SECTION 11. CHILD PROTECTION, FOSTER CARE, AND ADOPTION ASSISTANCE

                                CONTENTS

Background
Federal Child Welfare Programs Today
  The Title IV-B Child Welfare Services Program
  The Title IV-E Foster Care Program
  The Title IV-E Adoption Assistance Program
  The Title IV-E Independent Living Program
Protections for Children in Foster Care
  Protections Linked to Title IV-B Child Welfare Services
            Funding
  Mandatory Protections for Foster Children Funded Under Title
            IV-E
  Reasonable Efforts Requirement
  State Compliance With Section 427 Child Protections
  Federal Financial Review Procedures Under Title IV-E
  New Conformity Review System Under Public Law 103-432
Recent Trends Affecting Child Welfare Populations and Programs
  Child Abuse and Neglect
  Child Abuse Fatalities
  Substance Abuse
  Trends in Foster Care Caseloads
  Increase in ``Kinship'' Care
  Family Preservation Programs
  National Data on Foster Care and Adoption Assistance
  Characteristics of Children in Substitute Care
  Reasons for Placement in Substitute Care
  Permanency Goals
  Living Arrangements of Children in Substitute Care
  Number and Duration of Placements While in Foster Care
  Outcomes for Children Leaving Care
  Characteristics of Children in Adoptive Care
  Trends in Child Welfare and Foster Care Costs
Foster Care and Adoption Information System
  Lack of Adequate Data
  OBRA 1993 and Final Rules for AFCARS and SACWIS
Legislative History
  Adoption Legislation in the 105th Congress
References

                               BACKGROUND

    Child welfare services aim to improve the conditions of
children and their families and to improve or provide
substitutes for functions that parents have difficulty
performing. Child welfare services encompass a broad range of
activities, including protection of abused or neglected
children, support and preservation of families, care of the
homeless and neglected, support for family development, and
provision of out-of-home care. Services may help the family
cope with problems or they may protect children while the
family learns to perform appropriate parenting roles.
    It is generally agreed that it is in the best interests of
children to live with their families. To this end, experts
emphasize both the value of preventive and rehabilitative
services and the need to limit the duration of foster care
placements. However, if children must be removed, a major
principle of professional social work is the provision of
permanent living arrangements, either by returning children to
their homes in a timely fashion or by moving children into
adoption or other permanent arrangements.
    Many private, nonprofit and government entities work to
provide child welfare services to families in need. The primary
responsibility for child welfare services in the government,
however, rests with the States. Each State has its own legal
and administrative structures and programs that address the
needs of children. The Federal Government has also been
involved in efforts to improve the welfare of children in
specific areas of national concern since the early 1900s.
Almost 40 Federal programs were authorized to provide support
for such services as of 1994, administered by four different
Cabinet agencies and overseen by five House Committees
(Robinson & Forman, 1994). The largest of these programs are
authorized under titles IV-B and IV-E of the Social Security
Act. Additional programs include grants to States, local
governments and nongovernmental agencies for prevention and
treatment of child abuse and neglect, advocacy centers for
victims of sexual abuse, services for abandoned infants and
children with AIDS, promotion of adoption, child abuse-related
training for judicial personnel, federally administered
research and demonstration, Indian child welfare programs,
family violence programs, and a number of small programs. Of
these programs, a third had funding of less than $25 million in
1997. In addition, services related to child welfare may be
provided at State discretion under the Social Services Block
Grant (title XX of the Social Security Act), described in
section 10.
    This section will focus specifically on Child Welfare,
Foster Care and Adoption Assistance Programs authorized under
titles IV-B and IV-E of the Social Security Act. Title IV-B
authorizes funds to States for a broad range of child welfare
services, including family preservation and family support
services; title IV-E authorizes the Foster Care, Independent
Living, and Adoption Assistance Programs. The IV-B and IV-E
programs are intended to operate in consort to help prevent the
need for out-of-home placement of children, and in cases where
such placement is necessary, to provide protections and
permanent placement for the children involved. Funding is
provided under the Foster Care Program to assist States with
the maintenance costs of low-income (AFDC-eligible) children in
foster care. The Independent Living Program is intended to help
States facilitate the transition of older children from foster
care to independent living; the Adoption Assistance Program
helps States support the adoption of AFDC- or SSI-eligible
children with ``special needs,'' such as minority status, age,
membership in a sibling group, or a mental or physical
handicap.\1\
---------------------------------------------------------------------------
    \1\ Note: Since this chapter was substantially prepared,
legislation was enacted that significantly amended child welfare
programs under titles IV-B and IV-E of the Social Security Act.
References to major changes are included throughout the chapter;
however, a more detailed description of the Adoption and Safe Families
Act (Public Law 105-89) is included at the end of the chapter.)
---------------------------------------------------------------------------

                  FEDERAL CHILD WELFARE PROGRAMS TODAY

    The Social Security Act contains the primary sources of
Federal funds available to States for child welfare, foster
care, and adoption activities. These funds include both
nonentitlement authorizations (for which the amount of funding
available is determined through the annual appropriations
process) and authorized entitlements (under which the Federal
Government has a binding obligation to make payments to any
person or unit of government that meets the eligibility
criteria established by law). The programs include the Title
IV-B Child Welfare Services and Promoting Safe and Stable
Families (formerly known as Family Preservation) Programs, the
Title IV-E Foster Care Program, the Title IV-E Adoption
Assistance Program, the Title IV-E Independent Living Program,
and the Title XX Social Services Block Grant Program. Table 11-
1 lists these programs, and describes their funding.
    Table 11-2 provides data on the level of Federal funds
provided to States under titles IV-B and IV-E for fiscal years
1986-96, and HHS projections for fiscal years 1997-2002. Under
the Title XX Social Services Block Grant Program, States have
discretion over what portion of their allocation they spend on
child welfare activities, as well as a range of other
activities not directly focused on children.
    In addition to the funds allocated to the States or
available on an entitlement basis, title IV-B authorizes funds
for research and demonstration activities and for direct
Federal grants to public and private entities for child welfare
staff training. These activities are authorized under section
426 of title IV-B. For fiscal year 1997, $4 million is
appropriated for training and no funding is appropriated for
research under section 426.
    Welfare reform legislation enacted in 1996 (Public Law 104-
193) further authorized and appropriated funds for a national
longitudinal study of children at risk for abuse or neglect,
and of children who have been identified as victims of abuse or
neglect, established under a new section 429A of the Social
Security Act. For this study, the welfare reform legislation
provided $6 million for each of fiscal years 1996-2002.
Congress subsequently rescinded the appropriation for fiscal
years 1996 and 1997, with the understanding that adequate
funding was available for the study in the broader
appropriation for social services and income maintenance
research (Public Law 104-208).
    Funds available to States from the Title IV-B Child Welfare
Program may be used for services to families and children
without regard to family income. Federal matching funds for
foster care maintenance payments under title IV-E are provided
only in those cases in which the child would have been eligible
for AFDC if still in the home. All children determined to have
``special needs'' related to their being adopted, as defined
under title IV-E, are eligible for reimbursement of certain
nonrecurring costs of adoption under the Title IV-E Adoption
Assistance Program. However, only AFDC- or SSI-eligible
``special needs'' children qualify for federally matched
adoption assistance payments available under title IV-E. Funds
available to States for the Title IV-E Independent Living
Program may be used for services which facilitate the
transition of children from foster care to independent living,
regardless of whether they are eligible for AFDC foster care
assistance.

 TABLE 11-1.--FUNDING ENVIRONMENT OF THE FEDERAL PROGRAMS WHICH SUPPORT FOSTER CARE, CHILD WELFARE, AND ADOPTION
                                                    SERVICES
----------------------------------------------------------------------------------------------------------------
                 Program                           Budgetary classification           Federal support of total
----------------------------------------------------------------------------------------------------------------
Title IV-E Foster Care Program:
    Foster care assistance payments......  Authorized entitlement.................  Open-ended Federal match at
                                                                                     Medicaid rate.
    Placement services and administrative  Authorized entitlement.................  Open-ended Federal match of
     costs.                                                                          50 percent. \1\
    Training expenses....................  Authorized entitlement.................  Open-ended Federal match of
                                                                                     75 percent.
Title IV-E Adoption Assistance Program:
    Adoption assistance payments.........  Authorized entitlement.................  Open-ended Federal match at
                                                                                     Medicaid rate.
    Nonrecurring adoption expenses.......  Authorized entitlement.................  Open-ended Federal match of
                                                                                     50 percent. \2\
    Placement services and administrative  Authorized entitlement.................  Open-ended Federal match of
     costs.                                                                          50 percent.
    Training expenses....................  Authorized entitlement.................  Open-ended Federal match of
                                                                                     75 percent.
Title IV-E Independent Living Program....  Authorized entitlement.................  100 percent Federal funding,
                                                                                     with a funding ceiling. \3\
Title IV-B Child Welfare Services
 Program:
    Child welfare services (subpart 1)...  Nonentitlement authorization...........  Federal match of 75 percent,
                                                                                     total capped at State
                                                                                     allotment.
    Promoting Safe and Stable Families     Authorized entitlement.................  Federal match of 75 percent,
     \5\ (subpart 2).                                                                with a funding ceiling. \4\
Title XX Social Services Block Grant       Authorized entitlement.................  100 percent Federal funding,
 Program.                                                                            with a funding ceiling.
----------------------------------------------------------------------------------------------------------------
\1\ Seventy-five percent matching is available from fiscal year 1994 through fiscal year 1997 for certain costs
  related to data collection.
\2\ The Federal Government reimburses 50 percent of up to $2,000 of expenditures for any one placement.
\3\ Beginning for fiscal year 1991, States are required to provide 50 percent matching for any Federal funding
  claimed that exceeds $45 million.
\4\ Program authorized through fiscal year 1998.
\5\ The name of this program was changed from Family Preservation and Family Support in 1997, by Public Law 105-
  89.

 Source: Compiled by House Committee on Ways and Means staff.

