This bill prohibits the New Jersey Department of Children and Families (DCF) from using any 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 bill mandates that if DCF is appointed as the representative payee for the child's federal benefits, it must either conserve these benefits in a federally insured financial institution for the child's future use or utilize them for unmet needs that exceed the State's maintenance obligations. The bill also requires DCF to 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 DCF in determining a child's eligibility for federal benefits and mandates that the department apply for such benefits on behalf of the child. It also requires DCF to provide an annual accounting of the use of these 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 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.