Child Welfare: The Adoption Incentive Program and Its Reauthorization

Congressional research reportJul 15, 2014

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Child Welfare: The Adoption Incentive

Program and Its Reauthorization

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July 15, 2014

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R43025

Child Welfare: The Adoption Incentive Program and Its Reauthorization

Summary

Under the Adoption Incentive program (Section 473A of the Social Security Act), states earn

federal incentive payments when they increase adoptions of children who are in need of new

permanent families. All 50 states, the District of Columbia, and Puerto Rico have earned a part of

the $424 million in Adoption Incentive funds that have been awarded since the program was

established as part of the Adoption and Safe Families Act of 1997 (ASFA, P.L. 105-89).

Discretionary funding authorized for this program has been extended twice since it was

established, most recently in 2008 (P.L. 110-351).

Although funding authority for the Adoption Incentive program expired on September 30, 2013,

the Consolidated Appropriations Act, 2014 (P.L. 113-76) permits states to continue to receive the

Adoption Incentive payments and appropriates $37.9 million for them. In addition, Title II of the

Preventing Sex Trafficking and Strengthening Families Act (H.R. 4980), which was introduced on

June 26, 2014, would extend current annual discretionary funding authority ($43 million) for

Adoption Incentive payments through FY2016. Beyond this, Title II of H.R. 4980 would add

incentive payments for states that make improvements in appropriately moving children from

foster care to legal guardianship and would determine awards based on the percentage (or rate) of

children leaving foster care to adoption and/or guardianship, instead of the absolute number of

children leaving. In similar statements issued on June 26, 2014, by the House Committee on

Ways and Means and the Senate Committee on Finance, Representatives Camp and Levin, along

with Senators Wyden and Hatch, announced H.R. 4980 as “bipartisan legislation [that] reflects

agreements reached between House and Senate negotiators” on legislation previously approved in

the House and in the Senate Finance Committee. Specifically, Title II of H.R. 4980 draws on H.R.

3205, passed by the House in October 2013, and provisions included in Title I of S. 1870,

approved by the Senate Finance Committee in December 2013.

Congress has long shown interest in improving the chances of adoption for children who cannot

return to their parents and who might otherwise spend their childhoods in temporary foster homes

before “aging out” of foster care. Since ASFA’s enactment in 1997, the annual number of children

leaving foster care for adoption has risen from roughly 30,000 to more than 50,000 and the

average length of time it took states to complete the adoption of a child from foster care declined

by close to one year (from about four years to less than three). Over the same time period, and in

significant measure due to the greater number of children leaving foster care for adoption and at a

faster pace, the overall number of children who remain in foster care declined by 29%—from a

peak of 567,000 in FY1999 to 400,000 in FY2012. Despite these successes, however, the number

of children “waiting for adoption” (102,000 on the last day of FY2012) remains about double the

number of children who are adopted during a given year. Adoptions of older children remain far

less common than adoptions of younger children, and some 23,000 youth aged out of foster care

in FY2012, compared to just 19,000 in FY1999.

Under the current award structure, a state’s adoption incentive payment equals the specified

incentive amount for a given category of adoptions multiplied by the number of adoptions in the

category that is above the number completed by the state in FY2007. The specified incentive

amount is $4,000 for foster child adoptions, $8,000 for older child (9 years or more) adoptions,

and—provided a state is eligible for an incentive in another award category—$4,000 for special

needs (under age 9) adoptions. Additionally, if sufficient appropriations are available in the fiscal

year, a state may also earn incentive payments for improving the rate (or percentage) of foster

child adoptions. In the five years (FY2008-FY2012) that this incentive structure has been in

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Child Welfare: The Adoption Incentive Program and Its Reauthorization

place, states received combined incentive payments of nearly $202 million, including $95 million

for increases in the number of foster child adoptions, $57 million for increases in older child

adoptions, and $48 million for increases in special needs (under age 9) adoptions. They also

received about $2 million for increases in the rate of foster child adoptions. (This amount was

significantly less than the nearly $12 million states were eligible to receive based on improved

adoption rates. However, that full amount was not paid because nearly all appropriations provided

were needed to make incentive payments for increased numbers of adoptions.)

States are permitted to use Adoption Incentive payments to support a broad range of child welfare

services to children and families. Many states report spending incentive funds on adoption-related

child welfare purposes, including post-adoption support services, recruitment of adoptive homes,

and training or conferences to improve adoption casework. A smaller number of states report

using these funds for adoption assistance payments, improved adoption homes studies, child

protection casework, foster care maintenance payments, or other child welfare purposes.

In addition to amending and extending Adoption Incentive payments, Title II of H.R. 4980 would

extend funding for Family Connection Grants (Section 427 of the Social Security Act) for one

year, add new reporting and spending requirements for states with regard to certain federal funds

they receive under the adoption assistance component of the Title IV-E program, and make

possible continued federal Title IV-E guardianship assistance eligibility for children already

receiving that assistance who are subsequently placed with a “successor guardian.” Additionally,

the bill would make changes to federal foster care requirements intended to further facilitate

placement of siblings together while in foster care.

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Child Welfare: The Adoption Incentive Program and Its Reauthorization

Contents

Introduction...................................................................................................................................... 1

Legislation to Extend Adoption Incentive Payments ....................................................................... 2

Improving Adoption Incentives and Extending Family Connection Grants .................................... 3

Extension and Revision of Adoption Incentive Payments......................................................... 3

Three-Year Extension of Funding Authority ....................................................................... 3

Revised Award Categories................................................................................................... 4

State Performance to be Determined Based on Rate ........................................................... 4

Award Amounts by Category .............................................................................................. 5

Counting Foster Child Guardianships ................................................................................. 5

Additional Award, Provided Sufficient Appropriations ...................................................... 5

Delayed Effective Date and Transition Rule for New Incentive Structure ......................... 6

Other Changes to Adoption Incentive Payments ................................................................. 6

State Reinvestment of Any Adoption Assistance Savings ......................................................... 6

Successor Guardianship............................................................................................................. 7

Family Connection Grants ......................................................................................................... 8

Promoting Sibling Connections ................................................................................................. 8

Data Collection on Prior Adoptions and Guardianships ............................................................ 9

Earlier Reauthorization Activities in the 113th Congress ................................................................. 9

Subcommittee on Human Resources Hearing ........................................................................... 9

Subsequent Activities in the House ................................................................................... 11

Senate Finance Committee Hearing ........................................................................................ 11

Subsequent Activities in the Senate................................................................................... 12

Background .................................................................................................................................... 13

Congressional Interest in Adoptions ........................................................................................ 13

Adoptions with Public Child Welfare Agency Involvement.................................................... 14

Growth in the Number of Adoptions Out of Foster Care .................................................. 14

Decline in Children in Foster Care Waiting for Adoption ................................................. 15

Reduced Time to Adoption................................................................................................ 15

Adoption Incentive Payments ........................................................................................................ 16

How Do States Earn Incentive Payments? .............................................................................. 17

Amount of Incentive Payments ............................................................................................... 17

Eligibility for Adoption Incentive Payments ........................................................................... 17

Awards and Appropriations ..................................................................................................... 18

Awards by Category for Adoptions Finalized in FY2008-FY2012 ......................................... 20

Foster Child Adoptions...................................................................................................... 21

Older Child Adoptions ...................................................................................................... 21

Special Needs (Under Age 9) Adoptions........................................................................... 21

Adoption Rate ................................................................................................................... 22

Spending Award Money .......................................................................................................... 22

Tables

Table 1. Adoption Incentive Payments Summary of Appropriations and Award History.............. 19

Table 2. Adoption Incentive Payments for Adoptions Completed in FY2008–FY2012................ 20

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Child Welfare: The Adoption Incentive Program and Its Reauthorization

Table A-1. Selected Provisions to Reauthorize Adoption Incentive Payments and Make

Other Child Welfare Changes ..................................................................................................... 24

Table C-1. Adoptions with Public Child Welfare Agency Involvement, FY1995-FY2012................. 35

Table C-2. Number of Children Waiting for Adoption and Percentage of Waiting Children

Adopted, FY1998-FY2011 ......................................................................................................... 36

Table C-3. Average and Median Length of Time to Finalized Adoption, In Months,

FY2000-FY2012 ......................................................................................................................... 37

Table D-1. Evolution of Adoption Incentive Payment Structure ................................................... 38

Table E-1. Children in Foster Care on the Last Day of the Fiscal Year by State,

FY2007-FY2011 ......................................................................................................................... 40

Table E-2. Children Waiting for Adoption, FY2007-FY2011, Percentage Change in the

Number of Those Children and Share Adopted by State ............................................................ 42

Appendixes

Appendix A. Comparison of Current Law and Selected Reauthorization Proposals .................................. 24

Appendix B. Glossary of Terms..................................................................................................... 33

Appendix C. Trends in Adoptions with Public Child Welfare Agency Involvement ..................... 35

Appendix D. Adoption Incentive Payments................................................................................... 38

Appendix E. Children in Foster Care and Waiting for Adoption by State ..................................... 40

Contacts

Author Contact Information........................................................................................................... 44

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Child Welfare: The Adoption Incentive Program and Its Reauthorization

Introduction

The Adoption Incentive program (Section 473A of the Social Security Act) provides federal

payments to state child welfare agencies that increase adoptions of children who are in need of

new permanent families. Generally, these are children for whom reuniting with their biological

parents is not possible and who would otherwise be expected to remain in public foster care until

they “age out” (i.e., reach the state age of majority or the age at which state custody of children in

foster care is ended).

The first Adoption Incentive payments were made to states in FY1999 based on improvement in

the numbers of adoptions completed in FY1998, and the most recent were announced in late

FY2013 (August 2013) based on improvements in the numbers of adoptions completed in

FY2012. Since the inception of the program, states (including the 50 states, the District of

Columbia, and Puerto Rico) have collectively received close to $424 million in federal incentive

payments for increased adoptions.

The Adoption Incentive program was most recently extended through FY2013 by the Fostering

Connections to Success and Increasing Adoptions Act of 2008 (P.L. 110-351). However, as part of

the Consolidated Appropriations Act, 2014 (P.L. 113-76), Congress extended states’ eligibility to

earn adoption incentive payments for an additional year and appropriated $37.9 million to make

those payments. Legislation to reauthorize and extend the Adoption Incentive Payments program

through FY2016 has passed the full House (H.R. 3205) and was approved in the Senate Finance

Committee (Title I of S. 1870). Title II of H.R. 4980, introduced on June 26, 2014, draws on

language in both of those legislative proposals.

In addition to extending funding authority for incentive payments through FY2016, Title II of

H.R. 4980 would make changes to the incentive structure established in the 2008 law—including

by changing the award categories to focus more on permanency for children 9 years of age or

older, establishing incentive payments for states that appropriately move children from foster care

to legal guardianship, determining improvements in state performance based on the rate (or

percentage) of children leaving foster care to adoption or guardianship (rather than the number),

and putting additional focus on achieving permanence through adoption or guardianship for

older children.

Apart from reauthorizing the Adoption Incentive program, the Fostering Connections to Success

and Increasing Adoptions Act of 2008 made several other changes to federal law, which Title II of

H.R. 4980 would amend or otherwise address. Specifically, the bill would

•

extend $15 million in annual mandatory funding for Family Connection Grants

for one year (FY2014); that grant program was first established and funded in the

2008 law;

•

adjust eligibility criteria for Title IV-E kinship guardianship assistance (which

was first established in the 2008 law) to ensure continuous program eligibility for

a child who must go to live with a “successor guardian” due to the incapacitation

or death of his/her relative guardians;

•

seek to further ensure siblings have the opportunity to live together while in

foster care, by specifying that a 2008 requirement for state agencies to identify

and give notice to grandparents and other relatives of children entering foster

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care includes identifying and providing notice to any parent of a sibling of a child

entering care (provided that parent has custody of the sibling); and

•

require additional reporting by states to ensure they spend any savings resulting

from the expanded federal support for Title IV-E adoption assistance provided for

in the 2008 law, and require that no less than 30% of any identified savings be

used by the state to provide post-adoption or post-guardianship services and

services to ensure safety and well-being of children who might otherwise enter

foster care.

This report begins by describing in greater detail the legislation under consideration in the 113th

Congress that would reauthorize and extend the Adoption Incentive Payments program and make

additional child welfare-related changes described above. (Appendix A includes a table

comparing current law with several reauthorization proposals, including Title II of H.R. 4980.) It

also discusses hearings and other legislative actions taken in this Congress as part of the

reauthorization effort. Additionally, the report provides background related to the Adoption

Incentive program, including a discussion of the long-standing congressional interest in domestic

adoption, the significant increases in adoption from foster care that have occurred since the mid1990s, and the Adoption Incentive Payments program as it has functioned since the program’s

2008 reauthorization.

Throughout this report some unique terms related to adoption, foster child adoptions, or the

Adoption Incentive program are used (e.g., “special needs” and “adoption rate”). While each of

these terms is explained in the body of the report, for ease of reference they are also included in a

“Glossary of Terms” provided in Appendix B to this report.