            TABLE 11-2.--FEDERAL FUNDING FOR CHILD WELFARE, FOSTER CARE, AND ADOPTION ACTIVITIES UNDER TITLES IV-B AND IV-E OF THE SOCIAL SECURITY ACT, 1986-2002, UNDER CURRENT LAW
                                                                                    [In millions of dollars]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                            Title IV-                     Title IV-E foster care State claims                   Title IV-E adoption assistance State
                                                            B-1 child    Title IV-B-2  -----------------------------------------  Title IV-E                   claims
                        Fiscal year                          welfare    Promoting Safe                                           Independent -----------------------------------------   Total
                                                             services     and Stable    Total \2\  Maintenance  Administration/     Living                Assistance  Administration/
                                                                         Families \1\                payments     training \3\     Program     Total \4\   payments       training
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
1986......................................................       $198  ...............       $605         $392             $214  ...........         $55         $41            $14         $859
1987......................................................        223  ...............        793          480              313          $45          74          54             20        1,134
1988......................................................        239  ...............        891          548              343           45          97          74             23        1,273
1989......................................................        247  ...............      1,153          646              507           45         111          86             24        1,555
1990......................................................        253  ...............      1,473          835              638           50         136         105             31        1,912
1991......................................................        274  ...............      1,819        1,030              789           60         175         130             45        2,328
1992......................................................        274  ...............      2,233        1,204            1,029           70         220         161             58        2,796
1993......................................................        295  ...............      2,547        1,365            1,182           70         272         197             75        3,184
1994......................................................        295              $60      2,607        1,412            1,190           70         325         235             90        3,356
1995......................................................        292              150      3,050        1,594            1,456           70         411         306            105        3,974
1996......................................................        277              225      3,114        1,533            1,581           70         485         361            124        4,171
1997 (estimate)...........................................        292              240      3,243        1,548            1,695           70         571         427            144        4,416
1998 (estimate)...........................................        292              255      3,360        1,660            1,700           70         661         495            166        4,638
1999 (estimate)...........................................        292            (\5\)      3,551        1,781            1,770           70         772         578            194        4,685
2000 (estimate)...........................................        292            (\5\)      3,790        1,912            1,878           70         893         668            225        5,045
2001 (estimate)...........................................        292            (\5\)      4,047        2,043            2,004           70       1,022         765            257        5,431
 2002 (estimate)..........................................        292            (\5\)      4,318        2,182            2,136           70       1,162         870            292       5,842
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ The name of this program was changed from Family Preservation and Family Support in 1997, by Public Law 105-89.
\2\ Total includes administration, SACWIS (State Automated Child Welfare Information System), and training expenditures, as well as maintenace payments, but does not include transfers to the
  Title IV-B Child Welfare Services Program. Differences in total due to rounding.
\3\ Includes regular administration, SACWIS costs, and training.
\4\ Total includes administration and training expenditures, and maintenance payments. Differences in total due to rounding.
\5\ Not authorized.

 Note.--Totals may differ from sum of State amounts because of rounding.

 Source: U.S. Department of Health and Human Services.

    Table 11-3 provides data on participation under the title
IV-B and IV-E programs. Table 11-4 shows the Congressional
Budget Office projections for Federal foster care and adoption
assistance for 1997-2002. Between 1997 and 2002, the federally
funded foster care caseload is projected to increase from
282,000 to 341,000 (21 percent). Total IV-E foster care outlays
are expected to increase 45 percent, from $3,272,000 in 1997 to
$4,742,000 in 2002. Over the same time period, the adoption
assistance caseload is projected to increase from 141,000 to
229,000 (62 percent), while total adoption assistance outlays
are estimated to increase from $562 million to $1,094 million
(95 percent).

 TABLE 11-3.--PARTICIPATION IN CHILD WELFARE, FOSTER CARE, AND ADOPTION ACTIVITIES UNDER TITLES IV-B AND IV-E OF
                                       THE SOCIAL SECURITY ACT, 1983-2001
----------------------------------------------------------------------------------------------------------------
                                               Title IV-B- Title IV-B-2
                                                 1 child     Promoting    Title IV-E    Title IV-E   Title IV-E
                 Fiscal year                     welfare     Safe and     foster care  Independent    adoption
                                                services      Stable      assistance      Living     assistance
                                                           Families \1\  payments \2\  Program \3\  payments \2\
----------------------------------------------------------------------------------------------------------------
1983.........................................         NA   ............       97,370   ...........        5,309
1984.........................................         NA   ............      102,051   ...........       11,581
1985.........................................         NA   ............      109,122   ...........       16,009
1986.........................................         NA   ............      110,586   ...........       21,989
1987.........................................         NA   ............      118,549       20,182        27,588
1988.........................................         NA   ............      132,757       18,931        34,698
1989.........................................         NA   ............      156,871       44,191        40,666
1990.........................................         NA   ............      167,981       44,365        44,024
1991.........................................         NA   ............      202,687       45,284        54,818
1992.........................................         NA   ............      222,315       57,360        68,197
1993.........................................         NA   ............      232,668       57,918        78,044
1994.........................................         NA            NA       244,473       71,081        91,872
1995.........................................         NA            NA       260,737       73,137       106,880
1996.........................................         NA            NA       266,977       85,261       122,657
1997 (estimated).............................         NA            NA       285,000           NA       131,200
1998 (estimated).............................         NA            NA       296,400           NA       140,400
1999 (estimated).............................         NA   ............      308,300           NA       150,200
2000 (estimated).............................         NA   ............      320,600           NA       160,700
2001 (estimated).............................         NA   ............      333,400           NA      170,300
----------------------------------------------------------------------------------------------------------------
\1\ The name of this program was changed from Family Preservation and Family Support in 1997, by Public Law 105-
  89.
\2\ Average monthly number of recipients.
\3\ Estimated.

 NA--Not available.

 Source: U.S. Department of Health and Human Services.

  TABLE 11-4.--CBO BASELINE PROJECTIONS FOR THE FEDERAL FOSTER CARE AND ADOPTION ASSISTANCE PROGRAMS, 1997-2002
                                    [By fiscal year, In millions of dollars]
----------------------------------------------------------------------------------------------------------------
              Program                   1997         1998         1999         2000         2001         2002
----------------------------------------------------------------------------------------------------------------
Foster care:
    Title IV-E caseload
     (thousands)..................          282          298          311          323          332          341
    Average monthly maint. payment
     (Federal share)..............         $490         $509         $529         $551         $573         $596
    Federal outlays (millions):
      Maintenance payments........        1,632        1,789        1,955        2,121        2,285        2,447
      Administrative and child
       placement services.........        1,490        1,545        1,662        1,805        1,944        2,075
      Training....................          149          161          174          188          203          220
                                   -----------------------------------------------------------------------------
        Total outlays.............        3,272        3,495        3,791        4,114        4,432        4,742
                                   =============================================================================
Adoption assistance:
    Title IV-E caseload
     (thousands)..................          141          159          177          196          213          229
    Average monthly payment.......         $255         $265         $275         $286         $298         $310
    Federal outlays (millions):
      Maintenance payments........          421          494          574          660          747          837
      Administrative and child
       placement services.........          125          143          163          184          204          224
      Training....................           17           20           23           26           29           32
                                   -----------------------------------------------------------------------------
        Total outlays.............          562          657          759          869          981        1,094
                                   =============================================================================
Independent living: Federal
 outlays..........................           70           70           70           70           70           70
                                   =============================================================================
            Total outlays.........        3,904        4,222        4,621        5,054        5,482       5,905
----------------------------------------------------------------------------------------------------------------
Note.--Numbers may not add to totals due to rounding.

 Source: Congressional Budget Office, March 1997 baseline.

             The Title IV-B Child Welfare Services Program

Grants to States for child welfare services
    The Child Welfare Services Program under subpart 1 of title
IV-B permanently authorizes 75 percent Federal matching grants
to States for services that protect the welfare of children.
These services: address problems that may result in neglect,
abuse, exploitation or delinquency of children; prevent the
unnecessary separation of children from their families and
restore children to their families, when possible; place
children in adoptive families when appropriate; and assure
adequate foster care when children cannot return home or be
placed for adoption. There are no Federal income eligibility
requirements for the receipt of child welfare services.
    Under legislation originally enacted in 1980 (Public Law
96-272), States are limited in the amount of their title IV-B
allotments that may be used for child day care, foster care
maintenance payments, and adoption assistance payments.
Specifically, States may use no more than their portion of the
first $56.6 million in Federal IV-B appropriations for these
three activities. The intent of this restriction is to devote
as much title IV-B funding as possible to supportive services
that could prevent the need for out-of-home placement. In
addition, the 1980 legislation required States to implement
certain foster care protections for all children in foster care
to be eligible to receive their full allotment of Federal title
IV-B appropriations. (The foster care protections are described
later in this section.)
    Between 1977 and 1990, the annual authorization level for
the Child Welfare Services Program remained flat at $266
million. The authorization level was increased to $325 million
under Public Law 101-239 beginning for fiscal year 1990.
Appropriations for the program--the amount of money Congress
actually made available for spending each year--increased from
$163.6 million in fiscal year 1981 to $294.6 million in fiscal
year 1994. Appropriations have since decreased, to $292 million
in fiscal year 1995, $277.4 million in fiscal year 1996, and
$292 million in fiscal year 1997 (see table 11-2).
    Child welfare services funds are distributed to States on
the basis of their under 21 population and per capita income.
Because of minimal reporting requirements under the program,
there are no reliable National or State-by-State data on the
exact number of children served, their characteristics, or the
services provided. Table 11-5 details the State-by-State
distribution of child welfare services funds for selected
fiscal years.

