Georgia DHS projects $44.5 million state shortfall for out‑of‑home care in FY2026 budget

The Georgia Department of Human Services told the House Appropriations Committee on the Department’s FY2026 budget that it projects an additional $44,470,858 in state funds will be needed next fiscal year to meet out‑of‑home care costs for children in foster care. Commissioner Brose, testifying for the agency, said the increase is driven by higher utilization of specialized services and placements and by rising reimbursement costs.

The request comes as about 10,000 children are in foster care in Georgia on any given day, the commissioner said, and “utilization of specialized services and placements has increased by 23% since FY2022,” while “reimbursement costs outside of daily per diem payments have increased by 15%.” Those trends, Brose told the committee, are the primary drivers behind the projected FY2026 shortfall.

Why it matters: Higher out‑of‑home care spending affects state budgets and service capacity for children who cannot safely remain at home. If the projected gap is not covered in the FY2026 budget, the department said it will face pressure to absorb costs, reduce placements, or seek supplemental appropriations as it has in prior years.

Budget adjustments and program changes discussed The commissioner summarized the governor’s recommended statewide adjustments—reductions tied to…