Updated October 27, 2023
Child Welfare: Purposes, Federal Programs, and Funding
The Work of Child Welfare Agencies
laws and policies. At the same time the federal government has
Children depend on adults—usually their parents—to protect
long provided technical support and funding that is intended to
and support them. The broadest mission of public child welfare
improve state child welfare work. As part of accepting this
agencies is to strengthen families so that children can depend
funding, states must agree to meet certain federal program
on their parents to provide them with a safe and loving home.
rules, such as required permanency planning for all children in
More specifically, child welfare agencies aim to prevent abuse
foster care. Compliance with these child welfare requirements
or neglect of children in their homes. If this has already
is monitored via federal plan approvals, audits, and reviews.
happened, the agencies are expected to offer aid, services, or
The Children’s Bureau within the U.S. Department of Health
referrals to ensure children do not re-experience maltreatment.
and Human Services (HHS) administers most federal child
For some children, this means placement in foster care.
welfare programs. State level administration may be housed in
the state human services department, or at an independent,
Federal child welfare policy has three primary goals:
state-level child and family services agency. Some states have
ensuring children’s safety, enabling permanency for
county-administered programs supervised by the state agency.
children, and promoting the well-being of children
and their families.
Child Welfare Spending and Programs
State child welfare agencies spent about $31.4 billion on child
Foster care is understood to be a temporary living situation.
welfare purposes during state FY2020, according to a survey
When a child enters care, the first task of the child welfare
by researchers at Child Trends. Most of that spending drew
agency is to provide services to enable the child to safely reunite
from state and local coffers (51%). Of the remainder, 30% was
with family. If that is not possible, then the agency works to find
supplied by federal child welfare programs included in the
a new permanent adoptive or guardianship family for the child.
Social Security Act (SSA);18% came from other federal
Youth in care who are neither reunited nor placed with a new
programs, most of which are not solely child welfare-focused
permanent family are typically emancipated at their state’s legal
(principally, the Social Services Block Grant and Temporary
age of majority. These youth 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
programs that are wholly dedicated to child welfare.
allegations of abuse or neglect involving 7.2 million children,
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 billion. Dollars shown in millions)
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 legal guardianship. At
IV-E prevention services amount taken from the foster care BA (as estimated
the same time, 9% aged out of care, while most of the
for the FY2023 President’s Budget). Actual funds spent may vary.
remainder (1%) were transferred to the care of another agency.
* Includes formula funding in IV-B and CAPTA plus $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
health, education, and law enforcement agencies—to carry out
federal IV-E eligibility rules. The IV-E program may also fund
child welfare activities. This work is done consistent with state
kinship navigators and selected services intended to prevent
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Child Welfare: Purposes, Federal Programs, and Funding
the need for foster care placement. Federal support for these
IV-E evidence standards. As of October 2023, four kinship
IV-E activities is authorized on a mandatory, open-ended and
navigator programs were rated as meeting those standards.
permanent basis and is estimated as $10.7 billion for FY2023.
Title IV-B Child and Family Services
Foster Care, Adoption, and Guardianship
Title IV-B includes the Stephanie Tubbs Jones Child
Under IV-E, states and participating tribes must provide foster
Welfare Services (CWS) and the MaryLee Allen Promoting
care and adoption assistance to eligible children, and the
Safe and Stable Families (PSSF) programs. These programs
federal government is committed to paying a part of the cost of
authorize grants to states and tribes for child and family
that aid (50% to 83%, depending on the state/tribe), as well as
services. Total FY2023 funding for CWS, PSSF and related
a part of the cost of administering the program (50% in all
research and training is $710 million, including $10 million
states/tribes) and for certain training (75% in all states/tribes).
in supplemental CWS disaster funding. Capped mandatory
States may opt to provide IV-E guardianship under this same
and/or discretionary funding authority for CWS and PSSF
cost-sharing structure. During FY2022, about 726,000 children
was extended by Section 6103 of P.L. 117-328 through
received IV-E assistance each month, including for adoption
FY2023 (at the most recently authorized funding levels),
(548,000), foster care (135,000), and guardianship (43,000).
The continuing resolution (Section 2351 of P.L. 118-15)
As of January 1, 2020, the Families First Coronavirus Response
extends these authorizations through November 17, 2023.
