The proposed legislation, titled the "Federal Benefits for Children in State Custody Act," mandates that the Children, Youth and Families Department (CYFD) assess the eligibility of children in its custody for federal benefits within sixty days of their placement and annually thereafter. If a child is found to be receiving or eligible for federal benefits, the department is required to either identify a suitable representative payee or apply to act as the child's representative payee if no other candidates are available. The bill outlines the department's responsibilities when acting in this capacity, including establishing an account for the child's benefits, notifying relevant parties of any decisions regarding the benefits, and providing annual accounting of the benefits' use.

Additionally, the bill prohibits the use of federal benefits to cover the costs of the child's care, allowing the funds to be used only for unmet needs beyond what the department is obligated to pay. Upon the termination of legal custody, any remaining federal benefit funds must be released to the child or their parent/guardian, depending on the child's age and emancipation status. The CYFD is also required to submit an annual report detailing the number of children receiving benefits, the types of benefits, and how those benefits are managed.