Trump administration calls out Colorado child welfare agencies for taking money from orphans and kids with disabilities

The U.S. Department of Health and Human Services is calling out child welfare agencies in 39 states, including in Colorado. It says the agencies are intercepting federal benefits meant for foster kids and using the money themselves.

While federal law doesn't require states to protect the benefits for foster kids, Alex Adams, the Assistant Secretary of the Administration for Children and Families at HHS says "Every earned benefit dollar belongs to these foster youth, not the government agencies or bureaucrats."

In Colorado, counties -- not the state -- administer foster care services. Based on guidance from the Social Security administration, the counties have been applying for disability and parental death benefits on behalf of foster kids and using the money -- $1.7 million this year alone -- to cover the kids' care.

More than 3,500 kids live in foster care in Colorado, including about 120 orphans who are entitled to the Social Security benefits of their deceased parents.

"Kids without this benefit, they just come to the state and we just pay for their care," said state Rep. Kyle Brown. "But, for these kids, we take their money and then we apply it to their care. There's an inherent inequity there."

Brown and state Rep. Lindsay Gilchrist, both Democrats, cosponsored a bill this year that requires counties to put orphans' survivor benefits in a trust for them instead.

"$30,000 for a kid exiting care is a game changer," said Gilchrist. "Lots of kids, as so many people know, in child welfare go into homelessness after they exit care."

The bill initially protected federal benefits for both orphans and kids with disabilities but -- amid pushback from counties -- it was amended to only apply to survivor benefits and signed into law earlier this year. Brown and Gilchrist are working on a new bill regarding disability benefits. According to the state, about 155 kids in Colorado foster care qualify for the benefits that can add up to as much as $940 a month.

"When kids come into care and they have a disability, caring for them costs more, and they deserve that care and so, how do we make sure that the disability benefit that is entitled to them is going to them," said Gilchrist.

She says the new bill would also ensure more kids are being screened for disabilities.

"We all want the system to be better for kids and this is one way we can do that and so -- yes, complicated -- but we can do this," Gilchrist said.

Scott Matlock, an NFL player who grew up in foster care, joined HHS in pushing states to end the practice.

"My hope is the next kid coming through foster care gets every penny he or she deserves, no matter what state they live in," he said.

It is a hope shared by Gilchrist, who is a foster mom herself.

"We made this move in Colorado ahead of time, so we have the ability to move faster but I think I'm excited that this is where we're moving as a country," she said.

Kelly Flenniken, the director of Colorado Counties which is run by county leaders from across the state, says they are committed to partnering with state lawmakers.

"Our priority is simple: any legislation must ensure that children and youth in our care do not lose access to the services they depend on to stay safe, healthy, and supported," she said.

The new law regarding survivor benefits for orphans takes effect Jan. 1, 2027.