Issue Brief 18-04
February 26, 2018

In fiscal year (FY) 2010, the federal government began phasing out the income-eligibility requirements for IV-E Adoption Assistance. As a result, more children have become eligible for the federal program—which is paid for by federal and state funds—rather than state-funded programs. States are required to spend any savings from this federal expansion on child welfare services. The Administration for Children and Families (ACF) released details on the FY 2016 adoption savings, which totaled $110 million.

The eligibility expansion was fully implemented at the beginning of FY 2018. However, the Bipartisan Budget Act (BBA) of 2018 (P.L. 115-123) delayed the full expansion until July 1, 2024, as an offset to child welfare financing reforms in the agreement.