Child Welfare Waiver Demonstrations

Publication Date: June 2003

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Social conditions

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Abstract:

The federal government assists the states in providing child welfare services through a wide array of programs and funding streams. The majority of federal funding dedicated to child welfare programs is granted to states through Titles IV-E and IV-B of the Social Security Act, which govern child welfare services such as foster care, adoption assistance, independent living, and family preservation and support. In FY2003, approximately $7.3 billion is available to states through Titles IV-B and IV-E. In order to be eligible to receive these funds, states must comply with numerous federal rules which may limit how the states implement their child welfare programs.

To allow states additional flexibility in how they may use their Title IV-B and IV-E funds, the 103rd Congress included a provision in the Social Security Act Amendments of 1994 (P.L. 103-432) to establish child welfare demonstration projects (commonly called waivers). Through this provision, states were able to apply to the U.S. Department of Health and Human Services (HHS) to waive certain provisions of Titles IV-B and IV-E to develop and implement innovative programs that test new methods of serving children and families. Congress stipulated that certain child protection provisions may not be waived. This waiver authority was amended in 1997 through the Adoption and Safe Families Act (P.L. 105-89). At the end of FY2002, the authority for establishing new waiver projects expired. Legislation to reauthorize and amend the waiver program passed the House in February (H.R. 4), and legislation introduced in the Senate (S. 5) would do the same.

Waiver projects must be cost neutral to the federal government; may be conducted for no longer than 5 years (though HHS may grant an extension of up to 5 years); and must include an evaluation comparing the existing state program to the waiver project. As of May 2003, 26 projects were being implemented or had been completed in 17 states through 20 waiver agreements. Extensions had been requested for ten projects in seven states. Thus far, waivers have been conducted in eight categories: assisted guardianship/kinship permanence; managed care payment systems; capped Title IV-E allocations and flexibility to local agencies; services to substance-abusing caretakers; intensive service options, adoption services; Tribal administration of Title IV-E funds; and enhanced training for child welfare staff. Summaries of the 26 child welfare waiver demonstrations are included in this report.

This report will be updated to follow any legislative action in Congress and to provide further information on the progress of the state waiver projects.