In 2021, there were 168,063 white children in foster care in the United States. This is compared to 86,645 Black or African American children and 85,215 Hispanic children who were in foster care.

Foster care in the United States

Foster care is where minors are taken care of in different institutions, such as a group home or private home of a caregiver certified by the state (called a foster parent). The procedure for becoming a foster parent in the United States varies from state to state. It is up to the state to determine the process; however it is overseen by the Department of Child Protective Services. It is sometimes seen as a precursor to adoption, which is different from fostering a child. There are many barriers to fostering and adopting children, such as high costs and long wait times, which can discourage people from doing it.

Who are foster children?

The number of children in foster care in the United States has decreased slightly since 2011. When looked at by age, most of the children in foster care in 2020 were one year old, and slightly more male children were in foster care than female children. Most of the children in foster care were placed into non-relative foster family homes, and in most cases, the primary goal of foster care is to reunify children with their parents or primary caregivers.

In 2022, about 25,338 children under one-year-old in the United States were living in foster care. In that same year, about 20,163 children aged 16 years old were living in foster care nationwide.

In 2022, about 368,530 children in the United States were living in foster care. This is a sharp decrease from the previous year, when about 407,318 children were living in foster care nationwide.

Reduce the foster care entry rate from 6.3 per 1,000 in 2013 to 4.9 per 1,000 by 2019 by increasing the number of children who remain safely in their own homes.

Apportionment file 11235223 retrieved from OMB public records

Number of first entries into foster care for children under age 18. Rates represent a three-year average of data. First entries into foster care are unduplicated counts of children under the supervision of county welfare departments and exclude cases under the supervision of county probation departments, out-of-state agencies, state adoptions district offices, and Indian child welfare departments. For rates, LNE (Low Number Event) refers to data that have been suppressed because there were fewer than 20 first entries. N/A means that data are not available. Needell, B., et al. (May 2014). Child Welfare Services Reports for California, U.C. Berkeley Center for Social Services Research; U.S. data come from Child Trends analysis of Adoption and Foster Care Analysis and Reporting System data available through the National Data Archive on Child Abuse & Neglect, as cited on KIDS COUNT (May 2014). Retrieved May 31, 2015.

For HHSC 24-Hour Residential Child Care Facility Rates go to https://www.dfps.texas.gov/Doing_Business/Purchased_Client_Services/Residential_Child_Care_Contracts/Rates/default.asp

Calculations exclude children where cost of care was not covered by Title IV-E or state paid foster care. Children may be duplicated within a month by funding streams.

Full Time Equivalents (FTEs) are calculated by dividing the days of paid foster care by number of the days in the month.

The total of all payment rate types will include duplicated counts due to changes in service levels during the month. Some children are served in more than one eligibility type in a month.

State Paid Foster Care may be funded with Federal Block Grant (TANF).

The methodology used for this chart was modified in FY16 to evaluate at the county level; therefore, the resulting averages may not match prior data books.

Average monthly count of unduplicated children in paid foster care per month by fiscal year. This dataset counts unique children regardless of payment types during the month. Calculations exclude children and young adults where cost of care was not covered by Title IV-E or state paid foster care. A young adult is any person in foster care who was 18 to 21 years of age at anytime during the fiscal year. Some children are served in more than one eligibility type in a month.

Excel version of report to City Council required per LL 147

In 2022, around 18,144 children in California who were the victims of child abuse were in foster care, the most out of any state. Florida, Texas, Illinois, and Indiana rounded out the five leading states for children in foster care in that year.

This counts placement types, not unique children in substitute care. Children will be duplicated by moving from foster care to other substitute care or by relative to non-relative placements. For example, a child who spent a portion of the year with a relative, but the rest with a non-relative would be counted twice. Children in DFPS custody are those for whom a court has appointed DFPS legal responsibility through temporary or permanent managing conservatorship or other court ordered legal basis. These children may be residing in substitute care or may be living with a parent, referred to as a return and monitor. DFPS legal responsibility terminates when a court orders DFPS custody ended or a youth turns 18, whichever comes first. Substitute care - all children who are living in a DFPS out of home placement. It does not include children in DFPS custody who are living with a parent on a return and monitor. Unless otherwise noted, it does include youth over 18 who are in extended foster care but are not in DFPS custody. Kinship care- a subset of substitute care that includes all children in DFPS custody who are living with a legal or blood relative or other individual who has a significant relationship with the child or the child's family known as "fictive kin." Foster care - a subset of substitute care that includes all children living in a placement that has been verified to provide 24-hour residential care for a child, in accordance with Chapter 42 of the Human Resources Code and related regulations. These placements include foster homes, including kinship care where the caregiver has been verified, general residential operations (GRO), emergency shelters, residential treatment centers (RTC), and juvenile facilities. Paid foster care - a subset of foster care where DFPS is making foster care payments. Visit dfps.state.tx.us for information on substitute care placements and all DFPS programs.

Rate of first entries into foster care per 1,000 children under age 18, by race/ethnicity. Rates represent a three-year average of data. First entries into foster care are unduplicated counts of children under the supervision of county welfare departments and exclude cases under the supervision of county probation departments, out-of-state agencies, state adoptions district offices, and Indian child welfare departments. LNE (Low Number Event) refers to data that have been suppressed because there were fewer than 20 children with first entries. N/A means that data are not available. Data Source: Needell, B., et al. (May 2014). Child Welfare Services Reports forCalifornia, U.C. Berkeley Center for Social Services Research. As cited on kidsdata.org, a program of the Lucile Packard Foundation for Children's Health. Retrieved on May 31, 2015.

