TOPEKA — In a landmark move, Kansas Governor Laura Kelly has ordered federal benefits like Social Security and disability payments, previously used to fund state agency operations, to instead be directed to savings accounts for children in foster care. The decision marks a pivotal shift in how the state manages the welfare of foster kids, offering them a more secure financial future.
The executive order, signed on January 10, 2025, aims to ensure that the benefits rightfully owed to foster children will now be preserved for their future use, rather than supporting state departments. Kelly’s announcement comes as part of a broader effort to better serve vulnerable children in the state’s foster care system, ensuring their needs are prioritized as they transition to adulthood.
Foster Children Get Financial Boost with New Policy
The new policy guarantees that federal benefits such as Social Security and disability payments will go directly to the children, creating savings accounts that will remain in their names even after they age out of the foster system. Previously, these funds had been used to cover operational costs for the Kansas Department for Children and Families (DCF), a practice that has now been called into question by advocates and lawmakers alike.
Governor Kelly emphasized that redirecting these funds to the children themselves was the ethical choice, explaining at a news conference, “Federal benefits are not — and were never meant to be — a state revenue source. Redirecting these funds to the children is the right thing to do.”
Kansas is not the first state to shift how federal benefits are distributed to foster children, but it is the first to do so through an executive order. The initiative promises to provide a long-term benefit to foster children, offering them an opportunity to save for education, housing, or even a car as they transition into adulthood.
Impacts on the State Budget and Foster Care System
While the policy change is seen as a win for foster children, it also comes with challenges for the state’s budget. The Kansas Department for Children and Families, which oversees the foster care system, is expected to face a budget shortfall of approximately $9 million as a result of this new directive. This gap in funding will likely need to be filled by the state’s general fund, and Governor Kelly has urged the state Legislature to codify the order into law to ensure its long-term success.
A total of nearly 1,000 children in the state’s foster care system are eligible to receive federal benefits, and the shift in policy will directly affect these children’s futures. For the first time, foster children will have direct access to these funds, which can be used for everyday needs or saved for the future.
State Treasurer Steven Johnson, who was present at the announcement, voiced his support for the change, saying it would help provide foster children with a better foundation for success once they exit the system.
How the New System Will Work
Under the new mandate, Kansas Department for Children and Families staff will assist in applying for federal benefits on behalf of eligible foster children. When approved, the funds will be deposited into individual savings accounts set up for each child. These accounts will be managed by the state unless another adult, such as a foster parent, acts as a fiduciary.
This policy allows the funds to accumulate over time, providing children with financial security once they reach adulthood. These savings can be used for a variety of important purposes, including funding a high school trip, supporting educational expenses, or helping the child purchase a car or pay for housing as they transition out of the foster system at 18.
The policy aims to ensure that foster children have financial resources available to them, giving them the same opportunities as their peers who grow up in stable, two-parent households.
Key Points of the New Policy:
- Federal benefits will go directly to foster children’s savings accounts.
- Foster children can use the funds for essential needs or save them for the future.
- The Kansas Department for Children and Families will manage the funds unless a fiduciary is named.
- Nearly 1,000 children in Kansas foster care will benefit from the new policy.
- An estimated $9 million shortfall will need to be addressed through the state’s general fund.
A Personal Connection: Gabriella Pogány’s Story
One of the voices behind this policy change is Gabriella Pogány, who appeared alongside Governor Kelly at the press conference. Pogány, who spent part of her childhood in Kansas’ foster care system, shared her personal story of receiving survivor benefits from the Social Security Administration. Her experience highlighted the importance of ensuring that foster children have access to the benefits they are entitled to, so they are not left without resources when they age out of the system.
Pogány’s advocacy has played a significant role in raising awareness about the needs of foster children in Kansas. Her emotional appeal underscored the importance of redirecting funds that were meant for children, rather than using them to fill the state’s coffers.
The Bigger Picture
Governor Kelly’s bold executive order could have a significant ripple effect, potentially inspiring other states to follow suit and re-evaluate how federal benefits are distributed to foster children. As more states look for ways to improve foster care outcomes, Kansas’ policy shift provides a compelling model that prioritizes the well-being of vulnerable children.
By ensuring that foster children have access to their own federal benefits, Kansas is taking a crucial step toward addressing the systemic inequities that have long plagued the foster care system. This policy change serves as a reminder of the importance of protecting children’s rights and investing in their futures.
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