Title IV-E Foster Care Program and Administration National Average Effective Federal Match Rates are Less than Half Statutory Match Rates

KEY POINTS:

• States, territories, and tribes can receive partial reimbursement for Title IV-E foster care program costs for eligible children. The statutory federal match rate varies depending on the program category. 
• Because state foster care programs also serve many children who are not eligible for partial federal reimbursement through the Title IV-E program, the “effective” federal match rate for state foster care programming is lower than the Title IV-E statutory match rates. The “penetration rate” represents the percent of a state’s entire caseload that is Title IV-E-eligible. 
• Effective federal match rates can be calculated by multiplying penetration rates by statutory match rates.
• In Fiscal Year 2024 (FY24), across states, the effective federal match rates for Title IV-E foster care maintenance payments ranged from six percent to 57 percent, lagging behind statutory match rates of 50 percent to 77 percent. Between FY19 and FY24, the national average effective match rate for these payments fell from 24 percent to 21 percent – a 12.5 percent decline in five years. 
• In FY24, the effective federal match rate for Title IV-E administrative costs ranged from five percent to 41 percent, below the statutory match rate of 50 percent for every state. Between FY19 and FY24, the national average effective match rate fell from 20 percent to 17 percent – a decline of 15 percent.
• In FY24, the effective federal match rate for the Title IV-E training costs ranged from eight percent to 62 percent, below the statutory match rate of 75 percent for every state. Between FY19 and FY24, the national average effective match rate fell from 29 percent to 26 percent – a decline of 10 percent.  

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