H. R. 5456 would amend title IV of the Social Security Act to make various changes to the child welfare system. The bill would provide federal matching funds to states for services that would help children who otherwise might enter foster care remain safely in their homes and for programs to support families caring for the children of relatives. It also would eliminate federal matching funds for some payments for foster children placed in nonfamily settings and would delay for two and one-half years federal matching for payments to certain families who adopt infants and toddlers. Finally, H.R. 5456 would extend the authorizations of several programs that provide child welfare services through 2021.
CBO estimates that enacting this legislation would, on net, reduce direct spending by $66 million over the 2017-2026 period. Because enacting the legislation would affect direct spending, pay-as-you-go procedures apply. Enacting H.R. 5456 would not affect revenues.
CBO also estimates that implementing the bill would increase discretionary costs by $2.5 billion over the 2017-2021 period, assuming appropriation of the authorized amounts.
CBO estimates that enacting H.R. 5456 would increase net direct spending and on-budget deficits by more than $5 billion in at least one of the four consecutive 10-year periods beginning in 2027.