SECTION 1. SHORT TITLE; TABLE OF CONTENTS; REFERENCES.

    (a) Short Title.--This Act may be cited as the ``Partnership for 
Children and Families Act''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents; references.
 TITLE I--EXPANDED ELIGIBILITY FOR ADOPTION ASSISTANCE AND FOSTER CARE

Sec. 101. Adoption assistance.
Sec. 102. Foster care maintenance payments.
              TITLE II--CHILD WELFARE REINVESTMENT FUNDING

Sec. 201. Child welfare reinvestment funding.
                       TITLE III--EFFECTIVE DATES

Sec. 301. Effective dates.
    (c) References.--Except as otherwise expressly provided, wherever 
in this Act an amendment or repeal is expressed in terms of an 
amendment to, or repeal of, a section or other provision, the amendment 
or repeal shall be considered to be made to a section or other 
provision of the Social Security Act.

 TITLE I--EXPANDED ELIGIBILITY FOR ADOPTION ASSISTANCE AND FOSTER CARE

SEC. 101. ADOPTION ASSISTANCE.

    Section 473(a) (42 U.S.C. 673(a)) is amended by striking paragraph 
(2) and inserting the following:
            ``(2)(A) For the purposes of paragraph (1)(B)(ii), a child 
        meets the requirements of this paragraph if the child--
                    ``(i)(I) at the time of the adoption proceedings 
                were initiated, had been removed from his or her home--
                            ``(aa) pursuant to a voluntary placement 
                        agreement with respect to which Federal 
                        payments are made under section 474; or
                            ``(bb) as a result of a judicial 
                        determination to the effect that continuation 
                        therein would be contrary to the welfare of the 
                        child, including such determination made on 
                        account of a voluntary relinquishment;
                    ``(II) was residing in a foster family home or in a 
                child care institution with the child's minor parent as 
                described in section 475(4)(B); and
                    ``(ii) has been determined by the State, pursuant 
                to subsection (c) to be a child with special needs.
            ``(B) A child who meets the requirements of subparagraph 
        (A)(ii), who was determined eligible for adoption assistance 
        payments under this part with respect to a prior adoption, and 
        who is available for adoption because the prior adoption has 
        been dissolved and the parental rights of the parents have been 
        terminated or because the adoptive parents have died, shall be 
        treated as meeting the requirements of this paragraph for the 
        purposes of paragraph (1)(B)(ii).''.

SEC. 102. FOSTER CARE MAINTENANCE PAYMENTS.

    (a) Elimination of Income Eligibility Requirement.--Section 472(a) 
(42 U.S.C. 672(a)) is amended--
            (1) in paragraph (1), by striking ``if'' and all that 
        follows and inserting ``if the removal and foster care 
        placement met, and the placement continues to meet, the 
        requirements of paragraph (2).''; and
            (2) by striking paragraphs (3) and (4).
    (b) Conforming Amendment.--Section 470 (42 U.S.C. 670) is amended 
by striking ``who otherwise would have been eligible for assistance 
under the States plan approved under part A (as such plan was in effect 
on June 1, 1995)''.

              TITLE II--CHILD WELFARE REINVESTMENT FUNDING

SEC. 201. CHILD WELFARE REINVESTMENT FUNDING.

