CYFD & USE OF FEDERAL BENEFITS

Protecting federal benefits for New Mexico children

New Mexico's Children, Youth and Families Department (CYFD) must check children in its legal custody for federal benefits. Checks are due within 60 days of entering custody and each year afterward. CYFD must apply for benefits for eligible children. For children already receiving benefits, it must consult their attorney, custodian, guardian, guardian ad litem, or tribe for a known Indian child about who manages the money. CYFD must apply to manage benefits only when no other candidate is available. When managing benefits, CYFD must keep an appropriate account for current unmet needs and future needs, following funding-source rules and asset limits. It cannot use benefits to pay or repay any costs of the child's care. Benefits can cover only needs beyond what CYFD must pay or has agreed to pay. CYFD must notify the child and those listed above about benefit applications, decisions, and appeals, and provide annual accountings. Each year, it must check whether someone else is available and could better serve the child's interests as payee. CYFD must prevent overpayments and repay any it discovers to the federal agency. After a benefit denial, it must consult the child's attorney and appeal when that serves the child's best interest. Before custody ends, CYFD must provide money-management tools to connect saved benefits with the child's transition plan. When custody ends, CYFD must release remaining funds following funding-source rules. Without those rules, funds go to the child at age 18 or if emancipated; otherwise, to the parent or guardian. Beginning September 1, 2026, CYFD must report annually to the Legislative Health and Human Services Committee. Reports must cover how many children receive benefits, benefit types, how funds are saved, and amounts used and saved.