Social Security Changes in California : California Governor Gavin Newsom recently signed AB 2906 into law, introducing important changes to Social Security. Foster youth will now receive Social Security survivor benefits that were previously withheld or diverted by the state as a result of this legislation.
Foster children and their legal guardians will be notified whenever a survivor benefits application is made, correcting long-standing issues within the foster care system. Detailed information about who is affected by the new requirements will be provided in this article.
California’s Social Security changes
1. AB 2906 – Benefits for safeguarding foster youth
Social Security survivor benefits are now allocated to foster children in accordance with the law, ending the practice of counties diverting these funds. Former foster youth face a high risk of homelessness after leaving the system, so this will provide much-needed financial support.
2. Survivor Benefits Requirements
When a Social Security survivor benefit application is made on behalf of foster children, their legal representatives are required to be notified. Traditionally, beneficiaries have not been involved in decisions regarding their funds, so this adds a layer of transparency.
3. Foster youth’s impact
Approximately 40,000 to 80,000 foster youth in California qualify for Social Security survivor benefits. Many people face homelessness or financial instability without access to these funds. According to a study published in 2021, 29% of former foster youth in California were homeless between the ages of 19 and 21. The purpose of AB 2906 is to redirect resources to youth who need them most in order to address this crisis.
4. National Context
These reforms are not unique to California. A total of thirty states and jurisdictions have enacted similar laws protecting foster youth, with Arizona, Washington, D.C., Oregon, and Massachusetts leading the way. In combination, these reforms aim to prevent the mismanagement of vulnerable populations’ benefits.
Detailed Breakdown of Changes
| Aspect | Previous Regulations | New Requirements |
|---|---|---|
| Foster Youth Notification | No requirement to inform foster children or legal guardians. | Mandatory notification to foster children and their guardians. |
| Benefit Access for Foster Children | Counties could divert Social Security benefits to their coffers. | Foster children now have full access to their benefits. |
| Oversight | Minimal oversight; no judicial review required. | Judicial review and legal oversight now required. |
| Homelessness Risk Reduction | High risk due to lack of access to funds. | Funds directly provided to foster youth to reduce homelessness. |
| National Comparisons | Few states had protections for foster youth benefits. | 30 states now provide protections, aligning with California. |
In the New Law, retirees and others are affected
AB 2906 primarily focuses on foster youth, but other groups may also be affected by changes to Social Security. Some of these include:
- The Social Security benefits of disabled foster youth will be better protected, ensuring they are not misallocated.
- Social Security Survivor Benefits for Foster Youth: Foster children whose parents contributed to Social Security before they died or became disabled will now have easier access to benefits.
- Foster children under their care who qualify for benefits must be notified of their legal guardians.
The importance of these changes
Social Security Changes in California : With the introduction of AB 2906, California’s foster care system can address systemic issues. County governments diverted millions in Social Security payments that could have changed the lives of these youth, affecting their ability to secure housing, education, and other essentials. A growing list of states are addressing the same issues under these new requirements, aligning California with the rest of them.
According to Amy Harfeld, the National Policy Director of the Children’s Advocacy Institute, this law could mean the difference between a stable future and homelessness for many foster children. County governments can no longer avoid their legal obligations, and these payments will now be preserved for those in need.
Final thoughts
AB 2906 represents a major reform to the Social Security system in California, especially for foster youth.
The law addresses long-standing issues within the system and reduces homelessness among vulnerable populations by ensuring survivor benefits are allocated properly.
A precedent is being set for other states to follow as California reforms Social Security policies for foster youth.
