Wisconsin takes millions from foster kids and their parents — even as both parties say it should stop

April 7, 2026

Wisconsin's child welfare system collects approximately $10 million annually from foster children and their biological parents through two controversial practices: seizing Social Security benefits meant for foster youth and billing parents for their children's care. The state takes around $3 million yearly in Social Security payments intended for children with disabilities or deceased parents, using these funds to reimburse itself for legally required care that other foster children receive free of charge. Additionally, Wisconsin bills parents of seven out of ten foster children for care costs, a practice research shows delays family reunification by over six months and keeps children in foster care twice as long.

Who is affected

Foster children in Wisconsin (approximately 7 in 10 have parents being billed)
Biological parents of foster children trying to regain custody
Foster youth aging out of the system at 18
Wisconsin County Human Service departments (all 72 counties)
Milwaukee's Department of Children and Families (directly administers care)
Taxpayers (the collection process costs more than it recovers)
Former foster youth who sued in Alaska (hundreds)

What action is being taken

Wisconsin child welfare authorities are taking approximately $3 million annually in Social Security benefits from foster children
Child welfare departments are billing parents of 7 in 10 foster children, collecting an average of more than $7.6 million yearly
The Trump administration's Department of Health and Human Services sent letters in December to 39 governors demanding they stop taking children's Social Security survivor benefits
University of Wisconsin-Madison researchers are conducting and publishing studies on the impact of billing parents

Why it matters

This practice matters because it fundamentally undermines the goal of reunifying families and supporting vulnerable children. Research demonstrates that charging parents as little as $100 delays reunification by over six months, and children whose parents are billed spend 21 months in care versus nine months for others—more than twice as long. Foster children who age out of the system face higher risks of homelessness, incarceration, and health problems, yet they lose Social Security benefits (often several hundred dollars monthly) that could help them afford rent, transportation, and education. The practice also costs taxpayers money rather than saving it—for every dollar spent collecting payments, the state recovers only 88 cents, while ceasing the practice could save approximately $18,000 per affected child through reduced foster care time. Furthermore, billing parents who already struggle financially—often due to poverty-related neglect that caused the placement—makes it harder for them to maintain housing and prepare homes for their children's return, perpetuating family separation.

What's next

Sen. André Jacque and Sen. Jesse James plan to reintroduce their respective bills (SB 990 on Social Security benefits and SB 1072 on child support collections) in the next budget cycle
Both lawmakers plan to add funding provisions to help counties make up for lost revenue when they reintroduce the bills
Both lawmakers must first survive reelection bids in 2026
Lawmakers could potentially reconvene to address the state's $2.4 billion surplus this year, though current proposals from Governor Evers and Republican leaders don't include foster care payment reforms
The Wisconsin County Human Service Association has expressed willingness to work with the Legislature and governor on policy changes if funding is allocated to offset fiscal impacts
Any legislation will likely have to wait until lawmakers return to the State Capitol in January

Read full article from source: The 19th