Feds Eye State Foster Care

The federal government will closely monitor state child welfare agencies for the first time, holding them accountable if children are abused or neglected in foster care and making sure permanent foster homes are found quickly.

New rules that take effect in March give the Department of Health and Human Services much broader monitoring responsibility over state agencies that provide foster care, adoption and family services to low-income children.

Instead of reviewing case files, which it had done in the past, the department will do on-site reviews at agencies. The department will seek extensive information about instances of child abuse in foster care homes and efforts to recruit adoptive parents and interview children, parents and foster parents.

HHS will also monitor state's adherence to new rules barring discrimination against adoptive or foster care parents seeking to adopt children of another race.

The department can withhold up to 14 percent of a state's federal funds each year if agencies are doing a poor job ensuring child safety and haven't corrected problems. However, the penalties won't be taken from money that goes to foster families caring for children.

"We are taking a real step toward ensuring that vulnerable children will be able to live safely, in permanent and loving homes," said HHS Secretary Donna Shalala.

The rules, announced today, underpin new foster care and adoption laws that put child safety ahead of family preservation. The laws were passed in response to concerns over cases of gross abuse and neglect of children in foster care homes supervised by state agencies.

More than 540,000 children are in foster care many removed from their homes because of abuse and neglect. Most return to their parents, but more than 100,000 stay in foster care because family problems are still a threat to their safety.

Many of these children need special assistance in finding homes because they are older or have physical, mental or emotional disabilities.

The federal government and the states share the costs. Last year the federal share was estimated at $4 billion, with states paying $3.5 billion.

HHS will review agencies in 10 states this year and another 17 states in 2001. States out of compliance must correct problems within two years and will be monitored quarterly.