Technical Assistance Partnership for Child and Family Mental Health

Technical Assistance Partnership for Child and Family Mental Health

Child Welfare Frequently Asked Questions

September 2007

How do states use federal funding for child welfare?

Understanding Federal Funding Sources for Child Welfare

States and communities use a variety of financing strategies to support comprehensive services and supports for children and families in the child welfare system with behavioral disorders and their families. Federal funding resources for child welfare services and supports are a critical component in supporting and sustaining a system of care to meet their mental health needs, keep families together, and reunify children with families or support new families formed through adoption or guardianship.

The following chart identifies Federal funding sources dedicated to child welfare through Title IV-B and Title IV-E of the Social Security Act, the Child Abuse Prevention and Treatment Act (CAPTA), and Community Based Grants for the Prevention of Child Abuse and Neglect (CBCAP). Federal sources of non-dedicated child welfare funding are Medicaid, Temporary Assistance for Needy Children (TANF), and the Social Service Block Grant.

Dedicated Child Welfare Funding

Funding Source

Eligible Population

Eligible Services

Funding

Title IV-B  Subpart 1 (Child welfare services)

FY 2007
$285.7 million

No eligibility criteria

Provides grants to states and Indian tribes for programs directed toward the goal of keeping families together including a broad array of services to protect and promote the welfare of all children, prevent abuse and neglect, support at-risk families through services that allow children to remain with their families or reunite families, promote the safety, permanence and well being of children in foster care and adoptive families, and provide training and professional development to ensure a well-qualified work force. 

Discretionary. Each state’s share is determined by the state’s relative share of population under age 21 and the state’s per capita average income. Each state receives a base amount of $70,000.  States must submit a five year “Child Welfare Services Plan” that describes assurances and commitments by the state.

State match: 25%

Title IV-B Subpart 2 (Promoting Safe and Stable Families - PSSF)

FY 2006
$410 million

No eligibility criteria

Funds prevent unnecessary separation of children from their families, improve the quality of care and services to children and their families, and ensure permanency for children by reuniting them with families, by adoption, or by another permanent living arrangement. Four categories of services:  family preservation, family support, reunification, and adoption promotion and support.  

Mandatory – capped funding and discretionary funding.
Each state’s share is determined by the state’s relative share of children receiving food stamps.  A description of how these funds are to be expended must be included in the state’s five year “Child Welfare Services Plan.”

State match: 25%.

IV –E Foster Care: (Maintenance)

FY 2005
$2.08 billion

Children who would have been eligible for the Aid to Families with Dependent Children (AFDC) who have required court orders and are placed in eligible homes/facilities.

Funds states to provide safe and stable out of home care for children until children are safely returned home, placed with adoptive families, or other planned living arrangements are made. Payments made to foster care providers to cover basic maintenance, including children’s food and shelter, parental visits, and case planning. Funds may not be used for direct social work services.

Open ended entitlement: As much money as required to pay all eligible claims.

Federal match: Equal to the Medicaid match rate (rates range from 50%-83%).

IV-E Adoption Assistance

FY 2005
$1.39 billion

Children with “special needs” who are eligible for Title IV-E foster care or Supplemental Security Income (SSI)

Funds states to facilitate timely placement of children and support adoptive parents on behalf of children with special needs; not to exceed comparable foster care payment rates.

Open ended entitlement:  As much money as is required to pay all eligible claims.

Federal match: Equal to the Medicaid match rate (rates range from 50%-83%).

IV –E Administration

FY 2005

Foster Care
$2.2 billion

Adoption
$282 million

 n/a

Foster Care: Expenses associated with Title IV-E eligible children in foster care and administrative expenses for the foster care program. Includes certain pre-placement services (referral to services), placement services, case management, eligibility determinations, licensing, foster care recruitment, and other administrative activities (rate setting, data collection and reporting, and agency overhead).  

Adoption assistance: Expenses associated with children eligible for Title IV E adoption assistance. Includes child placement and other administrative activities.

Open-ended entitlement:  As much money as is required to pay all eligible claims.

Federal match: 50%

IV-E Training

FY 2005

Foster care
$235.9 million

Adoption
$32.2 million

n/a

Training of public agency staff and foster and adoptive parents.

Open-ended entitlement:  As much money as is required to pay all eligible claims.

Federal match: 75%

IV-E Chafee Foster Care Independence Program (formerly known as the Independent Living Initiative)

FY 2006
Chaffee –
$140 million

ETVs -
$60 million

Youth (no minimum age) who are likely to remain in foster care until age 18; youth ages 18-21 who have “aged out” of foster care.

Funds to assist basic living skills, training, education, employment initiatives, housing, substance abuse prevention, and preventive health activities.

In addition, eligible youth and youth adopted from foster care after age 16 may receive Education and Training Vouchers (ETVs).

Mandatory – capped.

No more than 30% of the funds may be used for housing youth ages 18-20.

Federal match: 80%

Child Abuse Prevention and Treatment Act (CAPTA) State Grants

FY 2006

$27.2 million

 

n/a

Funds for states to improve their child protective service systems and other requirements:

  • Policies and procedures that address the needs of drug exposed infants
  • Triage procedures for referral of children not at imminent risk of harm to community services
  • Notification of an individual who is the subject of an investigation about allegations made against them
  • Training for CPS workers on their legal duties and parent’s rights
  • Provisions to refer children under age three who are involved in a substantiated case to early intervention services under IDEA Part C

Discretionary.  States must provide assurances in the Child and Family Services Plan that it is meeting all the requirements of CAPTA to receive funding based on size of state’s child population.

Community-Based Grants for the Prevention of Child Abuse and Neglect (CBCAP)

FY 2006
$42.8 million

n/a

Funding to states to develop, operate, and expand community-based prevention-focused programs and activities to strengthen families and prevent child abuse and neglect.

Discretionary. To receive funds, the Governor must designate a lead agency to receive the funds and implement the program.

Adapted with permission from Child Welfare Financing 101 (PDF). North American Council on Adoptable Children: St. Paul, MN. (March 2007).

References:
Child Welfare Financing 101. North American Council on Adoptable Children: St. Paul, MN. (March 2007)

Funding Resources for Child Welfare. Child Welfare League of America: Washington, DC. (July 2003)

State and Tribal Grant Programs, Children’s Bureau, ACF, HHS. (2007)

The Cost of Protecting Vulnerable Children V: Understanding State Variation in Child Welfare Financing. Urban Institute: Washington, DC. (2004)