Foster Youth Federal Benefits

INDIANAPOLIS, Ind. (WOWO) — Governor Mike Braun has issued a new executive order aimed at protecting the financial future of Hoosier foster youth.

The order mandates that the Indiana Department of Child Services (DCS) preserve federal earned benefits for children in care, rather than using those funds to reimburse the state for the cost of their housing and support.

The benefits—which include payments from the Social Security Administration, the Department of Veterans Affairs, and the Railroad Retirement Board—are typically survivor benefits intended for the child’s long-term well-being. Under the new directive, these funds will now be held in personal savings or ABLE accounts to help youth transition into adulthood.

“It is very simple: survivor benefits belong to the child as intended, not the government,” Governor Braun said. “This executive order improves DCS services for Hoosier families and makes sure those dollars are protected and used to support young Hoosiers as they prepare for adulthood.”

Beyond just saving the money, the executive order introduces a requirement for financial literacy education. Starting no later than age 14, foster youth will receive training on how to manage their accounts, ensuring they are prepared to handle their conserved funds once they leave state custody.

The order also requires DCS to:

Screen all children in care for benefit eligibility.

Identify independent representative payees to manage funds whenever possible.

Provide annual accountings to the youth to ensure transparency.

“A Home for Every Child”

Coinciding with the order, Governor Braun signed a joint proclamation with the U.S. Department of Health and Human Services (HHS) titled “A Home for Every Child.” Indiana is the 20th state to join this national initiative, which focuses on improving permanency and safety outcomes for foster families.

Dr. Alex Adams, Assistant Secretary for the Administration for Children and Families, joined Braun for the signing, praising Indiana’s move to prioritize the needs of children over state bureaucracy.

“The Trump Administration is thrilled to welcome Indiana to ‘A Home for Every Child,’” Adams said. “Governor Braun is demonstrating real leadership by prioritizing and protecting the best interests of foster youth… we hope today’s actions will inspire other states to join this movement.”

The executive order takes effect immediately, marking a significant policy shift during National Foster Care Month. This follows the Governor’s recent expansion of parental leave for state employees to include foster parents, further signaling the state’s commitment to supporting Indiana’s most vulnerable children.

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