Sec. 1. Short title. 
Sec. 2. Table of contents. 
TITLE I—CONNECTING AND SUPPORTING RELATIVE CAREGIVERS 
Sec. 101. Kinship guardianship assistance payments for children. 
Sec. 102. Family connection grants. 
Sec. 103. Notification of relatives. 
Sec. 104. Licensing standards for relatives. 
Sec. 105. Authority for comparisons and disclosures of information in the Fed-
eral Parent Locator Service for child welfare, foster care, and 
adoption assistance program purposes. 
TITLE II—IMPROVING OUTCOMES FOR CHILDREN IN FOSTER 
CARE 
Sec. 201. State option for children in foster care, and certain children in an 
adoptive or guardianship placement, after attaining age 18. 
Sec. 202. Transition plan for children aging out of foster care. 
Sec. 203. Short-term training for child welfare agencies, relative guardians, and 
court personnel. 
Sec. 204. Educational stability. 
Sec. 205. Health oversight and coordination plan. 
Sec. 206. Sibling placement. 
TITLE III—TRIBAL FOSTER CARE AND ADOPTION ACCESS 
Sec. 301. Equitable access for foster care and adoption services for Indian chil-
dren in tribal areas. 
Sec. 302. Technical assistance and implementation. 
TITLE IV—IMPROVEMENT OF INCENTIVES FOR ADOPTION 
Sec. 401. Adoption incentives program. 
Sec. 402. Promotion of adoption of children with special needs. 
Sec. 403. Information on adoption tax credit. 
TITLE V—CLARIFICATION OF UNIFORM DEFINITION OF CHILD 
AND OTHER PROVISIONS 
Sec. 501. Clarification of uniform definition of child. 
Sec. 502. Investment of operating cash. 
Sec. 503. No Federal funding to unlawfully present individuals. 
TITLE VI—EFFECTIVE DATE 
Sec. 601. Effective date. 
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TITLE I—CONNECTING AND SUP-
PORTING 
RELATIVE 
CARE-
GIVERS 
SEC. 101. KINSHIP GUARDIANSHIP ASSISTANCE PAYMENTS 
FOR CHILDREN. 
(a) STATE PLAN OPTION.—Section 471(a) of the So-
cial Security Act (42 U.S.C. 671(a)) is amended— 
(1) by striking ‘‘and’’ at the end of paragraph 
(26); 
(2) by striking the period at the end of para-
graph (27) and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(28) at the option of the State, provides for 
the State to enter into kinship guardianship assist-
ance agreements to provide kinship guardianship as-
sistance payments on behalf of children to grand-
parents and other relatives who have assumed legal 
guardianship of the children for whom they have 
cared as foster parents and for whom they have 
committed to care on a permanent basis, as provided 
in section 473(d).’’. 
(b) IN GENERAL.—Section 473 of such Act (42 
U.S.C. 673) is amended by adding at the end the fol-
lowing: 
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‘‘(d) KINSHIP
GUARDIANSHIP
ASSISTANCE
PAY-
MENTS FOR CHILDREN.— 
‘‘(1) 
KINSHIP
GUARDIANSHIP
ASSISTANCE 
AGREEMENT.— 
‘‘(A) IN
GENERAL.—In order to receive 
payments under section 474(a)(5), a State 
shall— 
‘‘(i) negotiate and enter into a writ-
ten, binding kinship guardianship assist-
ance agreement with the prospective rel-
ative guardian of a child who meets the re-
quirements of this paragraph; and 
‘‘(ii) provide the prospective relative 
guardian with a copy of the agreement. 
‘‘(B) 
MINIMUM
REQUIREMENTS.—The 
agreement shall specify, at a minimum— 
‘‘(i) the amount of, and manner in 
which, each kinship guardianship assist-
ance payment will be provided under the 
agreement, and the manner in which the 
payment may be adjusted periodically, in 
consultation with the relative guardian, 
based on the circumstances of the relative 
guardian and the needs of the child; 
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‘‘(ii) the additional services and assist-
ance that the child and relative guardian 
will be eligible for under the agreement; 
‘‘(iii) the procedure by which the rel-
ative guardian may apply for additional 
services as needed; and 
‘‘(iv) subject to subparagraph (D), 
that the State will pay the total cost of 
nonrecurring expenses associated with ob-
taining legal guardianship of the child, to 
the extent the total cost does not exceed 
$2,000. 
‘‘(C) INTERSTATE
APPLICABILITY.—The 
agreement shall provide that the agreement 
shall remain in effect without regard to the 
State residency of the relative guardian. 
‘‘(D) NO
EFFECT
ON
FEDERAL
REIM-
BURSEMENT.—Nothing in subparagraph (B)(iv) 
shall be construed as affecting the ability of the 
State to obtain reimbursement from the Fed-
eral Government for costs described in that 
subparagraph. 
‘‘(2) LIMITATIONS
ON
AMOUNT
OF
KINSHIP 
GUARDIANSHIP
ASSISTANCE
PAYMENT.—A kinship 
guardianship assistance payment on behalf of a child 
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shall not exceed the foster care maintenance pay-
ment which would have been paid on behalf of the 
child if the child had remained in a foster family 
home. 
‘‘(3) CHILD’S
ELIGIBILITY
FOR
A
KINSHIP 
GUARDIANSHIP ASSISTANCE PAYMENT.— 
‘‘(A) IN GENERAL.—A child is eligible for 
a kinship guardianship assistance payment 
under this subsection if the State agency deter-
mines the following: 
‘‘(i) The child has been— 
‘‘(I) removed from his or her 
home pursuant to a voluntary place-
ment agreement or as a result of a ju-
dicial determination to the effect that 
continuation in the home would be 
contrary to the welfare of the child; 
and 
‘‘(II) eligible for foster care 
maintenance payments under section 
472 while residing for at least 6 con-
secutive months in the home of the 
prospective relative guardian. 
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‘‘(ii) Being returned home or adopted 
are not appropriate permanency options 
for the child. 
‘‘(iii) The child demonstrates a strong 
attachment to the prospective relative 
guardian and the relative guardian has a 
strong commitment to caring permanently 
for the child. 
‘‘(iv) With respect to a child who has 
attained 14 years of age, the child has 
been consulted regarding the kinship 
guardianship arrangement. 
‘‘(B) TREATMENT OF SIBLINGS.—With re-
spect to a child described in subparagraph (A) 
whose sibling or siblings are not so described— 
‘‘(i) the child and any sibling of the 
child may be placed in the same kinship 
guardianship arrangement, in accordance 
with section 471(a)(31), if the State agen-
cy and the relative agree on the appro-
priateness of the arrangement for the sib-
lings; and 
‘‘(ii) kinship guardianship assistance 
payments may be paid on behalf of each 
sibling so placed.’’. 
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(c) CONFORMING AMENDMENTS.— 
(1) ELIGIBILITY
FOR
ADOPTION
ASSISTANCE 
PAYMENTS.—Section 473(a)(2) of such Act (42 
U.S.C. 673(a)(2)) is amended by adding at the end 
the following: 
‘‘(D) In determining the eligibility for adoption 
assistance payments of a child in a legal guardian-
ship arrangement described in section 471(a)(28), 
the placement of the child with the relative guardian 
involved and any kinship guardianship assistance 
payments made on behalf of the child shall be con-
sidered never to have been made.’’. 
(2) STATE PLAN REQUIREMENT.— 
(A) IN GENERAL.—Section 471(a)(20) of 
such Act (42 U.S.C. 671(a)(20)) is amended— 
(i) by adding ‘‘and’’ at the end of sub-
paragraph (C); and 
(ii) by adding at the end the fol-
lowing: 
‘‘(D) provides procedures for criminal 
records 
checks, 
including 
fingerprint-based 
checks of national crime information databases 
(as defined in section 534(e)(3)(A) of title 28, 
United States Code), on any relative guardian, 
and for checks described in subparagraph (C) 
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of this paragraph on any relative guardian and 
any other adult living in the home of any rel-
ative guardian, before the relative guardian may 
receive kinship guardianship assistance pay-
ments on behalf of the child under the State 
plan under this part;’’. 
(B) REDESIGNATION OF NEW PROVISION 
AFTER
AMENDMENT
MADE
BY
PRIOR
LAW 
TAKES EFFECT.— 
(i) IN GENERAL.—Section 471(a)(20) 
of the Social Security Act (42 U.S.C. 
671(a)(20)) is amended— 
(I) in subparagraph (D), by 
striking ‘‘(C)’’ and inserting ‘‘(B)’’; 
and 
(II) by redesignating subpara-
graph (D) as subparagraph (C). 
(ii) EFFECTIVE
DATE.—The amend-
ments made by clause (i) shall take effect 
immediately after the amendments made 
by section 152 of Public Law 109–248 
take effect. 
(3) PAYMENTS TO STATES.—Section 474(a) of 
such Act (42 U.S.C. 674(a)) is amended— 
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(A) by striking the period at the end and 
inserting ‘‘; plus’’; and 
(B) by adding at the end the following: 
‘‘(5) an amount equal to the percentage by 
which the expenditures referred to in paragraph (2) 
of this subsection are reimbursed of the total 
amount expended during such quarter as kinship 
guardianship assistance payments under section 
473(d) pursuant to kinship guardianship assistance 
agreements.’’. 
(4) 
CASE
PLAN
REQUIREMENTS.—Section 
475(1) of such Act (42 U.S.C. 675(1)) is amended 
by adding at the end the following: 
‘‘(F) In the case of a child with respect to 
whom the permanency plan is placement with a 
relative and receipt of kinship guardianship as-
sistance payments under section 473(d), a de-
scription of— 
‘‘(i) the steps that the agency has 
taken to determine that it is not appro-
priate for the child to be returned home or 
adopted; 
‘‘(ii) the reasons for any separation of 
siblings during placement; 
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‘‘(iii) the reasons why a permanent 
placement with a fit and willing relative 
through a kinship guardianship assistance 
arrangement is in the child’s best interests; 
‘‘(iv) the ways in which the child 
meets the eligibility requirements for a kin-
ship guardianship assistance payment; 
‘‘(v) the efforts the agency has made 
to discuss adoption by the child’s relative 
foster parent as a more permanent alter-
native to legal guardianship and, in the 
case of a relative foster parent who has 
chosen not to pursue adoption, documenta-
tion of the reasons therefor; and 
‘‘(vi) the efforts made by the State 
agency to discuss with the child’s parent or 
parents the kinship guardianship assist-
ance arrangement, or the reasons why the 
efforts were not made.’’. 