      TABLE 11-5.--STATE-BY-STATE ALLOCATIONS FOR TITLE IV-B CHILD WELFARE SERVICES, SELECTED YEARS 1987-97
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                     Fiscal year
                                   -----------------------------------------------------------------------------
               State                   1987       1989       1992       1994       1995       1996       1997
                                      actual     actual     actual     actual     actual     actual   allotments
----------------------------------------------------------------------------------------------------------------
Alabama...........................     $4,783     $5,136     $5,432     $5,623     $5,512     $5,106      $5,327
Alaska............................        417        294        614        754        756        725         749
Arizona...........................      3,344      3,797      4,418      5,034      5,036      5,015       5,466
Arkansas..........................      2,838      3,095      3,273      3,424      3,387      3,178       3,359
California........................     20,445     23,100     27,289     31,732     31,575     31,049      32,760
Colorado..........................      2,772      3,091      3,558      3,866      3,904      3,719       3,935
Connecticut.......................      2,081      2,143      1,942      2,120      2,077      2,052       2,154
Delaware..........................        570        654        717        726        720        713         756
District of Columbia..............        386        432        431        447        427        345         346
Florida...........................      9,105     10,361     11,773     13,146     13,096     12,781      13,708
Georgia...........................      6,622      7,301      7,737      8,426      8,418      8,032       8,502
Hawaii............................        656      1,119      1,180      1,204      1,205      1,117       1,179
Idaho.............................      1,304      1,388      1,581      1,703      1,719      1,622       1,736
Illinois..........................      9,932     10,773     11,338     11,773     11,634     11,067      11,684
Indiana...........................      5,572      6,064      6,709      6,952      6,832      6,367       6,697
Iowa..............................      2,861      3,074      3,364      3,475      3,402      3,223       3,358
Kansas............................      2,150      2,461      2,885      3,068      3,034      2,873       3,011
Kentucky..........................      4,154      4,556      4,883      5,030      4,961      4,624       4,842
Louisiana.........................      5,106      5,657      6,350      6,527      6,412      5,910       6,195
Maine.............................      1,313      1,391      1,443      1,482      1,455      1,378       1,432
Maryland..........................      3,440      3,798      3,924      4,343      4,291      4,156       4,358
Massachusetts.....................      2,714      4,418      4,336      4,708      4,597      4,579       4,792
Michigan..........................      8,888      9,551     10,196     10,885     10,634     10,075      10,487
Minnesota.........................      3,937      4,206      4,753      5,092      5,070      4,785       5,022
Mississippi.......................      3,519      3,923      4,177      4,293      4,245      3,949       4,146
Missouri..........................      4,958      5,235      5,798      6,146      6,072      5,727       5,998
Montana...........................        978      1,049      1,136      1,207      1,220      1,158       1,203
Nebraska..........................      1,641      1,744      1,996      2,071      2,032      1,879       1,968
Nevada............................        775        964      1,170      1,401      1,430      1,379       1,516
New Hampshire.....................        950      1,024      1,028      1,087      1,074      1,096       1,152
New Jersey........................      5,424      5,465      4,936      5,224      5,193      5,368       5,669
New Mexico........................      1,642      2,072      2,291      2,510      2,526      2,418       2,541
New York..........................     13,529     14,373     14,490     15,452     15,231     14,148      14,808
North Carolina....................      6,432      7,189      7,771      8,112      8,086      7,728       8,229
North Dakota......................        750        849        942        945        929        858         891
Ohio..............................     10,402     10,429     12,283     12,878     12,748     11,853      12,386
Oklahoma..........................      3,332      3,735      4,144      4,406      4,374      4,133       4,310
Oregon............................      2,586      2,850      3,283      3,556      3,555      3,321       3,531
Pennsylvania......................     10,038     11,236     11,905     12,148     11,949     11,076      11,583
Rhode Island......................        888        953      1,025      1,054      1,032        984       1,012
South Carolina....................      4,015      4,468      4,747      4,948      4,867      4,544       4,696
South Dakota......................        853        938      1,038      1,075      1,077        991       1,029
Tennessee.........................      5,001      5,598      5,933      6,210      6,166      5,792       6,100
Texas.............................     16,243     18,958     21,845     23,795     23,796     22,401      23,783
Utah..............................      2,555      2,891      3,196      3,474      3,481      3,284       3,469
Vermont...........................        632        583        713        715        699        674         703
Virginia..........................      4,907      5,463      5,891      6,373      6,323      6,114       6,408
Washington........................      3,774      4,382      5,169      5,699      5,741      5,231       5,512
West Virginia.....................      2,226      2,397      2,454      2,486      2,417      2,189       2,251
Wisconsin.........................      4,672      5,077      5,639      6,022      5,950      5,574       5,854
Wyoming...........................        101        382        703        724        719        638         661
American Samoa....................         NA        163        175        193        190        183         188
Guam..............................        304        342        376        351        346        329         340
Northern Marianas.................        110        118        124        142        140        136         139
Puerto Rico.......................      3,671      3,674      7,094      8,105      7,951      7,480       7,787
Virgin Islands....................        202        295        311        280        276        263         271
                                   -----------------------------------------------------------------------------
      Total.......................    222,500    246,679    273,911    294,624    291,989    277,389    291,989
----------------------------------------------------------------------------------------------------------------
NA--Not applicable; jurisdiction not eligible under statute.

 Note: Totals may differ from sum of State amounts due to rounding.

 Source: U.S. Department of Health and Human Services.

Grants to States for promoting safe and stable families
    Grants to States for family preservation and family support
services were originally authorized as a capped entitlement
under subpart 2 of title IV-B, beginning in fiscal year 1994.
States already had the flexibility to expend their child
welfare services funds available under subpart 1 of title IV-B
for family support and preservation activities, but few States
used a significant share of such funds for these two categories
of services. Entitlement funding was authorized for 5 years at
the following ceiling levels: $60 million in fiscal year 1994;
$150 million in fiscal year 1995; $225 million in fiscal year
1996; $240 million in fiscal year 1997; and either $255 million
in fiscal year 1998 or the fiscal year 1997 level adjusted for
inflation, whichever is greater. The Adoption and Safe Families
Act (Public Law 105-89), enacted in November 1997, reauthorized
and changed the name of this program to Promoting Safe and
Stable Families. Entitlement ceilings are now set at the
following levels: $275 million for fiscal year 1999, $295
million for fiscal year 2000, and $305 million for fiscal year
2001.
    From these ceiling amounts, $2 million in fiscal year 1994
and $6 million in each subsequent fiscal year are reserved for
use by the Secretary of HHS to fund research, training,
technical assistance and evaluation of family preservation and
support activities. In addition, $5 million in fiscal year 1995
and $10 million in each subsequent fiscal year are reserved for
a grant program for State courts (described below). Finally, 1
percent of the family preservation and family support
entitlement is reserved for allotment to Indian tribes. Table
11-6 shows State allotments of family preservation and family
support entitlement funds in fiscal years 1995-97, and
estimated State allotments for fiscal year 1998.
    After these set-asides are made, remaining entitlement
funds are allocated among States according to their relative
shares of children receiving food stamps, subject to a 25-
percent non-Federal match. States must submit a plan to HHS
that provides a detailed account of how the money will be used.
Prior to the enactment of Public Law 105-89, at least 90
percent of the funds had to be used for two categories of
services: family preservation services and community-based
family support services. Public Law 105-89 added two additional
categories: time-limited family reunification services, and
adoption promotion and support services. No more than 10
percent of funds can be used for administration.
    The Federal statute does not specify a percentage or
minimum amount of funds that must be used for any single
category of service. However, in program guidance to States
issued on January 18, 1994, HHS stated that allocations of less
than 25 percent to either type of service will require a strong
rationale. HHS subsequently restated this position in proposed
regulations issued on October 4, 1994, and final regulations,
issued on November 18, 1996. However, these regulations were
developed before the Adoption and Safe Families Act established
two additional categories of service for this program.
    Family preservation services are intended for children and
families, including extended and adoptive families, that are at
risk or in crisis. Services include: programs to help reunite
children with their biological families, if appropriate, or to
place them for adoption or another permanent arrangement;
programs to prevent placement of children in foster care,
including intensive family preservation services; programs to
provide follow-up services to families after a child has been
returned from foster care; respite care to provide temporary
relief for parents and other care givers (including foster
parents); and services to improve parenting skills.

           TABLE 11-6.--TITLE IV-B PROMOTING SAFE AND STABLE FAMILIES: \1\ STATE-BY-STATE ALLOCATIONS
----------------------------------------------------------------------------------------------------------------
                                                                                                      Estimated
                                                          Fiscal year    Fiscal year   Fiscal year   fiscal year
                         State                            1995 grant     1996 grant       1997          1998
                                                            awards         awards      allotments    allotments
----------------------------------------------------------------------------------------------------------------
Alabama...............................................      $2,880,911    $4,167,863    $4,298,428    $4,586,793
Alaska................................................         186,726       300,567       343,874       366,943
Arizona...............................................       2,414,096     3,767,107     4,126,491     4,403,321
Arkansas..............................................       1,387,105     2,023,818     2,106,230     2,247,529
California............................................      16,631,924    25,989,033    29,852,578    31,855,278
Colorado..............................................       1,480,468     2,184,121     2,256,675     2,408,066
Connecticut...........................................       1,067,004     1,643,100     1,805,340     1,926,453
Delaware..............................................         253,413       400,756       451,335       481,613
District of Columbia..................................         466,814       701,323       752,225       802,689
Florida...............................................       6,281,986    10,479,771    11,691,723    12,476,077
Georgia...............................................       3,734,514     5,891,114     6,297,197     6,719,652
Hawaii................................................         349,853       681,285       773,717       825,623
Idaho.................................................         373,451       581,096       623,272       665,085
Illinois..............................................       6,015,235     8,716,445     8,682,824     9,265,322
Indiana...............................................       2,254,046     3,566,729     3,890,077     4,151,048
Iowa..................................................       1,026,991     1,462,760     1,504,450     1,605,378
Kansas................................................         893,616     1,342,533     1,396,989     1,490,708
Kentucky..............................................       2,600,822     3,706,994     3,696,648     3,944,642
Louisiana.............................................       4,534,767     6,392,059     6,447,642     6,880,190
Maine.................................................         586,852       901,701       924,162       986,160
Maryland..............................................       1,827,244     2,765,217     3,030,392     3,233,689
Massachusetts.........................................       2,307,396     3,426,464     3,632,171     3,875,840
Michigan..............................................       5,535,083     7,694,517     7,995,076     8,531,435
Minnesota.............................................       1,573,831     2,384,499     2,600,549     2,775,010
Mississippi...........................................       2,774,210     3,947,447     4,019,030     4,288,651
Missouri..............................................       2,760,873     4,187,901     4,470,365     4,770,265
Montana...............................................         320,101       480,907       515,811       550,415
Nebraska..............................................         560,177       841,588       924,162       986,160
Nevada................................................         386,789       681,285       752,225       802,689
New Hampshire.........................................         226,738       380,718       429,843       458,679
New Jersey............................................       2,720,860     3,927,410     4,212,459     4,495,057
New Mexico............................................       1,093,679     1,723,251     1,934,292     2,064,057
New York..............................................       9,709,736    14,046,501    15,237,926    16,260,181
North Carolina........................................       2,787,548     4,408,317     4,814,239     5,137,208
North Dakota..........................................         240,076       340,643       343,874       366,943
Ohio..................................................       6,682,112     9,437,806     9,499,525    10,136,813
Oklahoma..............................................       1,667,194     2,524,763     2,750,994     2,935,548
Oregon................................................       1,227,055     1,903,591     2,041,753     2,178,727
Pennsylvania..........................................       5,668,459     8,175,424     8,489,395     9,058,916
Rhode Island..........................................         453,477       701,323       752,225       802,689
South Carolina........................................       1,933,945     2,905,482     3,116,360     3,325,425
South Dakota..........................................         306,764       440,832       429,843       458,679
Tennessee.............................................       3,187,674     4,929,300     5,287,066     5,641,755
Texas.................................................      12,910,748    19,617,010    21,169,757    22,589,956
Utah..................................................         706,890     1,062,004     1,096,099     1,169,632
Vermont...............................................         253,413       380,718       429,843       458,679
Virginia..............................................       2,227,371     3,486,578     3,933,061     4,196,916
Washington............................................       2,254,046     3,306,238     3,481,726     3,715,302
West Virginia.........................................       1,373,768     2,364,461     2,493,088     2,660,340
Wisconsin.............................................       1,973,957     2,745,179     2,836,962     3,027,283
Wyoming...............................................         186,726       260,491       279,398       298,142
American Samoa........................................         122,095       154,717       159,031       165,105
Guam..................................................         219,181       264,143       274,029       287,948
Northern Mariana......................................          96,047       119,418       121,935       125,478
Puerto Rico...........................................       3,498,785     5,618,957     5,901,525     6,299,348
Virgin Islands........................................         188,397       214,725       222,094       232,470
                                                       ---------------------------------------------------------
      Subtotal........................................     137,383,039   206,750,000   221,600,000   236,450,000
                                                       =========================================================
Set-asides:
    Indians (1 percent)...............................       1,498,773     2,250,000     2,400,000     2,550,000
    Research & Eval...................................       6,000,000     6,000,000     6,000,000     6,000,000
    Courts............................................       5,000,000    10,000,000    10,000,000    10,000,000
                                                       ---------------------------------------------------------
      Subtotal........................................      12,498,773    18,250,000    18,400,000    18,550,000
                                                       =========================================================
        Total.........................................  \2\ 150,000,00
                                                                     0   225,000,000   240,000,000  255,000,000
----------------------------------------------------------------------------------------------------------------
\1\ The name of this program was changed from Family Preservation and Family Support in 1997, by Public Law 105-
  89.
\2\ Includes $118,188 in lapsed funds.

