Updated May 26, 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 $31.4 billion on child
When a child enters care, the first task of the child welfare
welfare purposes during state FY2020, according to a survey
agency is to provide services to enable the child to safely
by researchers at Child Trends. Most of that spending drew
reunite with family. If that is not possible, then the agency
from state and local coffers (51%). Of the remainder, 30% was
works to find a new permanent family for the child via
supplied by federal child welfare programs included in the
adoption or guardianship. Youth in care who are neither
Social Security Act (SSA);18% came from other federal
reunited nor placed with a new permanent family are typically
programs, most of which are not solely child welfare-focused
emancipated at their state’s legal age of majority. These youth
(principally, the Social Services Block Grant and Temporary
are said to have aged out of care.
Assistance for Needy Families); and less than 1% of the
Children Served
funding came from offsets, and private and in-kind support.
For FY2023, about $12.0 billion was provided for federal
During FY2021, public child protection agencies screened
allegations of abuse or neglect involving 7.2 million children,
programs that are wholly dedicated to child welfare.
and carried out investigations or other protective services
Figure 1. Federal Child Welfare Funding by Purpose
responses involving 3.0 million of those children. Follow-up
(FY2023 total: $12.0 bil ion. Dol ars shown in mil ions)
services were provided in the homes of some 900,000 children.
Some children are removed from their homes following an
investigation; roughly 207,000 children formally entered foster
care during FY2021. Neglect and/or parental drug abuse are
the circumstances most often associated with foster care entry.
Among the 391,000 children 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 congregate setting, 7% were on trial home visits or in
supervised independent living, and 1% had run away.
Of the 215,000 children who formally left foster care during
FY2021, the largest share returned to their parents or went to

Source: Prepared by CRS based on Division B, H, and N of P.L. 117-328.
live informally with a relative (53%), while 37% left care for a
Notes: Funding for IV-E activities is shown as definite budget authority (BA);
new permanent family via adoption or guardianship. At the
IV-E prevention services amount taken from the foster care BA (as estimated
same time, 9% aged out of care, while most of the remainder
for the FY2023 President’s Budget). Actual funds spent may vary. * Includes
(1%) were transferred to the care of another agency.
formula funding in IV-B and CAPTA and $10 mil ion in supplemental CWS
funding for areas af ected by Hurricanes Ian and Fiona; ** Includes
Who bears public responsibility for this work?
competitively awarded funding and incentives in IV-E, 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 funding.
primary public responsibility for ensuring the well-being of
Title IV-E Foster Care, Prevention, Permanency
children and their families. Public child welfare agencies at the
state and local levels work with an array of private and public
Title IV-E helps support provision of foster care, adoption
entities—including the courts and social service, health, mental
assistance, or guardianship assistance to children who meet
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Child Welfare: Purposes, Federal Programs, and Funding
federal IV-E eligibility rules. The IV-E program may also fund
E evidence standards. As of mid-April 2023, four kinship
kinship navigators and selected services intended to prevent
navigator programs were rated as meeting those standards.
the need for foster care placement. Federal support for these
Title IV-B Child and Family Services
IV-E activities is authorized on a mandatory, open-ended and
Title IV-B includes the Stephanie Tubbs Jones Child
permanent basis and is estimated as $10.7 billion for FY2023.
Welfare Services (CWS) and the MaryLee Allen Promoting
Foster Care, Adoption, and Guardianship
Safe and Stable Families (PSSF) programs. These programs
Under IV-E, states and participating tribes must provide foster
authorize grants to states and tribes for child and family
care and adoption assistance to eligible children, and the
services. Total FY2023 funding for CWS, PSSF and related
federal government is committed to paying a part of the cost of
research and training is $710 million, including $10 million
that aid (50% to 83%, depending on the state/tribe), as well as
in supplemental CWS funding for jurisdictions affected by
a part of the cost of administering the program (50% in all
Hurricanes Fiona and Ian. Capped mandatory and/or
states/tribes) and for certain training (75% in all states/tribes).
discretionary funding authority for CWS and PSSF was
States may opt to provide IV-E guardianship under this same
extended by Section 6103 of P.L. 117-328 through FY2023
cost-sharing structure. During FY2021, about 715,000 children
(at the most recently authorized funding levels).
received IV-E support each month, including for adoption
(533,000), foster care (142,000), and guardianship (40,000).