(5) SECTION HEADING AMENDMENT.—The sec-
tion heading for section 473 of such Act (42 U.S.C. 
673) is amended by inserting ‘‘AND GUARDIANSHIP’’ 
after ‘‘ADOPTION’’. 
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(d) CONTINUED SERVICES UNDER WAIVER.—Sec-
tion 474 of such Act (42 U.S.C. 674) is amended by add-
ing at the end the following: 
‘‘(g) For purposes of this part, after the termination 
of a demonstration project relating to guardianship con-
ducted by a State under section 1130, the expenditures 
of the State for the provision, to children who, as of Sep-
tember 30, 2008, were receiving assistance or services 
under the project, of the same assistance and services 
under the same terms and conditions that applied during 
the conduct of the project, are deemed to be expenditures 
under the State plan approved under this part.’’. 
(e) ELIGIBILITY FOR INDEPENDENT LIVING SERV-
ICES AND EDUCATION AND TRAINING VOUCHERS FOR 
CHILDREN WHO EXIT FOSTER CARE
FOR RELATIVE 
GUARDIANSHIP OR ADOPTION AFTER AGE 16.— 
(1) INDEPENDENT LIVING SERVICES.—Section 
477(a) of such Act (42 U.S.C. 677(a)) is amended— 
(A) by striking ‘‘and’’ at the end of para-
graph (5); 
(B) by striking the period at the end of 
paragraph (6) and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(7) to provide the services referred to in this 
subsection to children who, after attaining 16 years 
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of age, have left foster care for kinship guardianship 
or adoption.’’. 
(2) EDUCATION
AND
TRAINING
VOUCHERS.— 
Section 477(i)(2) of such Act (42 U.S.C. 677(i)(2)) 
is amended by striking ‘‘adopted from foster care 
after attaining age 16’’ and inserting ‘‘who, after at-
taining 16 years of age, are adopted from, or enter 
kinship guardianship from, foster care’’. 
(f) CATEGORICAL ELIGIBILITY FOR MEDICAID.—Sec-
tion 473(b)(3) of such Act (42 U.S.C. 673(b)(3)) is 
amended— 
(1) in subparagraph (A)(ii), by striking ‘‘or’’ at 
the end; 
(2) in subparagraph (B), by striking the period 
and inserting ‘‘, or’’; and 
(3) by adding at the end the following: 
‘‘(C) with respect to whom kinship guardianship 
assistance payments are being made pursuant to 
subsection (d).’’. 
SEC. 102. FAMILY CONNECTION GRANTS. 
(a) IN GENERAL.—Part B of title IV of the Social 
Security Act (42 U.S.C. 620–629i) is amended by insert-
ing after section 426 the following: 
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‘‘SEC. 427. FAMILY CONNECTION GRANTS. 
‘‘(a) IN GENERAL.—The Secretary of Health and 
Human Services may make matching grants to State, 
local, or tribal child welfare agencies, and private non-
profit organizations that have experience in working with 
foster children or children in kinship care arrangements, 
for the purpose of helping children who are in, or at risk 
of entering, foster care reconnect with family members 
through the implementation of— 
‘‘(1) a kinship navigator program to assist kin-
ship caregivers in learning about, finding, and using 
programs and services to meet the needs of the chil-
dren they are raising and their own needs, and to 
promote effective partnerships among public and pri-
vate agencies to ensure kinship caregiver families are 
served, which program— 
‘‘(A) shall be coordinated with other State 
or local agencies that promote service coordina-
tion or provide information and referral serv-
ices, including the entities that provide 2–1–1 
or 3–1–1 information systems where available, 
to avoid duplication or fragmentation of serv-
ices to kinship care families; 
‘‘(B) shall be planned and operated in con-
sultation with kinship caregivers and organiza-
tions representing them, youth raised by kin-
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ship caregivers, relevant government agencies, 
and relevant community-based or faith-based 
organizations; 
‘‘(C) shall establish information and refer-
ral systems that link (via toll-free access) kin-
ship 
caregivers, 
kinship 
support 
group 
facilitators, and kinship service providers to— 
‘‘(i) each other; 
‘‘(ii) eligibility and enrollment infor-
mation for Federal, State, and local bene-
fits; 
‘‘(iii) relevant training to assist kin-
ship caregivers in caregiving and in obtain-
ing benefits and services; and 
‘‘(iv) relevant legal assistance and 
help in obtaining legal services; 
‘‘(D) shall provide outreach to kinship care 
families, including by establishing, distributing, 
and updating a kinship care website, or other 
relevant guides or outreach materials; 
‘‘(E) shall promote partnerships between 
public and private agencies, including schools, 
community based or faith-based organizations, 
and relevant government agencies, to increase 
their knowledge of the needs of kinship care 
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families to promote better services for those 
families; 
‘‘(F) may establish and support a kinship 
care ombudsman with authority to intervene 
and help kinship caregivers access services; and 
‘‘(G) may support any other activities de-
signed to assist kinship caregivers in obtaining 
benefits 
and 
services 
to 
improve 
their 
caregiving; 
‘‘(2) intensive family-finding efforts that utilize 
search technology to find biological family members 
for children in the child welfare system, and once 
identified, work to reestablish relationships and ex-
plore ways to find a permanent family placement for 
the children; 
‘‘(3) family group decision-making meetings for 
children in the child welfare system, that— 
‘‘(A) enable families to make decisions and 
develop plans that nurture children and protect 
them from abuse and neglect, and 
‘‘(B) when appropriate, shall address do-
mestic violence issues in a safe manner and fa-
cilitate connecting children exposed to domestic 
violence to appropriate services, including re-
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connection with the abused parent when appro-
priate; or 
‘‘(4) residential family treatment programs 
that— 
‘‘(A) enable parents and their children to 
live in a safe environment for a period of not 
less than 6 months; and 
‘‘(B) provide, on-site or by referral, sub-
stance abuse treatment services, children’s early 
intervention services, family counseling, med-
ical, and mental health services, nursery and 
pre-school, and other services that are designed 
to provide comprehensive treatment that sup-
ports the family. 
‘‘(b) APPLICATIONS.—An entity desiring to receive a 
matching grant under this section shall submit to the Sec-
retary an application, at such time, in such manner, and 
containing such information as the Secretary may require, 
including— 
‘‘(1) a description of how the grant will be used 
to implement 1 or more of the activities described in 
subsection (a); 
‘‘(2) a description of the types of children and 
families to be served, including how the children and 
families will be identified and recruited, and an ini-
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tial projection of the number of children and families 
to be served; 
‘‘(3) if the entity is a private organization— 
‘‘(A) documentation of support from the 
relevant local or State child welfare agency; or 
‘‘(B) a description of how the organization 
plans to coordinate its services and activities 
with those offered by the relevant local or State 
child welfare agency; and 
‘‘(4) an assurance that the entity will cooperate 
fully with any evaluation provided for by the Sec-
retary under this section. 
‘‘(c) LIMITATIONS.— 
‘‘(1) GRANT
DURATION.—The Secretary may 
award a grant under this section for a period of not 
less than 1 year and not more than 3 years. 
‘‘(2) NUMBER OF NEW GRANTEES PER YEAR.— 
The Secretary may not award a grant under this 
section to more than 30 new grantees each fiscal 
year. 
‘‘(d) FEDERAL CONTRIBUTION.—The amount of a 
grant payment to be made to a grantee under this section 
during each year in the grant period shall be the following 
percentage of the total expenditures proposed to be made 
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by the grantee in the application approved by the Sec-
retary under this section: 
‘‘(1) 75 percent, if the payment is for the 1st 
or 2nd year of the grant period. 
‘‘(2) 50 percent, if the payment is for the 3rd 
year of the grant period. 
‘‘(e) FORM OF GRANTEE CONTRIBUTION.—A grantee 
under this section may provide not more than 50 percent 
of the amount which the grantee is required to expend 
to carry out the activities for which a grant is awarded 
under this section in kind, fairly evaluated, including 
plant, equipment, or services. 
‘‘(f) USE OF GRANT.—A grantee under this section 
shall use the grant in accordance with the approved appli-
cation for the grant. 
‘‘(g) RESERVATIONS OF FUNDS.— 
‘‘(1) KINSHIP
NAVIGATOR
PROGRAMS.—The 
Secretary shall reserve $5,000,000 of the funds 
made available under subsection (h) for each fiscal 
year for grants to implement kinship navigator pro-
grams described in subsection (a)(1). 
‘‘(2) EVALUATION.—The Secretary shall reserve 
3 percent of the funds made available under sub-
section (h) for each fiscal year for the conduct of a 
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rigorous evaluation of the activities funded with 
grants under this section. 
‘‘(3) TECHNICAL ASSISTANCE.—The Secretary 
may reserve 2 percent of the funds made available 
under subsection (h) for each fiscal year to provide 
technical assistance to recipients of grants under 
this section. 
‘‘(h) APPROPRIATION.—Out of any money in the 
Treasury of the United States not otherwise appropriated, 
there are appropriated to the Secretary for purposes of 
making grants under this section $15,000,000 for each 
of fiscal years 2009 through 2013.’’. 
(b) CONFORMING
AMENDMENT.—Section 425 of 
such Act (42 U.S.C. 625) is amended by inserting ‘‘(other 
than sections 426, 427, and 429)’’ after ‘‘this subpart’’. 
(c) RENAMING OF PROGRAM.—The subpart heading 
for subpart 1 of part B of title IV of such Act is amended 
to read as follows: 
‘‘Subpart 1—Stephanie Tubbs Jones Child Welfare 
Services Program’’. 
SEC. 103. NOTIFICATION OF RELATIVES. 
Section 471(a) of the Social Security Act (42 U.S.C. 
