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. Instead, the DCF is required to conserve these benefits in a federally insured financial institution account for the child's future use or to address unmet needs that exceed the State's maintenance obligations. The bill also mandates that if the DCF is appointed as the representative payee for a child's federal benefits, it must notify the child, their parents or legal guardians, and the Family Part of the Chancery Division of the Superior Court regarding the use of these benefits.

Additionally, the bill outlines the responsibilities of the DCF in determining a child's eligibility for federal benefits and requires the department to apply for these benefits on behalf of the child. It also stipulates that the DCF must provide an annual accounting of the use of the benefits to the child and their guardians. The Commissioner of Children and Families is tasked with applying for any necessary federal waivers to implement the bill's provisions and ensure continued federal reimbursement for child welfare services. The act will take effect twelve months after its enactment, although anticipatory administrative actions may be taken in advance for implementation.