Chapter 2: Federal Foster Care Eligibility Requirements

Overview

This chapter contains the following topics:
― Background on Title IV-E of the Social Security Act
― Linkage To AFDC-FG/U
― Court Requirements
― Placement

Background

Policy: ACL 07-49, ACL 98-01, MPP 45-200, MPP 40-126 , Child Welfare Policy Manual Children’s Bureau
The Federal AFDC-FC Program can also be referred to as Title IV-E or Title IV-E of the Social Security Act (SSA). The SSA, Section 472 (42 U.S.C. 672), details AFDC eligibility criteria.

Title IV-E is the main funding source for child welfare programs. Specifically, Title IV-E foster care payments are made available to fund the placement costs for children and youth placed in out-of-home care. Title IV-E is an open-ended entitlement program. This means the federal government provides reimbursement for all foster care placements that meet federal foster care eligibility criteria. Title IV-E funding must be matched by either a state or, in California, a county. Counties must spend dollars in order to receive federal funding under Title IV-E. General reimbursement is 50 percent for every dollar a state or county spends.

Title IV-E is administered by the federal Department of Health and Human Services, Administration for Children and Families.

July 16, 1996, is referred to as the ‘look back’ date for the AFDC Program. AFDC eligibility criteria must be met in the month of petition, but prior to the child’s removal from the home. The child’s deprivation cannot be based on household circumstances that occurred after the child’s removal from the home. For more information regarding the Month of Petition, see the court requirements section below.

For any given foster care episode, the determination that the child met the federal eligibility criteria of linkage to federal AFDC-FC Program shall be a one-time determination. Later sections of this guide will cover the impact of a subsequent petition, a child’s return home and information received and reviewed at a redetermination.

In order to qualify for federal AFDC-FC, a child shall meet all the general requirements listed in CDSS regulations, specifically MPP 45-201 and federal requirements specified in MPP 45-202. If any of the following requirements below are not met, the case can be evaluated for eligibility under the non-federal AFDC–FC program. 

Pursuant to MPP 40-126, eligibility determinations must be completed within 45 days beginning with the first day after the filing of the application.

Policy: ACIN I-25-06, ACL 22-16, Division 45 AFDC-FC MPP 45-202.34, MPP 45-202-341, MPP 45-311

A foster care episode is the period of time a child is in foster care, from the date of removal from their home until they are discharged from custody.

As a best practice, foster care placement episodes should remain open regardless of a change in the agency responsible or the placement facility type. If any of the following circumstances occur, foster care episodes are to remain open: youth leaves or exits placement without permission, becomes temporarily incarcerated, or becomes hospitalized.

In addition, a child can be returned home on a temporary basis, referred to as a trial home visit, and will be in the same foster care episode (case remains open), if:

1. The Child Placing Agency retains placement and care.
2. The child is subsequently removed and placed back in care within 6 months.

A foster care case is considered closed when one of the following conditions exists:

• A child reunified (which includes leaving a placement episode to unite with a noncustodial
  parent who is assuming physical custody of the child).
• The child’s dependency or delinquency was dismissed by the court and the case is being closed.
• The child’s adoption finalized.
• The child died.

As a reminder, the determination of linkage, deprivation, including income and resources, is a one-time determination and shall not be redetermined unless the child returns home on a non-temporary basis. Please refer to updated guidance in ACL 22-16 and refer to MPP 45-202.34 and MPP 45-202.341.

More on foster care episodes in Chapter 5: Ongoing Requirements.

Policy: Division 45 AFDC-FC MPP 45-101, MPP 45-202.3, MPP 45-302.322, ACL 98-01, ACL 94-15

To be eligible for the federal AFDC Program, a child must be linked to the AFDC-Family Group/Unemployed (FG/U) Program as it existed on the look back date during the month in which the petition was filed with the juvenile court, which led to the child’s placement into foster care pursuant to a detention or dispositional order or, the month in which the voluntary placement agreement (VPA), was signed.

This linkage requirement can be met if one of the following two conditions exist during the month in which the petition was filed or the VPA was signed:

1. The child was living in the home of the parent or relative from whom removed and would have been eligible for federal AFDC-FG/U in the month of petition had application been made.
2. The child was no longer living in the home of the parent or relative from whom removed, but would have been eligible for federal AFDC-FG/U based on that parent’s or relative’s home had the child been living there and had application been made.
   a. To meet this condition, the child shall have been living with the parent or relative from whom
   removed, within any of the six months prior to the month in which the petition was filed with
   the juvenile court, which led to the child’s placement into foster care pursuant to a detention or
   dispositional order.

