Prohibits DCF from using federal benefits received by a child in out of home placement to reimburse State for cost of child's care, except under certain circumstances.

This bill prohibits New Jersey's Department of Children and Families (DCF) from using federal benefits received by a child in out-of-home placement (such as foster care) to reimburse the state for the child's care costs. Instead, DCF must use these benefits - like Social Security or Veterans benefits - to cover the child's unmet needs (e.g., medical or educational expenses beyond state coverage) or save them in a dedicated account for the child's future. DCF is required to apply for federal benefits on behalf of eligible children, maintain separate accounts for these funds, and provide annual reports to the child, parents, and court on their use. The law ensures children's federal benefits directly support their personal needs and future, rather than offsetting state expenses.