Legislation to Extend Adoption Incentive Payments

On June 26, 2014, Representative Camp, with Representatives Levin, Reichert, and Doggett,

introduced the Preventing Sex Trafficking and Strengthening Families Act (H.R. 4980).1 The bill’s

introduction was jointly announced by Representatives Camp and Levin, along with Senators

Wyden and Hatch, and was described as “bipartisan legislation [that] reflects agreements reached

H.R. 4980 includes three titles but only the provisions of Title II are discussed in the body of this report. Title I of

H.R. 4980 includes amendments to the Title IV-E program that would require state child welfare agencies to have

procedures to identify and determine services for certain children and youth who are victims of sex trafficking, increase

their efforts concerning children who run away from foster care, and to report certain information related to these

identified victims of trafficking as well as certain missing children. Title I of H.R. 4980 would also make other changes

to the law intended to increase the ability of children in foster care to participate in “normal” age and developmentally

appropriate activities, including by establishing and requiring use of a “reasonable and prudent parent standard” for

foster caregivers, permitting states to use Chafee Foster Care Independence Program (CFCIP) funds to support foster

children’s participation in such activities, and by increasing funding for the CFCIP by $3 million annually (as of

FY2020). Title I of H.R. 4980 would also restrict the use of the case plan goal “another planned permanent living

arrangement” (to children in care at age 16 or older and for whom additional case review requirements are met), seek to

increase opportunities for youth in care at age 14 or older to participate in their own case and permanency planning,

and provide certain identity documents to youth leaving foster care at age 18 or older. Title I of the bill would also

authorize a National Advisory Committee on Sex Trafficking of Children. These provisions draw on a variety of earlier

introduced legislation, including the House-passed H.R. 4058 and provisions approved by the Senate Finance

Committee as Title II of S. 1870 (also introduced as S. 1878). Title III of H.R. 4980 includes amendments related to the

Child Support Enforcement (CSE) program (Title IV-D of the Social Security Act). Those provisions draw on earlier

House-passed legislation (H.R. 1896) and provisions approved by the Senate Finance Committee as Title III of S. 1870

(also introduced as S. 1877).

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between the House and Senate negotiators.”2 Title II of H.R. 4980 draws on provisions included

in both the Promoting Adoptions and Legal Guardianships for Children in Foster Care Act (H.R.

3205, introduced by Representative Camp, with Representatives Levin, Reichert, and Doggett),

which was passed by the House in October 2013, and Title I of the Supporting At-Risk Children

Act (S. 1870), which was approved by the Senate Finance Committee in December 2013. (The

Title I provisions of S. 1870 were also introduced in S. 1876, the Strengthening and Finding

Families for Children Act, which was introduced by Senator Baucus, with Senators Hatch,

Wyden, Rockefeller, Grassley, and Casey.)

H.R. 3205 and S. 1870, in turn, drew on other introduced bills, which sought to extend Adoption

Incentive Payments and/or make other amendments to child welfare law. In the 113th Congress,

these bills included the Guardians for Children Act (H.R. 2979, introduced by Representative

Doggett, with Representatives Danny K. Davis, Bass, Lewis, Rangel, McDermott, and

Blumenauer); Investing in Permanency for Youth in Foster Care Act (H.R. 3124, introduced by

Representative Danny K. Davis); Removing Barriers to Adoption and Supporting Families Act of

2013 (S. 1511, introduced by Senator Rockefeller, with Senator Casey); Supporting Adoptive

Families Act (S. 1527, introduced by Senator Klobuchar, with Senators Landrieu and Blunt/H.R.

3423 introduced by Representative Langevin, with Representatives Wittman, Frederica Wilson,

Sean Patrick Maloney, Norton, Bass, and Grimm); and the Sibling Connections Act (S. 1786,

introduced by Senator Grassley, with Senator Kaine).

Improving Adoption Incentives and Extending

Family Connection Grants

This section describes Title II provisions of the Preventing Sex Trafficking and Strengthening

Families Act (H.R. 4980). For a comparison of these Title II provisions to current law and

provisions included in H.R. 3205 and S. 1870/S. 1876, see Appendix A.

Extension and Revision of Adoption Incentive Payments

Three-Year Extension of Funding Authority

The Adoption Incentive program was authorized to receive up to $43 million in annual

appropriations through the end of FY2013. Despite the expiration of funding authority, Congress

chose to provide $37.9 million in FY2014 appropriations for these payments (P.L. 113-76).

Title II of H.R. 4980 would renew discretionary funding authority for the program, renamed as

Adoption and Legal Guardianship Incentive Payments, at the current annual level ($43 million)

through FY2016. The proposed three-year reauthorization time frame would align the funding

authorization for the incentive payments program with the funding authorizations provided for

Similar press releases, both including the quoted statement above, were issued by the Senate Committee on Finance

and the House Committee on Ways and Means. See Committee on Ways and Means, “House and Senate Leaders

Announce Bipartisan Agreement to Prevent Child Sex Trafficking, Increase Adoptions, and Improve Child Support

Collections,” Press Release, June 26, 2014 and Committee on Finance, “Senate and House Leaders Announce

Bipartisan Agreement to Prevent Child Sex Trafficking, Increase Adoptions, and Improve Child Support Collections,”

June 26, 2014.

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two child welfare programs authorized under Title IV-B of the Social Security Act (Stephanie

Tubbs Jones Child Welfare Services and Promoting Safe and Stable Families).3

Revised Award Categories

Title II of H.R. 4980 would revise the categories for which states may earn incentive payments,

expanding them to include exits from foster care to legal guardianship and placing additional

focus on states’ abilities to appropriately move children age 9 or older to permanent homes via

adoption or guardianship. It would retain an award category for improving foster child adoptions

and add a separate award category for foster child guardianships. Awards in these categories

would be available with regard to adoptions and guardianships for children of any age.

Additionally, H.R. 4980 would split the current “older child adoptions” award category into two

groups and add foster child guardianships to both categories. The two new award categories

would be for adoptions and foster child guardianships of children ages 9 through 13 years

(defined as “pre-adolescent” adoptions and guardianships) and for those aged 14 or older (defined

as “older child” adoptions and guardianships). Finally, H.R. 4980 would eliminate the award

category tied to adoptions of children less than 9 years of age who are determined by their state to

have special needs.4

State Performance to be Determined Based on Rate

Further, H.R. 4980 would base all awards on improvements a state makes in the rate (or

percentage) of children moving to adoption (or guardianships). An improved rate would mean

that the percentage of adoptions (or guardianships) achieved in the fiscal year for which an

incentive payment is being determined is greater than the percentage achieved in the baseline

year. Under H.R. 4980, a state’s baseline year would be either the fiscal year immediately

preceding the one for which the award is being determined, or the average rate for the three fiscal

years immediately preceding the year for which the award is being determined, whichever has a

lower rate. 5 (Effectively, this means awards would be based on whichever of these two rates

produces the greatest measured improvement.)

Comparing percentages (or rates) to determine improved performance—instead of using the

absolute numbers of adoptions achieved as is currently done in this program—removes the effect

of overall caseload changes from the measurement. For states with declining numbers of children

in foster care but continued strong performance with regard to appropriately placing children for

adoption or in legal guardianships, comparing rates (instead of absolute numbers) can ensure

access to incentive payments. For states with increasing caseloads, it can ensure that increases in

For more information on these programs, see CRS Report R43458, Child Welfare: An Overview of Federal Programs

and Their Current Funding, by (name redacted).

“Special needs” in the context of this program means a state has determined that 1) the child cannot or should not

return to his home; 2) assuming this is in the child’s best interest, efforts to place the child without providing medical or

adoption assistance have been made but have not been successful; and 3) the child has a condition or factor (e.g., age,

membership in a sibling group, physical condition, mental or emotional disability) that makes it reasonable to conclude

that the child will not be placed without medical and/or adoption assistance. For additional information see "Conditions

or Factors Used by States in Determining Special Needs," in CRS Report R42792, Child Welfare: A Detailed Overview

of Program Eligibility and Funding for Foster Care, Adoption Assistance and Kinship Guardianship Assistance under

Title IV-E of the Social Security Act, by (name redacted).

A rate for a fiscal year is defined as the number of children who moved to adoption (or guardianship) during the year

divided by the number of children in foster care on the last day of the previous fiscal year.

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the number of adoptions or guardianships completed by the state are related to improved

permanency efforts by the state, not simply the availability of more children for placement.

Award Amounts by Category

Under current law, a state’s total adoption incentive payment is generally equal to the number of

increased adoptions multiplied by the incentive payment amount tied to each category—$4,000

for foster child adoptions, $4,000 for special needs (under age 9) adoptions,6 and $8,000 for older

child adoptions. By contrast, H.R. 4980 provides that a state’s incentive payment would equal the

number of adoptions and/or guardianships calculated to have been completed because the state

improved its rate (or percentage) of those adoptions and/or guardianships, multiplied by the

award amount in that category. For each such foster child adoption, the award amount would be

$5,000; for each such foster child guardianship, $4,000; for each such pre-adolescent (9 through

13 years) adoption or guardianship, $7,500; and for each older child (14 or older) adoption or

guardianship, $10,000.

Counting Foster Child Guardianships

H.R. 4980 would stipulate that for a foster child guardianship to be counted in the incentive

program, the child must leave foster care for placement with a legal guardian. Further, the state

must report to the Department of Health and Human Services (HHS) that it has determined for

that child that being returned home or placed for adoption are not appropriate permanency

options, that the child shows a strong attachment to the prospective legal guardian, that the

prospective legal guardian has a strong commitment to providing permanent care for the child,

and, if the child is age 14 or older, that he or she has been consulted regarding the legal

guardianship arrangement.7 As an alternative, the state may inform HHS that it used “alternative

procedures” to determine that legal guardianship was the appropriate option for a child who

exited foster care to live with a legal guardian.

Additional Award, Provided Sufficient Appropriations

Under current law, in any year when appropriations are sufficient, states that improve their

highest-ever foster child adoption rate (beginning with the rate achieved in FY2002) are eligible

for additional incentive payments. H.R. 4980 would amend this policy to instead provide a

“timely adoption award” in any fiscal year when appropriations remain after all incentive

payments for improved rates of adoptions and/or guardianships have been made. A state would be

eligible to receive this award in any fiscal year that HHS determined that on average, children

who left foster care for adoption during that year had been in foster care for less than 24 months

(from removal to finalized adoption).

Under current law, states may only earn payments in this category if they also earn an award in that year for increases

in the number of foster child or older child adoptions, or if they improve on their “highest ever” rate of foster child

adoptions.

These provisions are similar to eligibility requirements associated with the Title IV-E kinship guardianship assistance

program. However, unlike those requirements, they do not require that the legal guardian must be a relative of the

child; nor do they require that the child must have been living in foster care and with the prospective relative guardian

for at least six months or that the child was eligible for Title IV-E foster care maintenance payments while living with

the prospective legal guardian.

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Delayed Effective Date and Transition Rule for New Incentive Structure

As discussed above, H.R. 4980 would significantly alter the incentive structure, including by

changing the categories for which awards are provided, changing award amounts, and calculating

all awards based on improvements in a state’s rate of adoptions or guardianships. However, the

bill would provide a transition period before this new incentive structure would be fully

implemented. Specifically, the renaming of the program and the changes in the incentive structure

would not begin to take effect until FY2015 (October 1, 2014). This means incentive payments

expected to be made this fiscal year (i.e., in August or September 2014 for adoptions finalized in

FY2013) would be paid under the incentive structure in current law (including award categories,

baseline numbers, and award amounts). H.R. 4980 also stipulates that incentive payments made

in the second year of the reauthorization (FY2015) would equal one-half of the amount a state

earns under the current law structure, plus one-half of what it would earn under the incentive

structure included in H.R. 4980. In the third year of the reauthorization (FY2016), the award

structure included in H.R. 4980 would be used exclusively to determine the state’s incentive

payments.8

Other Changes to Adoption Incentive Payments

36 Months to Expend Award Funds

Apart from extension of the program and changes in the incentive structure, H.R. 4980 would

amend the law to permit states up to 36 months from the month they receive any incentive

funding to use those funds. (Current law allows states up to 24 months from the date payments

are made to use the funds.)

No Supplantation

Under current law, states must spend any incentive payments they receive on the kinds of child

and family services that may be supported under the federal child welfare programs included in

Title IV-B and Title IV-E of the Social Security Act. Further, current law specifies that any

incentive spending must not be counted as the non-federal share of funding required under Title

IV-B or Title IV-E programs. H.R. 4980 would keep each of those provisions in place and would

additionally stipulate that states must use the incentive funds to supplement, not supplant, any

current spending of federal or non-federal dollars for these child welfare activities.

State Reinvestment of Any Adoption Assistance Savings

Title II of H.R. 4980 would also amend provisions of the adoption assistance component of the

Title IV-E program under the Social Security Act. Under current law, states are required to

document savings in state spending (if any) that result from expanding federal eligibility for Title

IV-E adoption assistance. That eligibility expansion was allowed by the Fostering Connections to

Adoption incentive payments are typically made at the end of a fiscal year for adoptions completed in the previous

fiscal year. Therefore, payments made in the first year of the reauthorization (FY2014) would be expected to be paid in

August or September of 2014 and would be based on adoptions finalized in the state in FY2013. Payments in the

second year of the reauthorization (FY2015) would be expected to go out in August or September 2015 for adoptions

and/or guardianships finalized in FY2014, and payments in the third year of the reauthorization would be expected to

go out in August or September of 2016 for adoptions and/or guardianships completed in FY2015.

