Testing what works: federal waivers give states the flexibility to discover what's best for children in foster care.

• Author: Williams-Mbengue, Nina
• Position: CHILD WELFARE

Want to build a strong child welfare system, try programs that will save money and improve foster care? Seeking a child welfare waiver--allowed under the Child Welfare and Family Services Innovation Act of 2011, might be your answer. The federal act authorized the U.S. Department of Health and Human Services to issue 10 waiver demonstration projects for 2012, and 10 more in both 2013 and in 2014.

The waivers allow states to use money usually reserved for specific foster care expenses to test new ways of providing and financing child welfare services. Ideas submitted for approval must aim to safely shorten children's stays in care, increase children's safety and well-being, prevent child abuse or keep children from going back into care.

Priority is given to projects that will improve the lives of children who have experienced trauma, contribute to the body of evidence about what works, and include other programs, such as mental and behavioral health services.

A History of Success

State experiments with waivers as far back as 1995 have shown success in saving states money while keeping children safe. According to evaluators from the U.S. Health and Human Services Department, children in waiver demonstration programs in Illinois, Minnesota, Oregon, Tennessee and Wisconsin spent significantly less time in foster care than children in control groups. The programs focused on helping children get adopted, find permanent homes with relatives, or return home to their families.

The waiver demonstration programs that tested flexible funding schemes also showed positive results. For example, Florida's waiver allowed it to pay community-based agencies that serve children and families to provide substance abuse, mental health and crisis intervention services and help with rent, utilities and child care in order to keep children safely at home. This led to a 37 percent decline in the numbers of children in care between 2006 and 2011. As a result of fewer children entering foster care, especially expensive institutional care, the state's foster care costs dropped significantly.

Evaluators also noted that programs in Indiana and Ohio reduced the time children spent in foster care. In Indiana, children receiving services under the waiver averaged 113 fewer days in care compared with a control group. In Ohio, children spent 1.77 fewer months in foster care before being adopted than they would have without the waiver program.

The waiver program was initially...