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Funding Opportunities

The Child and Family Services Improvement Act of 2006 (S. 3525)

Human Services Federal Issues

Summary of P.L. 109-288

The Child and Family Services Improvement Act of 2006” (S. 3525)

Background:

The Senate originally passed S. 3525, “The Improving Outcomes for Children Affected by Meth Act of 2006,” legislation reauthorizing the Promoting Safe and Stable Families (PSSF) program and the Mentoring the Children of Prisoners and Court Improvement programs on July 13.  When the legislation reached the House, the House substituted its own version of PSSF reauthorization, “The Child and Family Services Improvement Act of 2006 (H.R. 5640)” and passed the bill on July 25.   (H.R. 5640 had previously been favorably reported by the House Ways and Means Committee.)    These two bills were conferenced, and the compromise legislation passed the Senate on September 20 and the House on September 26.

A major difference in the two bills was the way an additional $40 million per year in mandatory funding for PSSF was directed.   The Senate bill funded competitive grants to regional partnerships to improve the well-being and permanency outcomes of children affected by methamphetamine abuse and addiction.   The House bill used the additional $40 million for allotments to support monthly caseworker visits to children in the state foster care system.   States would be eligible for these grants if 90% of the children in foster care received a monthly visit from a caseworker or had a plan to reach that goal.   A compromise was reached, and both initiatives receive some of this new funding.  In addition, the House bill, unlike the Senate bill, also proposed changes to the funding that states use to provide services where there is risk of child abuse or neglect (Title IV-B Part 1). 

Reauthorization of the Promoting Safe and Stable Families Program

P.L 109-288 reauthorizes the Promoting Safe and Stable Programs (Title IV-B Part 2) through 2011.    Mandatory funding is increased by $40 million, to $345 million.  Discretionary grants are authorized at the current level of $200,000,000 per year through 2011.  Provision is made for the $40 million dollars in increased mandatory funding made available for FY 2006 to be available through FY 2009.    These funds must be used to support monthly visits to children in foster care, including activities designed to improve caseworker retention, recruitment, training and the ability to access the benefits of technology.   Administrative cost reimbursement is limited to 10% of a states’ expenditures under the program. 

Targeting of Promoting Safe and Stable Families Program Resources

1. Monthly Caseworker Visits

Part of the additional mandatory funding for PSSF is made available to support monthly caseworker visit to children who are in foster care with an emphasis on activities designed to improve caseworker retention, recruitment, training, and ability to access the benefits of technology.  The Secretary of HHS is directed to make the following amounts available for such purposes:

  • $5,000,000 for FY 2008;
  • $10,000,000 for FY 2009;
  • $20,000,000, for FY 2010; and
  • $20,000,000 for FY 2011

The required state match for this funding is 25%.  By October 1, 2007, states have to describe in their state plan standards for content and frequency of caseworker visits for children in foster care.  States will not get IV B Part 1 funds for FY 2008 unless they provide data that shows the percentage of children in foster care who were visited on a monthly basis and the percentage of visits that occurred in the residence of the child in FY 2007.   Consulting with each state, and based on the data presented, the Secretary of HHS will establish the steps to be taken to ensure that at least 90% of children in foster care are visited on a monthly basis and that the majority of the visits occur in the residence of the child.    Beginning October 1, 2008, if the Secretary of HHS determines that a state has not made the requisite progress toward meeting the 90% standard, there is a penalty.   If a state falls short by less than 10%, that state’s IV B Part 1 funds are reduced  by 1%.  If a state falls short by between 10 and 20 %, its funds are reduced by 3%.  And if a state falls short by 20% or more, its funds are reduced by 5%.   The national standard (90% of children visited on monthly basis) must be achieved by all states by October 1, 2011. 

2. Grants for Regional Partnerships to Increase the Well-Being of and Improve the Permanency Options for Children Affected by Methamphetamine or other Substance Abuse

The Secretary of HHS is directed to make the following amounts available for these regional partnership grants:

  • $40,000,000 for FY 2007;
  • $35,000,000 for FY 2008;
  • $30,000,000 for FY 2009;
  • $20,000,000 for FY 2010 and
  • $20,000,000 for FY 2011

HHS will make grants to regional partnerships that are designed to increase the well-being of and improve the permanency outcomes for children who are in an out-of-home placement or who are at risk of such placement as a result of parental or a caretaker’s abuse of methamphetamine or other substance abuse.  Services and activities are to be provided via interagency collaboration and integration of programs and services.  A regional partnership can be established on an intra- or interstate basis and must include at least two of the following:

  • State child welfare agency that administers Title IVB and IVE (child welfare/foster care);
  • State agency that administers the substance abuse prevention and treatment block grant;
  • Indian tribe or tribal consortium;
  • Nonprofit child welfare service providers;
  • For-profit child welfare service providers;
  • Community health services providers;
  • Community mental health services providers;
  • Local law enforcement agencies;
  • Judges and court personnel;
  • Juvenile justice officials;
  • School personnel;
  • Tribal child welfare agencies or a consortia of such agencies; and
  • Other providers, agencies, personnel, officials, or entities related to child and family services funded under PSSF.

