(2) INDIVIDUAL
DEVELOPMENT
ACCOUNTS.— 
Section 477 of such Act (42 U.S.C. 677) is amended 
by adding at the end the following: 
‘‘(k) INDIVIDUAL DEVELOPMENT ACCOUNTS.— 
‘‘(1) IN GENERAL.—An individual development 
account is established and managed in accordance 
with this subsection if the account is a trust created 
or organized in the United States exclusively for the 
purpose of paying the qualified expenses of an eligi-
ble individual, or enabling an eligible individual to 
make an emergency withdrawal, but only if the writ-
ten governing instrument creating the trust contains 
the following requirements: 
‘‘(A) No contribution will be accepted un-
less the contribution is in cash or by check. 
‘‘(B) The trustee is a federally insured fi-
nancial institution, or a State insured financial 
institution if no federally insured financial insti-
tution is available. 
‘‘(C) The assets of the trust will be in-
vested in accordance with the direction of the 
individual after consultation with the qualified 
entity authorized to make deposits into the ac-
count. 
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‘‘(D) The assets of the trust will not be 
commingled with other property except in a 
common trust fund or common investment 
fund. 
‘‘(E) Except as provided in subparagraph 
(F), any amount in the trust that is attrib-
utable to a deposit made by a qualified entity 
may be paid or distributed out of the trust only 
for the purpose of paying the qualified expenses 
of the individual. 
‘‘(F) Any balance in the trust on the day 
after the date on which the individual for whose 
benefit the trust is established dies shall be dis-
tributed within 30 days after that date as di-
rected by that individual to another individual 
development account established for the benefit 
of another individual. 
‘‘(2) CUSTODIAL ACCOUNTS.—For purposes of 
this subsection, a custodial account shall be treated 
as a trust if the assets of the custodial account are 
held by a bank (as defined in section 408(n) of the 
Internal Revenue Code of 1986) or another person 
who demonstrates, to the satisfaction of the Sec-
retary, that the manner in which the person will ad-
minister the custodial account will be consistent with 
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the requirements of this subsection, and if the custo-
dial account would, except for the fact that it is not 
a trust, constitute an individual development account 
described in paragraph (1) of this subsection. For 
purposes of this subsection, in the case of a custo-
dial account treated as a trust by reason of the pre-
ceding sentence, the custodian of the account shall 
be treated as the trustee of the account. 
‘‘(3) ELIGIBLE
INDIVIDUAL.—In this sub-
section, the term ‘eligible individual’ means an indi-
vidual who— 
‘‘(A) has attained 14 years of age; and 
‘‘(B) is in foster care or a kinship guard-
ianship arrangement, or has been adopted. 
‘‘(4) EMERGENCY WITHDRAWAL.—In paragraph 
(1), the term ‘emergency withdrawal’ means, with 
respect to an individual development account, a 
withdrawal by the individual for whose benefit the 
trust is established, that— 
‘‘(A) is of funds deposited by the individual 
in the account; 
‘‘(B) is permitted on a case-by-case basis 
by a qualified entity authorized to make depos-
its into the account; and 
‘‘(C) is made for— 
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‘‘(i) expenses for medical care or nec-
essary to obtain medical care, for the indi-
vidual, the spouse of the individual, or a 
dependent of the individual with respect to 
whom the individual is allowed a deduction 
under section 151 of the Internal Revenue 
Code of 1986; 
‘‘(ii) payments necessary to prevent 
the eviction of the individual from the resi-
dence of the individual, or foreclosure on 
the mortgage for the principal residence of 
the individual; or 
‘‘(iii) payments necessary to enable 
the individual to meet necessary living ex-
penses following loss of employment. 
‘‘(5) QUALIFIED ENTITY.—The term ’qualified 
entity’ means— 
‘‘(A) 1 or more not-for-profit organizations 
described in section 501(c)(3) of the Internal 
Revenue Code of 1986 and exempt from tax-
ation under section 501(a) of such Code; 
‘‘(B) a State or unit of local government; 
‘‘(C) an entity which has entered into an 
agreement with a State or unit of local govern-
ment under which the entity is to provide for 
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individual development accounts for eligible 
children or children making the transition to 
independent living; or 
‘‘(D) an entity that— 
‘‘(i) is— 
‘‘(I) a credit union designated as 
a low-income credit union by the Na-
tional Credit Union Administration 
(NCUA); or 
‘‘(II) an organization designated 
as a community development financial 
institution by the Secretary of the 
Treasury (or the Community Develop-
ment Financial Institutions Fund); 
and 
‘‘(ii) can demonstrate a collaborative 
relationship with a local community-based 
organization whose activities are designed 
to address poverty in the community and 
the needs of community members for eco-
nomic independence and stability. 
‘‘(6) QUALIFIED EXPENSES.—The term ‘quali-
fied expenses’ means any of the following: 
‘‘(A) HOUSING
EXPENSES.—Expenses to 
secure and maintain safe and decent housing. 
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‘‘(B) 
EDUCATIONAL
EXPENSES.—Edu-
cational expenses paid from an individual devel-
opment account directly to an eligible edu-
cational institution. In this subparagraph: 
‘‘(i) EDUCATIONAL
EXPENSES.—The 
term ‘educational expenses’ means the fol-
lowing: 
‘‘(I) TUITION
AND
FEES.—Tui-
tion and fees required for the enroll-
ment or attendance of a student at an 
eligible educational institution. 
‘‘(II) FEES, BOOKS, SUPPLIES, 
AND EQUIPMENT.—Fees, books, sup-
plies, and equipment required for 
courses of instruction at an eligible 
educational institution. 
