Washington State Faces Scrutiny Over Diverted Federal Benefits for Foster Youth.

In Washington State, a longstanding practice has come under renewed scrutiny: the diversion of federal benefits intended for foster youth. These benefits, which include Social Security and veterans' benefits, are meant to support children who have lost a parent or are living with disabilities. However, the state has been redirecting these funds—amounting to approximately $700,000 monthly—to finance its foster care system through the Department of Children, Youth, and Families (DCYF) .​Yahoo+6Washington State Standard+6Senate Republican Caucus+6

This practice has raised ethical and legal concerns. Amy Harfeld, national policy director at the Children’s Advocacy Institute, criticized the approach, stating, "What the state is doing is taking their money behind their backs and spending it for themselves. Foster children are not a revenue stream." The lack of transparency is particularly troubling, as children, their guardians, and social workers are often unaware when these benefits are intercepted .​

While DCYF acknowledges the issue and has expressed intentions to end the practice, no definitive timeline has been established. The agency plans to introduce legislation aimed at conserving these benefits for children and youth in the state's 2025-2027 budget cycle. This policy originated before DCYF's formation, during the tenure of the Department of Social and Health Services .​X (formerly Twitter)+3Washington State Standard+3Yahoo+3

A 2023 bill proposing to ban the practice by 2027 passed the Washington House but stalled in the Senate. Advocates argue that the state should follow the lead of Arizona and the District of Columbia, which have enacted laws to protect such benefits. Harfeld emphasized the urgency, noting that other states have successfully implemented changes and that the process is neither mysterious nor impossible .​Washington State Standard+1University of San Diego+1University of San Diego+1Washington State Standard+1

As discussions continue, the focus remains on ensuring that foster youth receive the financial support intended for them, rather than having these funds absorbed into state budgets.