Establishing the AFDC-FG/U linkage, when the child would have been eligible had application been made, will require documentation in the services and eligibility files that a preponderance of evidence supports that determination. There can be no substantiated evidence that would definitively indicate ineligibility to the AFDC-FG/U program. This method of establishing linkage is referred to as a Preponderance of Evidence Model (POEM). See the POEM section below for more detailed information. 

Linkage cannot be established solely based on the receipt of CalWORKs as the rules for CalWORKs are different than AFDC-FC and 1996 AFDC Regulations. However, information from the CalWORKs case may be used in a POEM determination to help establish a supportive case record.

NOTE: If linkage cannot be established, there is no federal eligibility for the case.

Policy: MPP Chapter 41 Sections: 41-400, 41-401, 41-405, 41-420, 41-440, and 41-450 and Division 45
AFDC-FC MPP 45-203.1

NOTE REGARDING CORRESPONDING POLICIES: This guide contains a high-level overview of deprivation requirements, however, it is incumbent on eligibility staff to review cited regulations in detail for additional requirements. The regulations provide examples provide case scenarios and acceptable documentation for establishing deprivation.

Deprivation means the lack of parental support or care for a child due to: absence of a parent, death of a parent, physical or mental incapacity of a parent, or an unemployed parent. When the child is deprived of parental support or care for one of the conditions listed above, deprivation is established.

The type of verification used to substantiate deprivation is recorded on sections of foster care eligibility forms e.g., the FC 2, and FC 3. A copy of the verification is to be filed in the case record.

1. Absence of a parent Section (MPP 41-450):
― One or both parents are not living with the child at the time of removal.

2. Death of a parent Section (MPP 41-420):
― Either parent is deceased.
― Automatic deprivation exists when a parent is deceased.

3. Physical and/or Mental incapacity of a parent (MPP 41-430):
― Either parent is physical or mentally incapacitated.
― Deprivation is established if the parent received Supplemental Security Income (SSI), Disability Insurance Benefits (DIB), or Retirement, Survivors, and Disability Insurance (RSDI). These benefits can be verified through the Income Eligibility Verification System (IEVS).
NOTE: If a parent is not receiving any disability benefits, eligibility staff must still substantiate incapacity.

4. Unemployment/Underemployment Parent (MPP 41-440):
― A child is deprived of parental care in a two-parent family when the family’s principal wage earner (PWE) is either unemployed or underemployed.
― The PWE in a two-parent household must have been employed in the past and have a connection to the work force by receiving or being eligible to receive unemployment insurance benefits OR having six or more quarters of work in any 13-calendar quarter period.

NOTE: Unemployment deprivation determinations using 1996 AFDC Rules for AFDC-FC differs from CalWORKs unemployment deprivation determinations. A connection to the workforce must be established. For additional requirements and Handbook examples, it is recommended eligibility staff refer to and utilize the regulations in 41-400.

Policy: Division 45 AFDC-FC MPP 45-200 and MPP 45-201, MPP 44-100, ACL 99-35, ACL 98-01, ACL 94-15

For Title IV-E purposes, the State’s need standard as of the look back date of July 16, 1996, is the amount that provides the basis for the two-step initial income test portion of the Federal AFDC-FC eligibility determination process. County eligibility staff must use the AFDC-FG/U Worksheet (FC 3A) for budgeting.

Income is to be evaluated only once at the time of the initial determination for the same foster care episode.

1. The calculation of income is a two-step process. Both the 185% Minimum Basic Standard of Adequate Care (MBSAC) and the Financial Eligibility Test (FET) must be passed for a foster care case to be determined federally eligible or not.
2. If a case does not pass the 185% MBSAC test, the case is ineligible for Title IV-E benefits thus, completing the FET is not necessary.
3. To determine if the income requirements are met, the size of the Assistance Unit (AU) must be determined.
4. The following persons must be included in the AU:

a. Applicant child
b. Siblings and half-siblings of the applicant child
c. Parents of any of the aforementioned children

5. The size of the AU and the amount of the non-exempt income of all persons in the AU must be considered for the MBSAC and the FET.