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Success and Increasing Adoptions Act of 2008 (P.L. 110-351) and is primarily the result of

removing income eligibility criteria for Title IV-E adoption assistance. The eligibility expansion

began to be phased in with FY2010 and will be fully implemented as of FY2018. Soon after

enactment of this expanded eligibility provision, the Congressional Budget Office (CBO)

projected that it would increase federal Title IV-E spending by $1.4 billion from FY2009FY2018, with the bulk of that increase ($1.3 billion) projected to occur in FY2014-FY2018.9

Some or all of this increase in federal outlays is likely to represent savings of state monies.

Under H.R. 4980, the requirements related to reinvestment of these funds would be restated and

expanded. States would be required, beginning with FY2015, to calculate any savings in state

spending based on the federal adoption assistance provided to children made eligible by the less

restrictive federal criteria. States would be required to do this calculation using a methodology

specified by HHS, or proposed by the state and approved by HHS. Further, each state would need

to annually submit to HHS the methodology it used to calculate savings (whether or not any were

identified); the amount of any savings identified; and how the savings are to be spent. HHS would

be required to post this state-reported information on its website.

Finally, Title II of H.R. 4980 would require states to spend no less than 30% of any identified

savings to provide post-adoption services, post-guardianship services, and services to support and

sustain positive permanent outcomes for children who might otherwise need to enter foster care.

Further, of that 30%, no less than two-thirds must be spent for post-adoption and postguardianship services. H.R. 4980 would also amend the law to stipulate that the spending of any

such savings would need to supplement, rather than supplant, any federal or non-federal money

already being used to support child welfare services available under programs included in Title

IV-B or Title IV-E.

Successor Guardianship

Title II of H.R. 4980 would amend the guardianship assistance provisions of the Title IV-E

program to provide that if the relative legal guardian of a child who is receiving Title IV-E

kinship guardianship assistance dies or is incapacitated, the child continues to be eligible for this

assistance so long as he or she is placed with a successor legal guardian. The successor legal

guardian must have been named in the Title IV-E kinship guardianship agreement that was earlier

entered into between the state child welfare agency and the child’s previous relative legal

guardian.10 Under current law, a child receiving Title IV-E kinship guardianship assistance whose

legal relative guardian dies or becomes incapacitated cannot be certain that this assistance will

continue with a successor guardian. Instead, the child must have eligibility for this Title IV-E

assistance redetermined. Among other things, this redetermination requires the child to return to

foster care for at least six months (and while living with the prospective successor guardian). The

Congressional Budget Office (CBO) estimates this change in Title IV-E eligibility criteria (which

CBO Cost Estimate, H.R. 6893, Fostering Connections to Success and Increasing Adoptions Act of 2008, as signed by

the President October 7, 2008, December 23, 2008.

This provision incorporates language of the Guardians for Children Act (H.R. 2979), which was introduced by

Representative Lloyd Doggett on August 2, 2013, with Representatives D. Davis, Bass, Blumenauer, Lewis, and

Rangel.

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would prevent the need for children to re-enter more costly foster care) would reduce federal

outlays by $7 million across 11 years (FY2014-FY2024).11

Family Connection Grants

Title II of H.R. 4980 would appropriate $15 million to continue Family Connection Grants for

one year (FY2014).12 (According to CBO, the cost of this one-year appropriation would be fully

offset by other changes included in H.R. 4980.)13 Family Connection grants are competitively

awarded to public or private organizations to carry out kinship navigator programs, intensive

family finding efforts, family group decisionmaking policies, and residential family treatment

programs. The grants were established and funded (FY2009-FY2013) by the Fostering

Connections to Success and Increasing Adoptions Act of 2008. 14

Beyond extending program funding for one year, H.R. 4980 would expand the list of entities

eligible to apply for Family Connection grant funding to include institutions of higher education.

It would seek to encourage greater support for foster parents who are willing to care for youth in

care who are themselves parents (through kinship navigator programs) and it would remove from

the law a provision ensuring the reservation of no less than $5 million in Family Connection

Grant funding, annually, to support kinship navigator programs. (Accordingly, under H.R. 4980

funding for kinship navigator programs would be available under Family Connection Grants on

the same basis as for any other authorized service.)

Promoting Sibling Connections

Under the federal foster care program (Title IV-E of the Social Security Act), states are required

to “exercise due diligence” to identify grandparents and other adult relatives of children being

removed from parental custody and to provide those relatives notice of the child’s removal from

his/her parent(s), as well as of the options the grandparent or other adult relative has for

participating in the child’s care or placement.15 Title II of H.R. 4980 would amend this provision

to specify that states must identify and provide this notice to a parent of a sibling of a child,

provided that parent has legal custody of the sibling. Further, for purposes of the federal foster

care program, it would define “sibling” to mean an individual recognized as a sibling under the

state’s law, or an individual who would be defined as a sibling except for the legal termination or

other disruption of parental rights (such as the death of a parent).

Congressional Budget Office, H.R. 4980, the Preventing Sex Trafficking and Strengthening Families Act, as

introduced June 26, 2014.

The competitive grant funding awarded under this program is typically awarded at the end of the fiscal year for

which it was provided. Accordingly, this funding is expected to be awarded to grantees in August or September 2014

(and used by them in FY2015). Most of the funding is expected to be used to provide a third year of funding for

grantees who were initially awarded three-year grants (subject to available appropriations) in late FY2012. See

Congressional Budget Office, H.R. 4980, the Preventing Sex Trafficking and Strengthening Families Act, as introduced

June 26, 2014, June 26, 2014.

Principally these offsetting changes are made in Title III of H.R. 4980 and concern required use of electronic income

withholding orders under the Child Support Enforcement program (Title IV-D of the Social Security Act).

For more information on Family Connection Grants, including grantees and their projects, see the information

available at the National Resource Center for Permanency and Family Connections http://www.nrcpfc.org/

grantees.html, which is supported by HHS, Children’s Bureau.

Section 471(a)(29) of the Social Security Act.

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Data Collection on Prior Adoptions and Guardianships

As part of the Title IV-E program, states are required to regularly report and collect data on

children in foster care and those leaving foster care for adoption. Title II of H.R. 4980 would

require HHS to issue new regulations providing for collection of data specifically concerning

children who enter foster care after having been previously adopted or placed in a legal

guardianship. (This may include children who were, or were not, previously in foster care.) The

legislation notes that the data to be collected under the regulation are to promote increased

knowledge on how best to ensure strong, permanent families for children in foster care, must

include the number of children who enter foster care after a prior finalized adoption or legal

guardianship, and may include information on the length of the prior adoption or guardianship,

the age of the child at the time of the prior adoption or guardianship, the age of the child when he

or she subsequently entered foster care, the type of agency involvement in making the prior

adoptive or guardianship placement, and any other information determined necessary to better

understand the factors associated with the child’s post-adoption or post-guardianship entry to

foster care.16

Earlier Reauthorization Activities in the

113th Congress

Subcommittee on Human Resources Hearing

On February 27, 2013, the Subcommittee on Human Resources of the House Ways and Means

Committee held a hearing on “Increasing Adoptions from Foster Care.” Subcommittee Chairman

Dave Reichert, noting the increase in adoptions and decline in the foster care caseload since the

enactment of the Adoption Incentive program and other changes to the law in 1997, said that the

hearing was to consider if other changes were needed to encourage adoption from foster care.17

Four witnesses discussed the importance of adoption as a way for children to find permanent

homes, and they gave particular attention to the need for adoptions of older children and those

with special needs. Each of the witnesses supported reauthorization of the Adoption Incentive

program.

Several witnesses described successful efforts to recruit adoptive families for older or harder to

place children as those that start with a focus on the individual children or youth in need of

families and engage them in the search for those families.18 One recruitment model, known as

The CBO estimated total costs of $3 million (across FY2014-FY2024) for data collection and reporting requirements

included in H.R. 4980. Title I of H.R. 4980 also includes some data collection and reporting requirements and the cost

estimate does not specify whether this total $3 million cost is associated with provisions in Title I, Title II or both.

However, it does show all of these costs fully offset by other changes to the law. See Congressional Budget Office,

H.R. 4980, the Preventing Sex Trafficking and Strengthening Families Act, as introduced June 26, 2014.

See Opening Statement of Chairman Dave Reichert, Subcommittee on Human Resources of the House Ways and

Means Committee, Hearing on Increasing Adoptions from Foster Care, February 27, 2013. (Hereinafter Hearing,

February 27, 2013.)

Testimony of Rita Soronen, President and CEO, Dave Thomas Foundation for Adoption and Testimony of Pat

O’Brien, Executive Director and Founder, You Gotta Believe! The Older Child Adoption and Permanency Movement,

Inc., Hearing, February 27, 2013.

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“Wendy’s Wonderful Kids,” includes small caseloads that allow adoption caseworkers to get to

know and work with the children for whom they are seeking permanent homes. A rigorous study

of the model’s effectiveness found that children served under this recruitment and placement

model were one and a half times more likely to leave foster care for permanent homes than those

who received traditional adoptive home recruitment services. The model’s impact is greatest

among older children and those with mental health disorders.19 The state of Ohio has recently

contracted to use the Wendy’s Wonderful Kids model (on a nearly statewide basis) to find homes

for harder to place children age 9 or older. By moving children from foster care to permanent

homes more quickly, Ohio anticipates significant fiscal savings.20

Raising awareness of the need for adoptive families is a central goal of the Wait No More

campaign, discussed by another hearing witness. This campaign brings together public child

welfare agencies, private and public adoption agencies, church leaders and other support partners

to promote and host adoption events at churches around the country. Interested families may

begin the adoption process at the event, where speakers stress that adoption is about meeting the

needs of the child (not the needs of adults), discuss common behavioral challenges for adoptees

from foster care, and offer strategies to enable successful child and family outcomes.21

Witnesses also focused on the need for post-adoption services, including counselors with specific

training and knowledge about the needs of adoptive families, to ensure safety and stability of

these families.22 One witness asked that the longer-standing federal focus and financial support

for increasing adoptions be coupled with a greater focus on (and financial support for) postadoption services and suggested that Congress require states to spend their Adoption Incentive

funds on post-adoption support.23 Another asked that Congress ensure that children who were

adopted did not lose access to education, mental health-related, or other services that would be

available to them if they remained in foster care.24

Several witnesses mentioned assignment of the case plan goal “another planned permanent living

arrangement” (APPLA) as a potential barrier to finding permanent families for youth in care.25

Once a youth’s goal is fixed as “APPLA,” one witness noted the child welfare agency stops

Karin Malm, Sharon Vandivere, with Tiffany Allen, Kerry DeVooght, Raquel. Ellis, Amy McLindon, Jacqueline

Smollar, Eric Williams, and Andrew Zinn, Evaluation Report Summary: The Wendy’s Wonderful Kids’ Initiative, Child

Trends, Washington, DC: 2011, pp. 9-11, 14-15.

Testimony of Rita Soronen, Subcommittee on Human Resources, Hearing, February 27, 2013.

Testimony of Kelly Rosati, Vice President, Community Outreach, Focus on the Family, Hearing, February 27, 2013.

Ibid. See also Testimony of Nicole Dobbins, Executive Director, Voice for Adoption, Hearing, February 27, 2013.

Testimony of Nicole Dobbins. Dobbins also sought more accountability from states on their use of projected savings

from the growing federal investment in Title IV-E adoption assistance (authorized by the Fostering Connections to

Success and Increasing Adoptions Act, P.L. 110-351). She maintained that states should be required to invest a portion

of any savings they experience (due to this increased federal adoption assistance support) in post-adoption support

services.

Testimony of Rosati, including response to questions at Hearing, February 27, 2013. While states may make certain

benefits available only to youth who remain in care, Congress has provided that certain education benefits and other

assistance available to youth who “age out” of care (under Title IV-E of the Social Security Act) may also be available

to youth who leave foster care for adoption or guardianship on or after their 16th birthday. In addition, as part of the

Higher Education Act, Congress permits any youth who was in foster care on or after his/her 13th birthday to apply for

federal financial aid as an “independent” student. For more information, see CRS Report RL34499, Youth

Transitioning from Foster Care: Background and Federal Programs, by (name redacted).

Testimony of Nicole Dobbins, Executive Director, Voice for Adoption and Testimony of Pat O’Brien, Hearing,

February 27, 2013.

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searching for a permanent family and focuses exclusively on preparing the youth for

“independent living.” He asserted that federal policy should always require efforts to find a

permanent home for youth in care and noted that those efforts could continue even as the agency

worked to help the youth develop independent living skills.26

Other issues raised at the hearing included a call for reauthorization of the separate competitive

grant program known as Family Connections, which one witness noted supports projects that can

help connect youth with permanent families through greater kinship support, intensive familyfinding efforts and family group decision-making meetings, and greater use (by states) of Title

IV-E training funds to support more competent adoption casework.27 As part of the hearing

question and answer, witnesses also supported expanding the Adoption Incentive program to

reward states that help youth gain a safe, permanent family through means other than adoption. In

particular, several mentioned the importance of legal guardianship to achieving a permanent

family for some older youth.28

Subsequent Activities in the House

On August 7, 2013, the House Ways and Means Committee posted on its website a “discussion

draft” bill to re-authorize the Adoption Incentive Payments program. The accompanying

announcement sought comments on that draft bill as well as comments on the Guardians for

Children Act (H.R. 2979).29

After receiving comments and revising the proposal, the Promoting Adoption and Legal

Guardianship for Children in Foster Care Act (H.R. 3205) was introduced on September 27, 2013,

by Representative Camp, along with Representatives Levin, Reichert, and Doggett. The full

House considered and passed this bill, under suspension of the rules, on October 22, 2013. A

requested roll call vote tallied 402 for the bill and 0 opposed. As noted earlier, and shown in

Appendix A, Title II of H.R. 4980 draws significantly from this bill.

