provides an overview of the Title IV-E federal foster care program funding

The Federal foster care program pays a portion of States’ costs to

provide care for children removed from welfare-eligible homes

because of maltreatment. Authorized under Title IV-E of the

Social Security Act, the program’s funding (approximately $5

billion per year) is structured as an uncapped entitlement, so any

qualifying State expenditure will be partially reimbursed, or

“matched,” without limit. This paper provides an overview of the

program’s funding structure and documents several key weaknesses.

It concludes with a discussion of the Administration’s legislative

proposal to establish a more flexible financing system.

The program’s documentation requirements are

burdensome.

States may claim Federal funds, each matched at a different rate.

In addition, there are several statutory eligibility rules that must be

met in order to justify the Title IV-E claims made on a child’s

behalf. Some of these apply at the time a child enters foster care,

while others must be documented on an ongoing basis. The time

and costs involved in documenting and justifying claims is

significant.

There are four categories of expenditures for which

Differing claiming practices result in wide variations in

funding among States.

foster care funds received by States ranges from $4,155 to $33,091

per eligible child, based on three year average claims from FY2001

through FY2003. It is unlikely these disparities are the result of

actual differences in the cost of operating foster care programs or

reflect differential needs among foster children.

http://aspe.hhs.gov/hsp/05/fc-financing-ib/ib.pdf links you to the rest of the brief.... Utah ranked #4 on the list for recieving funds.The average annual amount of Federal