December 23, 2008

H.R. 6893 Fostering Connections to Success & Increasing Adoptions Act of 2008

The Congressional Budget Office (CBO) released this cost estimate to specify how the law will affect the federal budget. The law, enacted October 7, 2008, made numerous changes to the federal Title IV-E foster care and adoption assistance programs. For the 2009-2013 period, the CBO estimated that the law would decrease federal spending by $323 million, but that over the 2009-2018 period, spending would increase by $295 million.

The law is expected to increase the number of children receiving Title IV-E payments for adoption assistance, although the CBO estimates that most of the children would have received state-only payments if the law had not been passed. The law requires states to spend any funds they save on other eligible child welfare IV-B or IV-E activities. The provision goes into effect in fiscal year 2010 and will be phased in over nine years. Another option will enable states to claim federal reimbursement for children placed in kinship/guardianship care arrangements. The CBO expected this option to increase the number of children covered by such arrangements but that ultimately, federal costs would be lower for the children in kinship/guardianship care arrangements than than the cost of traditional foster care placements.