This bill adds a new section to chapter 43.216 RCW and amends RCW 74.13.060 to change how the Department of Children, Youth, and Families handles federal benefit payments for youth in its care. It prohibits the department from using benefits, payments, funds, or accruals paid to or on behalf of young people as reimbursement for the cost of care, effective January 1, 2026 for youth ages 14–17 and effective January 1, 2028 for those younger than 14 or older than 17 subject to appropriations. The bill creates procedural requirements: the department must screen and assess persons in out-of-home placement who are not already receiving Supplemental Security Income (SSI) or Social Security retirement, survivors, and disability insurance (RSDI) for eligibility and apply on their behalf. For applicants over age 12 the person must be asked to consent to release information. The department must notify the person and either caregivers and dependency parties or the parent or legal guardian, provide information to the Social Security Administration about potential representative payees, and maintain eligibility if approved. The department may delay applying to be representative payee when reunification is the permanency plan. When the department serves as representative payee the bill requires it to place benefit funds into an account for the person's unmet personal needs while in care, to avoid supplanting other funding, and to place excess funds into savings or investments that do not count against SSI/RSDI eligibility except when necessary to access certain Medicaid waiver services. Acceptable account types named include Washington ABLE accounts, special needs or pooled trusts, and savings accounts. The department must provide annual account statements, transition payee responsibilities when placements end or when the youth turns 18 (unless a guardian is required), and develop financial literacy training for youth over age 14 exiting care who are receiving or likely to be eligible for public benefits. The text does not specify the new section number, does not identify which agency head is "the secretary" in the amended RCW, and does not provide details about the appropriation condition for the January 1, 2028 effective date.

If enacted, the department of children, youth, and families will have to stop using SSI or RSDI payments received for many young people in its care to reimburse the state for cost of care (starting for ages 14–17 on Jan 1, 2026, and potentially expanding to other ages on Jan 1, 2028 if funded) and must proactively screen and apply for SSI/RSDI for eligible children. Practically that means DCYF will take on new day-to-day duties: applying to Social Security (asking for consent from youth over 12), serving as representative payee when appropriate, holding benefit funds in specified account types that won’t jeopardize eligibility, issuing annual account statements, helping youth transition to their own payee when placements end, and providing financial literacy training for youth 14 and older. Youth in care will likely keep more of their public benefits available to meet personal needs rather than having those payments used to offset care costs, and will get more support managing benefits. DCYF will face increased administrative work and likely added costs to run screenings, applications, account management, reporting, and training; the state’s ability to recoup care costs from benefits will be reduced. Important implementation details are missing here — for example which official is the “secretary” referenced for depositing funds, how the 2028 expansion will be funded, and other procedural rules — so some operational impacts and fiscal costs remain uncertain.