From the Philadelphia Inquirer:
... Philadelphia’s Department of Human Services ... took in nearly $5 million in children’s Social Security benefits between fiscal years 2016 and 2020 that belonged to hundreds of youth in foster care, according to records obtained by Resolve Philly and The Inquirer through a Right to Know request. Then DHS swept the money into the city’s $5 billion general fund.
Around the country, the practice of DHS agencies taking Social Security benefits from kids to pay for their own foster care is under increasing scrutiny. In Maryland, a 2013 appeals court decision held that agencies violated foster children’s due-process rights when they took their benefits without informing them or their legal representatives. Maryland later enacted a law that mandates, among other things, that foster youth, or their lawyer, receive notice, allowing them an opportunity to claim the money. The law also calls for increasing amounts of their Social Security money to be set aside for them as they approach 18 years old. ...
In response to more than a dozen written questions about its practices, DHS sent a brief response that didn’t address most of the matters asked:
“When SSA appoints DHS as the representative payee, the funding is spent on youth’s daily care, such as food, clothing, and shelter. Philadelphia collects benefits as allowed by law and is open to improving its practice as it relates to this issue. To confirm, it is lawful for DHS to collect survivor’s benefits.” ...
Philadelphia DHS said it has no process in place to provide notice to youth whose money is being collected. ...
Could Social Security reform this with regulations? I don't know but if they can, they should.