Senate Finance Committee Hearing

On April 23, 2013, the Senate Finance Committee held a hearing to consider reauthorization of

the Adoption Incentive program; to extend funding for Family Connection Grants; and, more

broadly, to consider the kinds of changes necessary to make further improvements in the

provision of foster care.30 The hearing revolved around the story of Antwone Fisher, who spent

his entire childhood in foster care before “aging out” (just before his 18th birthday) to live in a

homeless shelter.

At the hearing, Mr. Fisher recounted his story, and, among other things, highlighted the need for

child welfare agencies to actively work to find a permanent family for each child in foster care,

Testimony of Pat O’Brien, Hearing, February 27, 2013.

Testimony of Nicole Dobbins, Hearing, February 27, 2013.

See response of each witness to question raised by Representative Danny Davis, Hearing, February 27, 2013.

For more information on this proposal, request a copy of CRS Congressional Distribution (CD) Memorandum,

“Proposal to Revise and Extend Adoption Incentive Payments and Related Matters,” August 14, 2013.

Senate Finance Committee, Hearing on the Antwone Fisher Story as a Case Study for Child Welfare, April 23, 2013.

(Hereinafter Hearing, April 23, 2013.)

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ensure the safety and well-being of children while they are in care, and provide them with

meaningful opportunities to prepare for adulthood.31

Other witnesses at the hearing stressed many of these same points. One witness focused on the

need to engage youth in taking charge of their lives, including through transition planning and a

form of individual development accounts known as “Opportunity Passports.”32 A former child

welfare agency director talked about the efforts of his agency to move from a “punitive” system

with a single “fault-finding” response to one that was collaborative and family-centered

(providing responses commensurate with a family’s needs and concerns).33 Additionally, one

witness asserted the need for child welfare agencies to place a greater value on finding and

involving family members in meeting the needs of the children they serve. He suggested the need

for states to develop a more systemic approach to identifying family members and advocated

more enforcement of, and new reporting on, the existing federal requirements34 for child welfare

agencies to identify and give notice to adult relatives of children entering foster care.35

Subsequent Activities in the Senate

On September 30, 2013, the Senate Finance Committee posted a discussion draft bill to

reauthorize Adoption Incentive Payments and make certain other changes to federal child welfare

policies.36 After receiving comments on this draft, a version of that discussion draft bill became

Title I of the Chairmen’s Mark version of the Supporting At-Risk Children Act, which was

considered at a December 12, 2013, Finance Committee mark up.37 The Chairman’s Mark was

modified to include two child welfare-related amendments (concerning promoting sibling

connections and establishing a timely adoption award) before being approved on a voice vote.38

The bill was reported to the Senate (as S. 1870) on December 19, 2013. (A written report, S.Rept.

113-137, to accompany this legislation, was filed later.) Also on December 19, 2013, the

provisions of Title I of S. 1870 (as approved by the Senate Finance Committee) were introduced

in a stand-alone bill, known as the Strengthening and Finding Families for Children’s Act (S.

1876). That bill was introduced by Senator Baucus, with Senators Hatch, Wyden, Rockefeller,

Grassley, and Casey. As discussed earlier and shown in Appendix A, Title II of H.R. 4980 draws

significantly from Title I of S. 1870/S. 1876.

Testimony of Antwone Fisher, Author, Director and Film Producer; former foster youth, Hearing, April 23, 2013,

Testimony of Gary Stangler, Executive Director, Jim Casey Youth Opportunities Initiative, Hearing, April 23, 2013.

Testimony of Eric Fenner, Managing Director for Strategic Consulting, Casey Family Programs, Hearing, April 23,

2013. Mr. Fenner, a former director of the public children’s services agency for Franklin County, Ohio, also discussed

the county’s use of flexible federal funding (made possible under Ohio’s Title IV-E waiver) to invest in communitybased services.

Section 471(a)(20) of the Social Security Act, as added by the Fostering Connections to Success and Increasing

Adoptions Act of 2008 (P.L. 110-351).

Testimony of Kevin Campbell, Founder, Center for Family Finding and Youth Connectedness, Hearing, April 23, 2013.

Senate Finance Committee, Chairman’s News, “Baucus Unveils Discussion Draft of Bill to Strengthen Adoption

Programs,” September 30, 2013.

Senate Finance Committee, An Open Executive Session to Consider an Original Bill to Repeal the Sustainable

Growth Rate and to Consider Health Care Extenders; and the Supporting At-Risk Children Act, December 12, 2013.

(Hereinafter Mark-up December 12, 2013.)

The amendment related to promoting sibling connections was brought by Senators Grassley, Rockefeller and Casey;

the amendment concerning a timely adoption award was brought by Senator Hatch. See Senate Finance Committee,

“Modifications to the Chairman’s Mark of the Supporting At-Risk Children Act,” Mark-up, December 12, 2013.

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Background

The remainder of this report reviews past congressional interest in use of adoption to move

children from foster care to permanency, including the creation of the Adoption Incentive

Payments program in 1997 legislation (ASFA, P.L. 105-89), before discussing this program as it

has operated since its 2008 reauthorization (Fostering Connections, P.L. 110-351).

Congressional Interest in Adoptions

Foster care is a temporary living arrangement for children for whom remaining in their own

homes is not safe or appropriate. Most children who enter foster care are ultimately reunited with

their parents. However, when reunification is determined not possible or appropriate, adoption is

generally considered the best way to achieve a new permanent family for a child.

Congress has long shown an interest in encouraging adoptions of children who would otherwise

remain in foster care until they age out. In 1978, the Adoption Opportunities program (Title II of

the Child Abuse Prevention and Treatment and Adoption Reform Act, P.L. 95-266) was enacted to

require federal administrative coordination of adoption and foster care programs and to support

research and other activities to “facilitate elimination of barriers to adoption and to provide

permanent and loving home environments for children who would benefit from adoption,

particularly children with special needs.” In 1980, Congress enacted the Adoption Assistance and

Child Welfare Act (P.L. 96-272), including the first federal support for ongoing subsidies to

eligible adoptees with “special needs” (under a new Title IV-E of the Social Security Act). In this

context the “special needs” designation applies to children in need of new permanent families

(i.e., they cannot be returned to their parents) and who have conditions or factors that make it

harder to find them adoptive homes without offering assistance. States may establish their own

factors to determine special needs, but commonly used factors include a child’s age; membership

in a sibling group; medical condition; mental, physical or emotional disability; or membership in

a minority race/ethnicity.39

By 1997, a renewed concern about the failure to move children from foster care to permanent

families was an important impetus for the Adoption and Safe Families Act (ASFA, P.L. 105-89).

As part of that law, Congress made changes to federal child welfare policy that were intended to

ensure that states focused on achieving expeditious permanence for children in foster care,

including through adoptions whenever appropriate. Among other changes, the law tightened or

added new permanency planning timelines for children in foster care, required states to spend

certain federal child welfare funds (under the Promoting Safe and Stable Families Program) for

adoption promotion and support services, and authorized financial incentives to states that

increase adoptions of children out of foster care under the newly created Adoption Incentive

program.40

In 2008, as part of the Fostering Connections to Success and Increasing Adoptions Act (P.L. 110351)—and in addition to extending the Adoption Incentive program—Congress expanded

See “Conditions or Factors Used by States in Determining Special Needs,” in CRS Report R42792, Child Welfare: A

Detailed Overview of Program Eligibility and Funding for Foster Care, Adoption Assistance and Kinship

Guardianship Assistance under Title IV-E of the Social Security Act, by (name redacted).

CRS Report RL30759, Child Welfare: Implementation of the Adoption and Safe Families Act (P.L. 105-89), by (name redacted).

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eligibility for federal (Title IV-E) adoption assistance principally by removing income criteria tied

to the family from which a child had been removed (usually this is the child’s biological family).

The revised eligibility criteria are being phased in and now apply to only some children

determined to have special needs. However, as of FY2018 any child determined by a state to have

special needs may be eligible for ongoing, federally supported adoption assistance.41

Adoptions with Public Child Welfare Agency Involvement

Adoption is a social and legal process by which a child gains a new and permanent family. For

each child in foster care who cannot be reunited with his or her parents and for whom adoption is

determined to be the child’s route to permanency, the state must identify suitable and willing

adoptive parent(s). States may begin the process of recruiting an adoptive family before a child is

“legally free” for adoption. However, before the child’s adoption may be finalized a state (or

tribal) court must generally terminate any existing parental rights or responsibilities to a child.

Once this process, referred to as “TPR” (for termination of parental rights), has been completed,

the child’s adoption by new parents may be finalized by a state or tribal court.42

Since the 1997 enactment of ASFA, the annual number of adoptions out of foster care rose

significantly and the rate of adoptions has doubled. There are fewer children in foster care who

are “waiting for adoption,” and the average time it takes to complete an adoption has declined by

roughly one year. At the same time, the number of children waiting for adoption remains more

than double the number of those adopted each year and adoptions of older children remain less

common than those of younger children.

Growth in the Number of Adoptions Out of Foster Care

The annual number of adoptions from foster care climbed from less than 30,000 in the mid1990s, to a peak of some 57,000 in FY2009. Since then (through FY2012) the number has

remained at, or above, roughly 50,000. The rise in the number of adoptions played a significant

role in the decline in the overall number of children in foster care, which peaked in FY1999 at

567,000 children and had declined by 30%, to 397,000 children, as of the last day of FY2012.

The fact that the number of foster child adoptions has remained relatively high, despite the

decline in the overall number of children in foster care, is notable. 43 Viewed as a rate—that is the

See CRS Report RL34704, Child Welfare: The Fostering Connections to Success and Increasing Adoptions Act of

2008 (P.L. 110-351), by (name redacted) and “Federal Adoption Assistance Eligibility Criteria” in CRS Report

R42792, Child Welfare: A Detailed Overview of Program Eligibility and Funding for Foster Care, Adoption Assistance

and Kinship Guardianship Assistance under Title IV-E of the Social Security Act, by (name redacted).

Adoptions are generally a matter of state law and most termination of parental rights (TPR) proceedings and adoption

finalizations occur in state courts (although they may also occur in tribal courts). While TPR is required for nearly all

adoptions, a few states (and certain tribes) recognize “tribal customary adoptions,” which do not require TPR.

For information by state on the decline in the number of children in foster care and the number waiting for adoption

see Table E-1 and Table E-2 in Appendix E. The state data shown compare caseload and waiting children just before

most recent reauthorization (FY2007) to most current national data available (FY2012). Across that time period, the

number of children in foster care declined by close to 19% (from 488,000 to 397,000) and the number of those children

in foster care who were counted as “waiting for adoption” declined by 24% (from 134,000 to 102,000). While the

amount and kind of change in the foster child and “waiting” population varied greatly by state, only seven states saw an

increase in their foster care caseload from the last day of FY2007 to the last day of FY2012 and just six saw an increase

in the number of children waiting for adoption.

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number of children adopted during a given fiscal year for every 100 children who were in foster

care on the last day of the preceding fiscal year—public child welfare agency adoptions more

than doubled since the late 1990s (from a rate of roughly 6 adoptions per 100 children in foster

care to 13 per 100). (See Table C-1 in Appendix C for annual data on number and rate of

adoptions.)

Decline in Children in Foster Care Waiting for Adoption

For roughly one-quarter (24%) of the children in foster care on a given day, adoption has been

identified as their case plan goal—that is, their exit strategy to permanency.44 Some children with

a permanency goal of adoption, and certain other children in foster care, are “legally free” for

adoption—meaning the rights of both parents have been terminated. These children—those with a

case plan goal of adoption and/or for whom all parental rights have been terminated are generally

referred to as children who are “waiting for adoption.”45

For most of FY1998-FY2012, the number of children waiting for adoption was between 130,000

and 135,000. However, in recent years this number has declined, and it stood at 102,000 as of the

last day of FY2012. Additionally, the share of waiting children who leave foster care for adoption

has increased. Specifically, the number of children adopted from foster care in FY1999 was 37%

of all children waiting for adoption on the last day of FY1998; the comparable percentage for

children adopted in FY2012 was 49%. (See Table C-2 in Appendix C for annual data on the

number of waiting children and the share adopted in the following year.)

Even though the number of waiting children has declined, that number represents a slightly larger

share of the overall foster care caseload in FY2012 (26%) than was the case in FY1998 (22%). This

relatively modest increase in share of children in foster care waiting for adoption—coinciding with

greater success in moving waiting children to adoption—might reflect changes in state practice

regarding who may be assigned a case goal of adoption. Alternatively, or in addition, it might be the

result of state efforts to reduce unnecessary entries to foster care—which in turn could mean a

higher percentage of those entering will need to find a new permanent family via adoption.