 Source: U.S. Department of Health and Human Services.

    Family support services are intended to reach families
which are not yet in crisis and to prevent child abuse or
neglect from occurring. Family support services are generally
community-based activities designed to promote the well-being
of children and families, to increase the strength and
stability of families (including adoptive, foster and extended
families), to increase parents' confidence and competence, to
provide children with a stable and supportive family
environment, and to enhance child development. Examples include
parenting skills training, respite care to relieve parents and
other care givers, structured activities involving parents and
children to strengthen their relationships, drop-in centers for
families, information and referral services, and early
developmental screening for children.
    In regulations proposed on October 4, 1994, and made final
on November 18, 1996, HHS set forth a series of child and
family services ``principles'' that are intended to guide State
implementation of the program. According to HHS, these
principles emphasize the paramount importance of safety for all
family members, including victims of child abuse and neglect
and victims of domestic violence and their dependents. In the
preamble to its proposed regulations, HHS states that family
preservation ``does NOT mean that the family must stay together
or `be preserved' under all circumstances.'' The principles
also are intended to support a family-focused approach while
allowing for individual needs, and a service delivery approach
that stresses flexibility, accessibility, coordination, and
respect for cultural and community strengths.
    The Secretary of HHS is required to evaluate Family
Preservation and Family Support Programs. Evaluations are
currently underway. Interim reports were expected in 1997, and
final reports in 1999. In the meantime, the General Accounting
Office (GAO) has released two reports on implementation of the
Family Preservation and Family Support Program. In June 1995,
GAO reported that States were on schedule in their
implementation of the program, and that HHS was an active
partner with the States, providing ongoing consultation and
technical assistance during the initial comprehensive planning
process (U.S. General Accounting Office, 1995). GAO identified
two related areas in which States anticipated difficulty: (1)
development of appropriate baseline information to guide them
in setting goals, making decisions, and tracking progress; and
(2) conducting comprehensive evaluations to measure program
success. GAO recommended that HHS provide additional assistance
to States in these areas. In February 1997, GAO reported that
States were using the new funds to increase the availability of
services for families, by establishing new programs and
expanding existing services (U.S. General Accounting Office,
1997). Over a 2-year period, States used 56 percent of their
Federal funds for family support activities, and 44 percent for
family preservation services. States were tracking program
participants and monitoring progress, and at least 11 States
were planning formal evaluations. GAO reported that early
results from 10 States indicated some success in preventing
child removals and continued maltreatment, and that the
collaborative planning process required by the law was having a
positive impact on the service delivery system.
    As stated above, a portion of the entitlement funds is
reserved for a grant program to the highest State courts to
assess and improve certain child welfare proceedings. The court
set-aside equals $5 million in fiscal year 1995 and $10 million
in each of fiscal years 1996-98. A 25 percent non-Federal match
is required in each of the last 3 fiscal years.
    Courts use their grant funds to assess their procedures and
effectiveness in determinations regarding foster care
placement, termination of parental rights, and recognition of
adoptions. Courts also can use these grant funds to implement
changes found necessary as a result of the assessments.
According to HHS, 48 States and the District of Columbia chose
to implement this program, beginning in fiscal year 1995.
Idaho, Pennsylvania, and Wyoming are not participating in the
program.

                   The Title IV-E Foster Care Program

    The Foster Care Program under title IV-E is a permanently
authorized entitlement program. The program provides open-ended
matching funds to States for the maintenance payments made for
AFDC-eligible children in foster care family homes, private
for-profit or nonprofit child care facilities, or public child
care institutions housing up to 25 people. Welfare reform
legislation enacted in the 104th Congress (Public Law 104-193)
repealed the AFDC Program and replaced it with a block grant to
States called Temporary Assistance For Needy Families (TANF).
All States participating in TANF must certify that they will
operate a Foster Care and Adoption Assistance Program under
title IV-E. Under Public Law 104-193, foster children will be
eligible for title IV-E subsidies if their families would have
been eligible for AFDC, as in effect on June 1, 1995. Technical
corrections enacted in 1997 changed this date to July 16, 1996
(Public Law 105-33).
    The Federal matching rate for foster care maintenance
payments for a given State is that State's Medicaid matching
rate, which averages about 57 percent nationally and can range
from 50 to 83 percent. States may claim open-ended Federal
matching at a rate of 50 percent for their child placement
services and administrative costs. States also may claim open-
ended Federal matching at a rate of 75 percent to train
personnel employed by the State or by local agencies
administering the program and to train foster and adoptive
parents. During fiscal years 1994-97, States also were able to
receive Federal matching at the 75 percent rate for eligible
costs related to automated child welfare information systems.
    States are required to provide foster care maintenance
payments to AFDC-eligible children removed from the home of a
relative if the child received or would have been eligible for
AFDC prior to removal from the home and if the following apply:
(1) the removal and foster care placement were based on a
voluntary placement agreement signed by the child's parents or
guardians or a judicial determination that remaining in the
home would be contrary to the child's welfare; (2) reasonable
efforts were made to eliminate the need for removal or to
return the child to his home (some exceptions to this
requirement were enacted in 1997, described later in this
chapter); and (3) care and placement of the child are the
responsibility of specified public agencies. Children in the
Title IV-E Foster Care Program are also eligible for Medicaid.
    Maintenance payments under the Title IV-E Foster Care
Program are intended to cover the costs of food, shelter,
clothing, daily supervision, school supplies, general
incidentals, liability insurance for the child, and reasonable
travel to the child's home for visits.
Foster care expenditures and participation rates
    The average estimated monthly number of children in title
IV-E foster care almost tripled between 1983 and 1996, from
97,370 in fiscal year 1983 to 266,977 in fiscal year 1996 (see
table 11-3). More detailed data on foster children and their
characteristics are described later in this section.
    State claims for child placement services and
administrative costs for the Title IV-E Foster Care Program
have increased considerably since 1981. Current HHS regulations
give the following examples of allowable child placement
services and administrative costs for the Foster Care Program:
referral to services, preparation for and participation in
judicial determinations, placement of the child, development of
the case plan, case reviews, case management and supervision,
recruitment and licensing of foster homes and institutions,
rate setting, and a proportionate share of agency overhead. As
discussed later, many of these activities are required by the
Federal Government as foster care ``protections.''
    Table 11-7 provides a State breakdown of foster care
expenditures in fiscal year 1996 for maintenance payments,
child placement and administration, data collection, and
training expenditures. Note that California, New York and
Illinois account for 48 percent of the estimated fiscal year
1996 expenditures. A more detailed discussion of growth in
child placement services and administrative costs is presented
below.
Foster care payment rates
     Table 11-8 shows each State's ``basic'' monthly foster
care payment rates for children ages 2, 9, and 16, as reported
in an annual survey conducted by the American Public Welfare
Association (APWA). States are allowed to set the payments at
any level; thus, the rates vary widely. The basic monthly
foster care rates shown in the table are those paid for family
foster care, and differ from rates paid to institutions or for
group or congregate care.
     APWA cautions that the family foster care rates shown in
the table are only generally comparable due to variations among
States regarding the items that are covered under the basic
rate, additional services that are provided by supplements, and
the States' administrative structures. Table 11-8 indicates
whether the basic rate includes each of the following three
items: room and board (r); supervision (s); and clothing (c).
APWA notes that 32 States include other items in their basic
rates, such as child care, respite care, transportation,
personal allowance, school supplies, recreational and community
activities, and incidentals. Forty-three States and counties in
10 States supplement their basic rates, for items such as
education, child care, respite care, level of need, clothing,
transportation, health and medical care (other than Medicaid or
State-funded medical assistance), and special emotional,
behavioral, medical, or psychological needs. According to the
APWA survey, the national average ``basic'' monthly foster care
maintenance payment in 1996 was $356 for 2-year-olds, $373 for
9-year-olds, and $431 for 16-year-olds.

