This bill prohibits the New Jersey Department of Children and Families (DCF) from using federal benefits received by a child in out-of-home placement to reimburse the State for the costs associated with the child's maintenance. Specifically, it states that the DCF cannot utilize any portion of a child's property or benefits, including federal Social Security benefits, to offset the State's expenses for the child's care. Instead, if the DCF is appointed as the representative payee for the child's federal benefits, it may use those benefits only for the child's unmet needs that exceed the State's obligations, after notifying relevant parties, including the child and their legal guardians.

Additionally, the bill mandates that the DCF establish a separate account at a federally insured financial institution for the child's federal benefits, ensuring that these funds are conserved for the child's best interests. The DCF is also required to determine the child's eligibility for federal benefits and apply for them on the child's behalf, while providing annual accounting of the benefits' use to the child and their guardians. The bill aims to preserve the child's financial resources for their future needs rather than allowing the State to use them to cover maintenance costs.