    Section 474 (42 U.S.C. 674) is amended by adding at the end the 
following:
    ``(g) Child Welfare Reinvestment Fund.--
            ``(1) In general.--Each State with a plan approved under 
        this part for a fiscal year may submit to the Secretary an 
        application to--
                    ``(A) receive foster care maintenance payment 
                savings achieved by reducing the total number of days 
                children in the State experience in foster care during 
                the fiscal year; and
                    ``(B) use the savings to--
                            ``(i) provide to children in the State 
                        family preservation services, family support 
                        services, time-limited family reunification 
                        services and adoption promotion and support 
                        services, as such terms are defined in section 
                        431(a); and
                            ``(ii) train the staff of State and local 
                        child welfare agencies, of child welfare 
                        service providers, or of providers of related 
                        services aimed at keeping children in their 
                        homes, on effective practices relating to the 
                        provision of any service referred to in this 
                        subparagraph.
            ``(2) Contents of application.--An application submitted by 
        a State pursuant to this subsection shall contain--
                    ``(A) an estimate of the the total number of 
                placement days the State will experience for the fiscal 
                year covered by the application, and a detailed 
                description of the methodology used to make the 
                estimate;
                    ``(B) a plan which--
                            ``(i) sets forth a detailed description of 
                        how any amount paid to the State under this 
                        subsection would be used as described in 
                        paragraph (1)(B) of this subsection;
                            ``(ii) contains the assurances described in 
                        section 422(b)(8);
                            ``(iii) does not impair the entitlement of 
                        any qualified child or family to benefits under 
                        the State plan approved under this part; and
                            ``(iv) is consistent with any corrective 
                        action plan that the State may be implementing 
                        pursuant to section 1123A; and
                    ``(C) such other information as the Secretary may 
                require.
            ``(3) Approval of applications.--Beginning October 1, 2008, 
        the Secretary may approve an application submitted by a State 
        pursuant to this subsection if--
                    ``(A) the State and the Secretary have agreed on 
                the State's estimate of the total number of placement 
                days the State will experience for the fiscal year 
                covered by the application; and
                    ``(B) the approval of the application would not--
                            ``(i) result in the State violating any 
                        assurances made by the State pursuant to 
                        section 422(b)(8); or
                            ``(ii) result in the impairment of the 
                        entitlement of any qualified child or family to 
                        benefits under the State plan approved under 
                        this part.
            ``(4) Payments to states.--
                    ``(A) In general.--In addition to any other payment 
                under this part for a fiscal year for which a State 
                application under this subsection is approved by the 
                Secretary, the State shall be entitled to receive from 
                the Secretary an amount equal to the lesser of--
                            ``(i) the foster care maintenance payment 
                        savings achieved by the State for the fiscal 
                        year; or
                            ``(ii) the Federal medical assistance 
                        percentage (as defined in section 1905(b)) of 
                        the total of the amounts expended by the State 
                        during the fiscal year to carry out any 
                        activity described in the application pursuant 
                        to paragraph (2)(B)(i) of this subsection and 
                        with respect to which amounts the State is not 
                        otherwise entitled to receive a payment from 
                        the Federal Government.
                    ``(B) Determination of savings.--
                            ``(i) In general.--For purposes of 
                        subparagraph (A)(i), the foster care 
                        maintenance payment savings achieved by a State 
                        for a fiscal year shall be an amount equal to--
                                    ``(I) the foster care maintenance 
                                unit cost of the State for the fiscal 
                                year; multiplied by
                                    ``(II) the amount (if any) by which 
                                the number of placement days estimated 
                                by the State for the fiscal year 
                                pursuant to paragraph (3)(A) exceeds 
                                the number of placement days 
                                experienced by the State during the 
                                fiscal year.
                            ``(ii) Definitions.--In this subsection:
                                    ``(I) Foster care maintenance unit 
                                cost.--The term `foster care 
                                maintenance unit cost' means, with 
                                respect to a State and a fiscal year--
                                            ``(aa) the total amount 
                                        payable to the State under 
                                        subsection (a)(1) for the 
                                        preceding fiscal year; divided 
                                        by
                                            ``(bb) the total number of 
                                        placement days experienced by 
                                        the State in the preceding 
                                        fiscal year.
                                    ``(II) Placement day.--The term 
                                `placement day' means, with respect to 
                                a State, a calendar day during all or 
                                part of which a child (whether or not 
                                eligible for foster care maintenance 
                                payments under section 472(a)), other 
                                than a child who has been determined to 
                                be delinquent and is the subject of an 
                                agreement referred to in section 
                                472(a)(2), has been removed from his 
                                home and placed into a family foster 
                                home, child care institution, or the 
                                home of a relative of the child 
                                (whether or not a foster care 
                                maintenance payment is made on behalf 
                                of the child to the family foster home, 
                                child care institution, or relative), 
                                and during which the State retains 
                                legal responsibility for the placement 
                                and care of the child.
                    ``(C) Timing.--The Secretary shall make the payment 
                to which a State is entitled under this subsection for 
                a fiscal year, at the end of the fiscal year.
            ``(5) Use of funds.--
                    ``(A) In general.--A State to which funds are paid 
                under this subsection may use the funds only in 
                accordance with the approved application of the State 
                under this subsection.
                    ``(B) Limitation on use for staff costs.--A State 
                may not use any funds paid to the State under this 
                subsection to cover the salaries or related costs of 
                any staff of any State or local child welfare agency, 
                except to the extent the staff are directly engaged in 
                carrying out an activity referred to in paragraph 
                (4)(A)(ii).
            ``(6) Availability of funds.--Funds paid to a State under 
        paragraph (4) shall remain available to the State for 
        expenditure through the end of the 5th fiscal year ending after 
        the date paid.
            ``(7) Report.--As soon as practicable after each fiscal 
        year for which a State has received funds under this part, the 
        State shall prepare and submit to the Secretary a written 
        report on the services provided through use of the funds, and 
        the effects of the provision of the services on the outcomes of 
        children in the State.''.

                       TITLE III--EFFECTIVE DATES

SEC. 301. EFFECTIVE DATES.

    (a) Adoption Assistance.--The amendment made by section 101 shall 
take effect on October 1, 2008, and shall apply to adoption assistance 
agreements executed on or after that date.
    (b) Foster Care Maintenance Payments.--The amendments made by 
section 102 shall take effect on October 1, 2008, and shall apply to 
children removed from their home and placed into foster care on or 
after that date.
    (c) Child Welfare Reinvestment Funding.--The amendment made by 
section 201 shall take effect on October 1, 2008.
Partnership for Children and Families Act - Amends part E (Foster Care and Adoption Assistance) of title IV of the Social Security Act to revise the eligibility requirements for adoption assistance and foster care maintenance payments, eliminating certain income criteria.

Allows each state with an approved part E plan to apply to the Secretary of Health and Human Services to: (1) receive foster care maintenance payment savings achieved (in a "child welfare reinvestment fund") by reducing the total number of days children in the state experience in foster care during the fiscal year; and (2) use the savings to provide children with family preservation services, family support services, time-limited family reunification services, and adoption promotion and support services, and to train the staff of state and local child welfare agencies in effective service practices.
A bill to provide States with the incentives, flexibility and resources to develop child welfare services that focus on improving circumstances for children, whether in foster care or in their own homes.