This bill amends Title 16 of the Idaho Code by adding a new Chapter 25, which establishes provisions regarding federal benefits for children in the legal custody of the Department of Health and Welfare. It outlines the responsibilities of the department in determining eligibility for federal benefits, acting as a representative payee, and managing the funds received on behalf of the children. Key provisions include the requirement for the department to assess a child's eligibility for federal benefits within 60 days of entering custody and annually thereafter, as well as the obligation to maintain an appropriate account for the child's benefits and provide annual accounting to relevant parties.

Additionally, the bill prohibits the department from using a child's federal benefits to cover costs associated with the child's care, while allowing the use of these benefits for unmet needs. It also mandates the development of a milestone disbursement plan that allows children to access portions of their benefits upon achieving specific goals that promote independence. Upon termination of legal custody, the bill requires the department to release any remaining federal benefit funds to the child or their parent/guardian, depending on the child's age and emancipation status. An emergency clause is included, making the act effective on July 1, 2026.