To gain a better understanding of how the MBSAC (Step 1) is calculated, please follow the example below.

The MBSAC and 185% of MBSAC including the Maximum Aid Payment (MAP), levels as of July 16, 1996, are attached as a chart to ACL 98-01.

185% of MBSAC Income Test

1. The 185% of MBSAC levels as of July 16, 1996. These levels are to be used for the test.
2. Determine the amount of income (actual or anticipated) the family had in the petition month. No deductions are allowed to the income.
3. Compare this amount to the appropriate 185% of MBSAC number based on the size of the AU.
4. If the income is less than 185% of MBSAC, the first test has been passed.
5. Column A on the FC 3A is used to perform this test, to document the sources of verification for the income(s) and the test results.

Case Example
― Child was removed from mother.
― Month of petition: 07/23
― Date child last resided with Parent or Relative from whom removed: 07/03/23
― Assistance Unit (AU) size is 3.
― Mother’s earned and unearned income totals $1,000.
― 185% of the MBSAC for a household of 2 is $1,078.
― $1,000 is less than $1078, so the 185% test is passed on, eligibility staff would then check yes in the “Gross Income Eligible" box and proceed to Part II (below).

The following example demonstrates how the second part of the income determination process (FET) is conducted. Similarly, to the previous income test, using MBSAC standards, apply the income to the FET (see below).

Case Example Part II
This is a continuation based off the case example above.

Is this family financially eligible? No. MBSAC is 583 for a household of 2.

Policy: MPP 44-100, MPP 44-111, Division 45 AFDC-FC MPP 45-201, ACL 22-16, ACL 11-10

1. The AFDC-FC rate including the amounts for specialized care but not including special need payments, shall constitute the need standard for a child receiving AFDC-FC and shall be greater than the child’s net nonexempt income as determined in Chapter 44-100.
2. Income received by the child’s parents shall not be used to determine the AFDC-FC aid payment unless the parents make their income and/or income the parents receive on behalf of the child available to meet the child’s needs.
3. Income and incentive payments earned by a child 16 years of age or older, who is participating in an Independent Living Program (ILP), are exempt as income for purposes of eligibility and grant computation when received as part of the ILP written Transitional Independent Living Plan (TILP).
4. Income type and amount are to be documented on the FC 2, and during the initial screening only of a foster care case. For information regarding the types of income, excluded or exempted income, refer to Section 44-111.

NOTE: The income determination is only completed at the initial determination of eligibility for the child. Any receipt of income after the initial determination has no impact on a child’s continued eligibility for AFDC-FC benefits.

Policy: Assembly Bill (AB) 1686, ACL 23-29, ACL 20-09, ACL 05-37, MPP 45-201.3
Form: CW 51 and CW 2.1.

California’s state policy related to child support has been updated effective January 1, 2023. These updates are consistent with updated federal guidance found in the Child Welfare Policy Manual and Section 671(a)(7) of the SSA. Until such time as new CDSS regulations are promulgated, counties are to follow instructions in this ACL.

Counties are not to refer parents, whose children have been removed from the home and who are receiving Child Welfare Services, to child support agencies. This applies to all foster care cases, whether family reunification is active, terminated, or refused. This applies to cases in related programs as well, such as Kinship Guardianship Assistance Payments (Kin-GAP), nonrelative extended family member placements, or placement in another planned permanent living arrangement (APPLA).

In the case of an Indian child, whose case is under county jurisdiction, the case worker should consult with the Tribal representative to inform them of this new policy and collectively determine if a referral to child support collection is in the best interest of the child and will not be a barrier to reunification efforts. The only exception to this policy is if, at the time of assessment, the parent’s annual income is greater than $100,000 per year or 400% of the federal poverty level (whichever is greater), AND a child support referral will not pose a barrier to reunification. The child’s Social Worker determines if a child support referral would pose a barrier for the family. A CW 2.1 form is required when this exception applies.

Eligibility staff must ensure there is a completed copy of the CW 51 form, completed by the social worker or probation officer. On the CW 51, under good cause it must state, “Collection of child support payment is not in the best interest of the child (ren) and could cause financial strain on possible family reunification.” For probation youth/wards of the juvenile court, the policy in ACL 20-09 is to be followed. The probation officer will evaluate the circumstances of the case and inform eligibility staff whether a referral to the child support agency is appropriate.