671(a)), as amended by section 101(a) of this Act, is 
amended— 
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(1) by striking ‘‘and’’ at the end of paragraph 
(27); 
(2) by striking the period at the end of para-
graph (28) and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(29) provides that, within 30 days after the 
removal of a child from the custody of the parent or 
parents of the child, the State shall exercise due dili-
gence to identify and provide notice to all adult 
grandparents and other adult relatives of the child 
(including any other adult relatives suggested by the 
parents), subject to exceptions due to family or do-
mestic violence, that— 
‘‘(A) specifies that the child has been or is 
being removed from the custody of the parent 
or parents of the child; 
‘‘(B) explains the options the relative has 
under Federal, State, and local law to partici-
pate in the care and placement of the child, in-
cluding any options that may be lost by failing 
to respond to the notice; 
‘‘(C) describes the requirements under 
paragraph (10) of this subsection to become a 
foster family home and the additional services 
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and supports that are available for children 
placed in such a home; and 
‘‘(D) if the State has elected the option to 
make kinship guardianship assistance payments 
under paragraph (28) of this subsection, de-
scribes how the relative guardian of the child 
may subsequently enter into an agreement with 
the State under section 473(d) to receive the 
payments.’’. 
SEC. 104. LICENSING STANDARDS FOR RELATIVES. 
(a) STATE PLAN AMENDMENT.—Section 471(a)(10) 
of the Social Security Act (42 U.S.C. 671(a)(10)) is 
amended— 
(1) by striking ‘‘and provides’’ and inserting 
‘‘provides’’; and 
(2) by inserting before the semicolon the fol-
lowing: ‘‘, and provides that a waiver of any such 
standard may be made only on a case-by-case basis 
for non-safety standards (as determined by the 
State) in relative foster family homes for specific 
children in care’’. 
(b) REPORT.—Not later than 2 years after the date 
of enactment of this Act, the Secretary of Health and 
Human Services shall submit to the Committee on Ways 
and Means of the House of Representatives and the Com-
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mittee on Finance of the Senate a report that includes 
the following: 
(1) Nationally and for each State, the number 
and percentage of children in foster care placed in 
licensed relative foster family homes and the number 
and percentage of such children placed in unlicensed 
relative foster family homes. 
(2) The frequency with which States grant 
case-by-case waivers of non-safety licensing stand-
ards for relative foster family homes. 
(3) The types of non-safety licensing standards 
waived. 
(4) An assessment of how such case-by-case 
waivers of non-safety licensing standards have af-
fected children in foster care, including their safety, 
permanency, and well-being. 
(5) A review of any reasons why relative foster 
family homes may not be able to be licensed, despite 
State authority to grant such case-by-case waivers of 
non-safety licensing standards. 
(6) Recommendations for administrative or leg-
islative actions that may increase the percentage of 
relative foster family homes that are licensed while 
ensuring the safety of children in foster care and im-
proving their permanence and well-being. 
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SEC. 105. AUTHORITY FOR COMPARISONS AND DISCLO-
SURES OF INFORMATION IN THE FEDERAL 
PARENT LOCATOR SERVICE FOR CHILD WEL-
FARE, FOSTER CARE, AND ADOPTION ASSIST-
ANCE PROGRAM PURPOSES. 
Section 453(j)(3) of the Social Security Act (42 
U.S.C. 653(j)) is amended, in the matter preceding sub-
paragraph (A), by inserting ‘‘, part B, or part E’’ after 
‘‘this part’’. 
TITLE 
II—IMPROVING 
OUT-
COMES 
FOR 
CHILDREN 
IN 
FOSTER CARE 
SEC. 201. STATE OPTION FOR CHILDREN IN FOSTER CARE, 
AND CERTAIN CHILDREN IN AN ADOPTIVE OR 
GUARDIANSHIP PLACEMENT, AFTER ATTAIN-
ING AGE 18. 
(a) DEFINITION OF CHILD.—Section 475 of the So-
cial Security Act (42 U.S.C. 675) is amended by adding 
at the end the following: 
‘‘(8)(A) Subject to subparagraph (B), the term 
‘child’ means an individual who has not attained 18 
years of age. 
‘‘(B) At the option of a State, the term shall 
include an individual— 
‘‘(i)(I) who is in foster care under the re-
sponsibility of the State; 
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‘‘(II) with respect to whom an adoption as-
sistance agreement is in effect under section 
473 if the child had attained 16 years of age 
before the agreement became effective; or 
‘‘(III) with respect to whom a kinship 
guardianship assistance agreement is in effect 
under section 473(d) if the child had attained 
16 years of age before the agreement became 
effective; 
‘‘(ii) who has attained 18 years of age; 
‘‘(iii) who has not attained 19, 20, or 21 
years of age, as the State may elect; and 
‘‘(iv) who is— 
‘‘(I) completing secondary education 
or a program leading to an equivalent cre-
dential; 
‘‘(II) enrolled in an institution which 
provides post-secondary or vocational edu-
cation; 
‘‘(III) participating in a program or 
activity designed to promote, or remove 
barriers to, employment; 
‘‘(IV) employed for at least 80 hours 
per month; or 
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‘‘(V) incapable of doing any of the ac-
tivities described in subclauses (I) through 
(IV) due to a medical condition, which in-
capability is supported by regularly up-
dated information in the case plan of the 
child.’’. 
(b) CONFORMING AMENDMENT TO DEFINITION OF 
CHILD-CARE INSTITUTION.—Section 472(c)(2) of such 
Act (42 U.S.C. 672(c)(2)) is amended by inserting ‘‘ex-
cept, in the case of a child who has attained 18 years of 
age, the term shall include a supervised setting in which 
the individual is living independently, in accordance with 
such conditions as the Secretary shall establish in regula-
tions,’’ before ‘‘but’’. 
(c) CONFORMING AMENDMENTS TO AGE LIMITS AP-
PLICABLE TO CHILDREN ELIGIBLE FOR ADOPTION AS-
SISTANCE
OR KINSHIP GUARDIANSHIP ASSISTANCE.— 
Section 473(a)(4) of such Act (42 U.S.C. 673(a)(4)) is 
amended to read as follows: 
‘‘(4)(A) Notwithstanding any other provision of this 
section, a payment may not be made pursuant to this sec-
tion to parents or relative guardians with respect to a 
child— 
‘‘(i) who has attained— 
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‘‘(I) 18 years of age, or such greater age 
as 
the 
State 
may 
elect 
under 
section 
475(8)(B)(iii); or 
‘‘(II) 21 years of age, if the State deter-
mines that the child has a mental or physical 
handicap which warrants the continuation of 
assistance; 
‘‘(ii) who has not attained 18 years of age, if 
the State determines that the parents or relative 
guardians, as the case may be, are no longer legally 
responsible for the support of the child; or 
‘‘(iii) if the State determines that the child is 
no longer receiving any support from the parents or 
relative guardians, as the case may be. 
‘‘(B) Parents or relative guardians who have been re-
ceiving adoption assistance payments or kinship guardian-
ship assistance payments under this section shall keep the 
State or local agency administering the program under 
this section informed of circumstances which would, pur-
suant to this subsection, make them ineligible for the pay-
ments, or eligible for the payments in a different 
amount.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on October 1, 2010. 
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SEC. 202. TRANSITION PLAN FOR CHILDREN AGING OUT OF 
FOSTER CARE. 
Section 475(5) of the Social Security Act (42 U.S.C. 
675) is amended— 
(1) in subparagraph (F)(ii), by striking ‘‘and’’ 
at the end; 
(2) in subparagraph (G), by striking the period 
at the end and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(H) during the 90-day period immediately 
prior to the date on which the child will attain 
18 years of age, or such greater age as the 
State may elect under paragraph (8)(B)(iii), 
whether during that period foster care mainte-
nance payments are being made on the child’s 
behalf or the child is receiving benefits or serv-
ices under section 477, a caseworker on the 
staff of the State agency, and, as appropriate, 
other representatives of the child provide the 
child with assistance and support in developing 
a transition plan that is personalized at the di-
rection of the child, includes specific options on 
housing, health insurance, education, local op-
portunities for mentors and continuing support 
services, and work force supports and employ-
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ment services, and is as detailed as the child 
may elect.’’. 
SEC. 203. SHORT-TERM TRAINING FOR CHILD WELFARE 
AGENCIES, 
RELATIVE 
GUARDIANS, 
AND 
COURT PERSONNEL. 
(a) IN GENERAL.—Section 474(a)(3)(B) of the So-
cial Security Act (42 U.S.C. 674(a)(3)(B)) is amended— 
(1) by inserting ‘‘or relative guardians’’ after 
‘‘adoptive parents’’; 
(2) by striking ‘‘and the members’’ and insert-
ing ‘‘, the members’’; 
(3) by inserting ‘‘, or State-licensed or State- 
approved child welfare agencies providing services,’’ 
after ‘‘providing care’’; 
(4) by striking ‘‘foster and adopted’’ the 1st 
place it appears; 
(5) by inserting ‘‘and members of the staff of 
abuse and neglect courts, agency attorneys, attor-
neys representing children or parents, guardians ad 
litem, or other court-appointed special advocates rep-
resenting children in proceedings of such courts,’’ 
after ‘‘part,’’; 
(6) by inserting ‘‘guardians,’’ before ‘‘staff 
members,’’; 
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(7) by striking ‘‘and institutions’’ and inserting 
‘‘institutions, attorneys, and advocates’’; and 
(8) by inserting ‘‘and children living with rel-
ative guardians’’ after ‘‘foster and adopted children’’ 
the 2nd place it appears. 
(b) PHASE-IN.—With respect to an expenditure de-
scribed in section 474(a)(3)(B) of the Social Security Act 
by reason of an amendment made by subsection (a) of this 
section, in lieu of the percentage set forth in such section 
474(a)(3)(B), the percentage that shall apply is— 
(1) 55 percent, if the expenditure is made in 
fiscal year 2009; 
(2) 60 percent, if the expenditure is made in 
fiscal year 2010; 
(3) 65 percent, if the expenditure is made in 
fiscal year 2011; or 
(4) 70 percent, if the expenditure is made in 
fiscal year 2012. 
SEC. 204. EDUCATIONAL STABILITY. 
