Under the Adoption Incentives program states earn federal bonuses
when they increase adoptions of children who are in need of new
permanent families. All 50 states, the District of Columbia, and
Puerto Rico have earned a part of the $375 million in Adoption
Incentive funds that have been awarded since the program was
established as part of the Adoption and Safe Families Act of 1997.
Funding authorized for this program has been extended twice since
it was established, most recently in 2008, but is currently set to
expire on September 30, 2013. Since ASFA's enactment in 1997, the
annual number of children leaving foster care for adoption has
risen from roughly 30,000 to more than 50,000 and the average
length of time it took states to complete the adoption of a child
from foster care declined by close to one year (from about four
years to less than three). Over the same time period, and in
significant measure due to the greater number of children leaving
foster care for adoption and at a faster pace, the overall number
of children who remain in foster care declined by 29%. Despite
these successes, however, the number of children "waiting for
adoption" remains more than double the number of children who are
adopted during a given year. Under the current Adoption Incentive
bonus structure, states earn $4,000 for each adoption of a foster
child that is above the number of foster child adoptions finalized
by the state in FY2007 and $8,000 for each adoption of an older
child (9 years or older) above the number of older child adoptions
it finalized in FY2007. If a state has earned an award in either of
those categories-or if it improves its adoption rate-it earns
$4,000 for each adoption of a special needs child (under age 9)
that is above the number of such adoptions it finalized in FY2007.
For improving its rate of adoption, a state is eligible for
additional incentive funds of $1,000 multiplied by the increased
number of adoptions that are calculated to have resulted from the
improved adoption rate. However, increases in incentive amounts
states earn due to improved adoption rates are only paid to those
states if sufficient program appropriations are available after all
awards for increases in the number of adoptions have been made.
States are permitted to use Adoption Incentive bonuses to support a
broad range of child welfare services to children and families.
Many states report spending incentive funds on adoption-related
child welfare purposes, including post-adoption support services,
recruitment of adoptive homes, and training or conferences to
improve adoption casework. A smaller number of states report using
these funds for adoption assistance payments, improved adoption
homes studies, child protection casework, foster care maintenance
payments, or other child welfare purposes. Funding for the Adoption
Incentives program is provided on a discretionary basis as part of
the annual appropriations process. The program is authorized to
receive $43 million annually (through FY2013), but in recent years
actual appropriations have been around $39 million. Final FY2013
appropriations for the Adoption Incentives program were included in
the Consolidated and Further Continuing Appropriations Act, 2013 at
this same level. However, those appropriations are subject to a 5%
reduction (under the March 1 sequestration order).
General
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