Updated March 31, 2022
Child Welfare: Purposes, Federal Programs, and Funding
The Work of Child Welfare Agencies
health, education, and law enforcement agencies—to carry out
Children depend on adults—usually their parents—to protect
child welfare activities. This work is done consistent with state
and support them. The broadest mission of public child welfare
laws and policies. At the same time the federal government has
agencies is to strengthen families so that children can depend
long provided technical support and funding that is intended to
on their parents to provide them with a safe and loving home.
improve state child welfare work. By providing this funding,
More specifically, child welfare agencies work to prevent
the federal government compels states to meet certain program
abuse or neglect of children by their parents/caregivers. If
rules, such as requiring permanency planning for all children in
abuse or neglect has already happened, the agencies are
foster care. Compliance with these child welfare requirements
expected to provide aid, services, or referrals as needed to
is monitored via federal plan approvals, audits, and reviews.
ensure children do not re-experience maltreatment. For some
The Children’s Bureau within the U.S. Department of Health
children, this means placement in foster care.
and Human Services (HHS) administers most federal child
welfare programs. State level administration may be housed in
Federal child welfare policy has three primary goals:
the state human services department, or by an independent,
ensuring children’s safety, enabling permanency for
state-level child and family services agency. Some states have
children, and promoting the well-being of children
county-administered programs supervised by the state agency.
and their families.
Child Welfare Spending and Programs
Foster care is understood to be a temporary living situation.
State child welfare agencies spent about $33 billion on child
The first task of a child welfare agency is to provide services to
welfare purposes during state FY2018, according to a survey
enable children to safely reunite with their families. If that is
by researchers at Child Trends. Most of that spending drew
not possible, then the agency works to find a new permanent
from state and local coffers (56%). Of the remainder, 26% was
family for the child via adoption or guardianship. Youth in
supplied by federal child welfare programs—including those
care who are neither reunited nor placed with a new permanent
authorized in Title IV-E and Title IV-B of the Social Security
family are typically emancipated at their state’s legal age of
Act (SSA) and the Child Abuse Prevention and Treatment Act
majority. These youth are said to have aged out of care.
(CAPTA)—and 18% came from other federal programs not
Children Served
solely child welfare-focused (principally, the Social Services
Block Grant and Temporary Assistance for Needy Families).
During FY2020, public child protection agencies screened
For FY2022, about $11.7 billion was provided for federal
allegations of abuse or neglect involving 7.1 million children,
programs that are wholly dedicated to child welfare.
carried out investigations or other protective responses
involving 3.1 million of those children, and provided follow-
Figure 1. Federal Child Welfare Funding by Purpose
up services in the homes of some 1.0 million of those children.
(FY2022 total: $11.7 bil ion. Dol ars shown in mil ions)
Following a child protective services investigation, some
children are removed to foster care. During FY2020, close to
217,000 children entered care. The circumstances most often
associated with children’s entry to foster care are neglect
and/or parental drug abuse. Among the 407,000 children who
were in foster care on the last day of FY2020, the majority
(83%) lived in family homes (nonrelative or relative foster
family homes and pre-adoptive homes), 10% lived in a group
home or institution, about 6% were on trial home visits or in
supervised independent living, and 1% had run away.
Among the 224,000 children who formally left foster care
during FY2020, the largest share returned to their parents or
went to live informally with a relative (53%), while 36% left

