The New York Times (registration may be required) has an article about litigation in North Carolina over local welfare agencies seizing the Social Security and SSI benefits of children in foster care. This is happening because the welfare agencies are underfunded. The problem goes well beyond North Carolina. In the North Carolina case, seizing the child's Social Security benefits has left the child unable to prevent foreclosure on a house he inherited. A state trial judge has already ruled in the child's favor, but the case is on appeal.
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