Introduction
Financial assistance is a key part of foster care and adoption systems, designed to help caregivers provide stable, supportive environments for children. While these incentives promote permanency and ease financial strain, they can also lead to unintended consequences. Research indicates that some foster parents may be motivated more by financial gain than by the emotional and developmental needs of the children in their care, which can result in substandard caregiving, placement disruptions, and long‑term negative outcomes for child welfare (Simon et al., 2024; Bloomquist, 2024; Dunifon, Peters, & Berger, 2024). The central hypothesis of this review is that financial incentives may, in some cases, cause caregivers to prioritize monetary benefits over child well‑being. To explore this issue, the review draws on six scholarly sources, including two social work journals, to examine how financial motivations affect caregiving quality, identify gaps in service delivery, and suggest strategies for improving child welfare through policy reform and stronger oversight.
https://copilot.microsoft.com/th/id/BCO.9069f066-7203-4bf9-8b86-c509297157cc.png
Task
My task is to evaluate how financial assistance in foster care impacts caregiving quality and child well‑being. Using the literature review and six scholarly sources, I will analyze whether current financial incentives truly serve the needs of children or whether they risk being misused for personal gain (Simon et al., 2024; Bloomquist, 2024; Dunifon, Peters, & Berger, 2024). As part of this evaluation, I will propose a policy accountability measure to ensure that foster care funds are used appropriately. This includes requiring foster parents to provide receipts for at least a portion of the funds, specifically for school supplies, clothing, hygiene, and haircare essentials. I will also recommend that at least 50% of the funds be allocated directly to child‑centered needs, preventing misuse for unrelated family vacations or outings unless they are exclusively for the foster child or children (42 U.S.C. §672; 45 C.F.R. §1356.21; Children’s Bureau, 2024). My final product will be a structured recommendation that balances financial support with accountability, aiming to strengthen oversight and promote positive outcomes in foster care placements.
https://copilot.microsoft.com/th/id/BCO.f5829c4e-916e-415c-bac4-916b594ca0a4.png
Process
I propose funds of 100,000 to start my organization Sherrie’s Child First Funds Accountability Network (SCAN)I will combine the collected information to guide the development of a policy accountability proposal. This proposal will require foster parents to provide receipts for child‑related purchases such as daycare or after‑school programs, school materials, clothing, personal hygiene items, haircare needs, and activities designated specifically for the child or children, separate from the family’s recreation. I will also recommend that at least 50% of the financial assistance be used directly for the child or children’s personal needs, while the remaining 50% be applied toward household living expenses. Implementing this structure will help prevent funds from being redirected toward unrelated family activities, such as vacations or recreational outings for the entire family (42 U.S.C. §672; 45 C.F.R. §1356.21; Children’s Bureau, 2024; U.S. Government Accountability Office, 2006; Brook, Akin, & Liming, 2024; Turner, 2024).
In addition, with $100,000 in funding, the organization could strategically strengthen accountability and support foster parents by establishing a dedicated training program that teaches caregivers how to budget stipends responsibly, track expenses, and prioritize child‑centered needs. A transparent budget system would be developed to require foster parents to submit receipts and categorize expenses, while oversight and support staff could be hired to monitor compliance and provide technical assistance. A portion of the funding would also be reserved for child‑focused resources such as school supplies, extracurricular activities, therapy, and cultural opportunities. Finally, annual audits and reporting mechanisms would be implemented to evaluate effectiveness and adjust policies as needed. This process demonstrates how research, policy, and ethical frameworks can be applied in practice to ensure accountability and child‑centered outcomes within foster care.
https://copilot.microsoft.com/th/id/BCO.e80ab074-4308-4b0f-9573-1cf126afd28e.png
Evaluation
My work will be evaluated on its practical impact in strengthening foster care financial accountability and child well‑being. The strength of my policy proposal will be judged by how effectively it integrates oversight practices outlined in Title IV‑E of the Social Security Act and 45 C.F.R. §1356, as well as state licensing standards and foster‑parent agreements, which require that funds be used exclusively for the child’s care (42 U.S.C. §672; 45 C.F.R. §1356.21; Children’s Bureau, 2024). Ethical considerations will also be assessed, ensuring that recommendations align with principles of fairness, cultural competence, and trauma‑informed care. In addition, the clarity, coherence, and persuasiveness of my final presentation will be evaluated to verify that it meets academic standards and effectively communicates the balance between financial support and accountability.
