US FederalWhat must a state do to receive federal funding for foster care?
A state must submit and maintain an approved state plan that meets all requirements in 42 U.S.C. § 671, including case planning, reasonable efforts to prevent removal, permanency hearings, and timely termination of parental rights when appropriate.
What the Law Says
Federal law sets strict conditions a state must meet to receive Title IV-E foster care funding. These are codified in 42 U.S.C. § 671, which mandates a comprehensive, federally approved state plan.
To receive federal reimbursement for foster care, a state must operate a foster care and adoption assistance program under a state plan approved by the U.S. Secretary of Health and Human Services. The plan must satisfy at least 18 specific statutory requirements.
Key requirements include: developing a case plan for each child within 60 days of placement; holding a permanency hearing no later than 12 months after the child enters foster care (and every 12 months thereafter); making reasonable efforts to prevent removal from home or to reunify the family — unless certain exceptions apply; and filing a petition to terminate parental rights if a child has been in foster care for 15 of the most recent 22 months, unless an exception applies.
The state must also ensure children in foster care receive appropriate services, including health and education coordination, and provide notice to relatives when a child is removed. All case plans must be reviewed at least every 6 months.
Statutory TextThe State has a plan approved by the Secretary which contains assurances that the State will make reasonable efforts... to prevent the need for removal of the child from the home...
— 42 U.S.C. § 671(a)(15) — Reasonable efforts
Statutory TextThe State has a plan approved by the Secretary which contains assurances that... [a] permanency hearing shall be held no later than 12 months after the date the child enters foster care...
— 42 U.S.C. § 671(a)(29) — Permanency hearings
Statutory TextThe State has a plan approved by the Secretary which contains assurances that... [i]f a child has been in foster care for 15 of the most recent 22 months, the State shall file a petition to terminate the parental rights...
— 42 U.S.C. § 671(a)(15)(B) — 15-month TPR rule
What to Do
Develop and submit a comprehensive state plan to the Administration for Children and Families (ACF).
Ensure all case plans are written within 60 days of placement and reviewed every 6 months.
Hold the first permanency hearing within 12 months of foster care entry — and annually thereafter.
File a petition to terminate parental rights if the child has been in foster care for 15 of the most recent 22 months, unless an exception applies.
Document and report 'reasonable efforts' to prevent removal or achieve reunification in every case.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.