42 U.S.C. § 673 — Adoption and guardianship assistance program

(a) Adoption assistance. (1) Every State with an approved plan must enter adoption-assistance agreements, as defined in section 675(3), with adoptive parents of children with special needs. Under each agreement, the State (B)(i) must pay the parents’ reasonable nonrecurring adoption expenses through the State agency or another public or nonprofit private agency, in the amount determined under paragraph (3), and (ii) may pay adoption assistance when paragraph (2) is met, through those agencies and in the amount determined there. (2)(A) A child qualifies for those payments if the child is not an “applicable child” for the fiscal year and either (i)(I)(aa) was removed from a section 606(a) relative’s home and placed under a voluntary agreement receiving federal payments under section 674 or former section 603, or under a court finding that staying home would harm the child, and met section 672(a)(3) for that home; (bb) meets all subchapter XVI SSI medical or disability requirements; or (cc) has costs covered by payments for the child’s minor parent under section 675(4)(B), and (II) the State finds under (c)(1) that the child has special needs; or the child is an applicable child and (i)(I)(aa) at adoption-proceeding initiation was with a public or licensed private agency or tribal organization after involuntary removal under a court welfare finding, or under a voluntary placement or relinquishment, (bb) meets subchapter XVI SSI medical or disability requirements, or (cc) lived in a foster home or institution with a minor parent who was placed after such involuntary removal or voluntary placement or relinquishment, and (II) the State finds under (c)(2) that the child has special needs. (B) Section 672(a)(4)’s alien rule applies. (C) A child also qualifies after a failed prior adoption if, for a non-applicable child, the child meets (A)(i)(II), previously qualified for adoption assistance, is available because the adoption dissolved and the adoptive parents’ rights ended or they died, and would meet (A)(i) if treated as having the same financial and other circumstances as at the prior determination and as if the adoption never occurred; or, for an applicable child, meets (A)(ii)(II), qualified for prior assistance (or would have if the 1997 Adoption and Safe Families Act had then applied), and is available because the adoption dissolved and rights ended or the parents died. (D) For a child in a section 671(a)(28) legal guardianship, the placement with the relative guardian and kinship payments are treated as never made when eligibility is decided. (3) The State or local agency and adoptive parents agree on payments, considering the parents’ circumstances and child’s needs. They may periodically adjust them with the parents’ agreement. A payment under (1)(B)(ii) may never exceed the foster-care maintenance payment that would have been made for the child in a foster home. (4)(A) No payment may be made for a child who has reached (i)(I) 18, or a higher age the State chooses under section 675(8)(B)(iii), or (II) 21 when the State finds a mental or physical handicap warrants continued help; (ii) is under 18 but the State finds the parents or relative guardians are no longer legally responsible for support; or (iii) the State finds no longer receives support from them. (B) Recipients must tell the State or local agency about circumstances that make them ineligible or change the amount. (5) People with whom a State-identified special-needs child is placed for adoption under State and local law may receive payments during placement on the same terms as if they adopted the child. (6) “Nonrecurring adoption expenses” means reasonable and necessary adoption fees, court costs, attorney fees, and other costs directly related to the legal adoption of a special-needs child and not incurred illegally. State payment of them counts as proper and efficient State-plan administration under section 674(a)(3)(E). (7)(A) No payment may be made for an applicable child for a fiscal year if the child would be special-needs under (c)(2), is not a United States citizen or resident, and was adopted outside the United States or brought here to be adopted. (B) This does not bar payments if the child later enters foster care because the State finds the initial adoption failed. (8)(A) A State must calculate any savings from applying (2)(A)(ii) to all applicable children using the Secretary’s method or a State method the Secretary approves. (B) Each year it must report the method, whether or not savings exist; the savings amount; and how savings were spent, separately from other part B or part spending. (C) The Secretary must post all reports on an easily accessible HHS website location. (D) The State must spend an amount equal to savings on services allowed under part B or this part. At least 30% must go to post-adoption services, post-guardianship services, and services