Child Welfare: Foster Care and Adoption Assistance Provisions in Budget Reconciliation

Publication Date: January 2006

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Social conditions

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Abstract:

On December 19, 2005, the House approved the conference agreement to S. 1932 (H.Rept. 109-362), the Deficit Reduction Act of 2005. On December 21, 2005, the Senate agreed to a slightly revised version of that agreement. The provisions related to child welfare are the same in both the House and Senate versions of the conference agreement. However, the Senate version of the Deficit Reduction Act must now be approved in the House before any part of the measure can be enacted.

The conference agreement to the Deficit Reduction Act includes two child welfare provisions that were not included in the Senate budget reconciliation bill (as passed in November) but which had been included in the House version of the bill. Those provisions, sometimes called the Rosales provision and candidates provision, respectively, would 1) clarify individual eligibility for federal foster care and adoption assistance programs (Title IV-E of the Social Security Act); and 2) limit certain kinds of state claims for federal reimbursement of administrative costs under the federal foster care program. The Congressional Budget Office (CBO) estimates that together, these changes would reduce federal spending under the foster care program by $577 million over five years and by almost $1.3 billion over 10 years.

The conference agreement also includes several child welfare provisions that were not included in either of the earlier Senate or House-passed budget reconciliation bills. Those provisions would 1) increase the FY2006 mandatory funding available under the Promoting Safe and Stable Families program (Title IV-B, Subpart 2 of the Social Security Act) to $345 million (from current $305 million); 2) provide $100 million in mandatory funds over five years (FY2006-FY2010) to improve state courts' handling of child welfare proceedings; 3) require court and child welfare agency collaboration; and 4) clarify confidentiality rules with regard to open child welfare court proceedings. These provisions would increase federal budget authority for child welfare by $300 million over five years.

The conference agreement on the Deficit Reduction Act also includes provisions related to federal reimbursement of costs for "targeted case management" (TCM) under the Medicaid program (Title XIX of the Social Security Act). These provisions were included in both the House and Senate reconciliation bills, and may limit the ability of state child welfare agencies to use Medicaid TCM for children in foster care. CBO has estimated the net federal savings for this change, all of which would be to Medicaid (and not all of which would affect financing of services for children in foster care), at $760 million over five years and $2.1 billion over 10 years.

Finally, the conference agreement on the Deficit Reduction Act does not include House and Senate proposals that would have 1) extended the authority of the U.S. Department of Health and Human Services (HHS) to grant child welfare waivers; 2) amended the Higher Education Act to improve higher education access for youth leaving foster care; and 3) authorized a discretionary student loan forgiveness program available to child welfare workers. This report discusses child welfare provisions in the budget reconciliation bill and will be updated as necessary.