The  state child welfare services agency is a mandatory partner in any such partnership.  If an Indian tribe or a tribal consortium enters into a regional partnership, the tribe or consortium may include the state child welfare agency in the collaborative agreement, but is not required to.  However, the tribe or tribal consortium must have a partner besides the tribal child welfare agency or a consortium of such agencies.

Partnerships may be funded for as many as five years but no less than two years  Grants will be no less than $500,000 and no more than $1 million.   The regional partnership receiving a grant must provide a match of 15% of the federal funds in years one and two of the grant, 20% of the federal funds in the third and fourth years, and 25% of the federal funds  in the fifth year.  The match may be in cash or in-kind.   Applicants for the grants must show how they will collaborate with the child welfare agency (if that agency is not the lead agency for the partnership), and how the partnership will consult with the substance abuse treatment agency and with state law enforcement and judicial agencies.  HHS must give priority to eligible regional partnerships that demonstrate that methamphetamine or other substance abuse by parents or caretakers has had a significant impact on the number of out-of-home placements in the partnership region; have limited resources to address the needs of children in such cases; lack access to comprehensive family treatment services; and demonstrate a plan for sustaining the activities funded under the grant after the conclusion of the grant period.  After these factors are taken into account, preference will be given to regional partnerships proposing to address meth abuse.  Specific uses of grant funds may include providing family-based comprehensive long-term drug treatment services; early intervention and preventative services; counseling for children and families; mental health services; parenting skills training; and replication of successful models for providing family-based comprehensive long-term substance treatment services. 

HHS will be required to establish performance indicators for grantees to assess the success of regional partnerships no later than 18 months after the legislation is adopted.  HHS must consult with the Administration for Children and Families (ACF) and the Substance Abuse and Mental Health Services Administration (SAMHSA), representatives of states in which a state agency is a member of a regional partnership receiving a grant, and representatives of Indian tribes, tribal consortia and/or tribal child welfare agencies that are members of a regional partnership receiving a grant.  

Allotments and Set-asides

  • $1,000,000 is set aside for evaluations, research, and technical assistance regarding supporting monthly caseworker visits with children in foster care. 
  • $1,000,000 is set aside for evaluations, research, and providing technical assistance regarding the methamphetamine or other substance abuse grants. 
  • P.L. 109-288 changes the set aside of PSSF funds for Indian tribes from 1% to 3% of the mandatory funding and 2% to 3% of the discretionary funding.

Reauthorization of the Mentoring Children of Prisoners program

The Mentoring program is reauthorized for FYs 2007 through 2011.  A service delivery demonstration project is established.  The Secretary of HHS will enter into a cooperative agreement with an organization that the Secretary determines has substantial experience in working with organizations that provide mentoring services for children of prisoners and in developing quality standards for the identification and assessment of mentoring programs for children of prisoners, but does not deliver mentoring services itself.  The organization will conduct a demonstration program to identify children in need of mentoring services who have not been matched with a mentor, with a priority for identifying children who reside in an area not served by a mentoring program grantee, reside in an area that has a substantial number of children of prisoners, reside in a rural area, or are Indians.  The families of the children so identified will be provided with a voucher for mentoring services and a list of providers of mentoring services in the area in which the family reside.  The organization will monitor and oversee the delivery of services.  The service delivery plan must ensure the distribution of not less than 3,000 vouchers in the first year of the agreement, 8,000 vouchers for the second year of delivery, and 13,000 vouchers for any subsequent year.  The service delivery demonstration project will receive the following funding: $5 million in the first year; $10 million in the second year; and $15 million in the third year.  No funds can be used for the service delivery project unless at least $25 million is awarded for regular mentoring grants. 

Court Improvement

Court Improvement Program Grants are extended through 2011.

Other

P.L. 109-288 includes a requirement for a foster care proceeding to include, in an age appropriate manner, consultation with the child that is the subject of this proceeding. 

Effective Dates

Provisions of P.L. 109-288 take effect on October 1, 2006, except as otherwise provided, and the amendments apply to payments under IV B and IV of the Social Security Act for calendar quarters beginning on or after such dates.  Allowance is made for state legislative calendars.  If HHS determines that state legislation is necessary to meet the new requirements,  the state has until after the first regular session after enactment before it is regarded as not meeting the requirements.  

Changes to Child Welfare Services (Title IV-B, Part 1)

The Child Welfare Services program is authorized for five  years (FYs 2007-1011) at the current funding level of $325,000,000.  Previously, the program did not have to be reauthorized.  A new purpose is added for the program: “providing training professional development and support to ensure a well-qualified child welfare workforce.” 

Spending on administration is capped at 10%.  Administrative costs are defined as costs incurred in administering IV-B, Part 1: procurement; payroll management; personnel functions (other than the portion of supervisor salaries attributable to time spend directly supervising the provisions of services by caseworkers); management; maintenance and operation of space and property; data processing and computer services; accounting; budgeting; auditing; and travel expenses (except those related to the provision of services by caseworkers or program oversight).  

The legislation limits the use of IV B Part 1 federal funds used for child care, foster care maintenance payments, or adoption assistance payments.   States can only use the amount of federal funds they were using in 2005 for these purposes.  P.L. 109-288 also provides that states can only use as match the amount of state funds they used for foster care payments on 2005. States cannot use funds for child care or adoption assistance payments for match for the federal funds. 

Prepared by Lee Posey, Senior Policy Specialist, NCSL Human Services and Welfare Committee