Reduced Time to Adoption

Adoption is a multi-step legal and social process that takes time to accomplish. Children who

enter foster care do not typically move directly to adoption. With limited exceptions federal

policy requires that a state must make “reasonable efforts” to reunite a child with his or her

family.46 When reunification is determined not possible, however, the state must take certain steps

to free a child for adoption. Specifically, as amended by ASFA, federal law requires a state to

petition a state court for termination of parental rights (TPR) to the child if a state court finds

HHS, ACF, ACYF, Children’s Bureau, The AFCARS Report, No. 20 (November 2013). The most common case plan

goal for children in foster care is to reunite with their parents. Smaller numbers of children in care have a case plan goal

of living with another relative or living with a legal (relative or non-relative) guardian. Aside from these goals (and

adoption), each of which plan for a child’s exit from care to a permanent family, children in foster care have a goal of

“emancipation” (aging out) and others have their case plan goal reported as “long-term foster care.”

For a more complete definition of “waiting children” see Glossary of Terms in Appendix B.

See “Prevent Entry or Reunite Children with Their Parents” in CRS Report R42794, Child Welfare: State Plan

Requirements under the Title IV-E Foster Care, Adoption Assistance, and Kinship Guardianship Assistance Program,

by (name redacted).

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either that the child is an abandoned infant (as defined in state law) or that reasonable efforts to

reunite the child and his/her parents are not required (because the parent has committed one of

certain heinous crimes against the child or his/her sibling). Additionally, once a child has been in

foster care for 15 out of the last 22 months, the state must petition the court for TPR, unless it can

document for the court that doing so would not be in the child’s best interest, that services

necessary for reunification and agreed to in the child’s case plan have not been provided, or that

the child is living with a relative.47 The state court must then determine—based on state laws

defining when parental rights may be severed—whether to grant TPR.48 At the same time, for any

child who cannot be reunited and whose case plan goal is adoption, the state agency must work to

find an appropriate and willing adoptive family. Once this step is complete, and a child is

successfully placed with the family, a state court must again act, this time to finalize the adoption

and, as part of this process, to formally provide the adoptive parents with all legal parental rights

and responsibilities for the child.

Since FY2000, the amount of time a child spends in foster care before leaving via a finalized

adoption has declined by roughly one year. Most of this reduction in time is a result of the shorter

time frame needed to reach TPR. However, there has also been some decline in the amount of

time it takes to finalize a child’s adoption after TPR is completed. On average, adoptions of

children out of foster care that were finalized in FY2000 took just under four years to complete

(45.9 months). By contrast, children who reached a finalized adoption in FY2012 did so, on

average, in less than three years (33.1 months). (For annual data on average and median time

from removal to finalized adoption, see Table C-3 in Appendix C.)

Adoption Incentive Payments

Promoting the use of adoptions to ensure children who would otherwise remain in foster care

have a permanent family has been a driving purpose of the Adoption Incentive program since its

creation. The program has also sought to provide special incentives to states for adoptions of

children who are considered harder to place in adoptive homes, including children with special

needs and older children.49 Established by ASFA in 1997 (at Section 473A of the Social Security

Act), the Adoption Incentive program has been amended and extended twice: first, by the

Adoption Promotion Act of 2003 (P.L. 108-145), and, more recently, by the Fostering

Connections to Success and Increasing Adoptions Act of 2008 (P.L. 110-351).

Each reauthorization of the Adoption Incentive program has made some changes to the incentive

structure used to determine awards, including the categories for which awards may be earned, the

“baselines” used to determine improvement, and/or the amount of the individual incentive

awards. The current incentive structure is described below. (Appendix D includes a table that

shows development of the incentive structure across program reauthorizations.)

Ibid. See “Ensure Timely Placement in a New Permanent Family When Appropriate.”

TPR must be determined for each parent individually. For more information see Child Welfare Information Gateway,

State Statutes Series, Grounds for Involuntary Termination of Parental Rights (2010).

The Adoption Incentive program seeks to influence state child welfare agency behavior. Congress has separately

provided a tax credit to individuals who adopt children, including children with special needs. This “incentive” to adopt

is not a part of the discussion in this report. However, for more information see, CRS Report RL33633, Tax Benefits for

Families: Adoption, by (name redacted).

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How Do States Earn Incentive Payments?

Under current law, states earn Adoption Incentive funds in four ways.50 Specifically, states may

earn incentive payments for an increase in the

•

number of children adopted out of foster care overall;

•

number of children adopted at age 9 or older;

•

number of children adopted with special needs and who are under the age of 9; or

•

rate at which children were adopted from foster care.

Whether a specific state has increased the number of adoptions is determined by comparing the

number of adoptions that the state finalized during the fiscal year to the number of such adoptions

it finalized in FY2007 (the “baseline” year). A state is determined to have increased its rate of

adoption if the percentage of children adopted from foster care (as a share of the number of all

children in foster care in the prior year) is greater than it was in FY2002, or in any succeeding

fiscal year prior to the year for which the award is being determined.

Amount of Incentive Payments

An eligible state earns $4,000 for each foster child adopted above its baseline number of foster

child adoptions and $8,000 for each older child (age 9 or above) adoption above its older child

adoption baseline.51 If a state earns an award in either of those categories—or if it improved its

adoption rate—it also earned $4,000 for each adoption of a special needs child (under age 9) that

was above its baseline number of such adoptions. Finally, for an improvement in its rate of

adoption, a state is eligible for additional incentive funds of $1,000 multiplied by the increased

number of adoptions achieved by the state that are attributed to its improved adoption rate.52

However, increases due to improved adoption rates may only be paid if sufficient program

funding is available after all awards for increases in the number of adoptions have been made.

Eligibility for Adoption Incentive Payments

Any state (includes the 50 states, District of Columbia, and Puerto Rico) operating a Title IV-E

program may be eligible to earn Adoption Incentive payments provided awards are authorized for that

This incentive structure applied for adoptions finalized in FY2008-FY2012; incentive payments for those adoptions

were generally awarded at the end of each of FY2009-FY2013. Under the Consolidated Appropriations Act, 2014 (P.L.

113-76) (and as proposed in H.R. 4980) this incentive structure also applies for adoptions finalized in FY2013.

Payments for FY2013 adoptions are expected to be initially awarded in September 2014 (i.e., end of FY2014).

These awards are separately calculated. One child’s adoption (if child is age 9 or older) may be counted for purposes of

determining awards in both categories. However, a state that increases its foster child adoptions does not necessarily increase its

older child adoptions (or vice versa). To earn awards in both categories, the state must show increases in both categories.

An award for an improved rate is calculated by multiplying the state’s baseline adoption rate (i.e., highest rate

achieved in FY2002 or any subsequent year preceding year for which award is being determined) by the number of

children in the state’s foster care caseload on the last day of the fiscal year preceding the year for which the award is

being determined. This result is then subtracted from the number of foster child adoptions in the state in the year for

which the award is being determined. The difference represents the number of adoptions that are attributed to the

increased adoption rate and this number (rounded to nearest whole number) is multiplied by $1,000 to determine the

award amount. For an example of this award calculation see HHS, ACF, Information Memorandum, “Adoption

Incentive Payments,” September 1, 2009 (ACYF-CB-IM-09-03), p. 6.

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year.53 The program law (Section 473A of the Social Security Act) provides states may only earn

awards for adoptions finalized in any of FY2008-FY2012 and it authorizes funds for that purpose

through FY2013. However, the Consolidated Appropriations Act, 2014 (P.L. 113-76) provides that

states may continue to be eligible to earn Adoption Incentive Payments for adoptions completed in

FY2013 and it provides FY2014 funds ($37.9 million) to make those incentive payments.

Further, to be eligible for Adoption Incentive payments, the state must provide—via the Adoption and

Foster Care Analysis Reporting System (AFCARS)—the necessary data to calculate the incentive

amounts. The state must also assure that it provides health insurance coverage to any adoptive child

for whom the state determined the child has special needs—including those eligible for ongoing Title

IV-E adoption assistance and those with special needs who are not eligible for this assistance.54 In

addition, no state may receive an award for an increase in the number of special needs adoptions of

children under the age of 9, unless that state, in that same year, also shows an increase in of the

number of foster child or older child adoptions (compared to what the state achieved in FY2007), or

an increase in the state’s rate of foster child adoption (compared to the rate it achieved in FY2002, or

any higher rate achieved in a prior subsequent year).

Awards and Appropriations

The first Adoption Incentive awards were paid in FY1999 for adoptions finalized in FY1998 and

the most recent were initially paid in FY2013 for adoptions finalized in FY2012. During the life

of the program, all 50 states, the District of Columbia and Puerto Rico have earned Adoption

Incentive payments in one or more years and more than $423 million has been awarded to all

states through FY2012. Discretionary funding was authorized for the program through FY2013 at

the annual level of $43 million. Actual appropriation levels have varied but in recent years have

been less than $40 million. For FY2013, Congress provided $37.2 million (after sequestration)

and for FY2014 it provided $37.9 million.

Table 1 summarizes the appropriations provided and awards made by fiscal year for which the

funds were initially appropriated and the fiscal year for which the incentive funds were earned.55

For numerous years, not all of the funding shown as the award amount for a given year was

actually paid to states at a single time or in a single fiscal year. In years when funds are not

sufficient to pay all incentive payment amounts earned (based on numbers of adoptions), HHS

prorates the award amounts for the initial payment (as provided for by statute) and subsequently it

awards remaining earned incentives (for improved numbers of adoptions) when additional

appropriations are provided. 56 For example, when HHS made the initial award for adoptions

completed in FY2012, it had just $32.5 million available, or about 74% of the full amount states

earned during the year for increasing the numbers of children adopted. Accordingly, each state

that earned such an award received 74% of that total amount in September 2013. Subsequently,

Congress provided additional program appropriations (as part of P.L. 113-76) and HHS awarded

the remaining amount (26%, or about $11.4 million) to states.

Section 473A(b)(1) of the Social Security Act. Tribes may not participate. See HHS, ACF, ACYF-CB-IM-09-03.

Section 473A(b)(3) and (4) of the Social Security Act.

Section 473A(h)(2) provides that funds appropriated for the Adoption Incentive program may be used in any fiscal

year through the last fiscal year for which funding for the program is authorized. However, the use of funds across

years has usually been limited to fewer years due to language in the annual appropriations bill.

Section 473A(d)(3) of the Social Security Act. See also HHS, ACF, ACYF-CB-IM-09-03, September 1, 2009.

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Child Welfare: The Adoption Incentive Program and Its Reauthorization

Table 1. Adoption Incentive Payments

Summary of Appropriations and Award History

Appropriation Law

Appropriations

FY Adoptions Finalized

Award Amount

P.L. 105-277 (1999)

$19,994,999

FY1998 (35 states)

$42,510,000

P.L. 106-113 (2000)

$41,784,342

FY1999 (43 states and DC)

$51,488,000

P.L. 106-554 (2001)

$42,994,000

FY2000 (35 states and DC)

$33,238,000

P.L. 107-116 (2002)

$43,000,000

FY2001 (23 states and PR)

$17,578,000

P.L. 108-7 (2003)

$42,721,000a

FY2002 (25 states and PR)

$14,926,845

P.L. 108-199 (2004)

$7,456,000

FY2003 (31 states and PR)

$17,896,000

P.L. 108-447 (2005)

$9,346,000b

FY2004 (24 states, DC, and PR)

$14,488,000

P.L. 109-149 (2006)

$17,808,000a

FY2005 (21 states)

$11,568,000

P.L. 110-5 (2007)

$5,000,000

FY2006 (19 states)

$7,354,000

P.L. 110-161 (2008)

$4,323,000

FY2007 (21 states)

$11,086,000

P.L. 111-8 (2009)

$36,500,000

FY2008 (38 states and DC)

$35,357,280c

P.L. 111-117 (2010)

$39,500,000

FY2009 (38 states and PR)

$45,752,000c

P.L. 112-10 (2011)

$39,421,000

FY2010 (32 states)

$40,144,000c

P.L. 112-74 (2012)

$39,346,000

FY2011 (30 states)

$36,472,000c

P.L. 113-6 (2013)

$37,230,000d

FY2012 (25 states)

$43,896,000c

P.L. 112-76 (2014)

$37,943,000

Awards for FY2013 adoptions expected to be made in late FY2014.

TOTAL appropriated

$464,367,341

(includes some funds transferred or lapsed and

therefore unavailable for award) a, b

TOTAL expected to be awarded

$423,754,125

(includes only amounts earned that were also awarded)c

Source: Table prepared by the Congressional Research Service (CRS) based on appropriations laws, HHS, ACF

budget justifications, and CRS communication with ACF budget and program analysts.

a. Some of the funds provided in this appropriation cycle lapsed and were returned to the federal treasury.

Funds may lapse when the congressional authority for their use expires before they are needed to award

incentive payments to states.

b. The appropriation in P.L. 108-447 was initially $31.8 million. However, as part of FY2006 appropriations (P.L.

109-149), Congress rescinded $22.5 million of that funding. In addition, HHS/ACF exercised its discretion to

move 1% of the appropriated funds ($318,000) to the Refugee and Entrant Assistance program. This

additionally reduced the total FY2005 funds available for Adoption Incentive payments to $9.0 million,

although the amount shown in the table reflects funding after the rescission and prior to the transfer.

c. The award amounts shown include payments tied to improved adoption rates only if those payments were

actually paid to states. Beginning with adoptions finalized in FY2008-FY2012, states were eligible for increases

in their incentive payment if they improved their rate of adoptions. However, Section 473A(d)(3) of the

Social Security Act provides that these awards may only be paid if funds remain available after any awards for

increases in the number of adoptions are made. Funding was available to provide 48% ($1.7 million) of total

increases ($3.5 million) calculated for improved FY2008 adoption rates. No funds were available to provide

awards for any part of the increases for which states with improved adoption rates were eligible in FY2009

($3.5 million), FY2010 ($2.3 million), FY2011 ($0.9 million) or FY2012 ($1.3 million).