‘‘(ii) ELIGIBLE EDUCATIONAL INSTI-
TUTION.—The term ‘eligible educational 
institution’ means the following: 
‘‘(I) 
SECONDARY
SCHOOL.—A 
secondary school (as defined in section 
9101 of the Elementary and Sec-
ondary Education Act of 1965). 
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‘‘(II) VOCATIONAL
EDUCATION 
SCHOOL.—A school that provides vo-
cational education. 
‘‘(III) INSTITUTION
OF
HIGHER 
EDUCATION.—An institution described 
in section 101 or 102 of the Higher 
Education Act of 1965. 
‘‘(IV) 
POSTSECONDARY
VOCA-
TIONAL
EDUCATION
SCHOOL.—An 
area vocational education school (as 
defined in subparagraph (C) or (D) of 
section 521(4) of the Carl D. Perkins 
Vocational and Applied Technology 
Education Act) which is in any State 
(as defined in section 521(33) of such 
Act). 
‘‘(C) EMPLOYMENT EXPENSES.—Amounts 
paid from an individual development account to 
enable an eligible individual to operate a busi-
ness, purchase clothing or supplies necessary to 
become or remain employed, or purchase, main-
tain, or repair a motor vehicle (including insur-
ance).’’. 
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(b) STATE EVALUATIONS.—Section 477(g) of such 
Act (42 U.S.C. 677(g)) is amended by adding at the end 
the following: 
‘‘(3) STATE EVALUATIONS OF SPECIFIC SERV-
ICES
PROVIDED
TO
ASSIST
THE
TRANSITION
TO 
INDEPENDENT LIVING.— 
‘‘(A) IN GENERAL.—Within 3 months after 
the end of each fiscal year for which a State re-
ceives funds made available under subsection 
(h)(3), the State shall conduct an evaluation of 
the uses to which the funds are put, and the ef-
fects of so using the funds, during the fiscal 
year. 
‘‘(B) FUNDING.—The Secretary shall re-
serve 5 percent of the amount specified in sub-
section (h)(3) for a fiscal year for grants to 
States for evaluations referred to in subpara-
graph (A) of this paragraph.’’. 
(c) ELIMINATION
OF USE
OF SOCIAL SECURITY 
NUMBER AS IDENTIFIER FOR FOSTER CHILD.— 
(1) IN GENERAL.—Section 471(a) of such Act 
(42 U.S.C. 671(a)) is amended— 
(A) by striking ‘‘and’’ at the end of para-
graph (32); 
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(B) by striking the period at the end of 
paragraph (33) and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(34) beginning 1 year after the date of the en-
actment of this paragraph, provides for use of proce-
dures and practices to eliminate the use of the social 
security account number of a child who is in foster 
care under the responsibility of the State as an iden-
tifier for the child.’’. 
(2) DEVELOPMENT
OF
ALTERNATIVE
SOCIAL 
SECURITY NUMBERS FOR TAX RETURNS.—The Com-
missioner of Internal Revenue shall develop, not 
later than 1 year after the date of the enactment of 
this Act a process for the assignment of alternative 
taxpayer identification numbers for foster children 
for use in tax returns in a manner similar to those 
used in the case of adopted children. 
(d) FUNDING.—Section 477(h) of the Social Security 
Act (42 U.S.C. 677(h)) is amended— 
(1) by striking ‘‘and’’ at the end of paragraph 
(1); 
(2) by striking the period at the end of para-
graph (2) and inserting a semicolon; and 
(3) by adding at the end the following: 
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‘‘(3) an additional $45,000,000, which are au-
thorized to be available to enable States to carry out 
the State plan requirements described in subsection 
(b)(2)(G); and 
‘‘(4) an additional $5,000,000, which are au-
thorized to be available to the Secretary for a grant 
to a national coalition or consortium of private, non- 
profit organizations and other organizations focused 
on the needs of transitioning foster youth, in con-
sultation with individual organizations experienced 
in addressing service delivery, legal issues, and fi-
nancial asset management issues, and identity safe-
guarding issues related to youth, for the develop-
ment of materials, technical assistance, and other 
support to State foster care agencies to aid in the 
implementation of subsection (b)(2)(G).’’. 
(e) ANNUAL REPORTS TO THE SECRETARY.—Section 
477 of such Act (42 U.S.C. 677), as amended by sub-
section (a)(2) of this section, is amended by adding at the 
end the following: 
‘‘(l) STATE REPORTS TO THE SECRETARY.—Within 
3 months after the end of each fiscal year, each State to 
which a grant is made under subsection (h)(1)(B) for a 
fiscal year shall submit to the Secretary a report on— 
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‘‘(1) the number of children for whom the State 
obtained a consumer report pursuant to subsection 
(b)(2)(G)(i) during the fiscal year, and the number 
of such children whose report contained a discrep-
ancy; and 
‘‘(2) the total number of children provided serv-
ices pursuant to subsection (b)(2)(G) during the fis-
cal year, the nature of the services so provided, and 
the effects of the provision of financial security and 
financial management services on the competence of 
the children in such matters.’’. 
(f) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section 
shall take effect on October 1, 2011, and shall apply 
to payments under part E of title IV of the Social 
Security Act for quarters beginning on or after such 
date. 
(2) DELAY PERMITTED IF STATE LEGISLATION 
REQUIRED.—In the case of a State plan approved 
under part E of title IV of the Social Security Act 
which the Secretary of Health and Human Services 
determines requires State legislation (other than leg-
islation appropriating funds) in order for the plan to 
meet the additional requirements imposed by sub-
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