(a) IN GENERAL.—Section 475 of the Social Security 
Act (42 U.S.C. 675), as amended by section 101(c)(4) of 
this Act, is amended— 
(1) in paragraph (1)— 
(A) in subparagraph (C), by striking 
clause (iv) and redesignating clauses (v) 
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through (viii) as clauses (iv) through (vii), re-
spectively; and 
(B) by adding at the end the following: 
‘‘(G) A plan for ensuring the educational 
stability of the child while in foster care, includ-
ing— 
‘‘(i) assurances that the placement of 
the child in foster care takes into account 
the appropriateness of the current edu-
cational setting and the proximity to the 
school in which the child is enrolled at the 
time of placement; and 
‘‘(ii)(I) an assurance that the State 
agency has coordinated with appropriate 
local educational agencies (as defined 
under section 9101 of the Elementary and 
Secondary Education Act of 1965) to en-
sure that the child remains in the school in 
which the child is enrolled at the time of 
placement; or 
‘‘(II) if remaining in such school is 
not in the best interests of the child, assur-
ances by the State agency and the local 
educational agencies to provide immediate 
and appropriate enrollment in a new 
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‘‘(15)(A) provides that the State will develop, in 
coordination and collaboration with the State agency 
referred to in paragraph (1) and the State agency 
responsible for administering the State plan ap-
proved under title XIX, and in consultation with pe-
diatricians, other experts in health care, and experts 
in and recipients of child welfare services, a plan for 
the ongoing oversight and coordination of health 
care services for any child in a foster care place-
ment, which shall ensure a coordinated strategy to 
identify and respond to the health care needs of chil-
dren in foster care placements, including mental 
health and dental health needs, and shall include an 
outline of— 
‘‘(i) a schedule for initial and follow-up 
health screenings that meet reasonable stand-
ards of medical practice; 
‘‘(ii) how health needs identified through 
screenings will be monitored and treated; 
‘‘(iii) how medical information for children 
in care will be updated and appropriately 
shared, which may include the development and 
implementation of an electronic health record; 
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‘‘(iv) steps to ensure continuity of health 
care services, which may include the establish-
ment of a medical home for every child in care; 
‘‘(v) the oversight of prescription medi-
cines; and 
‘‘(vi) how the State actively consults with 
and involves physicians or other appropriate 
medical or non-medical professionals in assess-
ing the health and well-being of children in fos-
ter care and in determining appropriate medical 
treatment for the children; and 
‘‘(B) subparagraph (A) shall not be construed 
to reduce or limit the responsibility of the State 
agency responsible for administering the State plan 
approved under title XIX to administer and provide 
care and services for children with respect to whom 
services are provided under the State plan developed 
pursuant to this subpart;’’. 
SEC. 206. SIBLING PLACEMENT. 
Section 471(a) of the Social Security Act (42 U.S.C. 
671(a)), as amended by sections 101(a), 103, and 204(b) 
of this Act, is amended— 
(1) by striking ‘‘and’’ at the end of paragraph 
(29); 
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(2) by striking the period at the end of para-
graph (30) and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(31) provides that reasonable efforts shall be 
made— 
‘‘(A) to place siblings removed from their 
home in the same foster care, kinship guardian-
ship, or adoptive placement, unless the State 
documents that such a joint placement would be 
contrary to the safety or well-being of any of 
the siblings; and 
‘‘(B) in the case of siblings removed from 
their home who are not so jointly placed, to 
provide for frequent visitation or other ongoing 
interaction between the siblings, unless that 
State documents that frequent visitation or 
other ongoing interaction would be contrary to 
the safety or well-being of any of the siblings.’’. 
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TITLE III—TRIBAL FOSTER CARE 
AND ADOPTION ACCESS 
SEC. 301. EQUITABLE ACCESS FOR FOSTER CARE AND 
ADOPTION SERVICES FOR INDIAN CHILDREN 
IN TRIBAL AREAS. 
(a) AUTHORITY FOR DIRECT PAYMENT OF FEDERAL 
TITLE IV–E FUNDS FOR PROGRAMS OPERATED BY IN-
DIAN TRIBAL ORGANIZATIONS.— 
(1) IN GENERAL.—Part E of title IV of the So-
cial Security Act (42 U.S.C. 670 et seq.) is amended 
by adding at the end the following: 
‘‘SEC. 479B. PROGRAMS OPERATED BY INDIAN TRIBAL OR-
GANIZATIONS. 
‘‘(a) DEFINITIONS OF INDIAN TRIBE; TRIBAL ORGA-
NIZATIONS.—In this section, the terms ‘Indian tribe’ and 
‘tribal organization’ have the meanings given those terms 
in section 4 of the Indian Self-Determination and Edu-
cation Assistance Act (25 U.S.C. 450b). 
‘‘(b) AUTHORITY.—Except as otherwise provided in 
this section, this part shall apply in the same manner as 
this part applies to a State to an Indian tribe, tribal orga-
nization, or tribal consortium that elects to operate a pro-
gram under this part and has a plan approved by the Sec-
retary under section 471 in accordance with this section. 
‘‘(c) PLAN REQUIREMENTS.— 
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‘‘(1) IN GENERAL.—An Indian tribe, tribal or-
ganization, or tribal consortium that elects to oper-
ate a program under this part shall include with its 
plan submitted under section 471 the following: 
‘‘(A) FINANCIAL MANAGEMENT.—Evidence 
demonstrating that the tribe, organization, or 
consortium has not had any uncorrected signifi-
cant or material audit exceptions under Federal 
grants or contracts that directly relate to the 
administration of social services for the 3-year 
period prior to the date on which the plan is 
submitted. 
‘‘(B) 
SERVICE
AREAS
AND
POPU-
LATIONS.—For purposes of complying with sec-
tion 471(a)(3), a description of the service area 
or areas and populations to be served under the 
plan and an assurance that the plan shall be in 
effect in all service area or areas and for all 
populations served by the tribe, organization, or 
consortium. 
‘‘(C) ELIGIBILITY.— 
‘‘(i) IN GENERAL.—Subject to clause 
(ii) of this subparagraph, an assurance 
that the plan will provide— 
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‘‘(I) foster care maintenance pay-
ments under section 472 only on be-
half of children who satisfy the eligi-
bility requirements of section 472(a); 
‘‘(II) adoption assistance pay-
ments under section 473 pursuant to 
adoption assistance agreements only 
on behalf of children who satisfy the 
eligibility requirements for such pay-
ments under that section; and 
‘‘(III) at the option of the tribe, 
organization, or consortium, kinship 
guardianship assistance payments in 
accordance with section 473(d) only 
on behalf of children who meet the re-
quirements of section 473(d)(3). 
‘‘(ii) SATISFACTION OF FOSTER CARE 
ELIGIBILITY
REQUIREMENTS.—For pur-
poses of determining whether a child whose 
placement and care are the responsibility 
of an Indian tribe, tribal organization, or 
tribal consortium with a plan approved 
under section 471 in accordance with this 
section satisfies the requirements of section 
472(a), the following shall apply: 
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‘‘(I) USE OF AFFIDAVITS, ETC.— 
Only with respect to the first 12 
months for which such plan is in ef-
fect, the requirement in paragraph (1) 
of section 472(a) shall not be inter-
preted so as to prohibit the use of af-
fidavits or nunc pro tunc orders as 
verification documents in support of 
the reasonable efforts and contrary to 
the welfare of the child judicial deter-
minations required under that para-
graph. 
‘‘(II) AFDC 
ELIGIBILITY
RE-
QUIREMENT.—The State plan ap-
proved under section 402 (as in effect 
on July 16, 1996) of the State in 
which the child resides at the time of 
removal from the home shall apply to 
the determination of whether the child 
satisfies section 472(a)(3). 
‘‘(D) OPTION TO CLAIM IN-KIND EXPENDI-
TURES FROM THIRD-PARTY SOURCES FOR NON- 
FEDERAL
SHARE
OF
ADMINISTRATIVE
AND 
TRAINING COSTS DURING INITIAL IMPLEMENTA-
TION PERIOD.—Only for fiscal year quarters be-
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ginning after September 30, 2009, and before 
October 1, 2014, a list of the in-kind expendi-
tures (which shall be fairly evaluated, and may 
include plants, equipment, administration, or 
services) and the third-party sources of such ex-
penditures that the tribe, organization, or con-
sortium may claim as part of the non-Federal 
share of administrative or training expenditures 
attributable to such quarters for purposes of re-
ceiving payments under section 474(a)(3). The 
Secretary shall permit a tribe, organization, or 
consortium to claim in-kind expenditures from 
third party sources for such purposes during 
such quarters subject to the following: 
‘‘(i) NO EFFECT ON AUTHORITY FOR 
TRIBES, ORGANIZATIONS, OR
CONSORTIA 
TO
CLAIM
EXPENDITURES
OR
INDIRECT 
COSTS
TO
THE
SAME
EXTENT
AS 
STATES.—Nothing in this subparagraph 
shall be construed as preventing a tribe, 
organization, or consortium from claiming 
any expenditures or indirect costs for pur-
poses of receiving payments under section 
474(a) that a State with a plan approved 
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under section 471(a) could claim for such 
purposes. 
‘‘(ii) FISCAL YEAR 2010 OR 2011.— 
‘‘(I) 
EXPENDITURES
OTHER 
THAN
FOR
TRAINING.—With respect 
to amounts expended during a fiscal 
year quarter beginning after Sep-
tember 30, 2009, and before October 
1, 2011, for which the tribe, organiza-
tion, or consortium is eligible for pay-
ments under subparagraph (C), (D), 
or (E) of section 474(a)(3), not more 
than 25 percent of such amounts may 
consist of in-kind expenditures from 
third-party sources specified in the list 
required under this subparagraph to 
be submitted with the plan. 
‘‘(II) 
TRAINING
EXPENDI-
TURES.—With respect to amounts ex-
pended during a fiscal year quarter 
beginning after September 30, 2009, 
and before October 1, 2011, for which 
the tribe, organization, or consortium 
is eligible for payments under sub-
paragraph (A) or (B) of section 
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474(a)(3), not more than 12 percent 
of such amounts may consist of in- 
kind expenditures from third-party 
sources that are specified in such list 
and described in subclause (III). 
‘‘(III) SOURCES
DESCRIBED.— 
For purposes of subclause (II), the 
sources described in this subclause are 
the following: 
‘‘(aa) A State or local gov-
ernment. 
‘‘(bb) An Indian tribe, tribal 
organization, or tribal consortium 
other than the tribe, organiza-
tion, or consortium submitting 
the plan. 
‘‘(cc) A public institution of 
higher education. 
‘‘(dd) A Tribal College or 
University (as defined in section 
316 of the Higher Education Act 
of 1965 (20 U.S.C. 1059c)). 
‘‘(ee) A private charitable 
organization. 