There are no federal eligibility rules for receipt of Title IV-B
services. Funds are used to protect children (CWS); support,
Beginning January 1, 2020, the Families First Coronavirus
preserve, and reunite families (CWS and PSSF); and promote
Response Act (P.L. 116-127) authorized a temporary 6.2
and support adoption (CWS and PSSF). Children served may
percentage point increase in support for IV-E payments,
be living at home or in foster care. States must provide at least
committing the federal government to paying 56.2% to
$1 in nonfederal funds for every $3 in federal funds received.
89.2% of those IV-E costs (depending on the state or tribe).
A portion of PSSF funding is reserved each year for the
The Consolidated Appropriations Act, 2023 (P.L. 117-328)
Court Improvement Program ($30 million), monthly
phases out this increase, phasing down the percentage point
caseworker visit grants ($20 million), Regional Partnership
increase during 2023 and ending it fully on January 1, 2024.
Grants (RPGs) to improve outcomes for children and
In general, states and tribes may spend IV-E dollars (federal
families affected by substance use disorder ($20 million),
and state/tribal) only on children who meet federal eligibility
and for related technical assistance and research (circa $8
criteria. Rules vary by the type of aid. For foster care, they
million). For FY2023, P.L. 117-328 further directed $19
include an income test (applied to the home the child is
million of PSSF funding to kinship navigator grants; $6
removed from), removal requirements (typically, a judge must
million to the IV-E clearinghouse; and $1 million for
find that a home is “contrary to the welfare” of the child and
additional child and family services research.
that “reasonable efforts” to prevent foster care were made),
Chafee Program for Successful Transition to Adulthood
placement in a licensed foster family home or other eligible
States receive Chafee basic grants to support services for
facility, and age requirements. Fewer than 45% of children in
children who experience foster care at age 14 or older,
care meet those criteria, although this share varies by state.
including most of those youth who were formerly in care (up
Prevention Services and Kinship Navigator Programs
to age 21, or 23 in some states). Funding is also authorized for
States and tribes opting to provide approved IV-E prevention
Education and Training Vouchers (ETVs) to help Chafee-
services may offer them to children at imminent risk of foster
eligible youth attend college or post-secondary training.
care; pregnant or parenting youth in care; and the parents or
Chafee grant funding is authorized on a capped mandatory
kin caregivers of these children and youth. No income test
basis and for ETVs on a discretionary basis. Both funding
need apply. As of May 2, 2023, most states (39, includes the
authorizations are permanent (no year limit). States must
District of Columbia), and three tribes have an HHS-approved
provide no less than $1 for every $4 in federal Chafee/ETV
IV-E prevention plan. Further, 8 states (includes Puerto Rico)
funding they receive. FY2023 funding was $187 million.
and one tribe have submitted plans for review. (States with no
Child Abuse Prevention and Treatment Act (CAPTA)
IV-E prevention plan submitted as of that date were Alabama,
CAPTA authorizes grants to states to improve child protective
Arkansas, Mississippi, New Jersey, South Dakota, and Texas.)
services (no nonfederal match required), and for community-
Federal IV-E prevention funding is available for up to 50% of
based efforts to prevent child abuse and neglect (20%
a state/tribe’s IV-E prevention costs, including related training
nonfederal match required). CAPTA’s funding authorities
and administration. Services offered must be rated by the IV-E
expired with FY2015, but support has continued. For FY2023,
prevention services clearinghouse as meeting IV-E evidence
federal funding was increased to $214 million, including $105
standards; and, to claim full support of their prevention work in
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 for services rated as well-supported or supported. As of
Adoption and Legal Guardianship Incentive Payments
mid-April 2023, the clearinghouse had rated 34 programs as
States may earn incentive payments for increasing the rate
well-supported or supported, and 33 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 awarded
meet their own needs and those of the children in their care.
$55.5 million to 49 states (includes the District of Columbia
The programs may serve kinship families whether or not they
and Puerto Rico). FY2023 funding of $75 million was
have child welfare involvement. IV-E support is authorized at
provided to continue the incentive program, although its
50% of a state/tribe’s costs, if the navigator program meets IV-
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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