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1 1 (April 4, 2023)

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Key  Points

  &  Efforts to deinstitutionalize foster care have significantly reduced placement capacity and
     forced older chidrn and those with higher levels of need to live in a range of inappro-
     priate settings-child welfane offices, emergency rooms, hotels, and honeless shelters.

     Deinsttutionaization efforts in juvenile justice, increasino acuity levels within the child
     we  ar popuaion,  and the failure tc ev:elop   rtmatvc pacemnents <ca)ab of e rving
     the children and youh  .previously in congregate care have compounded the crisis,

     The redera govermrnent nust exerpt Qualified Reientia  TreatmentProgramis (O RTPs)
     frn  classication as irsitutlions for mental diease under Medicaid, amend the -arnAly
     First Prevention Service Act to provide an exenption >rom >   nRTP tanards for prograrns
     se rving youth in h a juerile jusice systm, ad significanty ircrease fceral investment
     in developino alternative olacements to congregate care that can capably serve and sup-
     port older youth and youth wth higher levels of need.


Across  the country,  child welfare systems  are
struggling to find placements fcr children and youth
in foster care-especially those who are older and
have higher levels of need. While bed shortages have
long plagued child welfare systems, a confluence of
issues has caused the problem to metastasize into
a errs s These issues include increasing levels of
need  within the foster care population, financial
challenges facing direct service providers, and ide-
ological shifts that have driwn new legislative and
regulatory recuirements  and newv restrictions on
funding ano< administrative decision-making.
   The result is that states and counties are rapidly
losing residential treatment and congregate care
capacity while struggling to recruit and retain foster


hones  capable of serving higher-needs foster chil-
dren Consetquentily, foster children across the coun-
tryare increasingly being housed in a range of tern-
porary settings, including county and state offices,
hospital3, hotels, and shelters. These placements'
unsui-ability and frequency hive attracted signifi-
cant press attention.
   An August 2022 story in the Philadelphia inquier
investigated the Philadelphia Department of Human
Services' use of its conference rooms as temporary
housing for foster children. According to its own
data, the department has housed more than 300 kids
in its offices for at least one night over the previous
year. Most nights, five to io children with complex
needs are sleeping in the childcare room, where

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