Source: Prepared by CRS using funding levels provided in Division H of P.L.
care for a new permanent family via adoption or guardianship.
117-103. Funding for IV-E activities is based on FY2022 budget authority as
At the same time, 9% aged out of care, while most of the
used in the President’s FY2023 budget. Amounts spent under these open-
remainder (1%) were transferred to the care of another agency.
ended Title IV-E components may change.
*Includes formula funding in Title IV-B and CAPTA; ** Includes competitively
Who bears public responsibility for this work?
awarded funding and incentives in Title IV-E, Title IV-B, CAPTA, and the
Under the U.S. Constitution, states are considered to bear the
Victims of Child Abuse Act; *** Includes Chafee general and ETV funds.
primary public responsibility for ensuring the well-being of
Foster Care, Prevention, Permanency under IV-E
children and their families. Public child welfare agencies at the
Title IV-E supports foster care, adoption assistance, and (at
state and local levels work with an array of private and public
state option) guardianship assistance to children who meet
entities—including the courts and social service, health, mental
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Child Welfare: Purposes, Federal Programs, and Funding
federal IV-E eligibility rules. The program may also be used
program meets IV-E evidence standards. As of October 2021,
for selected foster care prevention services (as of FY2020) and
one program was rated eligible for IV-E support.
kinship navigator programs (as of FY2019). Funding for these
Child and Family Services Under Title IV-B
IV-E program activities is authorized on an open-ended
Title IV-B includes the Stephanie Tubbs Jones Child Welfare
mandatory basis in every year (permanent) and is estimated to
Services (CWS) and the MaryLee Allen Promoting Safe and
be $10.4 billion for FY2022.
Stable Families (PSSF) programs. These programs authorize
Foster Care, Adoption, and Guardianship
grants to states and tribes for child and family services. Total
Under IV-E, states and participating tribes must provide foster
FY2022 funding for CWS, PSSF and related research and
care and adoption assistance to eligible children, and the
training is $696 million. Mandatory funding authority for the
federal government is committed to paying a part of the cost of
PSSF program is slated to expire at the end of FY2022.
that aid (50% to 83%, depending on the state/tribe), as well as
Discretionary funding authority for CWS and PSSF ended
a part of the cost of administering the program (50% in all
with FY2021; however, funding was continued for FY2022.
states/tribes) and for certain training (75% in all states/tribes).
There are no federal eligibility rules for receipt of Title IV-B
States may opt to provide IV-E guardianship under this same
services. Funds are used to protect children (CWS); support,
cost-sharing structure. During FY2021, about 715,000 children
preserve, and reunite families (CWS and PSSF); and promote
received IV-E support each month, including for adoption
and support adoption (CWS and PSSF). Children served may
(533,000), foster care (142,000), and guardianship (40,000).
be living at home or in foster care. States must provide at least
The Families First Coronavirus Response Act (P.L. 116-127)
$1 in nonfederal funds for every $3 in federal funds received.
authorized a temporary increase in support for IV-E assistance
A portion of PSSF funding is reserved each year for the Court
payments, committing the federal government to paying 56.2%
Improvement Program ($30 million), monthly caseworker visit
to 89.2% of state costs (depending on the state or tribe). The
grants ($20 million), Regional Partnership Grants (RPGs) to
increased cost sharing began with January 2020 and continues
improve outcomes for children and families affected by
through the last day of the quarter in which the HHS Secretary
substance use disorder ($20 million), and for related technical
declares an end to the COVID-19 public health emergency (it
assistance and research (circa $8 million). For FY2022, P.L.
is now in place through June 2022 but could be extended).
117-103 further directed that $19 million of PSSF funding is
In general, states and tribes must only spend IV-E dollars
for kinship navigator grants to states and tribes; $2.6 million is
(federal and state/tribal) on children who meet federal
for the IV-E prevention services clearinghouse; and $1 million
eligibility criteria. Rules vary by the type of aid. For foster
supports additional child and family services research.
care, they include an income test (applied to the home the child
Chafee Program for Successful Transition to Adulthood
is removed from), removal requirements (typically, a judge
States receive Chafee basic grants to support services for
must find that a home is “contrary to the welfare” of the child
children who experience foster care at age 14 or older,
and that “reasonable efforts” to prevent foster care were made),
including youth formerly in care (up to age 21, or 23 in states
placement in a licensed foster family home or other eligible
that offer foster care to age 21). Funding is also authorized for
facility, and age requirements. Fewer than 50% of children in
Education and Training Vouchers (ETVs) to help Chafee-
care meet those criteria, although this share varies by state.
eligible youth attend college or post-secondary training.
Prevention Services and Kinship Navigator Programs
Chafee grant funding is authorized on a capped mandatory
States and tribes opting to provide approved IV-E prevention
basis and for ETVs on a discretionary basis. Both funding
services may offer them to children at “imminent risk” of
authorizations are permanent (no year limit). States are
foster care; pregnant or parenting youth in care; and the parents
required to provide no less than $1 for every $4 in federal
or kin caregivers of these children and youth. No income test
Chafee/ETV funding they receive. FY2022 funding for these
need apply. Most states have submitted plans seeking to
activities is $186 million
provide IV-E prevention services. As of March 1, 2022, 19
Child Abuse Prevention and Treatment Act (CAPTA)
states, the District of Columbia, and one tribe had approved
CAPTA authorizes grants to states to improve child protective
plans, while 17 states and two tribes had plans under HHS
services (no nonfederal match required), and for community-
review. Federal IV-E prevention funding is available for up to
based efforts to prevent child abuse and neglect (20%
50% of a state/tribe’s IV-E prevention services cost, including
nonfederal match required). CAPTA’s funding authorities
for related administration and training. However, services
expired with FY2015, but support has continued and for
provided must be rated by the Title IV-E prevention services
FY2022 totaled $197 million, including $95 million for state
clearinghouse as meeting specific evidence standards and to
grants, $67 million for community-based grants, and $36
claim full support for IV-E prevention services in FY2022 and
million for research and technical assistance.
FY2023, a state must spend at least 50% of its IV-E prevention
dollars on services rated as well-supported or supported. As of
Adoption and Legal Guardianship Incentive Payments
March 2022, the IV-E clearinghouse had rated 14 programs as
States may earn incentive payments for increasing the rate
well-supported, 12 as supported, and 21 as promising.
at which children who would otherwise remain in foster
Title IV-E-funded kinship navigator programs are intended to
care are placed in new permanent families via adoption or
ensure kin caregivers have access to services and supports that
legal guardianship. In September 2021, HHS awarded $24.4
meet their own needs and those of the children in their care.
million in incentive payments to 41 states, the District of
The programs may serve all kinship families whether or not
Columbia, and Puerto Rico. FY2022 funding available to
they have child welfare involvement. IV-E support is
make future payments is $75 million. Discretionary funding
authorized at 50% of state/tribal costs, but only if the navigator
authority for the payments expired at the end of FY2021.
Emilie Stoltzfus, Specialist in Social Policy
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Child Welfare: Purposes, Federal Programs, and Funding

IF10590


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