S 2341
110th CONGRESS
1st Session
S. 2341
To provide Individual Development Accounts to support foster
youths who are transitioning from the foster care system.
IN THE SENATE OF THE UNITED STATES
November 13, 2007
Mr. REID (for Mrs. CLINTON (for herself, Mr. ROCKEFELLER, and Ms. LANDRIEU))
introduced the following bill; which was read twice and referred to
the Committee on Health, Education, Labor, and Pensions
A BILL
To provide Individual Development Accounts to support foster
youths who are transitioning from the foster care system.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Focusing Investments and Resources for
a Safe Transition Act' or as the `FIRST Act'.
SEC. 2. FINDINGS.
Congress makes the following findings:
(1) Research has shown that foster youths face a unique set of challenges,
including a lack of financial and emotional support systems throughout
their early adult years, as well as limited educational, employment,
housing, and permanency options.
(2) When foster youths exit or age out of the foster care system,
foster youths often lack emotional, social, professional, and financial
guidance to guide foster youths through the transition to adulthood.
(3) While Congress has passed legislation to increase support for
foster youths, research shows that foster youths still need greater
assistance supporting their transition to adulthood.
(4) A 2005 study found that foster youths fare poorly relative to
their counterparts in the general population on the following outcome
measures:
(E) Medical insurance coverage.
(5) Nationwide, over 20,000 youth age out of foster care each year.
SEC. 3. INDIVIDUAL DEVELOPMENT ACCOUNTS FOR FOSTER YOUTH.
Section 105 of the Child Abuse Prevention and Treatment Act (42 U.S.C.
5106) is amended--
(1) in subsection (a), by adding at the end the following:
`(6) OPPORTUNITY GRANTS TO CREATE INDIVIDUAL DEVELOPMENT ACCOUNTS
FOR FOSTER YOUTHS-
`(A) GRANTS AUTHORIZED- The Secretary may make grants and enter
into contracts, on a competitive basis, to States to enable the
States (or State partners) to establish Individual Development Accounts
for foster youths, to be accessed by the youths when the youths
meet the requirements of subparagraph (D)(iii).
`(B) APPLICATION AND PLAN- The Governor of each State desiring a
grant or contract under this paragraph shall submit an application
to the Secretary at such time, in such manner, and containing such
information as the Secretary may require. Each such application
shall contain a plan, developed by the appropriate State agency,
for the State's Individual Development Account program that describes
how the program--
`(i) best suits the current and future needs of the State's foster
youth community;
`(ii) enables foster youth to achieve self-support after leaving
foster care; and
`(iii) establishes public or private partnerships to create a
pool of funding from which foster youth deposits in Individual
Development Accounts can be matched.
`(C) PRIORITY FOR STATES- In making grants and entering into contracts
under this paragraph, the Secretary shall give priority to States
that permit foster youths under age 13 to become account holders
in programs carried out by the States under this paragraph.
`(D) INDIVIDUAL DEVELOPMENT ACCOUNTS-
`(i) IN GENERAL- Each State receiving a grant or contract under
this paragraph shall carry out a program in which the State establishes,
or enters into an agreement with a public or private partnership
to establish, Individual Development Accounts for foster youths,
including foster youths in kinship or guardianship placements
and foster youths who are transitioning from the foster care system.
`(ii) DEPOSITS- Each Individual Development Account shall consist
of--
`(I) amounts deposited into the Individual Development Account
by the foster youth;
`(II) matching funds deposited into the Individual Development
Account that are provided by a public or private partnership
in an amount that does not exceed $2 for every $1 deposited
by the foster youth; and
`(III) funds deposited into the Individual Development Account
from amounts provided through grants or contracts awarded under
this paragraph.
`(iii) QUALIFIED YOUTH- To be qualified to withdraw funds from
an Individual Development Account under this paragraph, an individual
shall be the individual for whom the account was established under
this paragraph and an individual who--
`(I) is not younger than age 18, and is adopted or in a guardianship
placement;
`(II) is not younger than age 18, and has moved to a permanent
living arrangement not described in subclause (I);
`(III) is not younger than age 18 and is transitioning from
the foster care system; or
`(IV) has a waiver from the State involved permitting the withdrawal
for extenuating circumstances.
