In a landmark decision, the Alaska Supreme Court has ruled that the state must notify foster youths before appropriating their Social Security payments, a move hailed as a victory for the financial rights of children in the foster care system. The ruling, issued today, addresses a long-standing practice that left many vulnerable youths unaware of funds they were entitled to, sparking a broader conversation about the treatment of foster children nationwide.
The decision stems from a class-action lawsuit filed in 2014 by the Northern Justice Project, which argued that the state’s Office of Children’s Services (OCS) was unlawfully taking Social Security benefits meant for foster youths without their knowledge or consent. Approximately 30% of Alaska’s foster children are eligible for these benefits, which are often provided to children who have lost a parent or have a disability. Historically, the state would automatically apply to become the representative payee for these funds when a child entered foster care, diverting the money to offset care costs without informing the recipients.
The Supreme Court’s ruling upholds an earlier decision by an Anchorage Superior Court judge, mandating that OCS must now inform foster youths of their eligibility for Social Security benefits and give them the option to designate a different payee. While the court stopped short of requiring the state to reimburse an estimated $1.8 million in benefits collected annually, the decision is seen as a critical step toward transparency and accountability.
Chief Justice Susan Carney, in her remarks, called on the Alaska Legislature to take further action, urging lawmakers to follow the lead of other states that have banned child protective services from seizing foster youths’ benefits. “These children deserve to know their rights and have a say in how their money is managed,” Carney said. “It’s time for Alaska to align with a growing national consensus on this issue.”
For many former foster youths, the ruling is deeply personal. Malerie McClusky, who spent years in Alaska’s foster care system, discovered as an adult that more than $10,000 in Social Security benefits had been taken by the state without her knowledge. “They ripped me away from my family, and then they took my money too,” McClusky said. “It’s wrong—there’s no other way to put it.” Her story echoes the experiences of countless others who have unknowingly lost benefits meant to help them build a stable future.
Advocacy groups like Facing Foster Care in Alaska are now pushing for broader reforms, including legislation to not only prevent future appropriations but also provide restitution for past losses. “This isn’t just about notification—it’s about justice,” McClusky added. “Taking money from kids who’ve already been through so much is like stealing candy from a baby.”
The ruling carries two immediate implications: OCS must implement a notification process for foster youths, and it may spur legislative efforts to overhaul how the state handles these funds. Across the country, similar cases have prompted states to rethink policies that treat foster children’s benefits as a resource for government budgets rather than a lifeline for the recipients.
As Alaska moves forward, the decision shines a spotlight on the intersection of foster care and financial equity. For the state’s roughly 3,000 foster youths, this ruling offers hope that they will gain greater control over their futures—starting with the money that’s rightfully theirs.
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