The adoption and child welfare industry has experienced overall growth even during the pandemic years, as increased stress-related service needs boosted demand and federal funding boosted revenues. While some service providers relied on private donations, corporate profit was strong in 2021. Technology adoption enabled remote delivery of services and expanded market reach, which helped reduce costs and enhance efficiency. Online matching platforms, VR training systems and case management software are examples of how technology has reduced costs and differentiated services to incentivize niche entry into underserved markets. And because of the strong growth in the number of establishments meeting demand and ample funding support during the pandemic, industry-wide revenue is expected to climb at a CAGR of 4.3% to $30.5 billion through 2025, with revenue growth inching up an estimated 1.7% in 2025 alone. The diversity of services offered and the unique characteristics of funding lead to disparate growth in services. Revenue for many establishments depends on the combination of government funding and private donations, which change with economic and government policy fluctuations, while demographic and social stressors impact the need for services. The disconnect between payors and clients creates an imbalance of funding and demand, adding to revenue volatility. Regional factors impact the provision of services and shortfalls. While demand in some states is growing because of increasing population, the long lead time to entry has led to a shortfall in provision.

Reorganizing key agencies under the new Administration for a Healthy America will bring some volatility to the industry. Government funding, crucial to more than half of industry revenue, faces volatility as restructuring could disrupt services, staffing and program effectiveness. This realignment offers potential efficiency gains through improved collaboration, but details about governance and resources remain in flux. Because of the uncertain impact of federal changes, private funding and state initiatives are vital for near-term future revenue growth. For-profit providers can leverage technology to reduce costs and capitalize on economies of scale, entering markets where nonprofits dominate. Telehealth innovations and online platforms lead to a broader reach and service efficiency, intensifying competition. As demand increases in rapidly growing states, nonprofit providers should streamline operations and secure diverse funding sources to meet community needs effectively. But despite numerous policy, technology and demographic shifts, industry revenue is forecast to climb at a slower CAGR of 1.2% through 2030 to total $32.5 billion with profit holding steady at a slim 3.1%.

Data were extracted from a review of computerized administrative claims for 15,507 Medicaid youth in an effort to assess differences in rates of mental health treatment for enrollees in one of 3 categories of aid. The study population consisted of individuals aged 0-19 years residing in a suburban county in a mid-Atlantic state during 1996 and enrolled in the fee-for-service Medicaid program. Mental health services were analyzed and compared for youth in foster care, receiving Supplemental Security Income (SSI), and all other forms of assistance such as Aid to Families with Dependent Children (AFDC). The dataset includes demographic information, type of mental health services provided, mental disorder diagnoses (in 15 subcategories), as well as psychotropic and certain nonpsychotropic medications prescribed.

In 2022, about 108,877 children in the United States were waiting to be adopted. This is a decrease from a high of 133,682 children who were waiting to be adopted nationwide in 2007.

This statistic shows the number of children adopted in the United States in 2014, by state. During October 2013 to September 2014, total 5,287 children were adopted in California.

In 2021, about 35,940 children who were adopted in the United States with public agency involvement were adopted by a married couple. In that same year, a further 13,307 children in the country were adopted by a single woman.

Increases in wages and purchase costs have challenged group homes' expenses to erode revenue. However, the industry's weak performance is mainly attributed to declines in demand, the impact of professional advocates campaigning for smaller, community-based settings and government policies supporting transitions to family settings and foster homes. Various socioeconomic conditions had also negatively impacted service providers' earnings. And contributing to softening in demand are decreases in crime, divorce and incarceration rates, which have reduced stressors on families and individuals and the need for group home services. Despite shifts in policy towards family settings, group homes and congregate care facilities serving newborns to young adults continue to provide services, but with industry revenue dropping at a CAGR of 1.0% through 2025 and gaining 0.2% to $9.9 billion in 2025 alone. Unfortunately, under-capacity does provide specific opportunities for group homes by encouraging them to diversify their services and engage more with their local community, including providing support for families. Providers can improve their financial performance by spurring demand by adopting new care and technology strategies, including trauma-informed care and technology-based, efficient health monitoring. The industry will see a higher growth in the number of enterprises than establishments, signaling a trend towards consolidation. However, the placement of enterprises may be influenced more by historical profitability rather than current market needs, potentially leading to a rise in closures of lower-performing providers. California, for instance, has a surplus of service providers for its population size, while some states have a shortage. Despite governmental policies favoring family-centered environments, a lack of foster homes across numerous states could thwart the shift away from group homes and residential treatment facilities will still be required for children who struggle to adapt or fit into a foster setting. Facing these challenges and remaining uncertain over the federal budget impacts for FY 2026, industry revenue is estimated to edge upward at a CAGR of 0.3%, to reach $10.1 billion through 2030, with declining profit.

Numbers and rates of child victims by single year age and by state for the most recent federal fiscal year for which data are available.

To view more National Child Abuse and Neglect Data System (NCANDS) findings, click link to summary page below: https://healthdata.gov/stories/s/kaeg-w7jc

Numbers, percentages, and rates of referrals to child protectives services, by state for the most recent federal fiscal year for which data are available. A referral is a notification to the CPS agency of suspected child maltreatment. Referrals may include more than one child.

To view more National Child Abuse and Neglect Data System (NCANDS) findings, click link to summary page below: https://healthdata.gov/stories/s/kaeg-w7jc