Arizona’s child-welfare officials say they are tightening control over accounts that hold federal benefits for children in foster care after a Phoenix grandmother complained she had no idea who was handling her grandson’s Social Security money. The Department of Child Safety says it has assigned a dedicated manager to its ABLE account program and insists the funds are being held for the child’s future. The situation has reignited calls from advocates and relatives for clearer, faster communication about when DCS serves as representative payee and how families can take over a child’s account.
Grandmother Says State Was Collecting Her Grandson’s Checks
Seventy-three-year-old Sheila Thompson told investigators she only learned that Arizona was listed as her grandson’s representative payee when she tried to get his Social Security disability benefits restarted, according to ABC15. The station reports the teen’s approved SSI payment was about $900 a month, and Thompson said it took weeks of back-and-forth emails before she finally got a DCS manager’s contact information confirmed. She has since submitted paperwork to become the manager of the youth’s ABLE account but says she still does not know how much money will ultimately be available.
What The 2023 Law Requires
In 2023, state lawmakers passed HB 2559, which requires the Department of Child Safety to identify children who qualify for federal benefits and place those payments in an appropriate account, including ABLE accounts, for the child’s future use. The bill also bars the state from using those benefits to offset the cost of foster care and directs DCS to coordinate with the child, relatives and attorneys about who should manage the account, according to the Arizona Legislature.
How DCS Says It Is Handling The Accounts
Internal agency documents describe a "Preserving Children’s Federal Benefits" program that screens children for SSI, RSDI and VA benefits within 60 days of entering care and conserves those payments through Personal Needs Accounts and ABLE accounts, per Arizona Department of Child Safety policy. A separate DCS service guide says the department partners with a vendor to manage the accounts, requires an annual accounting to the child and family, and sends consultation notices to attorneys and kin when benefits are applied for or transferred, according to the DCS service guide.
DCS Says It Has Boosted Oversight
In a statement to ABC15, DCS said it was "the first in the country to implement this comprehensive program to preserve benefits for youth in foster care" and that it "recently hired a dedicated manager to provide increased oversight" of the ABLE program. The department also said that even when DCS acts as representative payee, the money is saved for the child and the process is designed to transfer control of the account to a new authorized person rather than move the money to placements, ABC15 reported.
Advocates Say The Accounts Can Be A Game Changer
The William E. Morris Institute for Justice, which helped push the 2023 legislation, says ABLE accounts give youth leaving foster care a legal way to save for housing, transportation, education and other necessities. The group describes the law as the result of sustained advocacy, according to the William E. Morris Institute for Justice. Advocates warn that slow communication and delays in transferring control of accounts can leave families confused and postpone access to money that is supposed to support the child’s future.
What Families Should Do Next
Relatives and guardians who discover that a child’s benefits are being managed by DCS are advised to request the agency’s annual accounting and talk with the child’s attorney about applying to become the representative payee or ABLE account manager. DCS service materials list a Social Security Administration Benefits Unit contact and a vendor advocate who can help with transitioning accounts, and Arizona’s AZ ABLE portal lays out the rules and qualified uses for ABLE savings; see AZ ABLE for eligibility details and contribution limits. If families still have questions about transfers or balances, they are encouraged to press caseworkers for the consultation letters and timelines described in state policy.