Funding was subject to sequestration. The amount shown here reflects final operating level for FY2013.

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Child Welfare: The Adoption Incentive Program and Its Reauthorization

Awards by Category for Adoptions Finalized in FY2008-FY2012

Under the incentive structure used to make awards for adoptions finalized in FY2008-FY2012,

states were eligible to receive $212 million and received a total of $202 million in Adoption

Incentive payments.57 Forty-five states were paid Adoption Incentive payments in one or more

award category for adoptions finalized in any of FY2008-FY2012.58 Among the seven states that

were not paid an incentive for adoptions finalized in those years, five (Massachusetts, New

Jersey, Ohio, and Vermont) actually increased their rate of adoption in one or more of those

award years and therefore were eligible for an adoption incentive payment, but did not receive an

award due to the program funding level. Additionally, one state (New York) increased the number

of special needs (under age 9) adoptions in some of those years. However, because it did not earn

an incentive in any of the other categories (foster child, older child, or adoption rate), it was not

eligible for incentive funds for those increases. The remaining two states (District of Columbia

and Iowa) did not increase the number of adoptions achieved or improve their rates of adoption in

any of the five years.

Table 2 shows the total amounts paid to states under the current incentive structure by award year

and incentive category.

Table 2. Adoption Incentive Payments for Adoptions Completed in FY2008–FY2012

Dollars in millions; summed parts may not equal totals due to rounding.

Incentive Category

FY2008

FY2009

FY2010

FY2011

FY2012

Total

Foster Child

$16.1

$23.4

$18.9

$16.0

$20.3

$94.7

Older Child (9 years or older)

$8.7

$12.0

$12.5

$11.8

$56.7

Special Needs (under 9 years)

$8.9

$10.3

$8.8

$8.7

$11.8

$48.5

Adoption Rate

$3.5

$2.3

$.09

$1.3

$11.5

TOTAL payments for which states were eligiblea

$37.1

$49.3

$42.4

$37.4

$45.2

$211.5

TOTAL incentive payments awardedb

$35.4

$45.8

$40.1

$36.5

$43.9

$201.6

Source: Table prepared by the Congressional Research Service (CRS) based on data provided by HHS, Children’s Bureau.

Beginning with FY2008, states were eligible for additional incentive sums based on improvements to their

adoption rate if sufficient appropriations are available to pay these awards after awards are made for increases in the

numbers of adoptions. FY2008 was the only year for which some funds were available for increases due to

states’ improved adoption rates. Eligible states were paid $1.7 million or about 48% of the $3.5 million in

incentive amounts tied to improved adoption rates achieved that year. There were no funds available for

incentive payments tied to adoption rate improvements in FY2009 ($3.5 million), FY2010 ($2.3 million),

FY2011 ($898,000) and FY2012 ($1.3 million).

Adoption Incentive awards are typically made at the end of the fiscal year for adoptions finalized in the previous

fiscal year and after any unpaid awards tied to increases in the number of adoptions finalized in an earlier year.

The difference in what states were eligible to receive and what they are expected to receive is because incentive

payments for improvements in rate of adoption may only be paid when the program funding exceeds what is needed to

pay awards tied to increases in the number of adoptions. Therefore, although states were eligible for additional

incentive payments of $11.5 million—for improving their adoption rates in award years FY2008-FY2012—they were

paid only a fraction of that total (15% or $1.7 million) and no more of that total is to be paid.

For purposes of this discussion “states” are defined to include the 50 states, the District of Columbia and Puerto Rico,

which makes a total of 52 states.

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States did not necessarily receive all of these incentive payments in a single fiscal year. Further,

there were insufficient program funds available to make incentive payments for improved

adoption rates in most years. Therefore, the total amount of incentive payments that states were

eligible to receive for adoptions finalized in FY2008-FY2012 is about $10 million more than the

total amount they were expected to receive.59

Foster Child Adoptions

States earned incentive payments of $94.7 million (45% of the total incentive funds they were

eligible to receive) for increasing their number of foster child adoptions finalized in FY2008FY2012. That award category is the broadest—applying to children adopted from foster care

generally. States may earn $4,000 for every adoption of a foster child in the given award year that

is above the number of foster child adoptions the state completed in FY2007 (the baseline year).

Fifteen states finalized more foster child adoptions in each of FY2008-FY2012 than they did in

FY2007, and they earned foster child adoption incentive payments in each of these five years. A

little more than half of the states (27) earned incentive payments for increases in foster child

adoptions in at least one or more (but not all five) of those years, and 10 states did not improve on

their FY2007 record in any of these five years.

Older Child Adoptions

Twenty-seven percent ($56.7 million) of the total incentive dollars states were eligible to receive

for adoptions finalized in FY2008-FY2012 were tied to increases in the number of children who

were adopted at 9 years of age or older. Adoptions of older children are less common than are

adoptions of those who are younger. However, states may earn the largest award amount for

increases in this incentive category. Specifically, states may earn $8,000 for every adoption of an

“older child” in the given award year that is above the number of older child adoptions the state

completed in FY2007 (the baseline year). Twelve states earned incentive payments for increasing

their numbers of older child adoptions in each of FY2008-FY2012 and, a little more than half of

the states (27) did so in at least one (but not all five) of those years. Thirteen states did not

increase their number of older child adoptions (above their FY2007 level in the state) in any of

those five years.

Special Needs (Under Age 9) Adoptions

Twenty-three percent ($49.5 million) of the incentive payments states were eligible to receive for

adoptions finalized in FY2008-FY2012 were linked to increases in the number of adoptions of

children who were determined to have special needs and who were under the age of nine. States

are only eligible to earn incentive payments in this category if they have earned an award in at

least one other incentive category during the same fiscal year (i.e., they increased older child or

foster child adoptions or they improved their rate of adoption). For eligible states, the award

amount is $4,000 for every adoption of a special needs child under 9 years of age that is above the

state’s baseline number of such adoptions (i.e., above the number of such adoptions it achieved in

FY2007).

For incentive awards earned by each state for each of FY2008-FY2012 by category, see HHS, ACF, ACYF,

Children’s Bureau, “Adoption Awards by Category,”FY2008-FY2012,” September 2013. (Available at

https://www.acf.hhs.gov/programs/cb/resource/adoption-incentives-awards-by-category.)

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Child Welfare: The Adoption Incentive Program and Its Reauthorization

For adoptions finalized in FY2008-FY2012, 10 states increased their number of special needs

(under age 9) adoptions above their baseline, but were not eligible in one or more years when this

occurred because they did not earn an incentive payment in any other Adoption Incentive

category in that same year. Overall, 10 states increased the number of special needs (under age 9)

adoptions finalized in each of those five years (compared to FY2007); more than half of the states

(30) did so in at least one (but not all) of the five years (FY2008-FY2012); and 12 states did not

increase the number of these adoptions (above their FY2007 level) in any of those five years.

Adoption Rate

Finally, the total incentive amount a state is eligible to receive in a year is increased if the state

improves its rate of adoption. However, this increased incentive payment is only authorized to be

paid to states if sufficient appropriations remain available after awards are made for increases in

the number of adoptions. For adoptions finalized in FY2008-FY2012, states were collectively

eligible for $11.5 million in incentive payments for improved adoption rates (5% of incentive

payments states were eligible for across all four award categories). However, there were sufficient

appropriations to award just $1.7 million (15%) of the total amount.

A state’s adoption rate is equal to the total number of foster child adoptions it completed in the

fiscal year for every 100 children that were in its foster care caseload on the last day of the

preceding fiscal year. An award for an increased rate of adoption can ensure that an incentive may

be earned by a state that continues to appropriately move children from foster care to adoption

even as the total number of children in foster care declines. In those states, the total number of

children for whom adoption is the desired or appropriate permanency outcome is also likely to

decline.

To be counted as having an improved adoption rate, a state was required to exceed the highest

rate of adoptions it had achieved in any year (beginning with FY2002) that came before the year

for which the awards were being calculated. A state that improved its adoption rate was eligible

for $1,000 award for each adoption calculated to have been achieved due to the higher rate of

adoptions.

The large majority of states (44) improved on their initial adoption rate baseline in one or more

years from FY2008-FY2012. In FY2008, on average, states finalized roughly 11 adoptions for

every 100 children who were in foster care; the comparable number for FY2012 was 13 adoptions

for every 100 children in foster care.

Spending Award Money

States may spend Adoption Incentive funds anytime within a 24-month period, beginning with the

month in which the funds are awarded to a state.60 The statute permits states to spend these

incentive dollars on any service authorized to be provided to children and families under Title IVB or Title IV-E of the Social Security Act. Those parts of the law authorize a broad range of child

Section 473A(e) of the Social Security Act. The 2008 reauthorization amended the law to ensure that states have a

full two years from the date they receive the incentive funds to spend them. Prior law permitted states to spend funds

through the end of the fiscal year following the fiscal year in which awards were made. However, because the bulk of

award funding is provided in the waning days of the fiscal year, this typically permitted states only a little more than 12

months to spend the award funds.

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Child Welfare: The Adoption Incentive Program and Its Reauthorization

welfare-related activities, including activities to prevent child abuse or neglect and/or provide

services to enable a child to remain in his/her own home; investigation of alleged child abuse or

neglect and placement of children in foster care if necessary; provision of services to reunite a

child in foster care with his/her parents and for services to maintain the reunification; finding a

new permanent home for children who may not be reunited with their parents, including through

adoption or guardianship; provision of post-permanency services; and services to assist a youth in

foster care to make a successful transition to adulthood. A state may not count its spending of

Adoption Incentive funds toward meeting any of the “matching” requirements included in the

programs authorized in Title IV-E and Title IV-B of the Social Security Act. (Programs under

those parts of the law generally require states to supply between 20% and 50% of the total

program funding out of their non-federal, state or local, dollars.)61

Many states report spending incentive funds on adoption-related purposes, including postadoption support services (e.g., support for adoptive parent mentors or adoptive family support

groups, respite care, casework and supports for adoptive families of children at risk of re-entering

foster care); recruitment of adoptive homes (e.g., support for online adoption exchange or photolisting, development of promotional materials, child-specific recruitment efforts); and training or

conferences to improve adoption casework. Other adoption-related services or supports funded

with Adoption Incentive awards (in a smaller number of states) included provision of monthly

adoption assistance payments, purchase of new equipment or provision of other resources to

improve processing and archiving of adoption records, support for new or improved adoption

home studies, and attention to inter-jurisdictional adoption placement. Some states used Adoption

Incentive funds for foster care-related activities (e.g., training or recruitment of foster parents—

alone or in combination with adoptive parents and foster and/or adoptive parent supports). Others

referenced support for permanency efforts more generally (i.e., incorporating guardianship or

reunification). At least one state reported using these incentive funds for foster care maintenance

payments. Finally, a few states described use of Adoption Incentive funds for services to families

and children remaining in the home (e.g., alternative response and direct child protection

services).62

Section 473A(f) of the Social Security Act.

Based on CRS review of state Annual Progress and Services Reports (APSRs) submitted by states, generally, in midto late-2012, as part of requesting certain federal FY2013 child welfare funding.

Congressional Research Service

Appendix A. Comparison of Current Law and Selected Reauthorization Proposals

Table A-1. Selected Provisions to Reauthorize Adoption Incentive Payments and Make Other Child Welfare Changes

H.R. 3205 passed the House in October 2013; Title I provisions of S. 1870 approved by the Senate Finance Committee in December 2013;

Title II of H.R. 4980 introduced on June 26, 2014

Issue

Current Law

Promoting Adoption and

Strengthening and Finding

Legal Guardianship

Families for Children

(H.R. 3205)

(Title I of S. 1870/S. 1876)

Adoption Incentive Payments (Section 473A of the Social Security Act)

Reauthorization of

funding authority

Annual funding of $43 million

authorized on a discretionary basis

through FY2013.

Would extend this same level of

discretionary funding authority for each

FY2014-FY2016.

Award categories

(payment amounts)

State earns an incentive payment for

each adoption above its “baseline”

number of

State would earn an incentive payment for State would earn an incentive payment for

each adoption or guardianship calculated to each adoption or guardianship calculated

to have occurred because the state’s rate

have occurred because the state’s rate of

of adoptions or guardianships, was above

adoptions or guardianships, was above its

its “baseline” rate of

“baseline” rate of

•

foster child adoptions—all ages

($4,000)

• older child adoptions—age 9 or

older ($8,000)

• special needs, under age 9

adoptions ($4,000) (earned only if

the state earns an incentive in

another category)

CRS-24

•

foster child adoptions—all ages

($2,000)

• foster child guardianships—all ages

($1,000)

• pre-adolescent adoptions—ages 9

through 13 ($4,000)

• older child adoptions—age 14 or

older ($8,000)

Same as H.R. 3205.

•

foster child adoptions—all ages

($4,000)

• foster child guardianship—all ages

($4,500)

• older child adoptions or

guardianships–age 14 or older ($8,000)

• special needs—under age 9 adoptions

($4,500)

Adoption and Child Support

Enhancement Act

(Title II of H.R. 4980)

Same as H.R. 3205.

