Updated January 5, 2023
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. As part of accepting this
More specifically, child welfare agencies work to prevent
funding, states must agree to meet certain federal program
abuse or neglect of children by their parents/caregivers. If
rules, such as required 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 at 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 FY2023, about $12.0 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 services 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.
(FY2023 total: $12.0 bil ion. Dol ars shown in mil ions)
Following a child protective services investigation, some
children are removed to foster care. During FY2021, roughly
207,000 children entered care. The circumstances most often
associated with children’s entry to foster care are neglect
and/or parental drug abuse. Among the 391,000 children who
were in foster care on the last day of FY2021, most (83%)
lived with families (nonrelative or relative foster family homes
and pre-adoptive homes), 9% lived in a group home or
institution, 7% were on trial home visits or in supervised
independent living, and 1% had run away.
Among the 215,000 children who formally left foster care
during FY2021, the largest share returned to their parents or

went to live informally with a relative (53%), while 37% left
Source: Prepared by CRS based on Division B, H, and N of P.L. 117-328.
care for a new permanent family via adoption or guardianship.
Notes: Funding for IV-E activities reflects definite budget authority (BA) with
At the same time, 9% aged out of care, while most of the
the amount for IV-E prevention services taken from the foster care BA (based
remainder (1%) were transferred to the care of another agency.
on the President’s FY2023 budget). Actual funds spent under these open-
ended Title IV-E components may vary from BA. * Includes formula funding in
Who bears public responsibility for this work?
Title IV-B and CAPTA and $10 mil ion in supplemental CWS funding for areas
af ected by Hurricanes Ian and Fiona; ** Includes competitively awarded
Under the U.S. Constitution, states are considered to bear the
funding and incentives in Title IV-E, Title IV-B, CAPTA, and the Victims of
primary public responsibility for ensuring the well-being of
Child Abuse Act; *** Includes Chafee general and ETV funding.
children and their families. Public child welfare agencies at the
state and local levels work with an array of private and public
entities—including the courts and social service, health, mental
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Child Welfare: Purposes, Federal Programs, and Funding
Foster Care, Prevention, Permanency under IV-E
50% of a state/tribe’s costs, if the navigator program meets IV-
Title IV-E helps support provision of foster care, adoption
E evidence standards. As of early 2023, three kinship navigator
assistance, or guardianship assistance to children who meet
programs have been rated as meeting those standards.
federal IV-E eligibility rules. The IV-E program may also
Child and Family Services Under Title IV-B
support kinship navigators and selected services intended to
Title IV-B includes the Stephanie Tubbs Jones Child
prevent foster care placement. Federal funding for these IV-E
Welfare Services (CWS) and the MaryLee Allen Promoting
activities is authorized on a mandatory, open-ended and
Safe and Stable Families (PSSF) programs. These programs
permanent basis and is estimated as $10.7 billion for FY2023.
authorize grants to states and tribes for child and family
Foster Care, Adoption, and Guardianship
services. Total FY2023 funding for CWS, PSSF and related
Under IV-E, states and participating tribes must provide foster
research and training is $710 million, including $10 million
care and adoption assistance to eligible children, and the
in supplemental CWS funding for jurisdictions affected by
federal government is committed to paying a part of the cost of
Hurricanes Fiona and Ian. Capped mandatory and/or
that aid (50% to 83%, depending on the state/tribe), as well as
discretionary funding authority for CWS and PSSF was
a part of the cost of administering the program (50% in all
extended by Section 6103 of P.L. 117-328 through FY2024
states/tribes) and for certain training (75% in all states/tribes).
(at the most recently authorized funding levels).
States may opt to provide IV-E guardianship under this same
There are no federal eligibility rules for receipt of Title IV-B
cost-sharing structure. During FY2021, about 715,000 children
services. Funds are used to protect children (CWS); support,
received IV-E support each month, including for adoption
preserve, and reunite families (CWS and PSSF); and promote
(533,000), foster care (142,000), and guardianship (40,000).
and support adoption (CWS and PSSF). Children served may
Beginning January 1, 2020, the Families First Coronavirus
be living at home or in foster care. States must provide at least
Response Act (P.L. 116-127) authorized a temporary 6.2
$1 in nonfederal funds for every $3 in federal funds received.
percentage point increase in support for IV-E payments,
A portion of PSSF funding is reserved each year for the Court
committing the federal government to paying 56.2% to 89.2%
Improvement Program ($30 million), monthly caseworker visit
of those IV-E costs (depending on the state or tribe). The
grants ($20 million), Regional Partnership Grants (RPGs) to
Consolidated Appropriations Act, 2023 (P.L. 117-328) phases
improve outcomes for children and families affected by
out this increase, reducing the percentage point increase to 5.0
substance use disorder ($20 million), and for related technical
as of April 1, to 2.5 as of July 1, to 1.5 as of October 1, and
assistance and research (circa $8 million). For FY2023, P.L.
ending it entirely as of January 1, 2024.
117-328 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; $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 45% 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
basis and for ETVs on a discretionary basis. Both funding
States and tribes opting to provide approved IV-E prevention
authorizations are permanent (no year limit). States are
services may offer them to children at “imminent risk” of
required to provide no less than $1 for every $4 in federal
foster care; pregnant or parenting youth in care; and the parents
Chafee/ETV funding they receive. FY2023 funding for these
or kin caregivers of these children and youth. No income test
activities combined was $187 million.
need apply. As of early 2023, 35 states (includes District of
Columbia), and three tribes have HHS-approved IV-E prevent-
Child Abuse Prevention and Treatment Act (CAPTA)
ion plans and another 11 states (includes Puerto Rico) and one
CAPTA authorizes grants to states to improve child protective
tribe have submitted plans for HHS review. Federal IV-E
services (no nonfederal match required), and for community-
prevention funding is available for up to 50% of a state/tribe’s
based efforts to prevent child abuse and neglect (20%
IV-E prevention costs, including for related administration and
nonfederal match required). CAPTA’s funding authorities
training. However, services offered must be rated by the IV-E
expired with FY2015, but support has continued and for
prevention services clearinghouse as meeting IV-E evidence
FY2023 was increased to a total of $214 million, including
standards; and, to claim full support of their prevention work in
$105 million for state grants, $71 million for community-based
FY2023, at least 50% of a state’s IV-E prevention dollars must
grants, and $38 million for research and technical assistance.
be spent on services rated as well-supported or supported. As
Adoption and Legal Guardianship Incentive Payments
of early 2023, the IV-E clearinghouse had rated 32 prevention
States may earn incentive payments for increasing the rate
programs as well-supported or supported, and 31 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 adoptive or guardianship
ensure kin caregivers have access to services and supports that
families. For their FY2021 performance, HHS recently
meet their own needs and those of the children in their care.
awarded $55.5 million to 49 states (includes the District of
The programs may serve kinship families whether or not they
Columbia and Puerto Rico). FY2023 funding of $75 million
have child welfare involvement. IV-E support is authorized at
was provided to continue the incentive program, although
its discretionary funding authority expired with FY2021.
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Child Welfare: Purposes, Federal Programs, and Funding

IF10590
Emilie Stoltzfus, Specialist in Social Policy


Disclaimer
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https://crsreports.congress.gov | IF10590 · VERSION 32 · UPDATED

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