                                    TABLE 11-7.--FEDERAL FOSTER CARE EXPENDITURES UNDER TITLE IV-E, FISCAL YEAR 1996
                                                             [Estimate, dollars in millions]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                  Child       State Automated                           Child placement
                                                                Maintenance     placement      Child Welfare                              services and
                             State                                payments    services and      Information      Training     Total    administration as
                                                                             administration   System (SACWIS)                           percent of total
--------------------------------------------------------------------------------------------------------------------------------------------------------
Alabama.......................................................        $1.44           $2.93              $0.10      $0.76       $5.23              56.02
Alaska........................................................         2.11            4.43               1.40       0.05        7.99              55.44
Arizona.......................................................        18.15           15.19               8.01       1.62       42.97              35.35
Arkansas......................................................         6.93            7.53               3.92       6.92       25.30              29.76
California....................................................       326.31          296.06              36.73      34.21      693.31              42.70
Colorado......................................................         7.31           14.20               0.35      (1.51)      20.35              69.78
Connecticut...................................................        20.81           35.38               6.52       3.43       66.14              53.49
Delaware......................................................         1.12            3.16               2.68       0.44        7.40              42.70
District of Columbia..........................................         8.51           11.77               1.72       0.07       22.07              53.33
Florida.......................................................        23.98           46.53               6.83       1.16       78.50              59.27
Georgia.......................................................        14.20            7.75               0.73       1.85       24.53              31.59
Hawaii........................................................         3.95            6.72               0.00       1.10       11.77              57.09
Idaho.........................................................         0.81            3.02               2.64       0.24        6.71              45.01
Illinois......................................................       136.09           97.51               1.25       3.48      238.33              40.91
Indiana.......................................................        33.54           10.51               6.35       0.44       50.84              20.67
Iowa..........................................................        10.08            4.57               1.62       0.69       16.96              26.95
Kansas........................................................         9.14           10.14               1.19       3.43       23.90              42.43
Kentucky......................................................        21.86           17.72               6.13       5.87       51.58              34.35
Louisiana.....................................................        21.56           13.03               0.00       2.09       36.68              35.52
Maine.........................................................        15.11            1.56               0.57       1.54       18.78               8.31
Maryland......................................................        31.10           34.49               0.04       5.41       71.04              48.55
Massachusetts.................................................        42.07           37.58              15.83       0.93       96.41              38.98
Michigan......................................................        53.00           37.46               5.91      (0.82)      95.55              39.20
Minnesota.....................................................        23.30           10.60               5.56       5.09       44.55              23.79
Mississippi...................................................         2.98            4.85               0.92       0.31        9.06              53.53
Missouri......................................................        22.39           15.72               1.74       6.12       45.97              34.20
Montana.......................................................         3.85            1.20               1.27       0.98        7.30              16.44
Nebraska......................................................         7.17            6.81               2.68       3.34       20.00              34.05
Nevada........................................................         1.82            1.10               2.10       0.13        5.15              21.36
New Hampshire.................................................         3.14            4.36               2.26       0.48       10.24              42.58
New Jersey....................................................        18.57           11.43               7.20       0.13       37.33              30.62
New Mexico....................................................         3.75            2.33               2.87       3.27       12.22              19.07
New York......................................................       276.41          264.27              13.11      12.48      566.27              46.67
North Carolina................................................        27.61            7.71               0.00       2.11       37.43              20.60
North Dakota..................................................         2.98            4.19               0.40       0.55        8.12              51.60
Ohio..........................................................        74.59           53.35               0.00       7.62      135.56              39.36
Oklahoma......................................................         8.72            5.64               7.09       2.70       24.15              23.35
Oregon........................................................        10.70           12.16               1.19       0.75       24.80              49.03
Pennsylvania..................................................       108.53           34.11               0.01       6.96      149.61              22.80
Rhode Island..................................................         3.95            3.63               1.56       0.34        9.48              38.29
South Carolina................................................         7.06            4.63               5.02       2.07       18.78              24.65
South Dakota..................................................         0.92            1.16               0.84       0.12        3.04              38.16
Tennessee.....................................................        11.72            6.66               0.01       1.15       19.54              34.08
Texas.........................................................        49.44           12.29              12.46       3.02       77.21              15.92
Utah..........................................................         4.42            5.69               1.99       1.11       13.21              43.07
Vermont.......................................................         6.19            1.54               0.01       0.50        8.24              18.69
Virginia......................................................         9.60           21.91               0.00       3.12       34.63              63.27
Washington....................................................         7.88            7.33               7.90       0.48       23.59              31.07
West Virginia.................................................         4.73            1.52               1.75       0.47        8.47              17.95
Wisconsin.....................................................        20.26           24.19               0.18       1.34       45.97              52.62
Wyoming.......................................................         0.75            0.33               0.83       0.01        1.92              17.19
                                                               -----------------------------------------------------------------------------------------
      Total...................................................     1,532.62        1,249.94             191.48     140.16    3,114.21             40.14
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note.--Totals may differ from sum of State amounts due to rounding.

 Source: U.S. Department of Health and Human Services.

                     TABLE 11-8.--FOSTER CARE BASIC MONTHLY MAINTENANCE RATES FOR CHILDREN AGES 2, 9, AND 16, SELECTED YEARS 1987-96
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                             Age 2                               Age 9                              Age 16
                    State                    -----------------------------------------------------------------------------------------------------------
                                                1987     1991     1994     1996     1987     1991     1994     1996     1987     1991     1994     1996
--------------------------------------------------------------------------------------------------------------------------------------------------------
Alabama.....................................      168      181      205    205rc      188      202      229    229rc      198      213      241    241rc
Alaska \1\..................................      428      561      588   588rsc      478      499      523   523rsc      565      592      621   621rsc
Arizona.....................................      223      247      297   403rsc      223      247      286   392rsc      282      305      365   471rsc
Arkansas....................................      175      195      300   400rsc      190      210      325   425rsc      220      240      375   475rsc
California..................................      294      345      345   345rsc      340      400      400   400rsc      412      484      484   484rsc

Colorado....................................      235      296      319    361rc      266      296      319    361rc      318      352      379    430rc
Connecticut.................................      268      386      567   567rsc      302      424      586   586rsc      350      478      637   637rsc
Delaware....................................      264      301      342   350rsc      266      304      342   350rsc      342      391      440   450rsc
District of Columbia \1\....................      304      304      431   437rsc      304      304      431   437rsc      317      317      519   526rsc
Florida.....................................      233      296      296    296rc      233      296      296    296rc      293      372      372    372rc

Georgia \1\.................................      300      300      300     325r      300      300      300     325r      300      300      300     325r
Hawaii......................................      194      529      529    529rs      233      529      529    529rs      301      529      529    529rs
Idaho.......................................      138      198      228     228r      165      205      250     250r      204      278      338     358r
Illinois....................................      233      268      322    343rc      259      299      358    382rc      282      325      390    415rc
Indiana.....................................      226      281      405   405rsc      245      330      462   462rsc      280      398      518   518rsc

Iowa \1\....................................      159      198      328   375rsc      201      243      342   397rsc      285      300      405   460rsc
Kansas \1\..................................      187      304      205   305rsc      245      304      277   305rsc      280      386      351   386rsc
Kentucky....................................      248      265      263   300rsc      263      288      285   323rsc      300      333      330   368rsc
Louisiana...................................      199      283      298    348rc      232      316      331    331rc      265      349      364    364rc
Maine \1\...................................      244      296      296     325r      250      304      304     334r      291      353      353     389r

Maryland....................................      285      535      535   535rsc      285      535      535   535rsc      303      550      550   550rsc
Massachusetts...............................      362      410      410    415rs      362      410      410    415rs      433      486      486    493rs
Michigan \1\................................      315      332      383   365rsc      315      332      383   365rsc      395      416      454   433rsc
Minnesota \1\...............................      285      341      377   419rsc      285      341      377   419rsc      375      442      487   531rsc
Mississippi.................................      130      145      175    225rc      150      165      205    255rc      160      175      250    300rc

Missouri....................................      174      209      212    216rs      212      255      259    264rs      232      281      286    292rs
Montana \1\.................................      283      307      330    345rs      283      307      330    345rs      354      384      416    435rs
Nebraska....................................      210      222      326   326rsc      210      291      394   393rsc      210      351      461   463rsc
Nevada......................................      275      281      281    304rs      275      281      281    304rs      330      337      337    365rs
New Hampshire...............................      200      200      314    314rs      251      251      342    342rs      354      354      404    404rs

New Jersey..................................      203      244      272    288rs      215      259      288    339rs      253      305      340    361rs
New Mexico..................................      236      258      308   308rsc      247      270      341   341rsc      259      281      367   367rsc
New York....................................      312      353      367    367rs      375      424      441    441rs      434      490      510    510rs
New York City...............................      342      386      401    401rs      403      455      473    473rs      465      526      547    547rs
North Carolina..............................      215      265      315   315rsc      215      265      365   365rsc      215      265      415   415rsc

North Dakota................................      240      260      265   308rsc      287      312      318   349rsc      345      416      424   456rsc
Ohio........................................      240      289      413   544rsc      270      328      413   544rsc      300      366      413   544rsc
Oklahoma....................................      300      300      300   300rsc      360      360      360   360rsc      420      420      420   420rsc
Oregon......................................      200      285      315   315rsc      234      295      327   327rsc      316      363      404   404rsc
Pennsylvania................................      558      303      315    312rc      558      319      368    375rc      558      377      473    482rc

Rhode Island................................      223      274      279       NA      223      274      279       NA      275      335      341       NA
South Carolina..............................      138      182      212   212rsc      158      209      239   239rsc      208      275      305   305rsc
South Dakota................................      188      237      259   353rsc      230      291      317   353rsc      276      349      382   424rsc
Tennessee...................................      139      255      336   336rsc      190      226      262    262rs      224      267      385    385rs
Texas \1\...................................      243      420      476   482rsc      243      420      476   482rsc      274      420      476   482rsc

Utah \1\....................................      198      300      300   319rsc      198      300      300   319rsc      225      300      300   319rsc
Vermont.....................................      210      371      416   416rsc      249      371      416   416rsc      268      447      504   504rsc
Virginia....................................      193      246      256    262rc      244      288      300    307rc      309      365      379    388rc
Washington..................................      184      270      292   304rsc      227      332      359   374rsc      268      392      425   442rsc
West Virginia...............................      161      161      161   400rsc      202      202      202   400rsc      242      242      242   400rsc

Wisconsin...................................      163      231      276   282rsc      224      257      301   307rsc      284      324      361   365rsc
Wyoming.....................................      300      400      400   400rsc      300      400      400   400rsc      330      400      400   400rsc
                                             -----------------------------------------------------------------------------------------------------------
    Average monthly rates...................      239      294      329      356      263      314      350      373      307      365      407     431
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Indicates States that provided daily rates for 1996, which were converted to monthly rates using the following formula: [daily rate]  365
   12. Monthly rates for States providing daily rates for 1994 were computed using the following formula: [daily rate]  30. Due to the
  formula change, 1996 rates for these States cannot be compared with previous years. Figures are rounded to the nearest dollar.

