 FOR IMMEDIATE RELEASE: August 28, 2025
CONTACT: Baylee.Watts@dss.mo.gov
Missouri Legislation Protecting Benefits for Foster Children in State Custody takes effect August 28
JEFFERSON CITY, MO - Effective August 28, 2025, a new law is now in effect which represents a significant step to safeguard the benefits of children in the state’s care. HB 737, which was sponsored by Rep. Melissa Schmidt and handled by Sen. Jamie Burger, amends Section 210.560 RSMo and protects these funds, reserving them for the child’s unmet needs beyond standard provisions. Previously, federal funds could be used for a child’s cost of care.
“I think we can all agree we have a responsibility to be good stewards for foster children, good stewards of their care, and good stewards of their finances. Missouri’s foster children deserve every opportunity to succeed,” said Rep. Schmidt, R-Eldridge. “By ensuring their benefits are used for tuition, job training, and essential needs, we’re giving Missouri kids the foundation they need for a better future.”
Additionally, this new law ensures that when a child enters the custody of the Missouri Department of Social Services (DSS) - Children's Division (CD), their eligibility for benefits from federal sources such as the U.S. Railroad Retirement Board, Social Security Administration, or Veterans Administration is determined within 60 days. If a child did not initially qualify for federal benefits, their case will be reviewed annually to determine if their circumstance may have changed and may now qualify for the for federal benefits.
The law requires CD to apply for these benefits on the child's behalf if they qualify. However, CD will only act as a representative payee for the benefits if no other suitable representative is available. To ensure the child’s best interests are served, CD will annually review if a suitable representative is available to serve as representative payee.
When a federal agency assigns CD to be the representative payee, financial accounts including ABLE (Achieving a Better Life Experience) accounts, special needs trusts, and pooled special needs trusts, will be established to conserve the child’s benefits without affecting their eligibility for other programs. CD will provide an annual statement of all transactions involving funds received.
“This new law reinforces our commitment to protecting the rights of foster youth,” said Director Sara Smith, DSS Children’s Division. “By ensuring these benefits remain with the children they are meant to support, we are providing greater stability and a stronger foundation for their future.”
For further information on these changes, please visit DSS’s website on HB737.
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