Wyden Introduces Legislation to Encourage Innovation in Child Welfare Financing

Press Release

Many of the most innovative ideas for improving the lives of vulnerable children and families are found on the state and local level where those working for solutions often have a first-hand ability to observe challenges and recognize solutions. This is why U.S. Senator Ron Wyden (D-Ore.) introduced legislation this week to empower states to adopt outside-of-the-box approaches to improving the foster care system and alternatives to foster care.

"Instead of continuing to pour money into the same foster care approaches that are allowing thousands of vulnerable children to slip through the cracks, we should be investing in ideas that work. Repeated studies have shown that pursuing alternatives to foster care frequently result in better outcomes for children, yet right now, the federal government spends ten-times as much money on foster care as it does on preventative services," Wyden said. "The Promoting Accountability and Excellence in Child Welfare Act better invests in the future of at-risk kids by building on programs that are delivering results for kids."

The Promoting Accountability and Excellence in Child Welfare Act establishes a five year grant program to give states and localities greater flexibility to implement comprehensive reforms to existing child welfare programs provided they can demonstrate success in improving child well-being. This flexibility would allow states to use early-intervention techniques to prevent children and youth from entering foster care, heightened reunification or adoption practices to decrease a child's time in care, and strengthened support services to ensure that children and youth do not fall behind their peers while they remain in foster care. Importantly, this act establishes strong performance measures that allow successful practices to serve as scalable models.

Children and families that come into contact with the child welfare system are often served through multiple local, state, and Federal agencies. Too often, these agencies operate in silos, with the effects playing out at the state, local, and even individual level. This act promotes collaboration by requiring an inter-agency working group to identify existing Federal resources and streamline them to reduce duplication and allow access to additional services and funding streams.

States and localities have proven their ability to save money through innovation while also working to promote the best interest of children and families. In fact, the Federal government often turns to state best practices to improve national laws. The Promoting Accountability and Excellence in Child Welfare Act would further enable such innovations and savings while improving child well-being.

Furthermore, the legislation directs the Secretary of Health and Human Services to report to Congress with recommendations on how to update Federal foster care financing. Under current law, eligibility for Federal foster care assistance remains tied to the obsolete AFDC program meaning each year, fewer children in foster care are eligible for Federal funding. As a result, states are required to take on an ever-increasing share of foster care financing. This structure forces states to compensate by drawing funds from other programs such as Temporary Assistance to Needy Families (TANF) and the Social Security Block Grant (SSBG) to provide for children in care, and its reform is long-overdue.

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