Policy: MPP 45-201.4; ACL 11-18, ACL 10-19, ACL 01-33

The Social Worker or Probation officer from the Child Placing Agency or Tribe must:

1. Verify at intake that pre-placement preventive services were provided to maintain the child with their
   family and prevent entry into foster care.
2. Develops a written assessment and case plan within 30 days from the date the agency became
   involved with the child or the date of the child’s most recent placement.
   ― Ensure the case plan gets updated no less frequently than once every six months, this may occur
   in conjunction with the six-month status review hearing.
3. Provide family reunification services or, when returning the child to their parents is documented as
   being appropriate, provide preplacement services.
4. Visit the child monthly.
5. Ensure the Permanency Plan hearing occurs within 12 months of the date the child entered care.
   The income maintenance record shall contain a statement from the placement worker, on the SOC
   158A form which certified that the above requirements have been met. This certification shall occur
   at application and redetermination of the child’s AFDC-FC eligibility and when there is a change in
   authority for placement.

Policy: ACL 01-33, Division 45 AFDC-FC MPP 45-101, MPP 45-300

Although there is currently not a requirement that court orders or voluntary placement agreements be contained in the income maintenance file, so long as it is available in another county file (typically the child welfare services file), it is strongly recommended that copies of these documents be kept in the income maintenance file. There are federal Adoption and Safe Families Act requirements related to court orders and voluntary placement agreements which must be verified by the eligibility staff in order for AFDC-FC eligibility to exist. If these documents are not routinely available to the eligibility staff, then verification is difficult and may be neglected.

This training series has a course on juvenile court that will provide more information on what occurs in court and how it impacts eligibility.

― The filing of a petition begins dependency (WIC 300) or delinquency/wardship (WIC 602) proceedings in juvenile court.
― A petition is filed with attachments describing the allegations of abuse, neglect, exploitation, other endangerment situations or delinquent acts that may lead to the removal of a child from the care and custody of the parent(s) or legal guardian(s) and declare the child a dependent or ward of the court.
― A petition can be dismissed, and no further action would be taken to determine eligibility. Or a petition can be substantiated, the child declared a dependent/ward and be removed from the home and placed in foster care.
― If the child remains in the home, there is no foster care eligibility.
― The determination of federal or non-federal foster care eligibility is a one-time occurrence and is based on the situation in the month that the petition was filed with the court that led to the child’s placement into foster care.
― For the case to be federally eligible, there must be linkage to the AFDC-FG/U program rules look back date of July 16, 1996, in the petition month.
― The date of the petition is available on the court order and documented on the SOC 158A.

Case Example

― The child was removed from the parent’s home and a petition filed on June 24, 2022. The petition was substantiated at a later date, and the child was made a dependent of the court.
― The determination of federal eligibility would be based on the situation in the parent’s home in June 2022, prior to June 24, 2022.

Policy: Division 45 AFDC-FC MPP 45-200, ACL 01-33, ACL 01-33E

― The court order must specify the person(s) from whom the child is being removed.
― To be eligible for federal AFDC-FC, a child can only be removed from a parent(s) or a specified relative.
― The home of removal, where the child was physically removed from, may be different from the legal home of removal.
― The case examples below help explain the difference between the legal home of removal and where the child was physically removed from.
― For an explanation of what a “relative” means, see the Relative section in the Introduction.
― If the child is not removed from a specified relative, there is no eligibility for federal AFDC-FC.
― The dynamics in this home is what will be used to determine AFDC-FC eligibility with the look-back date rules of July 16, 1996.
― If for any reason the child was not living in the home of the parent/relative from whom removed in the month of petition, but did live with that person in any of the 6 months prior to the petition that led to the removal and would have been eligible for federal AFDC-FG/U in that home in the petition month had application been made at the time, the linkage requirement is met.

Case Example

― The child was removed from the parent’s home and a petition filed on June 24, 2023. The petition was substantiated at a later date (no more than 60 days after removal), and the child was made a dependent of the court.
― The determination of federal eligibility would be based on the situation in the parent’s home in June 2023, prior to June 24th, 2023.

