Placement of Children With Relatives: Summary of State Laws- (2008 PDF File) In order for States to receive Federal payments for foster care and adoption assistance, Federal law requires that they "consider giving preference to an adult relative over a non related caregiver when determining placement for a child, provided that the relative caregiver meets all relevant State child protection standards."
http://www.childwelfare.gov/systemwide/laws_policies/statutes/placementall.pdf
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