determination related to the child's earned benefits.

(2)
If benefits are denied, the department shall consult with the child's attorney
and appeal the denial if it is in the child's best interests.

SECTION
5.  CPS shall review each case
annually to determine whether a child in care has become newly eligible for
earned federal benefits after the department's initial determination.

SECTION
6.  (1)  CPS shall develop and
implement a Success Sequence Savings and Disbursement Plan for each child with
conserved earned benefits.

(2)
Under the plan, a child may access a portion of conserved benefits upon
completion of specific milestones that promote independence and financial
readiness, including, but not limited to:

(a)
Obtaining a driver's license or state identification card;

(b)
Graduating from high school or receiving a recognized equivalent;

(c)
Enrolling in a postsecondary education, vocational training, or apprenticeship
program;

(d)
Maintaining verified employment for at least six (6) consecutive months; and

(e)
Completing a department-approved financial literacy or savings readiness
program.

(3)
CPS shall determine reasonable disbursement thresholds and amounts for each
milestone to promote long-term savings while rewarding progress toward self
sufficiency.

(4)
The department shall ensure that all youth participating in the program have
access to financial literacy instruction and counseling to support effective
use of milestone payments and long-term asset building.

SECTION
7.  Upon termination of CPS's
custody or legal responsibility for the child, the department shall release any
remaining conserved funds as follows:

(a)
To the child, if the child is at least eighteen (18) years of age or
emancipated; or

(b)
To the person responsible for the child, if the child remains a minor and is
not emancipated.

SECTION
8.  CPS may adopt rules
consistent with federal law to implement this act, including rules governing
account management, milestone disbursements, reporting, financial literacy
education, and oversight.

SECTION
9.  This act shall take effect
and be in force from and after July 1, 2026.