Title IV-E Foster Care Eligibility Rates Have Declined While Determination Costs Have Increased: Meanwhile Eligibility Review Results Have Varied Since FY00

This brief synthesizes national caseload and expenditure data related to Title IV-E foster care eligibility and summarizes the Children’s Bureau’s published Title IV-E foster care eligibility review findings. Key findings include:

• Title IV-E foster care eligibility has declined over time as eligibility requirements remain tied to income thresholds from 1996. From fiscal year 2011 (FY11) to FY24, the percentage of caseloads eligible for Title IV-E foster care maintenance payment (FCMP) reimbursement funds – the funds that help cover costs like shelter, care, and clothing for children – has declined by around 45 percent.
• The average monthly reimbursement amount states claimed for Title IV-E foster care eligibility determinations has increased by over 60 percent from FY11 to FY24, with fewer children being eligible for assistance.  
• The total reimbursement amount states claimed for eligibility determinations increased to over $198 million in FY24, exceeding the total reimbursement amount claimed by states for Title IV-E prevention services.
• The Children’s Bureau conducts Title IV-E foster care eligibility reviews to determine if federal funds are being properly spent on eligible children and to provide feedback to Title IV-E agencies on opportunities for program improvement related to payment integrity.
• 39 states have not achieved substantial compliance for at least one Title IV-E eligibility review – meaning more than 4 out of the 80 cases examined during a review contained errors. Eighteen of these states have not achieved substantial compliance during multiple reviews. 
• Since FY00, there have been 11 years in which at least one-fifth of states under review have not been in substantial compliance.
• Eligibility determinations are increasingly costly despite shrinking eligibility, and are complex, as evidenced by state compliance issues that remain 30 years after eligibility became tied to 1996 AFDC financial need standards.

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