https://copilot.microsoft.com/th/id/BCO.77739744-3119-47af-9a4b-62a64c80dc0d.png
Conclusion
Research by Simon et al. (2024), Bloomquist (2024), and Dunifon, Peters, and Berger (2024) indicated that although financial assistance can support foster care stability, it may also introduce risks when caregivers prioritize financial gain over relational caregiving. Federal and state policies, such as Title IV‑E of the Social Security Act and 45 C.F.R. §1356, establish requirements that foster‑care funds be used only for the child’s needs, including food, clothing, shelter, and personal care items (42 U.S.C. §672; 45 C.F.R. §1356.21). Oversight mechanisms, including caseworker visits, audits, and foster‑parent agreements, reinforce accountability and safeguard against misuse (Children’s Bureau, 2024). However, studies also highlight that foster care stipends are sometimes misused, with funds redirected toward unrelated family expenses or failing to meet children’s developmental needs (Brook, Akin, & Liming, 2024; Turner, 2024). This misuse can leave children without adequate clothing, hygiene items, or school supplies, increasing their vulnerability to bullying, social exclusion, and diminished self‑esteem (Simon et al., 2024). My policy proposal builds on existing safeguards by recommending stronger accountability measures, such as requiring receipts for child‑centered expenses and ensuring that at least half of the funds are allocated directly for the care of the children. By integrating scholarly evidence with existing laws and ethical principles of fairness, cultural competence, and trauma‑informed care, the final product emphasizes that financial support must be balanced with accountability to promote stability, cultural responsiveness, and positive developmental outcomes for children in foster care.
https://copilot.microsoft.com/th/id/BCO.d1d6397d-d949-40cb-a9ba-3be5bbec2503.png
Credits
American Bar Association. (2019). Supporting cultural identity for children in foster care. Child Law Practice, 38(3), 45–52. https://www.americanbar.org/groups/public_interest/child_law/resources/
Bloomquist, A. (2024). Lived experiences of foster parents encountering disruptions during pre‑adoptive placements. Journal of Child and Family Studies, 33(2), 412–430. https://doi.org/10.1007/s10826-024-02345-6
Brook, J., Akin, S., & Liming, R. (2024). Misuse of foster care subsidies: Oversight challenges and child welfare outcomes. Child Welfare Review, 102(1), 55–72.
Children’s Bureau. (2024). Title IV‑E foster care program guidance. U.S. Department of Health & Human Services, Administration for Children and Families. https://www.acf.hhs.gov/cb
Dunifon, R., Peters, C., & Berger, L. (2024). Kinship care and financial supports: Impacts on placement stability. Journal of Family Issues, 45(5), 1103–1125. https://doi.org/10.1177/0192513X24401234
Font, S., & Gershoff, E. (2020). Child neglect and inadequate emotional support in foster care: A review of systemic factors. Children and Youth Services Review, 116, 105–123. https://doi.org/10.1016/j.childyouth.2020.105123
National Child Traumatic Stress Network. (n.d.). Recommendations for trauma‑informed care under the Family First Prevention Services Act. https://www.nctsn.org/resources/recommendations-for-trauma-informed-care
National Coalition for Child Protection Reform [NNCCPR]. (2024). Financial incentives in foster care: Implications for caregiver intent and child outcomes. NNCCPR Policy Brief.
Simon, J., Taylor, M., & Rivera, L. (2024). Economic motivations and child welfare: Understanding foster caregiver incentives. Journal of Child Welfare, 103(3), 201–223. https://doi.org/10.1007/s10826-024-02789-0
Turner, P. (2024). Foster care stipends: Use, oversight, and developmental implications. Child Welfare Perspectives, 38(2), 87–102.
U.S. Government Accountability Office. (2006). Foster care and adoption assistance: Federal oversight needed to safeguard funds and ensure consistent support for states’ administrative costs (GAO‑06‑649). https://www.gao.gov/products/gao-06-649
W.E. Upjohn Institute. (2024). Financial incentives in foster care: Effects on placement stability and exits. Kalamazoo, MI: W.E. Upjohn Institute for Employment Research. https://doi.org/10.17848/upjohn-wr-2024-00Youth Village. (2024). Culturally responsive foster care practices. Youth Village Practice Guidelines. https://www.youthvillage.org/resources/culturally-responsive-care
42 U.S.C. §672. (n.d.). Foster care maintenance payments program. United States Code. https://uscode.house.gov
45 C.F.R. §1356.21. (n.d.). Foster care maintenance payments program. Code of Federal Regulations. https://www.ecfr.gov