 NA--Not available.

 Note.--Most States and/or counties supplement these basic rates with additional payments. To facilitate data comparability across States, 1996 figures
  are coded for major items covered in the basic rate. Key: r = room and board, s = supervision, c = clothing.

 Source: American Public Welfare Association.

    The 1980 reform legislation stipulated that title IV-E
foster care payments could be made for children in public
institutions, whereas previously under title IV-A payments were
limited to children in private nonprofit institutions or foster
family homes. To qualify for Federal payments, these public
institutions may not accommodate more than 25 children.
Facilities operated primarily for the detention of delinquents,
including forestry camps and training schools, are ineligible
for Federal funds. Legislation enacted in 1996 (Public Law 104-
193) also allows participation of for-profit institutions. It
is generally agreed that the costs associated with
institutional care are substantially higher than the cost of
family foster care. For example, the Child Welfare League of
America in 1994 estimated that the annual cost of supporting a
child in family foster care was $4,800, compared to an
estimated annual cost of $36,500 for a child in group care
(Time, 1994).
Exclusion of foster children from AFDC assistance units
    The Deficit Reduction Act of 1984 (Public Law 98-369)
required that certain blood-related, adoptive parents or
siblings be included in the family unit if the family applied
for income assistance under the AFDC Program. Because there was
no statutory exclusion for foster care recipients, AFDC
operating policy required that their income be included with
the family's when the family's eligibility was determined.
However, Public Law 99-514, enacted in 1986, stated that a
foster child who was receiving IV-E maintenance payments would
not be considered a family member during the time the family
received AFDC, and that the child's income in the form of
maintenance payments, and other income and resources, would be
excluded from the family's as well.
    The Omnibus Budget Reconciliation Act of 1990 (Public Law
101-508) repealed the 1986 provision and added a new section
409 to title IV-A stipulating that foster children receiving
maintenance payments under title IV-E or under State or local
programs would not be considered family members for purposes of
AFDC. Similarly, the law specified that children receiving
adoption assistance payments under either title IV-E or State
or local law were not considered family members for AFDC
purposes, unless the family would lose AFDC benefits as a
result.
    Welfare reform legislation enacted in 1996 (Public Law 104-
193) repealed the AFDC Program, including the provision
described above. The law establishes a block grant to States
for Temporary Assistance for Needy Families, and allows States
to determine for themselves how to define assistance units,
eligibility, and treatment of income for welfare purposes.

               The Title IV-E Adoption Assistance Program

    The Title IV-E Adoption Assistance Program is an open-ended
entitlement program required of States that participate in
TANF. Like the IV-E Foster Care Program, the IV-E Adoption
Assistance Program funds three distinct types of activities:
maintenance payments for qualified children who are adopted,
administrative payments for expenses associated with placing
children in adoption, and training of professional staff and
parents involved in adoptions.
    Under the Adoption Assistance Program, which is permanently
authorized, States develop adoption assistance agreements with
parents who adopt eligible children with special needs. Federal
matching funds are provided to States that, under these
agreements, provide adoption assistance payments to parents who
adopt AFDC- or SSI-eligible children with special needs.
Although AFDC was repealed by welfare reform legislation in
1996 (Public Law 104-193), that law also established that
special needs adoptive children will be eligible for title IV-E
subsidies if their original families would have been eligible
for AFDC, as it was in effect on June 1, 1995. Technical
corrections enacted in 1997 subsequently changed this date to
July 16, 1996 (Public Law 105-33). In addition, the program
authorizes Federal matching funds for States that reimburse the
nonrecurring adoption expenses of adoptive parents of special
needs children (regardless of AFDC or SSI eligibility).
Definition of special needs
    A special needs child is defined in the statute as a child
with respect to whom the State determines there is a specific
condition or situation, such as age, membership in a minority
or sibling group, or a mental, emotional, or physical handicap,
which prevents placement without special assistance. Before a
child can be considered to be a child with special needs, the
State must determine that the child cannot or should not be
returned to the biological family, and that reasonable efforts
have been made to place the child without providing adoption
assistance. States have discretion in defining special needs
eligibility criteria and individually determining whether a
child is eligible. For example, some States add religion or not
being able to place the child without subsidy to the definition
of special needs.
Adoption assistance agreements and payments
    An adoption assistance agreement is a written agreement
between the adoptive parents, the State IV-E agency, and other
relevant agencies (such as a private adoption agency)
specifying the nature and amount of assistance to be given.
Under the adoption assistance agreement, States may make
monthly adoption assistance payments for AFDC- and SSI-eligible
children with special needs who are adopted.
    The amount of adoption assistance payments to be made is
based on the circumstances of the adopting parents and the
needs of the child. No means test can be used to determine
eligibility of parents for the program; however, States do
consider the adoptive parents' income in determining the amount
of the payment. Payments may be adjusted periodically if
circumstances change, with the concurrence of the adopting
parents. However, the payments may not exceed the amount the
family would have received on behalf of the child under foster
care. Adoption assistance payments may continue until the child
is age 18, or, at State option, age 21 if the child is mentally
or physically handicapped. Payments are discontinued if the
State determines that the parents are no longer legally
responsible for the support of the child. Federally subsidized
payments may start as soon as an agreement is signed and the
child has been placed in an adoptive home. Parents who have
been receiving adoption assistance payments must keep the State
or local agency informed of circumstances that would make them
ineligible for payments, or eligible for payments in a
different amount.
    The Federal matching rate for the adoption assistance
payments is based on each State's Medicaid matching rate.
States may also claim open-ended Federal matching at the rate
of 50 percent for the costs of administering the program, and
for training both staff and adoptive parents at the rate of 75
percent.
    Not all families of adopted IV-E eligible children with
special needs actually receive adoption assistance payments.
The adoptive parents' circumstances may be such that an
adoption subsidy is not needed or wanted. Adopted AFDC- or SSI-
eligible children with special needs are also eligible for
Medicaid if an adoption assistance agreement is in effect,
regardless of whether adoption assistance payments are being
made.
    States also have the option under the Medicaid Program to
provide Medicaid coverage for other special needs children
(those not eligible for AFDC or SSI) who are adopted under a
State-funded adoption subsidy program. All States but six
currently take this option. Pursuant to the 1985 budget
reconciliation legislation, a child for whom an adoption
assistance agreement is in effect is eligible for Medicaid from
the State in which the child resides regardless of whether the
State is the one with which the adoptive parents have an
adoption assistance agreement. (The Adoption and Safe Families
Act, enacted in November 1997, contains additional requirements
regarding health insurance coverage for special needs adopted
children who are not eligible for title IV-E adoption
assistance. See discussion at the end of this chapter about
legislation in the 105th Congress for details.)
    The structure of adoption subsidy programs varies across
States. Some States offer basic maintenance payments and also
allow additional payments for certain activities (such as
family counseling) or for certain groups of children (such as
children with severe handicaps). Other States offer one level
of payment to everyone with no special allowances. Some States
allow parents to request changes in payment levels on a regular
basis if circumstances change for a child; others allow very
little change once the adoption agreement is signed. Some
States start payments as soon as placement is made; others not
until the adoption is finalized.
    Table 11-9 indicates, by State, the minimum and maximum
basic monthly payment rates for adoption assistance, and the
minimum and maximum special payment rates. The ``criteria''
columns highlight the main criteria used by States for
determining when a family would receive a higher payment rate,
such as the child's level (or severity) of special needs or
age.
    Not all children who receive adoption subsidies from States
are eligible for Federal IV-E funds. Data from the American
Public Welfare Association (APWA) for 1994 indicate that almost
two-thirds of children receiving adoption assistance nationwide
were eligible for title IV-E (Oppenheim, 1995). The non-IV-E
children's adoption subsidies are paid solely by the State in
which their adoption agreement was signed.

