The Overview

If a child in Michigan's foster care system is owed Social Security or SSI money, you'd probably assume it's meant for that child, and a new state law is written to keep it that way, provided one more bill clears. Michigan's HB 4750, now Public Act 51 of 2026, requires the state to screen every child in foster care for federal and state benefit eligibility and sets strict rules on how those benefits can be spent. The bill bars the state from using a foster child's benefits to reimburse the state for the cost of the child's care, and it is set to take effect Oct. 1, but only if Senate Bill 18 is enacted into law.

For years, child-welfare agencies across the country routinely became the representative payees for foster children receiving Social Security or Supplemental Security Income (SSI) benefits, then redirected those payments to cover state foster-care costs. Michigan was among those states, with The Detroit News reporting in 2024 that the state intercepted some foster children's SSI and survivor benefits as a "revenue maximization" strategy.

The full text, introduced by Rep. Kathy Schmaltz and 28 co-sponsors, adds a new section to Michigan's 1994 foster care and adoption services standards law. The Michigan Department of Health and Human Services (MDHHS) must, once the act takes effect:

  • Screen each child within 60 days of entering foster care, and annually after that, and apply for any benefits the child is not already receiving.
  • Use or conserve benefits in the child's best interests and never use them to reimburse the state for the child's care.
  • Conserve at least 50 percent of benefits for children ages 14 through 17.
  • When the department acts as a child's representative payee or fiduciary, it must give an annual accounting to the child, the supervising child placement agency contact, and the guardian ad litem (if one is appointed), and must provide financial literacy training from age 14 "if appropriate."

The Debate

The House passed HB 4750 on Sept. 10, 2025, by a vote of 60 to 45. The Senate passed it unanimously July 3, 2026, 36 to zero, and the House concurred in the Senate's substitute version the same day, 106 to one. Schmaltz said in a statement quoted by The Detroit News: "Many foster children enter adulthood without a financial safety net, family support, or the resources that other young adults can rely on."

What's Next

The law is set to take effect Oct. 1, 2026, but only if Senate Bill 18 of the 103rd Legislature is enacted into law. The Michigan Department of Health and Human Services (MDHHS) must screen each child within 60 days after the child enters foster care, and repeat the screening annually. The law includes no dedicated appropriation, and no implementation cost estimate was found in the available official materials.

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