On March 31, 2006, federal authority for the Administration for Children and Families (ACF) Children’s Bureau to approve Title IV-E waivers for states expired, with the states of California and Florida being the last states to obtain approval.  Prior to the expiration of the authority, many states tested hypotheses for obtaining better outcomes for children and their families when restrictions on Title IV-E spending are lifted.  On Thursday, March 17, legislation was introduced by Jim McDermott (D-WA) and Geoff Davis (R-KY).  The legislation introduced is identical to the bill passed in the House last September, which died in the Senate.  Last year, the Senate expressed interest in considering much more long term child welfare financing reform. 

Last week, the Senate Finance Committee held a hearing to consider examining the prospect of reauthorizing and expanding Title IV-E waivers as a critical step to moving to extensive child welfare finance reform.  Testimony before the Senate committee advocated for expanding the waiver authority and structuring child welfare reform to align with better outcomes for children and their families.  With considerable reductions in out-of-home care populations, the opportunity for investing the cost savings into broader services for family stability has never been greater, giving states the opportunity to demonstrate cost neutrality.