Act (P.L. 116-127) authorized a temporary increase in support
There are no federal eligibility rules for receipt of Title IV-B
for IV-E assistance, committing the federal government to
services. Funds are used to protect children (CWS); support,
paying 56.2% to 89.2% of those IV-E costs (depending on the
preserve, and reunite families (CWS and PSSF); and promote
state/tribe). The Consolidated Appropriations Act, 2023 (P.L.
and support adoption (CWS and PSSF). Children served may
117-328) phases out this increase, ending it on January 1, 2024.
be living at home or in foster care. States must provide at least
In general, states and tribes may spend IV-E dollars (federal
$1 in nonfederal funds for every $3 in federal funds received.
and state/tribal) only on children who meet federal eligibility
A portion of PSSF funding is reserved each year for the Court
criteria. Rules vary by the type of aid. For foster care, they
Improvement Program ($30 million), monthly caseworker visit
include an income test (applied to the home the child is
grants ($20 million), Regional Partnership Grants (RPGs) to
removed from), removal requirements (typically, a judge must
improve outcomes for children and families affected by
find that a home is “contrary to the welfare” of the child and
substance use disorder ($20 million), and for related technical
that “reasonable efforts” to prevent foster care were made),
assistance and research (circa $8 million). For FY2023, P.L.
placement in a licensed foster family home or other eligible
117-328 further directed $19 million of PSSF funding to kinship
facility, and age requirements. Fewer than 45% of children in
navigator grants; $6 million to the IV-E clearinghouse; and $1
care meet those criteria, although this share varies by state.
million for additional child and family services research.
Prevention Services and Kinship Navigator Programs
Chafee Program for Successful Transition to Adulthood
States and tribes opting to provide approved IV-E prevention
States receive Chafee basic grants to support services for
services may offer them to children at imminent risk of foster
children who experience foster care at age 14 or older,
care; pregnant or parenting youth in care; and the parents or
including most of those youth who were formerly in care (up
kin caregivers of these children and youth. No income test
to age 21, or 23 in some states). Funding is also authorized for
need apply. During FY2022, an average of 7,000 children in
Education and Training Vouchers (ETVs) to help Chafee-
16 states and one tribe received IV-E prevention services each
eligible youth attend college or post-secondary training.
month. As of October 5, 2023, 42 states, the District of Columbia,
Chafee grant funding is authorized on a capped mandatory
and four tribes have HHS-approved IV-E prevention plans; 4
basis and for ETVs on a discretionary basis. Both funding
states (Delaware, Mississippi, New Jersey, and New Mexico)
authorizations are permanent (no year limit). States must
and Puerto Rico have IV-E prevention plans under review; and
provide no less than $1 for every $4 in federal Chafee/ETV
4 states did not have such plans either in review or approved
funding they receive. FY2023 funding was $187 million.
(Alabama, Alaska, South Dakota, and Texas).
Child Abuse Prevention and Treatment Act (CAPTA)
Federal IV-E prevention funding is available for up to 50% of
CAPTA authorizes grants to states to improve child protective
a state/tribe’s IV-E prevention costs, including related training
services (no nonfederal match required), and for community-
and administration. Services offered must be rated by the IV-E
based efforts to prevent child abuse and neglect (20%
prevention services clearinghouse as meeting IV-E evidence
nonfederal match required). CAPTA’s funding authorities
standards; and, to claim full support in FY2023, at least 50%
expired with FY2015, but support has continued. For FY2023,
of a state’s IV-E prevention dollars must be for services rated
federal funding was increased to $214 million, including $105
as well-supported or supported. States most often include well-
million for state grants, $71 million for community-based
supported programs in their IV-E plans, with 20 or more
grants, and $38 million for research and technical assistance.
offering Parents as Teachers, Functional Family Therapy,
Adoption and Legal Guardianship Incentive Payments
Multisystemic Therapy, Motivational Interviewing, Healthy
States may earn incentive payments for increasing the rate
Families America, or Parent-Child Interaction Therapy.
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 FY2022 performance, HHS awarded
meet their own needs and those of the children in their care.
$46.5 million to 47 states, the District of Columbia and
The programs may serve kinship families whether or not they
Puerto Rico. FY2023 funding of $75 million was provided
have child welfare involvement. IV-E support is authorized at
to continue the incentive program, although its
50% of a state’s/tribe’s costs, if the navigator program meets
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 39 · UPDATED

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