Subcommittee reviews foster care, childcare fund, adoption subsidies and family preservation spending

Analysts told the House Appropriations Subcommittee that child welfare makes up a large share of the human services general fund and reviewed foster care, childcare fund, adoption subsidy and family preservation appropriations and trends.

Sydney Brown said Title IV‑E is a major federal funding source for out‑of‑home placements, covering roughly 65% of those costs when eligibility conditions are met. Brown said the foster care maintenance per diem is age‑tiered and typically ranges between $22 and $28, with additional payments for independent living or when a higher determination‑of‑care level is approved. For FY 2024–25 Brown reported a foster care program total near $330.8 million and said about 60% of that was general fund and roughly 34% federal revenues.

Brown and Elkman explained that a 2020 statutory change extended maintenance payments to unlicensed relatives who assume care under court order; such relatives receive maintenance payments after a DHHS home check without completing full foster‑care licensure. The presenters also described the child‑care fund, which reimburses counties for eligible out‑of‑home placement costs and, more recently, reimburses counties 75% for in‑home intervention services; the state pays childcare‑fund dollars first and counties reimburse their share afterward.

Adoption subsidy funding was reported as about two‑thirds federal (roughly 67%), and the family preservation line received $78.5 million in appropriations with roughly 67% funded by TANF. Presenters noted that although caseloads for foster care and adoption have declined over time, costs per child have risen, contributing to increased overall spending.