supporting lasting positive outcomes for children who might otherwise enter State foster care; at least two-thirds of the amount used to meet that 30% must go to post-adoption and post-guardianship services. These funds supplement, and do not replace, other federal or nonfederal service funds. (b) Related benefit treatment. (1) For subchapter XIX, a child in paragraph (3) is treated in the child’s State of residence as a dependent child under the July 16, 1996 version of section 606 and as an AFDC recipient under that version’s part A. (2) For division A1 of subchapter XX, that child is treated as a minor child in a needy family under a part-A State program and as receiving its assistance. (3) Such a child is one (A) described in (a)(2) with an effective adoption-assistance agreement, whether or not payments are being made, including a child placed for adoption under State and local law whether or not a court decree has issued; (B) receiving section 672 foster-care payments; or (C) receiving kinship guardianship payments under (d). (4) A child whose foster-home or institution costs are covered by payments for the child’s minor parent under section 675(4)(B) is treated as receiving section 672 payments. (c) Special needs. (1) For a non-applicable child, the State must find that the child cannot or should not return home and must first find (A) a specific factor or condition—such as ethnic background, age, minority or sibling-group membership, medical condition, or physical, mental, or emotional disability—making it reasonable to conclude that placement cannot occur without this adoption assistance or subchapter XIX medical help, and (B) except when significant emotional ties with prospective adoptive parents make it against the child’s best interests, a reasonable but unsuccessful effort was made to place the child without that assistance. (2) For an applicable child, the State must find under State criteria that return home is not possible or appropriate; must find either (B)(i) a specific factor or condition making it reasonable to conclude placement cannot occur without adoption assistance and subchapter XIX medical help, or (ii) that the child meets all subchapter XVI SSI medical or disability requirements; and must find that, except when the child’s best interests forbid it because of significant emotional ties with prospective adoptive parents, a reasonable but unsuccessful effort was made to place the child without the assistance. (d) Kinship guardianship assistance. (1)(A) To receive section 674(a)(5) payments, the State must negotiate and sign a written, binding agreement with the prospective relative guardian of a qualifying child and give the guardian a copy. (B) At minimum it must state (i) the amount and method of each payment and how it may be adjusted periodically, after consulting the guardian, for the guardian’s circumstances and child’s needs; (ii) additional eligible services and help; (iii) how to request more services; and (iv) subject to (D), that the State pays all nonrecurring legal-guardianship expenses up to $2,000. (C) It must remain effective regardless of the guardian’s State residence. (D) The $2,000 promise does not affect the State’s ability to seek federal reimbursement. (2) A payment may not exceed the foster-care payment that would have been made if the child stayed in a foster home. (3)(A) The State agency must find that (i)(I) the child was removed under a voluntary agreement or court welfare finding and (II) was eligible for section 672 payments while living at least six consecutive months with the prospective guardian; (ii) return home or adoption is not appropriate; (iii) the child is strongly attached to the guardian and the guardian is strongly committed to permanent care; and (iv) if at least 14, the child was consulted. (B) If a qualifying child’s sibling is not qualifying, they may be placed together if the agency and relative agree it is appropriate, and each may receive payments. (C) If the guardian dies or becomes unable to serve, eligibility is not lost when the named successor legal guardian takes over under the agreement or an amendment, despite (A) and section 671(a)(28). (e) Applicable child. (1)(A) Subject to (2) and (3), it is a child whose adoption-assistance agreement is made in a fiscal year in (B) and who reaches that year’s applicable age before the year ends. (B) The age is 16 in 2010; 14 in 2011; 12 in 2012; 10 in 2013; 8 in 2014; 6 in 2015; 4 in 2016; 2 in 2017 through 2023; 2 in 2024, or any age for an agreement made on or after July 1, 2024; and any age in 2025 and later. (2) Starting in fiscal year 2010, it includes any-age children who have been in State-responsibility foster care at least 60 consecutive months and meet (a)(2)(A)(ii). (3) Starting in fiscal year 2010, it includes any-age siblings of an applicable child who will be placed in the same adoption placement and meet (a)(2)(A)(ii), whether or not they meet (2)(A).