Child Welfare: Purposes, Federal Programs, and Funding




Updated March 12, 2024
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
Foster care is understood to be a temporary living situation.
child welfare purposes during state FY2020, according to a
When a child enters care, the first task of the child welfare
survey by researchers at Child Trends. Most of that
agency is to provide services to enable the child to safely reunite
spending drew from state and local coffers (51%). Of the
with family. If that is not possible, then the agency works to find
remainder, 30% was supplied by federal child welfare
a new permanent adoptive or guardianship family for the child.
programs included in the Social Security Act (SSA);18%
Youth in care who are neither reunited nor placed with a new
was from other federal programs, most of which are not
permanent family are typically emancipated at their state’s legal
solely child welfare-focused (principally, the Social
age of majority. These youth are said to have aged out of care.
Services Block Grant and Temporary Assistance for Needy
Children Served
Families); and less than 1% was from offsets, and private and
During FY2021, public child protection agencies screened
in-kind support. For FY2023, about $12.0 billion was provided
for federal programs dedicated wholly to child welfare. P.L.
allegations of abuse or neglect involving 7.2 million children,
118-40 continues HHS-administered child welfare
and carried out investigations or other protective services
responses involving 3.0 million of those children. Follow-up
programs, through March 22, 2024, at their FY2023 levels.
services were provided in the homes of some 900,000 children.
Figure 1. Federal Child Welfare Funding by Purpose
Some children are removed from their homes following an
(FY2023 total: $12.0 bil ion. Dol ars shown in mil ions)
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
live informally with a relative (53%), while 37% left care for a

