Federal Foster Law Backfires

The Family First Prevention Services Act, meant to reduce congregate foster placements, has coincided with more children being stuck in emergency shelters, hotels, offices, and juvenile detention because federal reimbursement rules and Medicaid limits made many residential programs financially nonviable. GAO data and congressional probes show states lack sufficient therapeutic beds and are using stopgap placements that harm already‑traumatized youth. — If federal program design is incentivizing worse outcomes for vulnerable children, lawmakers must reconsider funding rules, Medicaid carveouts, and capacity‑building — a policy failure with wide social and fiscal consequences.