| Momentum Bucket | Early Stage |
| Legal Title | AN ACT Relating to strengthening the financial stability of persons in the care of the department of children, youth, and families; |
| Bill Description | Strengthening the financial stability of persons in the care of the department of children, youth, and families. |
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What this bill does
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This bill creates a new section in chapter 43.216 RCW and amends RCW 74.13.060 to change how the department treats and manages certain benefits and funds for youth ages 18 through 21 who are in the department’s care under chapter 13.34 RCW. Beginning January 1, 2027, the department may not apply benefits, payments, funds, or accruals paid to or on behalf of those youth as reimbursement for the cost of care. The bill requires the department to assess eligibility for supplemental security income and retirement, survivors, and disability insurance benefits when a person turns 18 or is between 18 and 21 and to assist eligible youth to become the payee or to maintain eligibility when the department is the representative payee.
The bill makes procedural and fiduciary changes: the department must help designated payees set up appropriate financial accounts (examples include Washington ABLE, checking, or savings accounts), may provide support to determine whether a payee needs an authorized representative, must make reasonable efforts to identify a suitable authorized representative and may temporarily serve as one if none is available, and may contract with external entities to administer and manage those accounts. It also states that when an individual 18–21 is the representative payee, or when any person or entity other than the department is the authorized representative, the department does not owe a fiduciary duty to that payee or representative.
The amendment to RCW 74.13.060 authorizes the secretary (as unpaid custodian of funds coming into the secretary’s possession while a person is placed with the department or a contracted entity) to disburse funds for personal needs, apply them against public assistance payable, deposit funds in a single account while accounting for them individually, and, for amounts exceeding $2,000, deposit them into a savings or investment account on behalf of the person. The statute requires delivery of remaining funds and a full accounting when placement or public assistance ends and proper authority or competency is shown, and ends the secretary’s custodial authority upon receipt of certified letters of guardianship with forwarding of funds and accounting to the guardian on request.
It is unclear from the provided text which specific department name or which “secretary” office is referenced, and the extract may be part of a larger bill that could contain additional related provisions not included here.
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Why it matters
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If enacted, beginning January 1, 2027 youth ages 18–21 in state care will keep benefits, payments, or funds paid to or for them from being taken as reimbursement for the cost of their care, and the department will be required to check whether those young people qualify for federal benefits like Supplemental Security Income or Social Security disability/retirement when they turn 18 or while they remain 18–21 in care. Practically, more money that comes to or for those young people can be conserved in personal savings or investment accounts (examples named include ABLE accounts, checking/savings, or similar electronic accounts), the department will have to help eligible youth become or remain their own payee or help set up accounts for designated payees, and the department may temporarily serve as or find an authorized representative or hire an outside entity to manage those accounts.
The groups most affected are the department responsible for youth services (implied to be the Department of Children, Youth, and Families), the youth aged 18–21 in its care, the office or “secretary” that will hold custodial funds, current or future representative payees and contracted providers. The department will face new duties to assess benefit eligibility, assist with payee/account setup, and potentially contract for account management, which could raise administrative costs and operational responsibilities; conversely youth likely keep more of their own benefits available for future needs. It is unclear from the excerpt which specific “department” or “secretary” office is intended and the bill does not provide full detail on federal enrollment steps or timelines, so some implementation responsibilities and costs remain unspecified.
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| Official Documents | View Full Bill Text |
| Date Introduced | 01/12/2026 |
| Originating Chamber | House |
| Biennium | 2025-26 |
| Total Campaign Dollars Backing Bill | $6,192,728.00 |
| CHILDREN, YOUTH, AND FAMILIES, DEPARTMENT |