new permanent family via adoption or legal guardianship. At
Source: Prepared by CRS based on Division B, H, and N of P.L. 117-328.
the same time, 9% aged out of care, while most of the
Notes: Funding for IV-E activities is shown as definite budget authority (BA);
remainder (1%) were transferred to the care of another agency.
IV-E prevention services amount taken from the foster care BA (as estimated
for the FY2023 President’s Budget). Actual funds spent may vary.
Who bears public responsibility for this work?
* Includes formula funding in IV-B and CAPTA plus $10 mil ion in supplemental
Under the U.S. Constitution, states are considered to bear the
CWS funding for areas af ected by Hurricanes Ian and Fiona; ** Includes
primary public responsibility for ensuring the well-being of
competitively awarded funding and incentives in IV-E, IV-B, CAPTA, and the
children and their families. Public child welfare agencies at the
Victims of Child Abuse Act; *** Includes Chafee general and ETV funding.
state and local levels work with an array of private and public
Title IV-E Foster Care, Prevention, Permanency
entities—including the courts and social service, health, mental
Title IV-E helps support provision of foster care, adoption
health, education, and law enforcement agencies—to carry out
assistance, or guardianship assistance to children who meet
child welfare activities. This work is done consistent with state
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Child Welfare: Purposes, Federal Programs, and Funding
federal IV-E eligibility rules. The IV-E program may also fund
Title IV-B Child and Family Services
kinship navigators and selected services intended to prevent
Title IV-B includes the Stephanie Tubbs Jones Child Welfare
the need for foster care placement. Federal support for these
Services (CWS) and the MaryLee Allen Promoting Safe and
IV-E activities is authorized on a mandatory, open-ended and
Stable Families (PSSF) programs. These programs authorize
permanent basis and is estimated as $10.7 billion for FY2023.
grants to states and tribes for child and family services. Total
Foster Care, Adoption, and Guardianship
FY2023 funding for CWS, PSSF and related research and
Under IV-E, states and participating tribes must provide foster
training was $710 million, including $10 million in disaster
care and adoption assistance to eligible children, and the
funding. Discretionary and/or capped mandatory funding
federal government is committed to paying a part of the cost of
authorities for CWS and PSSF were extended by P.L. 117-328
that aid (50% to 83%, depending on the state/tribe), as well as
through FY2023 (at the most recently authorized levels). These
a part of the cost of administering the program (50% in all
authorities were continued into FY2024 via a series of
states/tribes) and for certain training (75% in all states/tribes).
continuing resolutions (P.L. 118-15, P.L. 118-22, P.L. 118-35).
States may opt to provide IV-E guardianship under this same
P.L. 118-42 extends them through December 31, 2024).
cost-sharing structure. During FY2022, about 726,000 children
There are no federal eligibility rules for receipt of Title IV-B
received IV-E assistance each month, including for adoption
services. Funds are used to protect children (CWS); support,
(548,000), foster care (135,000), and guardianship (43,000).
preserve, and reunite families (CWS and PSSF); and promote
In general, states and tribes may spend IV-E dollars (federal
and support adoption (CWS and PSSF). Children served may
and state/tribal) only on children who meet federal eligibility
be living at home or in foster care. States must provide at least
criteria. Rules vary by the type of aid. For foster care, they
$1 in nonfederal funds for every $3 in federal funds received.
include an income test (applied to the home the child is
A portion of PSSF funding is reserved each year for the Court
removed from), removal requirements (typically, a judge must
Improvement Program ($30 million), monthly caseworker visit
find that a home is “contrary to the welfare” of the child and
grants ($20 million), Regional Partnership Grants (RPGs) to
that “reasonable efforts” to prevent foster care were made),
improve outcomes for children and families affected by
placement in a licensed foster family home or other eligible
substance misuse ($20 million), and for related evaluation and
facility, and age requirements. Fewer than 45% of children in
technical assistance (circa $8 million). For FY2023, P.L. 117-
care meet those criteria, although this share varies by state.
328 further directed $19 million of PSSF funding to kinship
Prevention Services and Kinship Navigator Programs
navigator grants; $6 million to the IV-E clearinghouse; and $1
States and tribes opting to provide approved IV-E prevention
million for additional child and family services research.
services may offer them to children at imminent risk of foster
Chafee Program for Successful Transition to Adulthood
care; pregnant or parenting youth in care; and the parents or
States receive Chafee basic grants to support services for
kin caregivers of these children and youth. No income test
children who experience foster care at age 14 or older,
need apply. During FY2022, an average of 7,000 children in
including most of those youth who were formerly in care (up
16 states and one tribe received IV-E prevention services each
to age 21, or 23 in some states). Funding is also authorized for
month. As of early 2024, 42 states, the District of Columbia, and
Education and Training Vouchers (ETVs) to help Chafee-
four tribes have HHS-approved IV-E prevention plans; 4 states
eligible youth attend college or post-secondary training.
(Delaware, Mississippi, New Jersey, New Mexico) and Puerto
Chafee grant funding is authorized on a capped mandatory
Rico have IV-E prevention plans in review; and 4 states
basis and for ETVs on a discretionary basis. Both funding
(Alabama, Alaska, South Dakota, Texas) and the U.S. Virgin
authorizations are permanent (no year limit). States must
Islands did not have such plans either in review or approved.
provide no less than $1 for every $4 in federal Chafee/ETV
Federal IV-E prevention funding is available for up to 50% of
funding they receive. FY2023 funding was $187 million.
a state/tribe’s IV-E prevention costs, including related training
Child Abuse Prevention and Treatment Act (CAPTA)
and administration. Services offered must be rated by the IV-E
CAPTA authorizes grants to states to improve child protective
prevention services clearinghouse as meeting IV-E evidence
services (no nonfederal match required), and for community-
standards; and, to claim full support in FY2024, at least 50%
based efforts to prevent child abuse and neglect (20%
of a state’s IV-E prevention dollars must be for services rated
nonfederal match required). CAPTA’s funding authorities
as well-supported or supported. Beginning with FY2025, at
expired with FY2015, but support has continued. FY2023
least 50% of a state’s IV-E prevention services spending must
funding totaled $214 million, including $105 million for state
be for well-supported programs in order for the state to receive
grants, $71 million for community-based grants, and $38
federal IV-E support for that spending. States IV-E prevention
million for research and technical assistance.
services plans most often include well-supported programs,
such as 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
care are placed in new permanent adoptive or guardianship
Title IV-E-funded kinship navigator programs are intended to
families. For FY2022, HHS awarded $46.5 million to 47
ensure kin caregivers have access to services and supports that
states, the District of Columbia and Puerto Rico. FY2023
meet their own needs and those of the children in their care.
funding of $75 million continued this program, although
The programs may serve kinship families whether or not they
discretionary funding authority ended with FY2021.
have child welfare involvement. IV-E support is authorized at
50% of a state’s/tribe’s costs, if the navigator program meets
Emilie Stoltzfus, Specialist in Social Policy
IV-E evidence standards. As of early 2024, four kinship
navigator programs were rated as meeting those standards.
IF10590
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Child Welfare: Purposes, Federal Programs, and Funding


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