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‘‘(iii) FISCAL
YEAR
2012, 2013, OR 
2014.— 
‘‘(I) IN
GENERAL.—Except as 
provided in subclause (II) of this 
clause and clause (v) of this subpara-
graph, with respect to amounts ex-
pended during any fiscal year quarter 
beginning after September 30, 2011, 
and before October 1, 2014, for which 
the tribe, organization, or consortium 
is eligible for payments under any 
subparagraph of section 474(a)(3) of 
this Act, the only in-kind expenditures 
from third-party sources that may be 
claimed by the tribe, organization, or 
consortium for purposes of deter-
mining the non-Federal share of such 
expenditures 
(without 
regard 
to 
whether the expenditures are specified 
on the list required under this sub-
paragraph to be submitted with the 
plan) are in-kind expenditures that 
are specified in regulations promul-
gated by the Secretary under section 
301(e)(2) of the Fostering Connec-
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tions to Success and Increasing Adop-
tions Act of 2008 and are from an ap-
plicable third-party source specified in 
such regulations, and do not exceed 
the applicable percentage for claiming 
such in-kind expenditures specified in 
the regulations. 
‘‘(II) TRANSITION
PERIOD
FOR 
EARLY APPROVED TRIBES, ORGANIZA-
TIONS, OR
CONSORTIA.—Subject to 
clause (v), if the tribe, organization, 
or consortium is an early approved 
tribe, organization, or consortium (as 
defined in subclause (III) of this 
clause), the Secretary shall not re-
quire the tribe, organization, or con-
sortium to comply with such regula-
tions before October 1, 2013. Until 
the earlier of the date such tribe, or-
ganization, or consortium comes into 
compliance with such regulations or 
October 1, 2013, the limitations on 
the claiming of in-kind expenditures 
from third-party sources under clause 
(ii) shall continue to apply to such 
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tribe, organization, or consortium 
(without regard to fiscal limitation) 
for purposes of determining the non- 
Federal share of amounts expended by 
the tribe, organization, or consortium 
during any fiscal year quarter that be-
gins after September 30, 2011, and 
before such date of compliance or Oc-
tober 1, 2013, whichever is earlier. 
‘‘(III) DEFINITION OF EARLY AP-
PROVED
TRIBE, ORGANIZATION, OR 
CONSORTIUM.—For purposes of sub-
clause (II) of this clause, the term 
‘early approved tribe, organization, or 
consortium’ means an Indian tribe, 
tribal organization, or tribal consor-
tium that had a plan approved under 
section 471 in accordance with this 
section for any quarter of fiscal year 
2010 or 2011. 
‘‘(iv) FISCAL YEAR 2015 AND THERE-
AFTER.—Subject to clause (v) of this sub-
paragraph, with respect to amounts ex-
pended during any fiscal year quarter be-
ginning after September 30, 2014, for 
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which the tribe, organization, or consor-
tium is eligible for payments under any 
subparagraph of section 474(a)(3) of this 
Act, in-kind expenditures from third-party 
sources may be claimed for purposes of de-
termining the non-Federal share of ex-
penditures under any subparagraph of 
such section 474(a)(3) only in accordance 
with the regulations promulgated by the 
Secretary under section 301(e)(2) of the 
Fostering Connections to Success and In-
creasing Adoptions Act of 2008. 
‘‘(v) CONTINGENCY RULE.—If, at the 
time expenditures are made for a fiscal 
year quarter beginning after September 
30, 2011, and before October 1, 2014, for 
which a tribe, organization, or consortium 
may receive payments for under section 
474(a)(3) of this Act, no regulations re-
quired to be promulgated under section 
301(e)(2) of the Fostering Connections to 
Success and Increasing Adoptions Act of 
2008 are in effect, and no legislation has 
been enacted specifying otherwise— 
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‘‘(I) in the case of any quarter of 
fiscal year 2012, 2013, or 2014, the 
limitations on claiming in-kind ex-
penditures from third-party sources 
under clause (ii) of this subparagraph 
shall apply (without regard to fiscal 
limitation) for purposes of deter-
mining the non-Federal share of such 
expenditures; and 
‘‘(II) in the case of any quarter 
of fiscal year 2015 or any fiscal year 
thereafter, no tribe, organization, or 
consortium may claim in-kind expend-
itures from third-party sources for 
purposes of determining the non-Fed-
eral share of such expenditures if a 
State with a plan approved under sec-
tion 471(a) of this Act could not 
claim in-kind expenditures from third- 
party sources for such purposes. 
‘‘(2) CLARIFICATION OF TRIBAL AUTHORITY TO 
ESTABLISH STANDARDS FOR TRIBAL FOSTER FAM-
ILY
HOMES
AND
TRIBAL
CHILD
CARE
INSTITU-
TIONS.—For purposes of complying with section 
471(a)(10), an Indian tribe, tribal organization, or 
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tribal consortium shall establish and maintain a trib-
al authority or authorities which shall be responsible 
for establishing and maintaining tribal standards for 
tribal foster family homes and tribal child care insti-
tutions. 
‘‘(3) CONSORTIUM.—The participating Indian 
tribes or tribal organizations of a tribal consortium 
may develop and submit a single plan under section 
471 that meets the requirements of this section. 
‘‘(d) DETERMINATION OF FEDERAL MEDICAL AS-
SISTANCE PERCENTAGE
FOR FOSTER CARE MAINTE-
NANCE AND ADOPTION ASSISTANCE PAYMENTS.— 
‘‘(1) PER CAPITA INCOME.—For purposes of de-
termining the Federal medical assistance percentage 
applicable to an Indian tribe, a tribal organization, 
or a tribal consortium under paragraphs (1), (2), 
and (5) of section 474(a), the calculation of the per 
capita income of the Indian tribe, tribal organiza-
tion, or tribal consortium shall be based upon the 
service population of the Indian tribe, tribal organi-
zation, or tribal consortium, except that in no case 
shall an Indian tribe, a tribal organization, or a trib-
al consortium receive less than the Federal medical 
assistance percentage for any State in which the 
tribe, organization, or consortium is located. 
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‘‘(2) CONSIDERATION
OF
OTHER
INFORMA-
TION.—Before making a calculation under para-
graph (1), the Secretary shall consider any informa-
tion submitted by an Indian tribe, a tribal organiza-
tion, or a tribal consortium that the Indian tribe, 
tribal organization, or tribal consortium considers 
relevant to making the calculation of the per capita 
income of the Indian tribe, tribal organization, or 
tribal consortium. 
‘‘(e) NONAPPLICATION
TO COOPERATIVE AGREE-
MENTS AND CONTRACTS.—Any cooperative agreement or 
contract entered into between an Indian tribe, a tribal or-
ganization, or a tribal consortium and a State for the ad-
ministration or payment of funds under this part that is 
in effect as of the date of enactment of this section shall 
remain in full force and effect, subject to the right of ei-
ther party to the agreement or contract to revoke or mod-
ify the agreement or contract pursuant to the terms of 
the agreement or contract. Nothing in this section shall 
be construed as affecting the authority for an Indian tribe, 
a tribal organization, or a tribal consortium and a State 
to enter into a cooperative agreement or contract for the 
administration or payment of funds under this part. 
‘‘(f) JOHN H. CHAFEE FOSTER CARE INDEPEND-
ENCE PROGRAM.—Except as provided in section 477(j), 
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subsection (b) of this section shall not apply with respect 
to the John H. Chafee Foster Care Independence Program 
established under section 477 (or with respect to payments 
made under section 474(a)(4) or grants made under sec-
tion 474(e)). 
‘‘(g) RULE OF CONSTRUCTION.—Nothing in this sec-
tion shall be construed as affecting the application of sec-
tion 472(h) to a child on whose behalf payments are paid 
under section 472, or the application of section 473(b) to 
a child on whose behalf payments are made under section 
473 pursuant to an adoption assistance agreement or a 
kinship guardianship assistance agreement, by an Indian 
tribe, tribal organization, or tribal consortium that elects 
to operate a foster care and adoption assistance program 
in accordance with this section.’’. 
(2) 
CONFORMING
AMENDMENTS.—Section 
472(a)(2)(B) of such Act (42 U.S.C. 672(a)(2)(B)) 
is amended— 
(A) in clause (i), by striking ‘‘or’’ at the 
end; 
(B) in clause (ii), by striking ‘‘and’’ at the 
end and inserting ‘‘or’’; and 
(C) by adding at the end the following: 
‘‘(iii) an Indian tribe or a tribal orga-
nization (as defined in section 479B(a)) or 
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a tribal consortium that has a plan ap-
proved under section 471 in accordance 
with section 479B; and’’. 
(b) AUTHORITY TO RECEIVE PORTION OF STATE AL-
LOTMENT AS PART OF AN AGREEMENT TO OPERATE THE 
JOHN H. CHAFEE FOSTER CARE INDEPENDENCE PRO-
GRAM.—Section 477 of such Act (42 U.S.C. 677) is 
amended by adding at the end the following: 
‘‘(j) AUTHORITY FOR AN INDIAN TRIBE, TRIBAL OR-
GANIZATION, OR TRIBAL CONSORTIUM TO RECEIVE AN 
ALLOTMENT.— 
‘‘(1) IN GENERAL.—An Indian tribe, tribal or-
ganization, or tribal consortium with a plan ap-
proved under section 479B, or which is receiving 
funding to provide foster care under this part pursu-
ant to a cooperative agreement or contract with a 
State, may apply for an allotment out of any funds 
authorized by paragraph (1) or (2) (or both) of sub-
section (h) of this section. 
‘‘(2) APPLICATION.—A tribe, organization, or 
consortium desiring an allotment under paragraph 
(1) of this subsection shall submit an application to 
the Secretary to directly receive such allotment that 
includes a plan which— 
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‘‘(A) satisfies such requirements of para-
graphs (2) and (3) of subsection (b) as the Sec-
retary determines are appropriate; 
‘‘(B) contains a description of the tribe’s, 
organization’s, or consortium’s consultation 
process regarding the programs to be carried 
out under the plan with each State for which a 
portion of an allotment under subsection (c) 
would be redirected to the tribe, organization, 
or consortium; and 
‘‘(C) contains an explanation of the results 
of such consultation, particularly with respect 
to— 
‘‘(i) determining the eligibility for 
benefits and services of Indian children to 
be served under the programs to be carried 
out under the plan; and 
‘‘(ii) the process for consulting with 
the State in order to ensure the continuity 
of benefits and services for such children 
who will transition from receiving benefits 
and services under programs carried out 
under a State plan under subsection (b)(2) 
to receiving benefits and services under 
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programs carried out under a plan under 
this subsection. 
