New law in California: changes to Social Security benefits

New legislation signed by Governor Gavin Newsom

changes Social Security benefits

changes Social Security benefits

The Social Security Administration (SSA), responsible for providing benefits to millions of people across the United States, serves not only retirees but also individuals with disabilities or blindness. In this regard, California has recently made significant changes through the AB 2906 law, aiming to protect foster youth and ensure that the benefits intended for them are properly delivered.

AB 2906, a bill signed by Governor Gavin Newsom, addresses an issue that has long impacted thousands of foster youth in the state. Previously, counties in California were able to collect Social Security payments on behalf of foster youth without informing the young people or their legal representatives.

What does the new legislation mean for Social Security?

This lack of transparency meant that many of these young individuals did not receive the benefits they were entitled to once they reached adulthood. The new law mandates that both foster youth and their legal guardians be informed about any Social Security-related applications or benefits, ensuring that the funds go directly to those who need them.

Access to survivor payments

One of the most important aspects of the new law focuses on survivor payments, which are provided to children of deceased parents who had contributed to Social Security.
These payments are meant to financially assist children and teenagers who have lost one or both parents. In the case of foster youth, the law seeks to ensure that these funds become a real resource for them, allowing them to access the money when they turn 18.

For years, these benefits were being held by counties, a practice that the new legislation aims to halt.

Changes after the initial veto

It is worth noting that AB 2906 was not passed without hurdles. Initially, Governor Newsom vetoed the bill, partly because the original version required that foster youth receive retroactive payments for disability and survivor benefits dating back to the previous year. However, after pressure from various child and youth advocacy organizations, Newsom eventually approved a revised version of the bill, though with certain adjustments.

In early September, the counties of Los Angeles and San Diego expressed their support for the law, clearing the way for its final approval. Ultimately, the governor signed the bill, ensuring that foster youth in the state will have more control and access to the funds they are entitled to.

Impact on foster youth

According to data from the Children’s Advocacy Institute of California, there are between 40,000 and 80,000 foster youth in the state. Among these, approximately 29% of those aged 19 to 21 face issues related to homelessness. Access to Social Security benefits could play a critical role in changing this outcome.

Amy Harfeld, the national policy director at the Children’s Advocacy Institute, praised the signing of the bill. “The access to these funds that were previously withheld could mean the difference between a young person ending up homeless or being able to support themselves when they turn 18,” she stated.

Harfeld believes this new legislation puts California at the forefront of states taking action to eliminate this harmful practice while addressing the problem of youth homelessness.

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