Arizona Boosts Oversight of Foster Kids' Federal Benefit Accounts

New law aims to preserve funds for youth's future, but some families report delays

Apr. 11, 2026 at 2:07am

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A vibrant, high-contrast silkscreen print featuring a repeated icon of a piggy bank in shades of blue, green, and orange, conceptually representing the importance of protecting foster children's financial resources.A new law aims to ensure foster children's federal benefits are preserved for their futures, but some families report delays in accessing these critical funds.Phoenix Today

Arizona's Department of Child Safety (DCS) is facing questions about its management of federal benefits for foster children, including delayed transfers of funds to family members. A new state law requires DCS to safeguard these funds in individual ABLE accounts, but some caregivers say the process has been slow and opaque.

Why it matters

The law was intended to ensure foster children can access their federal benefits, like Social Security or disability payments, to pay for needs the foster system often doesn't cover, like college, cars, or rent. Advocates worry that any mismanagement or delays could deprive these vulnerable youth of critical financial resources for their futures.

The details

Sheila Thompson, a Phoenix grandmother, says DCS took custody of her grandson for a few years, during which time a DCS worker was collecting his $900-per-month Social Security benefits. When Thompson regained custody last fall, she says she had trouble getting DCS to transfer control of the account to her. DCS says it continues to refine the ABLE account program, recently hiring a dedicated manager to provide more oversight.

  • In 2023, Arizona passed a law requiring DCS to identify foster children eligible for federal benefits and place the funds in individual ABLE accounts.
  • In December 2025, a DCS program manager and a consulting company coordinating the ABLE accounts exchanged emails over 10 weeks to confirm Thompson's contact information.
  • In mid-March 2026, Thompson received an email from DCS with an application to become the manager of an ABLE account for her grandson.

The players

Sheila Thompson

A 73-year-old Phoenix grandmother who adopted her grandson as a baby and regained custody of him last fall after DCS had custody for a few years.

Department of Child Safety (DCS)

The Arizona state agency responsible for managing foster children's federal benefits and transferring the funds to ABLE accounts.

William E. Morris Institute for Justice

A Phoenix-based advocacy group that helped pass the 2023 law requiring DCS to safeguard foster children's federal benefits.

Brenda Muñoz Furnish

An attorney with the William E. Morris Institute for Justice who says the goal of the new law was to protect foster children's federal benefits so they have resources for the future.

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What they’re saying

“The goal of changing the law was to protect these kids' federal benefits so that they could have a little nest egg, a little something.”

— Brenda Muñoz Furnish, Attorney, William E. Morris Institute for Justice

“We wanted everybody to be part of the process, and it's very disheartening to hear that that's not happening, at least in some of these cases.”

— Brenda Muñoz Furnish, Attorney, William E. Morris Institute for Justice

“How many others are they doing this to and not telling the parents how it really works?”

— Sheila Thompson, Phoenix Grandmother

What’s next

Thompson has submitted paperwork to become the guardian of her grandson's ABLE account, but she is still unclear on how much money will be available. DCS says it continues to refine the program and recently hired a dedicated manager to provide increased oversight.

The takeaway

This case highlights the importance of robust oversight and communication when managing foster children's federal benefits, which are intended to provide a financial foundation for their futures. The delays and lack of transparency reported by some families underscore the need for DCS to fully implement the new law and ensure all eligible youth can access their funds.