ASSEMBLY APPROPRIATIONS COMMITTEE

STATEMENT TO

[First Reprint]

ASSEMBLY, No. 4543

with committee amendments

STATE OF NEW JERSEY

DATED:  MARCH 20, 2025

      The Assembly Appropriations Committee reports favorably and with committee amendments Assembly Bill No. 4543 (1R).

      As amended and reported, this bill prohibits the Department of Children and Families from using the property or benefits of any child under the custody of the Division of Child Protection and Permanency to offset the State’s costs for the child’s maintenance, except to maintain the child’s eligibility for federal Supplemental Security Income Program (SSI) benefits and to avoid a violation of federal asset or resource limits under the SSI program.

      The bill also stipulates that the department must appropriately monitor any federal asset or resource limits for the child’s relevant benefits, establish a qualified ABLE account or other trust account for every child who is eligible, and ensure that the child’s best interest is served by using the benefits for the child’s unmet needs or conserving the benefits in a way that avoids violating federal asset or resource limits that would affect the child’s ability to receive the benefits.

      The bill requires the Commissioner of Children and Families to apply for any federal waivers necessary to implement the provisions of the bill and ensure continued federal reimbursement for State expenditures for child welfare services under Title IV-E of the Social Security Act.  The committee amendments stipulate that if a child is or may be eligible for SSI benefits, the department will, if necessary for the child’s eligibility for such benefits, forego claiming the child for the purposes of federal reimbursement for State child welfare services.

      Authorized under “The Stephen Beck, Jr., Achieving a Better Life Experience Act,” Pub.L.113-295, ABLE accounts are tax-exempt savings accounts intended to help individuals with disabilities and their families to save private funds for disability-related expenses, while still maintaining eligibility for means-tested federal benefits under Medicaid and the Supplemental Security Income Program.  New Jersey’s qualified State ABLE program allows individuals with disabilities and their families to save up to $18,000 annually, and a maximum of $305,000 over a lifetime, for disability-related expenses; balances under $100,000 are excluded from the SSI resource limit.

      The federal Social Security Administration typically will appoint the department as the representative payee for a child under the division’s custody to manage any federal benefits to which the child is entitled.  These federal benefits include, but are not limited to:

      (1)  Social Security Disability Insurance benefits, based on the work history of a disabled or deceased parent;

      (2)  Supplemental Security Income benefits for a child who is under the age of 18 years, has a disability, and who meets certain income and resource limits established by the Social Security Administration;

      (3)  Survivor benefits for children of deceased military veterans, which are provided by the Veterans Administration; and

      (4) Railroad Retirement Benefits.

      These federal benefits are provided in the child’s name, but are intended to be used to support the costs associated with the child’s care.  In the case of a child in an out-of-home placement, the department is the child’s caregiver and, under federal law, may be allowed to use the child’s federal benefits to offset the State’s costs to maintain the child in an out-of-home placement.

      As amended and reported by the committee, Assembly Bill No. 4543 (1R) is identical to Senate Bill No. 3153 (1R) which was also reported by the committee on this date.

COMMITTEE AMENDMENTS:

      The committee amendments add language to clarify that the department is prohibited from utilizing the property or benefits of a child under the custody of the Division of Child Protection and Permanency in the Department of Children and Families, except to maintain the child’s eligibility for Supplemental Security Income (SSI) Program benefits and avoid violating federal asset or resource limits under the SSI program.

      The committee amends the bill to replace language requiring the department to notify a child’s parents or legal guardian, among other required parties, when the department utilizes a child’s federal benefits for the child’s unmet needs beyond the amount that the State is obligated to pay, with language requiring notification of the child’s parent and legal guardian, among other parties, under such circumstances.

      The committee amendments replace language that requires the department to establish an account at a federally insured financial institution into which the child’s federal benefits will be deposited for conservation or use in the child’s best interests, with language requiring the department to monitor any federal asset or resource limits for the benefits, establish a qualified ABLE account or other trust account for every child who is eligible, and ensure that the child’s best interest is served by using the benefits for the child’s unmet needs or conserving the benefits in a way that avoids violating federal asset or resource limits that would affect the child’s eligibility to receive the benefits. 

      The committee amendments add language to section 2 of the bill to stipulate that, in the case of a child in an out-of-home placement who is eligible for federal SSI benefits, the department will, if necessary to ensure the child’s eligibility for the benefits, forego claiming the child for the purposes of federal reimbursements for State child welfare payments.

FISCAL IMPACT:

      The Office of Legislative Services (OLS) determines that annual State revenues will decline by about $500,000 attributable to a decrease in federal revenues received by the State for foster care maintenance payments made pursuant to Title IV-E of the federal Social Security Act. The bill directs the Department of Children and Families, if necessary to ensure benefits eligibility for a child who is or may be eligible for federal Supplemental Security Income benefits, to forego claiming federal Title IV-E foster care maintenance payments for the child.

      The OLS concludes that the bill will increase annual State expenditures by about $170,000 for the Department of Children and Families to hire additional staff to ensure that the department universally screens children entering out-of-home placement for eligibility for federal benefits, and, if appointed as representative payee for the child’s federal benefits, uses or conserves a child’s federal benefits in a way that serves the child’s best interests while also complying with federal asset or resource limits established under the federal Supplemental Security Income program.

      As of June 1, 2024, in cases in which the department is appointed as representative payee for the federal benefits of a child in an out-of-home placement, the department no longer utilizes certain federal benefits to offset the State’s costs for the child’s care. Instead, the department utilizes a child’s Supplemental Security Income benefits to offset the cost of the child’s care only if conserving the full amount of the child’s federal benefit would raise the child’s assets above the $2,000 threshold for continued Supplemental Security Income program eligibility.

      As such, the bill’s provisions will have little impact on the department’s operations when compared with its current practices regarding treatment of the federal benefits of a child in an out-of-home placement.