Revision: March 13, 2026, 9:35 a.m.
HB 661-FN - AS AMENDED BY THE HOUSE
11Mar2026... 0821h
2025 SESSION
25-0373
05/09
HOUSE BILL 661-FN
SPONSORS: Rep. Wallner, Merr. 19; Rep. Mooney, Hills. 12; Rep. DeSimone, Rock. 18; Rep. Rice, Hills. 38; Sen. Rosenwald, Dist 13; Sen. Long, Dist 20; Sen. Rochefort, Dist 1
COMMITTEE: Children and Family Law
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AMENDED ANALYSIS
This bill establishes requirements for the management of federal benefits received by dependent children in the custody of the department of health and human services. This bill provides for appointment of a representative payee, which may be the department if no other suitable candidate is available. This bill also directs the department to adopt procedures regarding establishment of ABLE accounts for dependent children for whom the department is representative payee.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
11Mar2026... 0821h 25-0373
05/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Five
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Section; Dependent Children; Federal Benefits. Amend RSA 126-A by inserting after section 6 the following new section:
126-A:6-a Dependent Children; Eligibility For and Appointment of Representative Payee to Manage Federal Benefits.
I. For all children in the care of the department, the department shall determine whether each child is receiving benefits administered by the Social Security Administration or the Veterans Administration within 60 days after the child enters the department's care. If the department determines that a child is not receiving benefits but may be eligible for federal benefits, the department shall apply for the benefits on behalf of the child.
II. If a child is already receiving benefits before entering the department's care with an appointed representative payee in place, the department shall not seek to change the payee appointment unless the current payee has been deemed unsuitable or other circumstances warranting a payee change are met in accordance with the federal regulations for naming a successor payee. If there is no payee or if the department applies for benefits on behalf of the child, the department shall identify, in consultation with the child and the child's representative, a representative payee in accordance with 20 C.F.R. sections 404.2021 and 416.621 and encourage the identified individual to apply to the Social Security Administration to be appointed as the child's representative payee. The department shall apply to become the representative payee only if no other suitable candidate is available.
2 New Paragraphs; Use and Management of Federal Benefits. Amend RSA 126-A:6-a by inserting after paragraph II the following new paragraphs:
III. If the department is determined by the court to serve as the representative payee, the department:
(a) Shall not use the child's federal benefits, other benefits, savings, or assets to pay for or to reimburse the department or this state for any of the costs of the child's care.
(b) May use the child's federal benefits for the child's unmet needs beyond what the department is obligated or required to pay.
(c) Shall establish an appropriate account to use and conserve the child's benefits in the child's best interest for current unmet needs and future needs in a manner consistent with federal and state asset and resource limits. The account may include any of the following:
(1) A special needs trust.
(2) A pooled special needs trust.
(3) An Achieving a Better Life Experience (ABLE) savings account, established pursuant to RSA 195-K and section 529A of the Internal Revenue Code.
(4) Any other trust account determined not to interfere with social security or asset limitations for any other benefit program.
(d) Shall provide an annual accounting as to the use, application, or conservation of the child's federal benefits to the child, the child's representative, and the child's parents or guardians.
IV. The department shall notify the child, the child's parents, unless parental rights have been terminated, the child's guardian, the child's current placement, the child’s court appointed special advocate or guardian ad litem, and the child's attorney of any application or decision related to a child's federal benefits. In providing notice of any denial of benefits, the department shall explain that there is a right to appeal, the process for filing an appeal, and the names and contact information of organizations that might be available to provide pro bono or reduced fee legal assistance.
V. The department shall annually review cases of children in the department's care to determine whether a child may have become eligible for benefits after the department's initial assessment.
VI. Notwithstanding any other law, on termination of the department's responsibility for the child, the department shall release any moneys remaining to the child's credit pursuant to the requirements of the funding source or, in the absence of any requirements, shall release the remaining moneys to:
(a) The child, if the child is at least 18 years of age or is emancipated; or
(b) The person who is responsible for the child if the child is a minor and not emancipated.
VII. For purposes of this section, a "child in the care of the department" means the department has custody or guardianship over the child or the child in a court-ordered placement or other out-of-home placement under the supervision of the department.
3 ABLE Accounts. The department of health and human services shall develop and complete the processes and procedures for establishing ABLE accounts for children in its custody for whom it serves as representative payee no later than June 30, 2027. The department may utilize federal Title IV-E funds it secures pursuant to the 2025, 141:310 for this purpose.
4 Policies and Procedures Regarding Federal Benefits for Dependent Children. The department of health and human services shall develop the necessary policies and procedures, establish process workflows, and conduct necessary staff training to facilitate implementation of this act on or before June 30, 2028. To assist in completing the tasks required to begin implementation of these requirements, the department may hire a consultant with knowledge of other states’ efforts to develop necessary policies and procedures to manage federal benefits for children in state custody.
5 Executive Order. In accordance with the federal executive order entitled "Fostering the Future for American Children and Families" dated November 13, 2025, the department of health and human services shall seek all available federal resources to fund the provisions of this act.
6 Applicability. RSA 126-A:6-a, as inserted by section 1 of this act and amended by section 2 of this act, shall apply only to children in the care of the department of health and human services on or after July 1, 2027.
I. Section 1 of this act shall take effect July 1, 2027.
II. Section 2 of this act shall take effect July 1, 2028.
III. The remainder of this act shall take effect upon its passage.
25-0373
1/12/25
HB 661-FN- FISCAL NOTE
AS INTRODUCED
FISCAL IMPACT: This bill does not authorize new positions.
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Estimated State Impact | ||||||
| FY 2025 | FY 2026 | FY 2027 | FY 2028 | ||
Revenue | $0 | $0 | $0 | $0 | ||
Revenue Fund(s) | None | |||||
Expenditures* | $0 | $1.84 million | $2.92 million | $2.92 million | ||
Funding Source(s) |
| |||||
Appropriations* | $0 | $1 | $0 | $0 | ||
Funding Source(s) | General Fund | |||||
*Expenditure = Cost of bill *Appropriation = Authorized funding to cover cost of bill | ||||||
METHODOLOGY:
This bill requires the Department of Health and Human Services to ensure that social security payments and veterans benefits for children in the care of the Department are held securely until the child is no longer in the care of the Department. The Department notes that, as directed by HB 1598 from 2024, it contracted with a consultant to analyze its current management of federal benefits for children in care, as well as the potential implementation of various child-centered benefits models. The consultant concluded that, in the first year of implementation, the scenario contemplated by the current bill would result in a loss of approximately $284,000 in Title IV-E federal revenue collected by the State. The consultant also concluded that this scenario would result in a first-year loss of approximately $2,177,000 in federal Supplemental Security Income (SSI) revenue paid directly to the State. First year implementation costs were estimated at $280,000, and the ongoing operational costs of additional staff were estimated at $461,000. Assuming the state general fund were to make up for the lost federal revenue, the first year impact would therefore be approximately $3,202,000. The consultant estimated second-year costs at approximately $2,920,000. As the bill has an effective date of January 1, 2026, the Department adjusted these costs to arrive at the following estimated impact by fiscal year: $1,840,000 in FY26, and $2,920,000 in FY27 and each year thereafter.
The bill contains an appropriation of $1 for the FY26/27 biennium.
AGENCIES CONTACTED:
Department of Health and Human Services