             TABLE 11-9.--ADOPTION ASSISTANCE MONTHLY PAYMENT RATES, BY STATE, AS OF SEPTEMBER 1996
----------------------------------------------------------------------------------------------------------------
                                                          Basic rate                             Special rate
              State                   Basic rate           criteria          Special rate          criteria
----------------------------------------------------------------------------------------------------------------
Alabama.........................  $205-$241.........  age/foster rates..  negotiable........  ..................
                                                                                               .................
                                                                                               .............
 Alaska \1\.....................  $587.94-$831.57...  ..................  case-by-case......  ..................
                                                                                               .................
                                                                                               .............
Arizona.........................  $350-$406.........  age...............  $458-$710.........  level of special
                                                                                               needs
 Arkansas.......................  $300-$375.........  age...............  maximum foster      ..................
                                                                           care rate.          .................
                                                                                               .............
California......................  $345-$484.........  age...............  $1,500 maximum....  county by county
 Colorado.......................  $293-$352.........  age...............  $371-$509.........  level of special
                                                                                               needs/age
Connecticut.....................  $567-$637.........  age...............  $1,000-$1,200.....  medically fragile
 Delaware.......................  $342-$440.........  age...............  $464-$562.........  foster rates
District of Columbia \1\........  $437.08-$526.20...  age...............  $512.21-$874.46...  level of special
                                                                                               needs/age
Florida.........................  $296-$372.........  age...............  $314-$407.........  level of special
                                                                                               needs/age
 Georgia........................  $239.68...........  75 percent of       $15-$40...........  75 percent of
                                                       foster rate.                            foster rate
Hawaii..........................  $529..............  ..................  ..................   .................
                                                                                               .................
                                                                                               ..............
 Idaho..........................  $228-$358.........  age...............  $464-$598.........  level of special
                                                                                               needs/age
Illinois........................  $290-$365.........  age...............  $453-$529.........  special foster
                                                                                               rates
 Indiana........................  by county.........  75 percent of       by county.........  75 percent of
                                                       foster rate.                            foster rate
Iowa............................  $375.33-$459.89...  age...............  $525.59-$910.05...  level of special
                                                                                               needs/age
 Kansas.........................  $386..............  ..................  $786 maximum......  level of special
                                                                                               needs
Kentucky........................  $304-$373.........  age...............  $395-$464.........  age
 Louisiana......................  $281.04-$294.73...  age...............  $521-$552.70......  foster rate/age
 Maine..........................  $371-$429.........  age...............  $1,130-$1,140.....  level of special
                                                                                               needs/age
Maryland........................  $650..............  ..................  none..............  ..................
                                                                                               .................
                                                                                               .............
 Massachusetts..................  $410-$486.........  age...............  negotiable........  ..................
                                                                                               .................
                                                                                               .............
Michigan........................  $383-$454.........  age...............  $535.08-$1,001.49.  foster rates/age
 Minnesota......................  $247-$337.........  age...............  $397-$837.........  level of special
                                                                                               needs/age
Mississippi.....................  $225-$300.........  age...............  none..............  ..................
                                                                                               .................
                                                                                               .............
 Missouri \2\...................  $212-$286.........  age...............  $614-$1,368.72....  level of special
                                                                                               needs/age
Montana \3\.....................  ..................  foster rate minus   ..................  foster rate minus
                                                       $10.                                    $10
 Nebraska.......................  $222-$351.........  age...............  $326-$576.........  level of special
                                                                                               needs/age
Nevada \3\......................  ..................  ..................  ..................   .................
                                                                                               .................
                                                                                               ..............
 New Hampshire..................  $472-$606.........  age...............  none..............  ..................
                                                                                               .................
                                                                                               .............
New Jersey......................  $280-$350.........  age...............  $320-$1,280.......  level of special
                                                                                               needs/age
 New Mexico.....................  $308-$367.........  age...............  $487-$545.........  level of special
                                                                                               needs/age
 New York.......................  $457-$600.........  age/city v.         $984-$1,455.......  level of special
                                                       upstate.                                needs/age
 North Carolina.................  $315-$415.........  age...............  $800-$1,600.......  HIV status
 North Dakota...................  $295-$437.........  age...............  $345-$587 and       level of special
                                                                           above.              needs
 Ohio \4\.......................  $250 minimum;       ..................  county determined.   .................
                                   maximum is county                                           .................
                                   determined.                                                 ..............
 Oklahoma.......................  $300-$420.........  age...............  $350-$645.........  level of special
                                                                                               needs/age
 Oregon.........................  $315-$404.........  age...............  negotiated........  ..................
                                                                                               .................
                                                                                               .............
 Pennsylvania...................  county determined.  ..................  county determined.  ..................
                                                                                               .................
                                                                                               .............
 Rhode Island...................  $252-$308.........  age...............  case-by-case......  ..................
                                                                                               .................
                                                                                               .............
 South Carolina.................  $266-$393.........  age...............  none..............  ..................
                                                                                               .................
                                                                                               .............
 South Dakota...................  $266-$393.........  age...............  none..............  ..................
                                                                                               .................
                                                                                               .............
 Tennessee......................  $335-$417.........  age...............  $512-$683.........  level of special
                                                                                               needs/age
 Texas..........................  $475..............  ..................  none..............  ..................
                                                                                               .................
                                                                                               .............
 Utah...........................  $310..............  ..................  $465-$775.........  level of special
                                                                                               needs
 Vermont \5\....................  $494-$600.........  age...............  $704-$810-$1,300..  level of special
                                                                                               needs/age
 Virginia.......................  $262-$388.........  age...............  none..............  ..................
                                                                                               .................
                                                                                               .............
 Washington.....................  $289.67-$422.89...  ..................  ..................  ..................
                                                                                               .................
                                                                                               .............
 West Virginia..................  $400..............  foster rate.......  $730 maximum......  level of special
                                                                                               needs
 Wisconsin......................  $282-$365.........  ..................  $2,000 maximum....  level of special
                                                                                               needs
 Wyoming........................  $399..............  ..................  negotiated, county  ..................
                                                                           determined.         .................
                                                                                               .............
----------------------------------------------------------------------------------------------------------------
\1\ Alaska and the District of Columbia have daily rates. Monthly rates were calculated by multiplying the daily
  rate by 30.416.
\2\ Missouri has a ``career parent'' rate of $45 per day.
\3\ Nevada and Montana's are for 1995.
\4\ The State rate for adoption assistance is $250 per month. Some of the larger county agencies pay higher
  rates by providing the non-Federal portion of the monthly payment.
\5\ Vermont has three maximum rates: two ``extraordinary care'' maximums based on age and a maximum
  ``therapeutic'' rate of $1,300.

 Source: North American Council on Adoptable Children.

Nonrecurring adoption costs
    The Adoption Assistance Program also authorizes Federal
matching funds for States to pay the one-time adoption expenses
of parents of special needs children (regardless of AFDC or SSI
eligibility). In order to be eligible, the child must be a
child with special needs, as defined in section 473(c) of the
Social Security Act and described above.
    Through the program, parents may receive reimbursement of
up to $2,000 per child for these nonrecurring adoption
expenses, and States may claim 50 percent Federal matching for
these reimbursements. Qualified adoption expenses are defined
as reasonable and necessary adoption fees, court costs,
attorney fees, and other expenses that are directly related to
the adoption of a child with special needs. States may vary in
the maximum amount they allow parents to receive under this
provision (see table 11-10 for State-by-State data on maximum
reimbursement rates).
    All 50 States have implemented the program; the District of
Columbia has not. However, the average reimbursements have not
equaled the $2,000 Federal cap, with the average payment being
$966 in 1996. According to the Association of Administrators of
the Interstate Compact on Adoption and Medical Assistance
(AAICAMA), for which the American Public Welfare Association
serves as the secretariat, in a number of States the larger
amounts of nonrecurring adoption costs are being paid for costs
incurred in the adoption of special needs children from foreign
countries and private agencies. Parents adopting children from
the public child welfare agencies are not claiming as many
expenses because many costs incurred in the adoption of these
children are already covered under the States' adoption
programs.
Adoption assistance expenditures
    The number of children receiving adoption assistance
payments and the Federal expenditures for these payments have
increased significantly since the program began. In fiscal year
1981, only six States participated in the program, with
payments being made for an average of 165 children per month.
In fiscal year 1996, 50 States plus the District of Columbia
participated, and 122,657 children (see table 11-11) were
served.
    Federal expenditures for adoption assistance payments have
increased from less than $400,000 in fiscal year 1981 to $427
million in fiscal year 1996, and are expected to reach $495
million in fiscal year 1997.
    HHS data indicate that expenditures for child placement
services and administration for the Adoption Assistance Program
have also increased significantly in recent years. In fiscal
year 1981, claims totaled $100,000; in fiscal year 1996 they
totaled $124 million and are expected to be $144 million in
fiscal year 1997.

                                 TABLE 11-10.--STATE REIMBURSEMENT OF NONRECURRING ADOPTION COSTS, 1991, 1992, AND 1996
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                            Has your                         Estimated
                                             State                Estimated   average
                                          implemented    Maximum   average    payment     Estimated average
                 State                        the        payment   payment     as of     payment as of April          Major reimbursement cost(s)
                                         reimbursement            as of May    April             1996
                                            program?                 1991       1992
--------------------------------------------------------------------------------------------------------------------------------------------------------
Alabama................................         Yes       $1,000       $350       $412                 $1,000  Legal fees, travel, preplacement visits.
Alaska.................................         Yes        2,000      1,200        829                 \1\ NA  Legal fees, travel, home studies.
Arizona................................         Yes        2,000      2,000      1,596                  2,000  Legal fees, agency fees, travel, home
                                                                                                                studies.
Arkansas...............................         Yes        1,500        100        500                    200  Court filing, fingerprint checks.
California.............................         Yes          500        400        400                    500  Agency fees.
Colorado...............................         Yes          800        250        250                    800  Legal fees.
Connecticut............................         Yes          750         90         90                    424  Legal fee.
Delaware...............................         Yes        2,000        300        300                     NA  Agency fees.
District of Columbia...................          No
Florida................................         Yes        1,000        400        400                  1,000  Attorney fees.
Georgia................................         Yes          700        400        400                    400  Legal fees.
Hawaii.................................         Yes        2,000         NA         NA                     NA
Idaho..................................         Yes        2,000         NA        350                \2\ 550  Agency fees, attorney fees, travel.
                                                                                                        2,000
                                                                                              average = 1,275
Illinois...............................         Yes        1,500         NA         NA                     NA  Legal fees, home studies.
Indiana................................         Yes        1,500        635         NA                    700  Legal fees, agency fees.
Iowa...................................         Yes        1,000        700        700                    300  Legal fees.
Kansas.................................         Yes        2,000         NA         NA                    700  Legal fees, home studies, travel.
Kentucky...............................         Yes        1,000        378        378                    476  Legal fees, agency fees.
Louisiana..............................         Yes        1,000        400        600                    600  Legal fees.
Maine..................................         Yes     \3\ 2,00         NA  .........                     NA  Legal fees, travel.
                                                               0
Maryland...............................         Yes        2,000         NA      2,000                  2,000  Legal fees, travel, home studies by
                                                                                                                private agencies. \4\
Massachusetts..........................         Yes          400        400  .........                    400  Legal fees, home studies.
Michigan...............................         Yes        2,000  .........  .........                    170  Court fees, birth certificate cost.
Minnesota..............................         Yes        2,000      2,000      2,000                  1,750  Legal fees, agency fees.
Mississippi............................         Yes        1,000        500        500                    550  Legal fees.
Missouri...............................         Yes        2,000         NA     \5\ 45             625--legal  Legal fees, agency fees.
                                                                                                   910--other
                                                                                              average = 1,535
Montana................................         Yes        2,000      1,000      1,000                    200  Legal fees, home studies, private agency
                                                                                                                fees.
Nebraska...............................         Yes        1,500         NA         NA                  1,500  Legal fees, private agency fees, travel.
Nevada.................................         Yes          250        250        250                     NA  Legal fees, travel, home studies.
New Hampshire..........................         Yes        2,000      2,000      2,000                  1,556  Legal costs, agency fees, travel.
New Jersey.............................         Yes        2,000         NA        850                     NA  Home studies, legal fees.
New Mexico.............................         Yes        2,000        500        500                     NA  Legal fees, travel.
New York...............................         Yes        2,000        500        500                    600  Legal fees.
North Carolina.........................         Yes        2,000         NA        176                     NA  Legal fees.
North Dakota...........................         Yes        2,000        350        540                     NA  Legal fees.
Ohio...................................         Yes        2,000        761        672                  2,000  Legal fees, travel.
Oklahoma...............................         Yes        2,000      2,000        350      \6\ domestic--275  Legal fees, agency fees.
                                                                                            tribal, foreign--
                                                                                                        2,000
                                                                                              private
                                                                                              average = 1,138
Oregon.................................         Yes        2,000        300        450                     NA  Legal fees.
Pennsylvania...........................         Yes        2,000         NA        700                    811  Legal fees, agency fees.
Rhode Island...........................         Yes        1,000         NA        902                  1,000  Legal fees, home studies, preadoption
                                                                                                                supervision.
South Carolina.........................         Yes        1,500        750        750                  1,500  Legal fees.
South Dakota...........................         Yes        1,500        650        650                    440  Legal fees.
Texas..................................         Yes        1,500         NA         NA                    875  Legal fees, agency fees.
Utah...................................         Yes        2,000        327        327                    650  Legal fees, home studies, travel.
Vermont................................         Yes        2,000      1,500      1,500              \7\ 2,000  Legal fees, home studies, agency
                                                                                                                placement fees.
Virginia...............................         Yes        2,000        280        396                    884  Legal fees.
Washington.............................         Yes        1,500        655        780                    636  Legal fees.
West Virginia..........................         Yes        2,000  .........  .........                  1,400  Legal fees, private agency home studies.
Wisconsin..............................         Yes        2,000        655        780                    468  Legal fees home studies.
Wyoming................................         Yes        2,000        350        350                     NA  Legal fees.
                                                       -------------------------------------------------------
      Average..........................                    1,651        682        664               \8\ 966
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Alaska: Indicated that the maximum amount was being paid primarily for the adoption of special needs children from foreign countries.
\2\ Idaho: For domestic adoptions, the average payment is $500; For foreign (China & Haiti) adoptions, the average payment is $2,000. This differential
  is due to the fact that most expenses are paid for by the public agency when a child is adopted from the public agency.
\3\ Maine: The program was not implemented until 1996.
\4\ Maryland: Bills submitted are often over $5,000, many of which are for children adopted from foreign countries.
\5\ Missouri: The low cost of this number is due to the fact that at the time the State was able to secure a lot of pro bono legal representation.
\6\ Oklahoma: The average payment for children adopted from the Department of Human Services is $275; For special needs children adopted from foreign
  countries, private agencies, and tribal adoptions, the average payment is $2,000.
\7\ Vermont: Most payments made for nonrecurring adoption costs are for children adopted from foreign countries; nonrecurring adoption costs are paid
  for the adoption of special needs children being adopted from foreign countries. There are few, if any, costs for adopting children from the public
  agency.
\8\ This number accounts for the total average payment of nonrecurring adoption costs in 36 States.