‘‘(3) PAYMENTS.—The Secretary shall pay an 
Indian tribe, tribal organization, or tribal consortium 
with an application and plan approved under this 
subsection from the allotment determined for the 
tribe, organization, or consortium under paragraph 
(4) of this subsection in the same manner as is pro-
vided in section 474(a)(4) (and, where requested, 
and if funds are appropriated, section 474(e)) with 
respect to a State, or in such other manner as is de-
termined appropriate by the Secretary, except that 
in no case shall an Indian tribe, a tribal organiza-
tion, or a tribal consortium receive a lesser propor-
tion of such funds than a State is authorized to re-
ceive under those sections. 
‘‘(4) ALLOTMENT.—From the amounts allotted 
to a State under subsection (c) of this section for a 
fiscal year, the Secretary shall allot to each Indian 
tribe, tribal organization, or tribal consortium with 
an application and plan approved under this sub-
section for that fiscal year an amount equal to the 
tribal foster care ratio determined under paragraph 
(5) of this subsection for the tribe, organization, or 
consortium multiplied by the allotment amount of 
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the State within which the tribe, organization, or 
consortium is located. The allotment determined 
under this paragraph is deemed to be a part of the 
allotment determined under section 477(c) for the 
State in which the Indian tribe, tribal organization, 
or tribal consortium is located. 
‘‘(5) TRIBAL FOSTER CARE RATIO.—For pur-
poses of paragraph (4), the tribal foster care ratio 
means, with respect to an Indian tribe, tribal organi-
zation, or tribal consortium, the ratio of— 
‘‘(A) the number of children in foster care 
under the responsibility of the Indian tribe, 
tribal organization, or tribal consortium (either 
directly or under supervision of the State), in 
the most recent fiscal year for which the infor-
mation is available; to 
‘‘(B) the sum of— 
‘‘(i) the total number of children in 
foster care under the responsibility of the 
State within which the Indian tribe, tribal 
organization, or tribal consortium is lo-
cated; and 
‘‘(ii) the total number of children in 
foster care under the responsibility of all 
Indian tribes, tribal organizations, or tribal 
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consortia in the State (either directly or 
under supervision of the State) that have 
a plan approved under this subsection.’’. 
(c) STATE AND TRIBAL COOPERATION.— 
(1) STATE PLAN REQUIREMENT TO NEGOTIATE 
IN GOOD FAITH.— 
(A) IN GENERAL.—Section 471(a) of the 
Social Security Act (42 U.S.C. 671(a)), as 
amended by sections 101(a), 103, 204(b), and 
206 of this Act, is amended— 
(i) by striking ‘‘and’’ at the end of 
paragraph (30); 
(ii) by striking the period at the end 
of paragraph (31) and inserting ‘‘; and’’; 
and 
(iii) by adding at the end the fol-
lowing: 
‘‘(32) provides that the State will negotiate in 
good faith with any Indian tribe, tribal organization 
or tribal consortium in the State that requests to de-
velop an agreement with the State to administer all 
or part of the program under this part on behalf of 
Indian children who are under the authority of the 
tribe, organization, or consortium, including foster 
care maintenance payments on behalf of children 
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who are placed in State or tribally licensed foster 
family homes, adoption assistance payments, and, if 
the State has elected to provide such payments, kin-
ship guardianship assistance payments under section 
473(d), and tribal access to resources for adminis-
tration, training, and data collection under this 
part.’’. 
(B) 
CHAFEE
PROGRAM
CONFORMING 
AMENDMENT.—Section 477(b)(3)(G) of such 
Act (42 U.S.C. 677(b)(3)(G)) is amended— 
(i) by striking ‘‘and that’’ and insert-
ing ‘‘that’’; and 
(ii) by striking the period at the end 
and inserting ‘‘; and that the State will ne-
gotiate in good faith with any Indian tribe, 
tribal organization, or tribal consortium in 
the State that does not receive an allot-
ment under subsection (j)(4) for a fiscal 
year and that requests to develop an agree-
ment with the State to administer, super-
vise, or oversee the programs to be carried 
out under the plan with respect to the In-
dian children who are eligible for such pro-
grams and who are under the authority of 
the tribe, organization, or consortium and 
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to receive from the State an appropriate 
portion of the State allotment under sub-
section (c) for the cost of such administra-
tion, supervision, or oversight.’’. 
(2) APPLICATION OF TRIBAL FEDERAL MATCH-
ING RATE TO COOPERATIVE AGREEMENTS OR CON-
TRACTS BETWEEN STATE OR TRIBES.—Paragraphs 
(1) and (2) of section 474(a) of such Act (42 U.S.C. 
674(a)) are each amended by inserting ‘‘(or, with re-
spect to such payments made during such quarter 
under a cooperative agreement or contract entered 
into by the State and an Indian tribe, tribal organi-
zation, or tribal consortium for the administration or 
payment of funds under this part, an amount equal 
to the Federal medical assistance percentage that 
would apply under section 479B(d) (in this para-
graph referred to as the ‘tribal FMAP’) if such In-
dian tribe, tribal organization, or tribal consortium 
made such payments under a program operated 
under that section, unless the tribal FMAP is less 
than the Federal medical assistance percentage that 
applies to the State)’’ before the semicolon. 
(d) RULES
OF CONSTRUCTION.—Nothing in the 
amendments made by this section shall be construed as— 
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(1) authorization to terminate funding on be-
half of any Indian child receiving foster care mainte-
nance payments or adoption assistance payments on 
the date of enactment of this Act and for which the 
State receives Federal matching payments under 
paragraph (1) or (2) of section 474(a) of the Social 
Security Act (42 U.S.C. 674(a)), regardless of 
whether a cooperative agreement or contract be-
tween the State and an Indian tribe, tribal organiza-
tion, or tribal consortium is in effect on such date 
or an Indian tribe, tribal organization, or tribal con-
sortium elects subsequent to such date to operate a 
program under section 479B of such Act (as added 
by subsection (a) of this section); or 
(2) affecting the responsibility of a State— 
(A) as part of the plan approved under 
section 471 of the Social Security Act (42 
U.S.C. 671), to provide foster care maintenance 
payments, adoption assistance payments, and if 
the State elects, kinship guardianship assist-
ance payments, for Indian children who are eli-
gible for such payments and who are not other-
wise being served by an Indian tribe, tribal or-
ganization, or tribal consortium pursuant to a 
program under such section 479B of such Act 
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or a cooperative agreement or contract entered 
into between an Indian tribe, a tribal organiza-
tion, or a tribal consortium and a State for the 
administration or payment of funds under part 
E of title IV of such Act; or 
(B) as part of the plan approved under 
section 477 of such Act (42 U.S.C. 677) to ad-
minister, supervise, or oversee programs carried 
out under that plan on behalf of Indian children 
who are eligible for such programs if such chil-
dren are not otherwise being served by an In-
dian tribe, tribal organization, or tribal consor-
tium pursuant to an approved plan under sec-
tion 477(j) of such Act or a cooperative agree-
ment or contract entered into under section 
477(b)(3)(G) of such Act. 
(e) REGULATIONS.— 
(1) IN GENERAL.—Except as provided in para-
graph (2) of this subsection, not later than 1 year 
after the date of enactment of this section, the Sec-
retary of Health and Human Services, in consulta-
tion with Indian tribes, tribal organizations, tribal 
consortia, and affected States, shall promulgate in-
terim final regulations to carry out this section and 
the amendments made by this section. Such regula-
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tions shall include procedures to ensure that a trans-
fer of responsibility for the placement and care of a 
child under a State plan approved under section 471 
of the Social Security Act to a tribal plan approved 
under section 471 of such Act in accordance with 
section 479B of such Act (as added by subsection 
(a)(1) of this section) or to an Indian tribe, a tribal 
organization, or a tribal consortium that has entered 
into a cooperative agreement or contract with a 
State for the administration or payment of funds 
under part E of title IV of such Act does not affect 
the eligibility of, provision of services for, or the 
making of payments on behalf of, such children 
under part E of title IV of such Act, or the eligi-
bility of such children for medical assistance under 
title XIX of such Act. 
(2) IN-KIND
EXPENDITURES
FROM
THIRD- 
PARTY SOURCES FOR PURPOSES OF DETERMINING 
NON-FEDERAL
SHARE
OF
ADMINISTRATIVE
AND 
TRAINING EXPENDITURES.— 
(A) IN
GENERAL.—Subject to subpara-
graph (B) of this paragraph, not later than 
September 30, 2011, the Secretary of Health 
and Human Services, in consultation with In-
dian tribes, tribal organizations, and tribal con-
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sortia, shall promulgate interim final regula-
tions specifying the types of in-kind expendi-
tures, including plants, equipment, administra-
tion, and services, and the third-party sources 
for such in-kind expenditures which may be 
claimed by tribes, organizations, and consortia 
with plans approved under section 471 of the 
Social Security Act in accordance with section 
479B of such Act, up to such percentages as 
the Secretary, in such consultation shall specify 
in such regulations, for purposes of determining 
the non-Federal share of administrative and 
training expenditures for which the tribes, orga-
nizations, and consortia may receive payments 
for 
under 
any 
subparagraph 
of 
section 
474(a)(3) of such Act. 
(B) EFFECTIVE DATE.—In no event shall 
the regulations required to be promulgated 
under subparagraph (A) take effect prior to Oc-
tober 1, 2011. 
(C) SENSE OF THE CONGRESS.—It is the 
sense of the Congress that if the Secretary of 
Health and Human Services fails to publish in 
the Federal Register the regulations required 
under subparagraph (A) of this paragraph, the 
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Congress should enact legislation specifying the 
types of in-kind expenditures and the third- 
party sources for such in-kind expenditures 
which may be claimed by tribes, organizations, 
and consortia with plans approved under sec-
tion 471 of the Social Security Act in accord-
ance with section 479B of such Act, up to spe-
cific percentages, for purposes of determining 
the non-Federal share of administrative and 
training expenditures for which the tribes, orga-
nizations, and consortia may receive payments 
for 
under 
any 
subparagraph 
of 
section 
474(a)(3) of such Act. 
