What is Title IV-E, and why is it such a critical issue?

An Introduction to Child Welfare Funding, and How States Use It | Child Trends:
What is Title IV-E, and why is it such a critical issue?
Title IV-E of the Social Security Act is the largest federal funding stream for child welfare activities. Of $12.7 billion in federal funds for child welfare in SFY 2012, nearly $6.5 billion were from Title IV-E. The funding stream supports foster care, adoption assistance, and guardianship assistance programs; states receive a level of reimbursements from the federal government for eligible claims. It also includes the Chafee Foster Care Independence Program, a capped entitlement for which states are entitled to reimbursement for claims it submits to the federal government, up to a certain level.4 





Although Title IV-E provides the majority of federal funds to child welfare programs across the country, leaders did note some challenges accessing these dollars. To be eligible for the Title IV-E Foster Care Program, the vehicle through which states receive Title IV-E funds for children in foster care, children must: 

Comment: This is the reason CPS/DCYF does NOT place children with relatives. They would LOSE money!

be in out‐of‐home placements,

have been removed from families that are considered “needy” (based on measures in place in 1996 under the Aid to Families with Dependent Children (AFDC) program),

have entered care through a judicial determination or voluntary placement, and be in licensed or approved foster care placements.5