 NA--Not available.

 Source: Special survey conducted in spring 1996 by the American Public Welfare Association.

 TABLE 11-11.--ADOPTION ASSISTANCE STATE CLAIMS, FISCAL YEARS 1991-96, AND AVERAGE NUMBER OF CHILDREN RECEIVING
                                      ADOPTION ASSISTANCE, FISCAL YEAR 1996
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                  Fiscal year
                             -----------------------------------------------------------------------------------
                                                                                                         1996
            State                                                                                       Average
                                 1991        1992        1993        1994        1995        1996       monthly
                                Claims      Claims      Claims      Claims      Claims      Claims     number of
                                                                                                       children
----------------------------------------------------------------------------------------------------------------
Alabama.....................      $1,054      $1,070      $1,195      $1,830      $1,866       1,786         282
Alaska......................         360         590         839       1,070       1,286       1,562         448
Arizona.....................       1,338       1,660       3,117       3,960       5,522       6,856       1,403
Arkansas....................         582         670       1,241       1,960       1,541       2,387         458
California..................      27,747      30,230      36,623      43,590      48,235      52,281      15,087

Colorado....................       1,177       1,120       1,961       3,230       3,315       4,361       1,551
Connecticut.................       1,529       2,640       3,652       6,310       7,028       6,661       1,163
Delaware....................         330         380         413         430         536         556         198
District of Columbia........       (191)         820       1,269       1,970       1,846       1,987         342
Florida.....................       5,357       7,980       8,257      10,580      16,824      19,612       5,233

Georgia.....................       1,341       2,070       3,146       3,320       4,365       4,864       1,653
Hawaii......................          47         160         243         480         606         980         108
Idaho.......................         330         360         570         580         753         982         269
Illinois....................       4,376       6,300       7,558      13,060      16,802      19,362       6,697
Indiana.....................       2,540       4,020       5,711       6,710       7,338       8,692       2,302

Iowa........................       2,878       2,750       2,923       3,870       4,976       6,591       1,207
Kansas......................         725         880       1,576       2,240       2,740       3,180       1,609
Kentucky....................       2,692       2,930       3,052       3,320       3,539       3,835         902
Louisiana...................       2,746       5,830       7,656       9,320      11,043      12,180       1,551
Maine.......................       1,229       2,300       2,646       2,960       2,794       3,669         598

Maryland....................       1,219       1,680       2,385       2,880       3,633       4,491       1,322
Massachusetts...............       5,010       6,230       7,134       8,380       9,604      11,147       3,395
Michigan \1\................      14,202      17,540      21,868      26,840      31,917      36,550       9,469
Minnesota...................       1,462       1,710       4,003       4,620       5,224       5,861       1,326
Mississippi.................         398         410         410         390         667         795         267

Missouri....................       2,470       5,450       4,674       5,190       6,743       6,270       2,480
Montana.....................         603         530         631         760         905       1,330         274
Nebraska....................         767       1,000       1,179       1,560       1,771       2,062         696
Nevada......................         204         250         333         460         669         870         240
New Hampshire...............         438         620         600         740         842         834         336

New Jersey \1\..............       4,157       5,000       6,009       6,700       8,869       8,074       2,286
New Mexico..................       1,609       1,810       1,798       1,890       2,438       2,722         804
New York \1\................      39,200      44,400      57,520      72,590      89,816     101,975      24,508
North Carolina..............         836       1,090       1,748       2,550       4,228       5,257       1,765
North Dakota................         250         350         466         500         461         554         132

Ohio........................      14,167      18,860      22,964      30,300      35,007      56,331       9,056
Oklahoma....................       1,161       1,630       1,960       2,240       2,950       4,030         770
Oregon......................       1,547       2,370       2,804       3,300       4,020       4,936       2,529
Pennsylvania................       4,263       5,440       6,820       8,090      10,273      12,385       2,760
Rhode Island................       3,353       3,610       4,399       4,610       4,194       3,101         737

South Carolina..............       1,766       2,070       2,235       2,910       3,915       4,454         925
South Dakota................         492         540         555         630         649         666         270
Tennessee...................       2,010       2,100       3,573       3,240       3,620       5,771       1,262
Texas.......................       5,233       6,750       9,142      14.520      17,160      17,308       4,682
Utah........................         447         660         748       1,240       1,158       2,021         465

Vermont.....................       1,248       1,740       2,009       1,860       1,947       2,080         458
Virginia....................       1,655       1,970       2,291       2,590       2,997       4,568       1,341
Washington..................       2,055       4,000       1,987       3,940       3,013       4,441       2,880
West Virginia...............         230         260         285         440         492         542         115
Wisconsin...................       4,565       5,290       6,171       7,730       9,056      10,339       2,030
Wyoming.....................          79         110          60          60          23          51          16
                             -----------------------------------------------------------------------------------
      Total.................     175,283     220,230     272,409     344,540     411,216     484,196    122,657
----------------------------------------------------------------------------------------------------------------
\1\ Fourth quarter data is estimated.

 Note.--Totals may differ from sum of State amounts because of rounding.

 Source: U.S. Department of Health and Human Services.

               The Title IV-E Independent Living Program

    In 1986, title IV-E was amended by Public Law 99-272
(Consolidated Omnibus Budget Reconciliation Act of 1985) to
include section 477, which established the Independent Living
Program to assist youth who would eventually be emancipated
from the foster care system. Several surveys conducted during
the mid-1980s showed that a significant number of homeless
shelter users had been recently discharged from foster care,
prompting Congress to establish a program to help youngsters in
foster care establish their independence.
    An annual entitlement amount of $45 million was established
for 1987 and 1988 to provide States with the resources to
create and implement independent living services. These
services are designed to assist IV-E-eligible children age 16
and over make a successful transition from foster care to
independent adult living when they become ineligible for foster
care maintenance payments at age 18. In 1988, the program was
expanded under Public Law 100-647, which permitted States to
provide independent living services to all youth in foster care
aged 16 to 18 (not just title IV-E-eligible youth); States
could also provide follow-up services to youth up to 6 months
after their emancipation from substitute care. Under Public Law
101-508, States have the option of serving individuals up to
age 21 in the Independent Living Program. Funds are allocated
on the basis of each State's share of children receiving IV-E
foster care in 1984.
    Public Law 101-239 increased the amount of Federal
entitlement funds available to the States for the Independent
Living Program to $50 million for fiscal year 1990, $60 million
for fiscal year 1991, and $70 million for fiscal year 1992.
Beginning in fiscal year 1991, States are required to provide
50 percent matching for any Federal funding claimed that
exceeds the original $45 million funding level. In 1993,
Congress permanently extended the authority for independent
living under Public Law 103-66. Table 11-12 shows State
allotments under the Independent Living Program in fiscal year
1996.

 TABLE 11-12.--TITLE IV-E INDEPENDENT LIVING FEDERAL AWARDS, FISCAL YEAR
                                  1996
                        [In thousands of dollars]
------------------------------------------------------------------------
                                                                Total
                           State                                awards
------------------------------------------------------------------------
Alabama....................................................       $1,044
Alaska.....................................................           13
Arizona....................................................          272
Arkansas...................................................          350
California.................................................       12,551
Colorado...................................................          830
Connecticut................................................          759
Delaware...................................................          204
District of Columbia.......................................          927
Florida....................................................          993
Georgia....................................................        1,105
Hawaii.....................................................           18
Idaho......................................................          108
Illinois...................................................        2,833
Indiana....................................................        1,020
Iowa.......................................................          452
Kansas.....................................................          721
Kentucky...................................................          792
Louisiana..................................................        1,358
Maine......................................................          569
Maryland...................................................        1,245
Massachusetts..............................................          639
Michigan...................................................        4,195
Minnesota..................................................        1,148
Mississippi................................................          517
Missouri...................................................        1,302
Montana....................................................          244
Nebraska...................................................          438
Nevada.....................................................          154
New Hampshire..................................