― Example 1:
― Parents leave the child with grandma. Grandma keeps the child in her home. Grandma then decides she can’t continue to care for the child and the child is removed.
― Because the grandma did nothing to cause the child to be removed (no abuse or neglect), the child is legally removed from parents based on their absence.

― Example 2:
― The child is in a 3-generation household (grandma, mom, and child). Mom leaves the home. Grandma contacts child welfare agency 4 months later, the agency petitions the court within 6 months of the date the child lived with the mother in the home and the child is legally removed from the mother.
― If the child welfare agency determines no neglect, abuse or maltreatment occurred by grandma to the child and grandma wants to continue to care for the child the county can approve her as a resource parent and the child continues to reside in the home in foster care.
― Since the child lived with the mother within 6 months of the court petition, was legally removed from the mother, and if all other federal foster care requirements were met during the month of petition, grandma is the relative placement for the child and thus, the child is eligible for federal AFDC-FC.

Policy: Division 45 AFDC-FC MPP 45.202.412, ACL 01-33, ACL 01-33E.

The eligibility staff or other appropriate county staff must verify that the following voluntary placement requirements have been met prior to the approval or continuation of AFDC-FC benefits:
1. Agreement
2. Time limits

Agreement

― There must be a written binding Voluntary Placement Agreement (SOC 155 or SOC 155C for an Indian child) between the county welfare department and the parent or guardian of the child.

Time limits

― Payment begins on the date of placement, or on the date that the Voluntary Placement Agreement is signed, whichever is later, provided all eligibility criteria are met.
― Limited to 180 days.
― To extend federal foster care eligibility beyond the initial approved 180 days, there must be a judicial determination that the child is a dependent or a ward of the court.
― If this does not occur, then funding is not available once the 180 days expire.
― When the child is made a dependent or ward of the court and continued voluntary placement is in “the best interest of the child,” then funding can continue beyond the initial 180-day period.
― Eligibility staff should note a child voluntarily placed can be eligible for AFDC- FC payments, including subsequent voluntary placements.
― In this circumstance, a new 180-day period of eligibility for AFDC-FC payments shall commence only if the child’s prior voluntary placement was previously terminated and the child was returned to his/her home on a non-temporary basis.
― Any subsequent placements must meet the time limitations.

NOTE: Placement options and eligible facilities for children placed by Voluntary Placement Agreement are the same as if a child were removed by a court order.

Policy: Division 45 AFDC-FC MPP 45-101, ACL 22-16

― “Relative” means an adult who is related to the child by blood, adoption, or affinity within the fifth degree of kinship, including stepparents, step-siblings, and all relatives whose status is preceded by the words “great,” “great-great,” or “grand,” or the spouse of any of these persons, even if the marriage was terminated by death or dissolution.
― The degree of relatedness also attaches to stepparents and stepsiblings as well as the spouse of any of the relatives listed above even if the marriage was terminated by death or dissolution.
― For foster care purposes, if a parent’s rights are terminated by relinquishment or by court action, that parent and their relatives are no longer considered to be the child’s relatives.
― The home of the relative must be assessed and approved as a Resource Family Approved (RFA) home.

Policy: Division 45 AFDC-FC MPP 45-202, ACL 16-10, RFA Written Directives, WIC 361.3

California law requires that when a child is removed from their parents’ custody and placed into foster care, preferential consideration shall be given to a relative. The law also requires that relatives be located, contacted, and informed about the child’s removal from the home.
― It is in the best interest for a youth to be placed in the least restrictive and most home-like setting. 

Statutorily, a relative or kin must be given preferential consideration.
― Placement preference order is:
1. Relative or Kin
2. Non-Related Extended Family Member (NREFM)
3. Non-Relative / Resource Family
4. STRTP or other licensed facility

Policy: Division 45 AFDC-FC MPP 45-202.5, WIC 11402, ACL 17-11, ACL 19-71, ACL 19-84, ACL 21-88, ACIN I-50-16, ACL 21-17, ACL 21-103, ACL 21-103(E)

To claim AFDC-FC foster care funds, a youth must be placed in an eligible foster care Resource Family Approval (RFA) home or a licensed facility. The placement type is indicated on the SOC 158A and must be used to state if the child is in an eligible RFA home or facility. Below is a list of eligible placement types to claim AFDC-FC funds. A copy of the certificate or license must be on file. 