(f) EFFECTIVE DATE.—The amendments made by 
subsections (a), (b), and (c) shall take effect on October 
1, 2009, without regard to whether the regulations re-
quired under subsection (e)(1) have been promulgated by 
such date. 
SEC. 302. TECHNICAL ASSISTANCE AND IMPLEMENTATION. 
Section 476 of the Social Security Act (42 U.S.C. 
676) is amended by adding at the end the following: 
‘‘(c) TECHNICAL ASSISTANCE AND IMPLEMENTATION 
SERVICES FOR TRIBAL PROGRAMS.— 
‘‘(1) AUTHORITY.—The Secretary shall provide 
technical assistance and implementation services 
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that are dedicated to improving services and perma-
nency outcomes for Indian children and their fami-
lies through the provision of assistance described in 
paragraph (2). 
‘‘(2) ASSISTANCE PROVIDED.— 
‘‘(A) IN GENERAL.—The technical assist-
ance and implementation services shall be to— 
‘‘(i) provide information, advice, edu-
cational materials, and technical assistance 
to Indian tribes and tribal organizations 
with respect to the types of services, ad-
ministrative functions, data collection, pro-
gram management, and reporting that are 
required under State plans under part B 
and this part; 
‘‘(ii) assist and provide technical as-
sistance to— 
‘‘(I) Indian tribes, tribal organi-
zations, and tribal consortia seeking 
to operate a program under part B or 
under this part through direct appli-
cation to the Secretary under section 
479B; and 
‘‘(II) Indian tribes, tribal organi-
zations, tribal consortia, and States 
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seeking to develop cooperative agree-
ments to provide for payments under 
this part or satisfy the requirements 
of section 422(b)(9), 471(a)(32), or 
477(b)(3)(G); and 
‘‘(iii) subject to subparagraph (B), 
make one-time grants, to tribes, tribal or-
ganizations, or tribal consortia that are 
seeking to develop, and intend, not later 
than 24 months after receiving such a 
grant to submit to the Secretary a plan 
under section 471 to implement a program 
under this part as authorized by section 
479B, that shall— 
‘‘(I) not exceed $300,000; and 
‘‘(II) be used for the cost of de-
veloping a plan under section 471 to 
carry out a program under section 
479B, including costs related to devel-
opment of necessary data collection 
systems, a cost allocation plan, agency 
and tribal court procedures necessary 
to meet the case review system re-
quirements under section 475(5), or 
any other costs attributable to meet-
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ing any other requirement necessary 
for approval of such a plan under this 
part. 
‘‘(B) GRANT CONDITION.— 
‘‘(i) IN GENERAL.—As a condition of 
being paid a grant under subparagraph 
(A)(iii), a tribe, tribal organization, or trib-
al consortium shall agree to repay the total 
amount of the grant awarded if the tribe, 
tribal organization, or tribal consortium 
fails to submit to the Secretary a plan 
under section 471 to carry out a program 
under section 479B by the end of the 24- 
month period described in that subpara-
graph. 
‘‘(ii) 
EXCEPTION.—The 
Secretary 
shall waive the requirement to repay a 
grant imposed by clause (i) if the Sec-
retary determines that a tribe’s, tribal or-
ganization’s, or tribal consortium’s failure 
to submit a plan within such period was 
the result of circumstances beyond the con-
trol of the tribe, tribal organization, or 
tribal consortium. 
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‘‘(C) IMPLEMENTATION AUTHORITY.—The 
Secretary may provide the technical assistance 
and implementation services described in sub-
paragraph (A) either directly or through a 
grant or contract with public or private organi-
zations knowledgeable and experienced in the 
field of Indian tribal affairs and child welfare. 
‘‘(3) APPROPRIATION.—There is appropriated 
to the Secretary, out of any money in the Treasury 
of the United States not otherwise appropriated, 
$3,000,000 for fiscal year 2009 and each fiscal year 
thereafter to carry out this subsection.’’. 
TITLE IV—IMPROVEMENT OF 
INCENTIVES FOR ADOPTION 
SEC. 401. ADOPTION INCENTIVES PROGRAM. 
(a) 5-YEAR EXTENSION.—Section 473A of the Social 
Security Act (42 U.S.C. 673b) is amended— 
(1) in subsection (b)(4), by striking ‘‘in the 
case of fiscal years 2001 through 2007,’’; 
(2) in subsection (b)(5), by striking ‘‘1998 
through 2007’’ and inserting ‘‘2008 through 2012’’; 
(3) in subsection (c)(2), by striking ‘‘each of 
fiscal years 2002 through 2007’’ and inserting ‘‘a 
fiscal year’’; and 
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(4) in each of subsections (h)(1)(D), and (h)(2), 
by striking ‘‘2008’’ and inserting ‘‘2013’’. 
(b) UPDATING OF FISCAL YEAR USED IN DETER-
MINING
BASE
NUMBERS
OF
ADOPTIONS.—Section 
473A(g) of such Act (42 U.S.C. 673b(g)) is amended— 
(1) in paragraph (3), by striking ‘‘means’’ and 
all that follows and inserting ‘‘means, with respect 
to any fiscal year, the number of foster child adop-
tions in the State in fiscal year 2007.’’; 
(2) in paragraph (4)— 
(A) by inserting ‘‘that are not older child 
adoptions’’ before ‘‘for a State’’; and 
(B) by striking ‘‘means’’ and all that fol-
lows and inserting ‘‘means, with respect to any 
fiscal year, the number of special needs adop-
tions that are not older child adoptions in the 
State in fiscal year 2007.’’; and 
(3) in paragraph (5), by striking ‘‘means’’ and 
all that follows and inserting ‘‘means, with respect 
to any fiscal year, the number of older child adop-
tions in the State in fiscal year 2007.’’. 
(c) INCREASE IN INCENTIVE PAYMENTS FOR SPE-
CIAL NEEDS ADOPTIONS
AND OLDER CHILD ADOP-
TIONS.—Section 473A(d)(1) of such Act (42 U.S.C. 
673b(d)(1)) is amended— 
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(1) in subparagraph (B), by striking ‘‘$2,000’’ 
and inserting ‘‘$4,000’’; and 
(2) in subparagraph (C), by striking ‘‘$4,000’’ 
and inserting ‘‘$8,000’’. 
(d) 24-MONTH AVAILABILITY
OF PAYMENTS
TO 
STATES.—Section 473A(e) of such Act (42 U.S.C. 
673b(e)) is amended— 
(1) in the heading, by striking ‘‘2-YEAR’’ and 
inserting ‘‘24-MONTH’’; and 
(2) by striking ‘‘through the end of the suc-
ceeding fiscal year’’ and inserting ‘‘for the 24-month 
period beginning with the month in which the pay-
ments are made’’. 
(e) ADDITIONAL INCENTIVE PAYMENT FOR EXCEED-
ING
THE HIGHEST EVER FOSTER CHILD ADOPTION 
RATE.— 
(1) IN GENERAL.—Section 473A(d) of such Act 
(42 U.S.C. 673b(d)) is amended— 
(A) in paragraph (1), in the matter pre-
ceding subparagraph (A), by striking ‘‘para-
graph (2)’’ and inserting ‘‘paragraphs (2) and 
(3)’’; 
(B) in paragraph (2), by striking ‘‘this sec-
tion’’ each place it appears and inserting ‘‘para-
graph (1)’’; and 
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(C) by adding at the end the following: 
‘‘(3) INCREASED INCENTIVE PAYMENT FOR EX-
CEEDING THE HIGHEST EVER FOSTER CHILD ADOP-
TION RATE.— 
‘‘(A) IN GENERAL.—If— 
‘‘(i) for fiscal year 2009 or any fiscal 
year thereafter the total amount of adop-
tion incentive payments payable under 
paragraph (1) of this subsection are less 
than the amount appropriated under sub-
section (h) for the fiscal year; and 
‘‘(ii) a State’s foster child adoption 
rate for that fiscal year exceeds the highest 
ever foster child adoption rate determined 
for the State, 
then the adoption incentive payment otherwise 
determined under paragraph (1) of this sub-
section for the State shall be increased, subject 
to subparagraph (C) of this paragraph, by the 
amount determined for the State under sub-
paragraph (B) of this paragraph. 
‘‘(B) AMOUNT
OF
INCREASE.—For pur-
poses of subparagraph (A), the amount deter-
mined under this subparagraph with respect to 
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‘‘(BB) a voluntary placement agree-
ment or voluntary relinquishment; 
‘‘(bb) meets all medical or disability re-
quirements of title XVI with respect to eligi-
bility for supplemental security income benefits; 
or 
‘‘(cc) was residing in a foster family home 
or child care institution with the child’s minor 
parent, and the child’s minor parent was in 
such foster family home or child care institution 
pursuant to— 
‘‘(AA) an involuntary removal of the 
child from the home in accordance with a 
judicial determination to the effect that 
continuation in the home would be con-
trary to the welfare of the child; or 
‘‘(BB) a voluntary placement agree-
ment or voluntary relinquishment; and 
‘‘(II) has been determined by the State, 
pursuant to subsection (c)(2), to be a child with 
special needs.’’; and 
(ii) in subparagraph (C)— 
(I) by redesignating subclauses 
(I) and (II) of clause (iii) as items 
(aa) and (bb), respectively; 
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(II) by redesignating subclauses 
(I) and (II) of clause (iv) as items 
(aa) and (bb), respectively; 
(III) by redesignating clauses (i) 
through (iv) as subclauses (I) through 
(IV), respectively; 
(IV) by realigning the margins of 
the subclauses and clauses redesig-
nated by subclauses (I) through (III) 
accordingly; 
(V) by striking ‘‘if the child—’’ 
and inserting ‘‘if— 
‘‘(i) in the case of a child who is not an applica-
ble child for the fiscal year (as defined in subsection 
(e)), the child—’’; 
(VI) in clause (i)(I) (as so redes-
ignated), by striking ‘‘(A)(ii)’’ and in-
serting ‘‘(A)(i)(II)’’; 
(VII) in clause (i)(IV) (as so re-
designated)— 
(aa) in the matter preceding 
item (aa), by striking ‘‘(A)’’ and 
inserting ‘‘(A)(i)’’; and 
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(bb) by striking the period 
at the end and inserting ‘‘; or’’; 
and 
(VIII) by adding at the end the 
following: 
‘‘(ii) in the case of a child who is an applicable 
child for the fiscal year (as so defined), the child 
meets the requirements of subparagraph (A)(ii)(II), 
is determined eligible for adoption assistance pay-
ments under this part with respect to a prior adop-
tion (or who would have been determined eligible for 
such payments had the Adoption and Safe Families 
Act of 1997 been in effect at the time that such de-
termination would have been made), and is available 
for adoption because the prior adoption has been 
dissolved and the parental rights of the adoptive 
parents have been terminated or because the child’s 
adoptive parents have died.’’; and 
(B) by adding at the end the following: 
‘‘(7)(A) Notwithstanding any other provision of this 
subsection, no payment may be made to parents with re-
spect to any applicable child for a fiscal year that— 
‘‘(i) would be considered a child with special 
needs under subsection (c)(2); 
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‘‘(ii) is not a citizen or resident of the United 
States; and 
‘‘(iii) was adopted outside of the United States 
or was brought into the United States for the pur-
pose of being adopted. 