`(iv) WITHDRAWALS- Funds in an Individual Development Account--
`(I) may be withdrawn by a qualified individual--
`(aa) to secure and maintain stable housing;
`(bb) to pursue educational opportunities;
`(cc) to obtain vocational training; and
`(dd) after the youth has used funds in the account for each
of the objectives described in items (aa) through (cc), to operate a
business or purchase a car; and
`(II) at the election of the State involved, may be withdrawn
by the qualified individual to purchase essential items such
as work uniforms and car insurance, in order to assist the individual
in becoming self-sufficient.
`(v) MONEY MANAGEMENT TRAINING- In carrying out the program, the
State shall ensure that--
`(I) a public or private partnership shall provide a small amount
of seed money to each foster youth selected to become an account
holder through the program, to enable the youth to attend money
management training; and
`(II) the youth shall complete the training before receiving
access to the account.
`(vi) NAME ON ACCOUNT- If an account is established under this
paragraph for an individual while the individual is a foster youth,
and the individual subsequently moves to a permanent living arrangement,
the account shall remain in the individual's name.';
(A) by striking `In making' and inserting the following:
`(1) IN GENERAL- In making'; and
(B) by adding at the end the following:
`(2) EVALUATIONS OF INDIVIDUAL DEVELOPMENT ACCOUNT PROGRAMS-
`(A) EVALUATION- In the case of programs carried out by States under
subsection (a)(6), the Secretary shall conduct independent evaluations
of the effectiveness of the programs.
`(i) CONTENTS- The Secretary shall prepare interim and final reports
containing the results of the evaluations and related recommendations,
including--
`(I) information describing how individuals with Individual
Development Accounts spend the funds withdrawn from the accounts;
`(II) information describing how the State programs impact quality
of life indicators for such individuals, after the individuals
are eligible to withdraw funds from the accounts;
`(III) information describing the effectiveness of the money
management training described in subsection (a)(6)(D)(v), including
the effects of the training on program performance, and information
describing the collaboration between the States and the partners
described in subsection (a)(6)(B)(iii); and
`(IV) recommendations on strengthening or modifying the programs
carried out under subsection (a)(6).
`(I) INTERIM REPORT- Not later than 2 years after the date of
enactment of the FIRST Act, the Secretary shall submit the interim
report described in clause (i) to the Committee on Education
and Labor of the House of Representatives and the Committee
on Health, Education, Labor, and Pensions of the Senate.
`(II) FINAL REPORT- Not later than 3 years after that date of
enactment, the Secretary shall submit the final report described
in clause (i) to the committees described in subclause (I).';
and
(3) by adding at the end the following:
`(d) No Reduction in Benefits- Notwithstanding any other provision of
Federal law (other than the Internal Revenue Code of 1986) that requires
consideration of one or more financial circumstances of an individual,
for the purpose of determining eligibility to receive, or the amount
of, any assistance or benefit authorized by such law to be provided
to or for the benefit of such individual, funds (including interest
accruing) in an Individual Development Account under subsection (a)(6)
shall be disregarded for such purpose with respect to any period during
which such individual maintains or makes contributions into such an
account.'.
SEC. 4. AUTHORIZATION OF APPROPRIATIONS.
Section 112(a) of the Child Abuse Prevention and Treatment Act (42 U.S.C.
5106h(a)) is amended--
(1) in paragraph (1), by inserting `(other than section 105(a)(6))'
after `this title';
(2) by redesignating paragraph (2) as paragraph (3); and
(3) by inserting after paragraph (1) the following:
`(2) AUTHORIZATION OF APPROPRIATIONS FOR INDIVIDUAL DEVELOPMENT ACCOUNT
PROGRAMS- There are authorized to be appropriated to carry out section
105(a)(6) such sums as may be necessary for fiscal year 2008 and each
of the 4 succeeding fiscal years.'.
END