State would earn an incentive payment for

each adoption or guardianship calculated to

have occurred because the state’s rate of

adoptions or guardianships, was above its

“baseline” rate of

•

foster child adoptions—all ages

($5,000)

• foster child guardianship—all ages

($4,000)

• pre-adolescent adoptions or

guardianships—ages 9 through 13

($7,500)

• older child adoptions or guardianships–

age 14 or older ($10,000)

Issue

Current Law

Promoting Adoption and

Legal Guardianship

(H.R. 3205)

The lower of (1) rate of adoptions or

guardianships the state achieved in a given

category in FY2007 or (2) the rate it achieved

in that category in the fiscal year immediately

preceding the fiscal year for which the award

is being determined,

Strengthening and Finding

Families for Children

(Title I of S. 1870/S. 1876)

Average rate of adoptions and/or

guardianships the state achieved in a given

category for the three fiscal years

immediately preceding the fiscal year for

which the award is being determined.

Adoption and Child Support

Enhancement Act

(Title II of H.R. 4980)

The lower of (1) the rate of adoptions

and/or guardianships the state achieved in a

given category in the fiscal year immediately

preceding the fiscal year for which the

award is being made or (2) the average rate

of adoptions and/or guardianships the state

achieved in a given category for the three

fiscal years immediately preceding the fiscal

year for which the award is being

determined.

Baseline

Number of adoptions the state

completed in a given category during

FY2007.

Additional Incentive

Payment

If appropriated funds are available after Would strike this provision.

all awards for increased numbers of

adoptions have been paid, HHS must

award incentive payments to states (50

states, DC or PR) that improve their

rate of foster child adoptions (above

highest rate state achieved beginning

with FY2002)

Would replace current law provisions with Would replace current law provisions with

following: If appropriated funds remain,

HHS must provide a timely adoption

HHS must provide a timely adoption award

award to each state (50 states and DC) in to each state (50 states, DC and PR) in

which more than 50% of adoptions

which the average time from removal to

completed in the fiscal year were finalized adoption (among children who left foster

within 12 months of the date the child was care for adoption) is less than 24 months.

legally free for adoption. The award

The award amount would be equal among

amount would be equal among each

each “timely adoption award state”.

“timely adoption award state.”

Definition of foster

child guardianship

No definition of foster child

guardianship.

Same as H.R. 3205, except that in the first Same as H.R. 3205.

scenario, the state would not need to

report to HHS that it had explicitly ruled

out adoption as a permanency option for

the child.

CRS-25

Foster child guardianship would be defined as

a child’s exit from foster care to legal

guardianship if the state reports to HHS that

“Legal guardianship” is defined to mean it has determined all of the following: (1) The

“a judicially created relationship

child was removed from his/her home

between child and caretaker which is

because a judge found it “contrary to the

intended to be permanent and selfwelfare” of the child or via a voluntary

sustaining as evidenced by the transfer agreement;

to the caretaker of the following

(2) Neither returning the child to that

parental rights with respect to the

home nor adoption is the appropriate

child: protection, education, care and

permanency plan for the child:

control of the person, custody of the

(3) The child demonstrates a strong

person, and decisionmaking.”

attachment to the prospective legal

guardian and the prospective legal guardian

A “legal guardian” is the caretaker in

has strong commitment to caring

this relationship.

permanently for the child; and

Issue

Current Law

Promoting Adoption and

Legal Guardianship

(H.R. 3205)

(4) If child is age 14 or older he/she has

been consulted.

Strengthening and Finding

Families for Children

(Title I of S. 1870/S. 1876)

Adoption and Child Support

Enhancement Act

(Title II of H.R. 4980)

Any exit of a child from foster care to legal

guardianship where the state provides to

HHS the alternative procedures it used to

determine that guardianship was the

appropriate permanency option for the

child.

Use of Award

Payments

Effective Dates for

Adoption Incentive

Payment

Amendments,

including the

Transition Rule

CRS-26

States may spend awards on a broad

range of child welfare purposes.

Same as current law.

If a state receives an award of at least

$100,000 it must spend no less than 25%

of it on post-reunification services.

Same as current law.

States have 24 months to spend the

award payments.

States would be permitted up to 36 months Same as current law.

to spend the awards.

Same as H.R. 3205.

Not applicable.

Reauthorization of funding authority and

Same as H.R. 3205

state eligibility to earn incentive payments

along with the ability of state to spend

incentive funds for up to 36 months after

they receive the funds would be effective as

if enacted on October 1, 2013.

Same as H.R. 3205

The renaming of the program and changes

to the incentive structure would be

effective October 1, 2014. However,

incentive payments made in FY2014 would

be based on the incentive structure now in

the law; incentive payments made in

FY2015 would be based one-half on

structure now in law and one-half on

incentive structure in this bill. All incentive

payments made in FY2016 would be based

on the incentive structure in the bill.

Same as H.R. 3205.

Issue

Current Law

Promoting Adoption and

Legal Guardianship

(H.R. 3205)

The requirement that states spend any

incentive payments to supplement not

supplant other child welfare spending

would be effective as if enacted on

October, 1 2013.

Strengthening and Finding

Families for Children

(Title I of S. 1870/S. 1876)

Adoption and Child Support

Enhancement Act

(Title II of H.R. 4980)

The requirement that state spend any

incentive payments to supplement not

supplant other child welfare spending would

be effective on the date of enactment.

Family Connection Grants (Section 427 of the Social Security Act)

Funding for Family

Connection Grants a

The Fostering Connections to Success

and Increasing Adoptions Act

appropriated $15 million for Family

Connection grants for each of FY2009FY2013.

Would appropriate $15 million for these

grants for each of FY2014-FY2016.

Same as H.R. 3205.

Eligible Entities

HHS may award grants to state, local,

or tribal child welfare agencies or to

private nonprofit organizations that

have experience working with foster

children or children in kinship care

arrangements.

Same as current law.

Would additionally permit HHS to award Same as Title I of S. 1870/ S. 1876.

these grants to colleges or universities

(specifically, “institutions of higher

education” as defined in Section 101 of the

Higher Education Act).

Expanded purpose for Kinship navigator programs are

kinship navigator

intended to assist kin caregivers in

program

finding and accessing services to meet

their own needs and the needs of the

children for whom they care. Among

other requirements, these programs

must promote partnerships between

public and private agencies to increase

knowledge among these groups on

needs of kin caregiver families and to

promote better services for those

families.

Same as current law.

Would provide that the efforts to

promote public-private partnerships to

improve awareness of, and services for,

kinship care families, must also extend to

individuals who are willing to be foster

parents for youth in foster care who are

themselves parents.

Reservation of Funds HHS must annually reserve $5 million Same as current law.

for Kinship Navigator of funding for Family Connection grants

Programs

to support kinship navigator programs.

CRS-27

Would appropriate $15 million to continue

these grants for one year (FY2014).

Same as Title I of S. 1870/ S. 1876.

Would no longer require this specific

Same as Title I of S. 1870/ S. 1876.

reservation (meaning this funding would be

available to kinship navigator programs on

same basis as funding for any other service

authorized under the grant.

Issue

Current Law

Effective Date for

Family Connections

Promoting Adoption and

Strengthening and Finding

Legal Guardianship

Families for Children

(H.R. 3205)

(Title I of S. 1870/S. 1876)

Would make these provisions effective as if Same as H.R. 3205.

enacted on October 1, 2013.

Adoption and Child Support

Enhancement Act

(Title II of H.R. 4980)

Same as H.R. 3205.

Title IV-E Foster Care—Notice of Child’s Removal from Home (Section 471(a)(29) of the Social Security Act)

Notice of child’s

removal from home

Within 30 days of removing a child

Same as current law.

from the custody of his or her parents,

a state must make diligent efforts to

identify and provide notice of this

removal to all adult grandparents and

other adult relatives of the child and

must explain options those adults have

of caring for the child.

Would add to the list of adults that must

be identified and given this notice, any

parent(s) of a sibling of the child who is

being removed, provided that parent has

legal custody of the child’s sibling.

Definition of sibling

No definition.

Same as current law.

Would define sibling to mean an individual

Same as Title I of S. 1870/ S. 1876.

who (1) is considered a child’s sibling under

state law; or (2) would have been considered

a sibling under state law but for termination

of parental rights or other disruption of

those rights (e.g., death of parent).

Rule of Construction

Not applicable

Not applicable.

Would assert that this requirement must not Same as Title I of S. 1870/ S. 1876.

be understood as subordinating the rights of

foster or adoptive parents of a child to the

rights of the parents of a sibling of that child.

Effective Date for

Title IV-E Plan

Requirement

Not applicable.

Would make this provision effective on the

date of enactment, except that a state may

have limited additional time to meet the

requirement if HHS determines that state

legislation is needed (other than

appropriations) to meet the requirement.

Same as Title I of S. 1870/ S. 1876.

Title IV-E Guardianship Assistance Program—Successor Guardians (Section 473(d) of the Social Security Act)

Continued Eligibility

CRS-28

To be eligible for federal (Title IV-E)

kinship guardianship assistance a child

must, among other requirements, have

entered foster care after having been

removed from a home with very low-

Would permit a child who has already been Same as H.R. 3205.

determined to be eligible for Title IV-E

kinship guardianship assistance to remain

eligible (without re-entering foster care or

otherwise re-determining eligibility) in the

Same as H.R. 3205.

Issue

Current Law

income and, while in foster care, must

have lived with the prospective legal

guardian at least six months.

Effective Date

CRS-29

Not applicable.

Promoting Adoption and

Legal Guardianship

(H.R. 3205)

event his/her relative legal guardian died or

became incapacitated. Specifically would

allow the Title IV-E kinship payment to be

made on this child’s behalf to a successor

legal guardian who is named in the child’s

Title IV-E kinship guardianship assistance

agreement.

Would make this provision effective on

date of its enactment.

Strengthening and Finding

Families for Children

(Title I of S. 1870/S. 1876)

Same as H.R. 3205.

Adoption and Child Support

Enhancement Act

(Title II of H.R. 4980)

Same as H.R. 3205.

Issue

Calculation and

Reporting on Any

Savings

Promoting Adoption and

Strengthening and Finding

Adoption and Child Support

Legal Guardianship

Families for Children

Enhancement Act

(H.R. 3205)

(Title I of S. 1870/S. 1876)

(Title II of H.R. 4980)

Title IV-E Adoption Assistance - Reinvestment of Certain Funds (Section 473(a)(8) of the Social Security Act

Current Law

States are required to document

savings in state spending (if any) that

result from expanding federal eligibility

for Title IV-E adoption assistance

(authorized by the Fostering

Connection to Success and Increasing

Adoptions Act of 2008).b

States would be required to calculate the

Generally, same as H.R. 3205.

savings (if any) resulting from expanding

eligibility for Title IV-E adoption assistance

using a methodology specified by HHS, or

one proposed by the state and approved by

HHS.

Same as H.R. 3205.

Each state would be required to report

annually to HHS on (1) the method it used

to calculate the savings (regardless of

whether any savings were found); (2) the

amount of any savings identified, and (3)

how any such savings are spent.

HHS would be required to post the annual

reports made by each state regarding any

such savings and how they are spent on the

agency website in a location that is easily

accessible to the public.

Spending funds

States may spend any of the savings

States would be required to spend not less

from expanded federal Title IV-E

than 20% of any state savings identified to

eligibility on a broad range of child

provide post adoption service.

welfare-related services to children and

their families, including post-adoption

services.

This spending would need to “supplement,

and not supplant” current federal or nonfederal funds being used to provide those

same services.

Effective Date

CRS-30

Not applicable.

States would be required to spend not less

than 40% of any state savings identified to

provide post-adoption or post-guardianship

services, and services to support and sustain

positive permanent outcomes for children

who otherwise might enter foster care.

States would be required to spend not less

than 30% of any state savings identified to

provide (1) post adoption or postguardianship services and (2) services to

support and sustain positive permanent

outcomes for children who otherwise might

enter foster care. Not less than two-thirds

of this spending must be spent for postadoption or post-guardianship services.

Same as H.R. 3205.

Would make this requirement effective as if Same as H.R. 3205.

enacted on October 1, 2013.

Would make this requirement effective on

October 1, 2014.

Promoting Adoption and

Strengthening and Finding

Adoption and Child Support

Legal Guardianship

Families for Children

Enhancement Act

(H.R. 3205)

(Title I of S. 1870/S. 1876)

(Title II of H.R. 4980)

Title IV-E Data Collection & Reporting - Adoption Disruption and Dissolutions (Section 479 of the Social Security Act)

Issue

Current Law

Required data

collection and

reporting; regulations

HHS was required to establish, by

Same as current law.

regulation, a data collection system, to

provide for comprehensive national

information with respect to children in

foster care and those who are adopted.

(This system is known as the

“Adoption and Foster Care Analysis

Reporting System (AFCARS).)

HHS would be required to issue final

regulations requiring states to collect and

report information on the number of

children who enter foster care because

their adoptions or foster child

guardianships disrupt or are dissolved

(whether those children were born in this

country or another country).

Separately states report to HHS on

spending under the Promoting Safe and

Stable Families (PSSF) program.

The regulations would also need to

provide for state reporting of additional

information on the reasons for disruptions

and dissolutions and the state’s use of pre- The regulation must provide for collection

and post-adoptive services to lower rates of data on the number of such children and

may also require collection of additional

of disruption and dissolution. Finally, the

information considered necessary to better

regulations would need to require states

to report how they spend funds received understand factors associated with the

child’s post-adoption or post-guardianship

under the PSSF program to promote

adoption, and separately, to provide pre- entry to foster care.

and post-adoptive support services.