Prior to placement and AFDC-FC funds being authorized (paid), it is incumbent county eligibility staff verify a home is fully approved. As such when a youth is placed in an STRTP eligibility staff must also ensure the facility is licensed. AFDC-FC funding is not available for placements in unapproved homes or facilities. For a complete list of all eligible placement types, eligibility staff can refer to CDSS regulations, statute, and ACLs/ACINs. Placement types are also identified in CalSAWS.

Resource Family Approved Home

― Approved home of a relative
― Approved home of a NREFM
― The licensed home of a nonrelative
― A Tribally Approved Home (TAH)
― A Small Family Home

Foster Family Agency (FFA) Resource Family Homes

Forms: LIC 05A, LIC 203, LIC 229
― The appropriate community care-licensing agency must approve the home using the Resource Family Approval standards.
― For homes under a Foster Family Agency (FFA), a copy of the approval for the FFA LIC 05A will be given to the county placing agency.
― In addition, a LIC 203 and 229 should be available to ensure the FFA is licensed, and the home has a certificate of approval. As a best practice, these documents should be maintained in the income services file or be made readily available upon requests.

Placement with a Parent in a Licensed Residential Substance Abuse Treatment Facility

Policy: ACL 21-103, ACL 21-103E, WIC 11402, [42 USC 472]
Forms: SOC 888
Under FFPSA, this new placement type allows a child to reside with their parent who is receiving inpatient substance abuse treatment facility. The child is placed utilizing a VPA and the Basic Level foster care rate is paid to the facility on behalf of the child for room and board. Eligibility Workers should note under 42 USC 672, the child in this placement type is not required to meet the AFDC-FC eligibility requirements for a foster care payment to be made to the facility.

Short-Term Residential Therapeutic Program (STRTP)

Policy: ACIN I-84-21, ACL 21-139, Assembly Bill 153, WIC 11462.01
An STRTP is a licensed residential facility operated as a private non-profit agency that provides an integrated program of specialized and intensive care and supervision, services and supports, and treatment for youth.

New STRTP placement conditions require communication and collaboration amongst county program managers, case workers, social workers, eligibility, and fiscal officers. Eligibility staff should note new placement conditions for STRTPs affect the ability to claim Federal Financial Participation (FFP) and do not alter foster care eligibility determinations under the AFDC-FC Program.
― Under the FFPSA Part IV, effective October 1, 2021, new placement conditions have been added when a youth is placed in an STRTP. Changes in federal and state law impact the ability for counties to make and claim foster care payments using Title IV-E funding.
― New placement requirements for a youth to be placed in an STRTP include accreditation, Qualified Individual (QI) assessment, documentation, and judicial determination requirements.
― There are various timeframes associated with each criterion that impact the ability to claiming of FFP, county eligibility staff are encouraged to read CDSS policy guidance referenced above.

Policy: Section 472(c) [42 U.S.C. 672], Child Welfare Policy Manual Section 8.3A.8a #3, WIC 11402, MPP 45-101(g)(1)(A)

A home or facility that falls into one of the placement types below is not eligible for Title IV-E foster care payments.
1. Detention centers.
2. Hospitals.
3. Any family home (relative, NREFM, pre-adoptive) that is not or has not gone through Resource Family Approval.
4. A residential treatment facility that does not meet all STRTP licensing requirements.
5. Children staying in agency offices, hotels, cars, etc.
6. Youth placed in ineligible facilities, such as Juvenile Hall, other detention, or locked facilities.
a. Title IV-E foster care payments are not permitted when a dependent or ward otherwise Title IV-E eligible, is placed in a locked facility.

As a reminder when an otherwise Title IV-E eligible youth is placed in, or resides in an ineligible home or facility, federal foster care payments cannot be issued on behalf of the youth. This provision applies to non-federal cases as well. While ineligible homes or facilities prohibit federal and non-federal payments this does not affect the Title IV-E eligibility status of a child or youth.

Example: A youth on probation is determined Title IV-E eligible at removal and is initially placed in an STRTP. The youth is then subsequently arrested for drug offenses and goes to Juvenile Hall for a few months. Under this scenario, when the youth is released from Juvenile Hall and placed in an eligible facility again, foster care payments may resume provided all other foster care requirements have been met.