The bill adds a new section to chapter 74.13 RCW and amends RCW 74.13.060. The new section prohibits the Department of Children, Youth, and Families from applying benefits, payments, funds, or accruals paid to or on behalf of a person in extended foster care (defined as a person age 18 to 21 in the department’s care under chapter 13.34 RCW) as reimbursement for the cost of care, effective January 1, 2027. The bill requires the department to assess whether persons in extended foster care who are not already receiving Social Security benefits (including SSI and RSDI) are eligible, and when eligible to assist them or designated payees to become or manage the Social Security payee relationship and to establish appropriate financial accounts (examples listed include Washington ABLE accounts, checking or savings, or other electronic banking). It allows the department to provide supports to determine if the person can manage their account, to make reasonable efforts to identify a suitable authorized representative and to serve temporarily as authorized representative if none is available, and to contract with an external entity to administer and manage accounts. When the department is the representative payee, the bill imposes a fiduciary duty to manage funds consistent with federal Social Security Administration rules. The amendment to RCW 74.13.060 affirms the secretary (and designees) as custodian without compensation of funds coming into the department’s possession, preserves authority to disburse moneys for personal needs and to apply funds as reimbursement except as limited by the new section, allows pooling of funds with individual accounting and placement of an individual’s funds over $2,000 into a qualifying protected account, requires delivery of remaining funds and a full accounting when placement and public assistance end (with proof of competency or proper authority), and ends custodial authority upon receipt of certified letters of guardianship. The bill affects the Department, the secretary, persons in extended foster care, representative payees and authorized representatives, and references the federal Social Security Administration. The text provided does not show the exact new section number, statutory definitions of “the department” or “the secretary,” detailed procedures for contracting or for determining eligibility and suitability of representatives, or completed certification/filing information. The bill passed the House March 5, 2026 and the Senate March 9, 2026.

Starting January 1, 2027, young people ages 18–21 in extended foster care will generally keep Social Security payments made to or for them rather than having those payments used to repay the state for foster care costs. The department must check whether these young people qualify for SSI or RSDI, help them become their own payee or help a designated payee set up an appropriate account (for example an ABLE or bank account), assess whether they can manage money or need an authorized representative, and temporarily serve or contract out to manage accounts if no suitable representative is found. When the department acts as representative payee it must manage the funds under federal Social Security rules and has a fiduciary duty to do so. The practical effect is that DCYF (the department) will take on new ongoing duties and likely new administrative costs and risks: more eligibility assessments, account setup and monitoring, potential contracting to manage accounts, and fiduciary accountability when holding or spending benefits. The secretary will continue to serve as custodian of funds brought into care, may pool funds with individual accounting, move balances over $2,000 into qualifying protected accounts, and must return funds and an accounting when placement ends or a guardian is certified. The bill leaves unclear operational details such as exact procedures for eligibility decisions, how a "suitable" authorized representative is chosen, and contracting or oversight rules, so implementation practices and costs will depend on future administrative rules or guidance.