HHS must annually submit to Congress

a report on the performance of each

state with regard to achieving specific

child welfare outcomes. (This report is

known as Child Welfare Outcomes.)

To promote improved knowledge on how

best to ensure strong, permanent families

for children, HHS is directed to issue final

regulations providing for states to collect

and report information regarding children

who enter foster care after prior

finalization of an adoption or legal

guardianship. (These children may include

those who were previously in foster care as

well as others, including those who come to

this country through adoption.)

Would require HHS (beginning with data

for FY2016) to annually include in this

report information collected, as a result of

the new data collection and reporting

regulations, on the numbers and rates of

disruptions and dissolutions of adoptions.

Source: Congressional Research Service. While this table generally captures the differences between these bills (or specified parts of these bills) it is not an exhaustive

description of differences between those bills/parts of those bills.

CRS-31

Both H.R. 3205 and S. 1876 sought to offset the cost of a three-year appropriation of mandatory funding to support Family Connection Grants by amending

Unemployment Insurance (UI) program (designed to improve recoupment of overpayments). However, a similar change to the UI program was enacted in late December

2013 as part of the Bipartisan Budget Act (P.L. 113-67). Therefore, the Congressional Budget Office (CBO) determined that the UI change proposed in H.R. 3205 and S.

1876 would no longer produce any federal savings. (See CBO, S. 1870, Supporting At-Risk Children, January 27, 2014, p. 4.) Title III of H.R. 4980 includes changes to the

Child Support Enforcement program (Title IV-D of the Social Security Act)—primarily related to required electronic withholding of certain income orders—that CBO

estimates will more than offset the cost of providing one-year of funding for Family Connection Grants. See Congressional Budget Office, H.R. 4980, the Preventing Sex

Trafficking and Strengthening Families Act, as introduced June 26, 2014, June 26, 2014

CRS-32

P.L. 110-351. This expanding eligibility is primarily the result of removing income eligibility for Title IV-E adoption assistance. It began to be phased in with FY2010 and will

be fully implemented as of the first day of FY2018. Around the time of its enactment, the Congressional Budget Office (CBO) projected that this expanding eligibility

would increase federal Title IV-E spending by $1.4 billion from FY2009-FY2018, with the bulk of that increase ($1.3 billion) projected to occur in FY2014-FY2018. Some or

all of this increase in expending federal outlays is expected to represent savings of state monies. See CBO, “H.R. 6893, Fostering Connections to Success and Increasing

Adoptions Act of 2008,” as signed by the President on October 7, 2008, December 23, 2008.

Child Welfare: The Adoption Incentive Program and Its Reauthorization

Appendix B. Glossary of Terms

ADOPTION RATE—The number of children in foster care who are adopted during a fiscal year

for every 100 children who were in foster care on the last day of the previous fiscal year.

ADOPTION RATE BASELINE—Highest ever adoption rate achieved by the state for any

fiscal year that is before the fiscal year for which the Adoption Incentive rate award is being

determined, beginning with FY2002.

ANOTHER PLANNED PERMANENT LIVING ARRANGEMENT (APPLA)—Each child

in foster care must have a permanency goal—that is a plan for leaving foster care to a permanent

home. A hearing to determine (or re-determine) that permanency goal must be held no later than

12 months after a child enters foster care, and every 12 months thereafter while the child remains

in foster care. If at this hearing it is determined that the child’s plan for permanency may not be

any of reuniting with his/her parents, placement for adoption, placement with a legal guardian, or

going to live with a fit and willing relative, then a child’s plan for exiting care may be “another

planned permanent living arrangement.”

BASELINE (as used in the Adoption Incentive program)—The standard against which state

performance is measured to determine whether, in a given year, the state has increased its number

of adoptions or improved its adoption rate. A baseline is specific to the state, and is based on a

state’s past performance. (The four specific baselines used in the current Adoption Incentive

program are defined individually in this glossary.)

FOSTER CHILD ADOPTION—The finalized adoption of a child who, at the time of adoptive

placement, was in public foster care under the placement and care responsibility of the state child

welfare agency.

FOSTER CHILD ADOPTION BASELINE—The number of foster child adoptions in the state

in FY2007 as reported by the state via the Adoption and Foster Care Analysis Reporting System

(AFCARS).

GUARDIANSHIP—A judicially created legal relationship between child and caretaker which is

intended to be permanent and self-sustaining as evidenced by the transfer to the caretaker of the

following parental rights with respect to the child: protection, education, care and control of the

person, custody of the person, and decision-making.

OLDER CHILD ADOPTION—The finalized adoption of a child who is nine years of age or

older and who, at the time of the adoptive placement was in public foster care or was the subject

of a Title IV-E adoption assistance agreement between the state child welfare agency and the

child’s adoptive parents.

OLDER CHILD ADOPTION BASELINE—The number of older child adoptions in the state in

FY2007 as reported by the state via AFCARS.

SPECIAL NEEDS ADOPTION—The adoption of a child whom the state has determined (1)

cannot be returned to his or her parents and (2) is unlikely to be adopted without assistance

because of a particular factor or condition (e.g., child’s age; membership in a sibling group;

minority race/ethnicity; medical or physical condition; or emotional, mental or behavioral

disability). Additionally, unless this is not in the best interest of the child, the state must have

Congressional Research Service

Child Welfare: The Adoption Incentive Program and Its Reauthorization

made reasonable efforts to place the child for adoption without providing assistance. (A state is

required to enter into a Title IV-E adoption assistance agreement with the adoptive parents of any

child it finds to have special needs.)

SPECIAL NEEDS (UNDER AGE 9) ADOPTION—The finalized adoption of a child who is

eight years of age or younger and who at the time of the adoptive placement was the subject of a

Title IV-E adoption assistance agreement between the state child welfare agency and the child’s

adoptive parents.

SPECIAL NEEDS (UNDER AGE 9) ADOPTION BASELINE—The number of special needs

(under age 9) adoptions in the state in FY2007 as reported by the state via AFCARS.

TERMINATION OF PARENTAL RIGHTS (TPR)—The legal severing (in a state court /court

of competent jurisdiction) of the parent-child relationship. (Typically this severs the rights and

responsibilities of a biological parent to his/her child. In the case of a previously adopted child

however, it is the severing of the rights and responsibilities of the adoptive parent.)

WAITING FOR ADOPTION (as counted by HHS, Children’s Bureau)—A child who is in

foster care and who has a case plan goal of adoption and/or to whom all parental rights have been

terminated. Except that any youth age 16 or older and to whom all parental rights have been

terminated is excluded if that youth has a case plan goal of “emancipation.”

Congressional Research Service

Child Welfare: The Adoption Incentive Program and Its Reauthorization

Appendix C. Trends in Adoptions with Public Child

Welfare Agency Involvement

Table C-1 shows, by fiscal year, the number of adoptions in which the public child welfare

agency was involved, the number of children in foster care (under the responsibility of the public

child welfare agency) on the last day of the fiscal year, and the rate of adoptions. All children who

leave public foster care for adoption are adopted with public child welfare agency involvement

and they represent the very large number of children shown in the adoption column. A small

number of children who do not enter foster care may also be adopted with public child welfare

agency involvement and that number is also included in the number shown in the adoptions

column.

Table C-1. Adoptions with Public Child Welfare Agency Involvement, FY1995-FY2012

Adoption Rate = Number of public child welfare agency adoptions in the given fiscal year for every 100

children in foster care on the last day of the preceding fiscal year.

Fiscal

Year

Children in Public Foster Care

on the last day of the fiscal year

Public Agency-Involved Adoptions

during the fiscal year

Adoption

Rate

1995

483,000

25,700

5.5

1996

507,000

27,800

5.7

1997

537,000

31,000

6.1

1998

559,000

38,000

7.1

1999

567,000

46,900

8.4

2000

552,000

51,100

9.0

2001

545,000

50,600

9.2

2002

523,000

51,400

9.4

2003

510,000

49,600

9.5

2004

508,000

51,000

10.0

2005

511,000

51,600

10.2

2006

505,000

50,600

9.9

2007

488,000

52,700

10.4

2008

464,000

55,200

11.3

2009

420,000

57,200

12.3

2010

405,000

53,500

12.7

2011

398,000

50,900

12.6

2012

400,000

52,000

13.1

Source: Table prepared by the Congressional Research Service (CRS). Children in foster care based on data

available on HHS, Children’s Bureau website for FY2003-FY2012, as posted July 2013 and for earlier years Table

11-4, “Additional Tables and Figures,” Chapter 11, U.S. House Ways and Means Committee, 2012, Green Book

and HHS, Children’s Bureau, “Adoptions of Children with Public Child Welfare Agency Involvement by State”

posted in June 2013(for FY2002) and as reported by states by July 2013 (for FY2003-FY2012).

Notes: Because HHS continuously updates and “cleans” these data, some numbers shown here differ from

earlier published versions of this report. Data are displayed rounded to nearest 1,000 for total caseload and

nearest 100 for adoptions. However, whenever more exact numbers were available they were used to compute

the rate shown.

Congressional Research Service

Child Welfare: The Adoption Incentive Program and Its Reauthorization

Table C-2. Number of Children Waiting for Adoption and Percentage of Waiting

Children Adopted, FY1998-FY2011

Fiscal Year

Children Waiting for Adoption

on last day of the fiscal year

Percentage of Waiting Children Adopted

Children adopted in given fiscal year as percentage of

waiting children on last day of previous fiscal year

1998

125,000

not availablea

1999

130,000

37%

2000

131,000

39%

2001

130,100

39%

2002

133,900

40%

2003

130,500

37%

2004

130,300

39%

2005

131,000

40%

2006

135,300

39%

2007

133,700

39%

2008

125,700

41%

2009

114,700

45%

2010

109,500

47%

2011

106,300

46%

2012

101,700

49%

Source: Table prepared by the Congressional Research Service (CRS). Number of waiting children for FY2003FY2013 is based on data reported by states via AFCARS as of July 2013 (as posted on the HHS Children’s

Bureau website). Data for earlier years are as provided to CRS by the Children’s Bureau.

Notes: Because HHS continuously updates and “cleans” these data, some numbers shown here differ from

earlier published versions of this report.

Number of children waiting for adoption is displayed rounded to nearest 100. However, whenever a more exact

number was available, it was used to calculate the percentage. There is no definition of “waiting children” in

statute or regulation. For purposes of analysis, the HHS Children’s Bureau counts as “waiting” each child in

foster care on the last day of the fiscal year who has a case plan goal of adoption and/or for whom all parental

rights have been terminated. However, it excludes from this number any youth in care who is age 16 or older for

whom all parental rights have been terminated if that youth’s case plan goal is “emancipation.”

a. Could not be calculated because there is no estimate of the number of waiting children in FY1997.

Congressional Research Service

Child Welfare: The Adoption Incentive Program and Its Reauthorization

Table C-3. Average and Median Length of Time to Finalized Adoption, In Months,

FY2000-FY2012

Fiscal

Year

Months from Removal to

Termination of Parental

Rights (TPR)

(Among children later adopted)

Average

Median

Months from Termination

of Parental Rights (TPR) to

Adoption

Average

Median

TOTAL TIME TO

FINALIZE ADOPTION

Months from removal to adoption

Average

Median

2000

32.3

26.0

15.9

12.0

45.9

39.3

2001

29.7

23.5

16.0

11.8

44.0

37.5

2002

27.8

21.5

16.1

12.0

42.9

35.9

2003

26.1

20.1

16.2

12.0

41.8

34.9

2004

24.4

19.3

15.8

11.3

40.3

33.5

2005

23.4

18.8

15.0

10.7

38.3

32.0

2006

22.3

18.4

14.6

10.5

36.9

31.1

2007

21.6

17.9

14.1

10.3

35.7

30.3

2008

21.0

17.7

14.3

10.5

35.2

30.2

2009

20.8

17.8

14.1

10.3

34.8

30.3

2010

20.6

17.7

13.8

10.0

34.6

30.0

2011

20.1

17.4

13.7

9.8

34.0

29.2

2012

20.2

17.2

12.9

9.2

33.1

28.0

Source: Table prepared by the Congressional Research Service (CRS) based on state-reported AFCARS data

provided to CRS by HHS, Children’s Bureau. (FY2000-FY2011 information based on data reported to HHS as of

August 2012; FY2012 information based on data reported to HHS as of January 2014.)

Note: The median length of time to adoption measures the point at which half of the children adopted in the

given fiscal year reached a finalized adoption in fewer months and half in more. By contrast, an average combines

the total months to adoptions for all children with a finalized adoption in the given fiscal year and divides that

number by the total number of adoptions. The average time to adoption is considerably longer than the median

time to adoption because the average is affected by children with significantly longer stays in foster care.

Congressional Research Service

Child Welfare: The Adoption Incentive Program and Its Reauthorization

Appendix D. Adoption Incentive Payments

At each reauthorization of the Adoption Incentive program, Congress has adjusted the incentive

structure. New award categories and adjustments to the baselines have placed greater emphasis on

adoption of harder to place children, helped to ensure that earning an incentive was possible even as

caseloads declined, and protected the value of the incentive payments from erosion by inflation.

Table D-1. Evolution of Adoption Incentive Payment Structure

NA = not authorized

Incentive

Structure

Award