2026 SESSION

INTRODUCED

26103251D

HOUSE BILL NO. 578

Offered January 14, 2026

Prefiled January 13, 2026

A BILL to amend and reenact § 63.2-905.6 of the Code of Virginia, relating to foster care; federal benefits; representative payees.

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Patron—Glass

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Referred to Committee on Health and Human Services

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Be it enacted by the General Assembly of Virginia:

1. That § 63.2-905.6 of the Code of Virginia is amended and reenacted as follows:

§ 63.2-905.6. Eligibility for certain federal benefits.

A. The local departments shall screen any child in foster care for eligibility for benefits from the Social Security Administration, the U.S. Department of Veterans Affairs, or the U.S. Railroad Retirement Board within 60 days of such child entering foster care and at least annually thereafter. The local departments shall apply for any such benefits on behalf of a child in foster care for which such child may be eligible. If a local department applies for such benefits on behalf of a child in foster care, the local department shall provide written notice of the application and the determination of such application to (i) the child; (ii) the child's parent, prior guardian, or prior custodian, or, if there is no legal parent or prior guardian or custodian, the child's next of kin; (iii) the guardian ad litem appointed pursuant to § 16.1-266, if applicable; and (iv) the counsel appointed for the child pursuant to § 16.1-266, if applicable.

B. If a child in foster care is receiving benefits from the Social Security Administration, the U.S. Department of Veterans Affairs, or the U.S. Railroad Retirement Board, the local department shall review the child's existing representative payee to ensure that the representative payee is adequately representing the child's best interests. If the local department determines that the existing representative payee is not adequately representing the child's best interests, the local department shall take appropriate actions necessary to appoint a different representative payee.

C. If a child in foster care is found eligible for benefits from the Social Security Administration, the U.S. Department of Veterans Affairs, or the U.S. Railroad Retirement Board, the local department shall to the extent possible, collaborate with (i) the child; (ii) the child's parent, prior guardian, or prior custodian, or, if there is no legal parent or prior guardian or custodian, the child's next of kin; (iii) the guardian ad litem appointed pursuant to § 16.1-266, if applicable; and (iv) the counsel appointed for the child pursuant to § 16.1-266, if applicable, to identify a suitable representative payee. The local department shall only serve as representative payee when no other suitable candidate is available.

D. If the local department of social services (the local department) serves as representative payee for a child receiving benefits from the Social Security Administration or, the U.S. Department of Veterans Affairs, or the U.S. Railroad Retirement Board, the local department shall provide written notice in person or by certified mail, return receipt requested, that it is acting as the child's representative payee within 30 days after receiving the first benefit payment on behalf of the child to:

1. The child, in an age-appropriate manner, if the child is 12 years of age or older;

2. The child's parent, prior guardian, or prior custodian, or, if there is no legal parent or prior guardian or custodian, the child's next of kin;

3. The guardian ad litem appointed pursuant to § 16.1-266, if applicable; and

4. The counsel appointed for the child pursuant to § 16.1-266, if applicable.

E. If the local department serves as representative payee for a child receiving benefits from the Social Security Administration, the U.S. Department of Veterans Affairs, or the U.S. Railroad Retirement Board, the local department shall use such benefits only for expenses necessary to meet the child's current, individual, and unmet needs. Such benefits shall not be used to pay for the care and support of children in foster care that the Commonwealth is otherwise obligated to pay for, including maintenance payments or special allowances as defined in 42 U.S.C. § 675(4)(A). To the extent possible, decisions to utilize such benefits shall be made in consultation with (i) the child, in an age-appropriate manner; (ii) the child's parent, prior guardian, or prior custodian, or, if there is no legal parent or prior guardian or custodian, the child's next of kin; (iii) the guardian ad litem appointed pursuant to § 16.1-266, if applicable; and (iv) the counsel appointed for the child pursuant to § 16.1-266, if applicable.

F. If the local department serves as representative payee for a child receiving benefits from the Social Security Administration, the U.S. Department of Veterans Affairs, or the U.S. Railroad Retirement Board, the local department shall conserve such benefits in an appropriate trust instrument or protected account that is exempt from federal asset and resource limits, such as an ABLE savings trust account pursuant to Chapter 7 (§ 23.1-700 et seq.) of Title 23.1. All conserved benefits shall be released to the child in a manner determined appropriate by the Department when the child leaves foster care.

G. If the local department serves as representative payee for a child receiving benefits from the Social Security Administration, the U.S. Department of Veterans Affairs, or the U.S. Railroad Retirement Board, the local department shall provide an annual accounting detailing the use of such benefits to (i) the child; (ii) the child's parent, prior guardian, or prior custodian, or, if there is no legal parent or prior guardian or custodian, the child's next of kin; (iii) the guardian ad litem appointed pursuant to § 16.1-266, if applicable; and (iv) the counsel appointed for the child pursuant to § 16.1-266, if applicable.

H. The Department shall develop and provide training for representative payees serving children in foster care regarding fiduciary obligations associated with serving as a representative payee that includes information on the establishment, monitoring, and appropriate use of trust instruments and protected accounts.

I. The Department shall develop and provide training for children in foster care who are age 14 and older regarding accessing, managing, and using benefits from the Social Security Administration, the U.S. Department of Veterans Affairs, or the U.S. Railroad Retirement Board.