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March 2005Vol. 6, No. 2Rule Proposes To Amend Regulations for Title IV-E Costs and Eligibility

The U.S. Department of Health and Human Services' Administration for Children and Families (ACF) is soliciting written comments on proposed regulation changes that would affect both administrative costs and eligibility for Title IV-E foster care funds. Title IV-E of the Social Security Act provides Federal funds to help States care for foster children; funds can be used for certain costs, including foster care maintenance, staff training, and administrative costs.

The proposed changes would affect three main areas:

  • State agencies could not use Title IV-E funds for administrative costs for children placed in ineligible facilities (e.g., detention centers, hospitals); a 1-month transition period from an ineligible to an eligible facility would be covered.
  • Claims for children placed in unlicensed foster homes would be prohibited; however, administrative costs would be allowed for the short-term when an eligible child was placed in the unlicensed home of a relative while the relative was awaiting a State license (with certain limitations).
  • Title IV-E foster care eligibility would have to be redetermined every 12 months; eligibility for Title IV-E candidacy would have to be determined every 6 months.