‘‘(B) Subparagraph (A) shall not be construed as pro-
hibiting payments under this part for an applicable child 
described in subparagraph (A) that is placed in foster care 
subsequent to the failure, as determined by the State, of 
the initial adoption of the child by the parents described 
in subparagraph (A). 
‘‘(8) A State shall spend an amount equal to the 
amount of savings (if any) in State expenditures under 
this part resulting from the application of paragraph 
(2)(A)(ii) to all applicable children for a fiscal year to pro-
vide to children or families any service (including post- 
adoption services) that may be provided under this part 
or part B.’’; 
(2) in subsection (c)— 
(A) by redesignating paragraphs (1) and 
(2) as subparagraphs (A) and (B), respectively, 
and realigning the margins accordingly; 
(B) by striking ‘‘this section, a child shall 
not be considered a child with special needs un-
less’’ and inserting ‘‘this section— 
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‘‘(1) in the case of a child who is not an appli-
cable child for a fiscal year, the child shall not be 
considered a child with special needs unless’’; and 
(C) in paragraph (1)(B), as so redesig-
nated, by striking the period at the end and in-
serting ‘‘; or’’; and 
(D) by adding at the end the following: 
‘‘(2) in the case of a child who is an applicable 
child for a fiscal year, the child shall not be consid-
ered a child with special needs unless— 
‘‘(A) the State has determined, pursuant 
to a criterion or criteria established by the 
State, that the child cannot or should not be re-
turned to the home of his parents; 
‘‘(B)(i) the State has determined that 
there exists with respect to the child a specific 
factor or condition (such as ethnic background, 
age, or membership in a minority or sibling 
group, or the presence of factors such as med-
ical conditions or physical, mental, or emotional 
handicaps) because of which it is reasonable to 
conclude that the child cannot be placed with 
adoptive parents without providing adoption as-
sistance under this section and medical assist-
ance under title XIX; or 
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‘‘(ii) the child meets all medical or dis-
ability requirements of title XVI with respect to 
eligibility for supplemental security income ben-
efits; and 
‘‘(C) the State has determined that, except 
where it would be against the best interests of 
the child because of such factors as the exist-
ence of significant emotional ties with prospec-
tive adoptive parents while in the care of the 
parents as a foster child, a reasonable, but un-
successful, effort has been made to place the 
child with appropriate adoptive parents without 
providing adoption assistance under this section 
or medical assistance under title XIX.’’; and 
(3) by adding at the end the following: 
‘‘(e) APPLICABLE CHILD DEFINED.— 
‘‘(1) ON THE BASIS OF AGE.— 
‘‘(A) IN GENERAL.—Subject to paragraphs 
(2) and (3), in this section, the term ‘applicable 
child’ means a child for whom an adoption as-
sistance agreement is entered into under this 
section during any fiscal year described in sub-
paragraph (B) if the child attained the applica-
ble age for that fiscal year before the end of 
that fiscal year. 
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entered into on behalf of the child under this section 
without regard to whether the child is described in 
paragraph (2)(A) of this subsection if the child— 
‘‘(A) is a sibling of a child who is an appli-
cable child for the fiscal year under paragraph 
(1) or (2) of this subsection; 
‘‘(B) is to be placed in the same adoption 
placement as an applicable child for the fiscal 
year who is their sibling; and 
‘‘(C) meets the requirements of subsection 
(a)(2)(A)(ii).’’. 
SEC. 403. INFORMATION ON ADOPTION TAX CREDIT. 
Section 471(a) of the Social Security Act (42 U.S.C. 
671(a)), as amended by sections 101(a), 103, 204(b), 206, 
and 301(c)(1)(A) of this Act, is amended— 
(1) by striking ‘‘and’’ at the end of paragraph 
(31); 
(2) by striking the period at the end of para-
graph (32) and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(33) provides that the State will inform any 
individual who is adopting, or whom the State is 
made aware is considering adopting, a child who is 
in foster care under the responsibility of the State 
of the potential eligibility of the individual for a 
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Federal tax credit under section 23 of the Internal 
Revenue Code of 1986.’’. 
TITLE 
V—CLARIFICATION 
OF 
UNIFORM 
DEFINITION 
OF 
CHILD AND OTHER PROVI-
SIONS 
SEC. 501. CLARIFICATION OF UNIFORM DEFINITION OF 
CHILD. 
(a) CHILD MUST BE YOUNGER THAN CLAIMANT.— 
Section 152(c)(3)(A) of the Internal Revenue Code of 
1986 is amended by inserting ‘‘is younger than the tax-
payer claiming such individual as a qualifying child and’’ 
after ‘‘such individual’’. 
(b) 
CHILD
MUST
BE
UNMARRIED.—Section 
152(c)(1) of such Code is amended by striking ‘‘and’’ at 
the end of subparagraph (C), by striking the period at the 
end of subparagraph (D) and inserting ‘‘, and’’, and by 
adding at the end the following new subparagraph: 
‘‘(E) who has not filed a joint return 
(other than only for a claim of refund) with the 
individual’s spouse under section 6013 for the 
taxable year beginning in the calendar year in 
which the taxable year of the taxpayer begins.’’. 
(c) RESTRICT QUALIFYING CHILD TAX BENEFITS TO 
CHILD’S PARENT.— 
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(1) CHILD TAX CREDIT.—Section 24(a) of such 
Code is amended by inserting ‘‘for which the tax-
payer is allowed a deduction under section 151’’ 
after ‘‘of the taxpayer’’. 
(2) PERSONS OTHER THAN PARENTS CLAIMING 
QUALIFYING CHILD.— 
(A) IN
GENERAL.—Section 152(c)(4) of 
such Code is amended by adding at the end the 
following new subparagraph: 
‘‘(C) NO
PARENT
CLAIMING
QUALIFYING 
CHILD.—If the parents of an individual may 
claim such individual as a qualifying child but 
no parent so claims the individual, such indi-
vidual may be claimed as the qualifying child of 
another taxpayer but only if the adjusted gross 
income of such taxpayer is higher than the 
highest adjusted gross income of any parent of 
the individual.’’. 
(B) CONFORMING AMENDMENTS.— 
(i) Section 152(c)(4)(A) of such Code 
is amended by striking ‘‘Except’’ through 
‘‘2 or more taxpayers’’ and inserting ‘‘Ex-
cept as provided in subparagraphs (B) and 
(C), if (but for this paragraph) an indi-
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vidual may be claimed as a qualifying child 
by 2 or more taxpayers’’. 
(ii) The heading for section 152(c)(4) 
of such Code is amended by striking 
‘‘CLAIMING’’ and inserting ‘‘WHO
CAN 
CLAIM THE SAME’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2008. 
SEC. 502. INVESTMENT OF OPERATING CASH. 
Section 323 of title 31, United States Code, is 
amended to read as follows: 
‘‘§ 323. Investment of operating cash 
‘‘(a) To manage United States cash, the Secretary 
of the Treasury may invest any part of the operating cash 
of the Treasury for not more than 90 days. The Secretary 
may invest the operating cash of the Treasury in— 
‘‘(1) obligations of depositories maintaining 
Treasury tax and loan accounts secured by pledged 
collateral acceptable to the Secretary; 
‘‘(2) obligations of the United States Govern-
ment; and 
‘‘(3) repurchase agreements with parties accept-
able to the Secretary. 
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‘‘(b) Subsection (a) of this section does not require 
the Secretary to invest a cash balance held in a particular 
account. 
‘‘(c) The Secretary shall consider the prevailing mar-
ket in prescribing rates of interest for investments under 
subsection (a)(1) of this section. 
‘‘(d)(1) The Secretary of the Treasury shall submit 
each fiscal year to the appropriate committees a report 
detailing the investment of operating cash under sub-
section (a) for the preceding fiscal year. The report shall 
describe the Secretary’s consideration of risks associated 
with investments and the actions taken to manage such 
risks. 
‘‘(2) For purposes of paragraph (1), the term ‘appro-
priate committees’ means the Committee on Ways and 
Means of the House of Representatives and the Committee 
on Finance of the Senate.’’. 
SEC. 
503. 
NO 
FEDERAL 
FUNDING 
TO 
UNLAWFULLY 
PRESENT INDIVIDUALS. 
Nothing in this Act shall be construed to alter prohi-
bitions on Federal payments to individuals who are unlaw-
fully present in the United States. 
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TITLE VI—EFFECTIVE DATE 
SEC. 601. EFFECTIVE DATE. 
(a) IN GENERAL.—Except as otherwise provided in 
this Act, each amendment made by this Act to part B or 
E of title IV of the Social Security Act shall take effect 
on the date of the enactment of this Act, and shall apply 
to payments under the part amended for quarters begin-
ning on or after the effective date of the amendment. 
(b) DELAY PERMITTED IF STATE LEGISLATION RE-
QUIRED.—In the case of a State plan approved under part 
B or E of title IV of the Social Security Act which the 
Secretary of Health and Human Services determines re-
quires State legislation (other than legislation appro-
priating funds) in order for the plan to meet the additional 
requirements imposed by this Act, the State plan shall not 
be regarded as failing to comply with the requirements of 
such part solely on the basis of the failure of the plan 
to meet such additional requirements before the 1st day 
of the 1st calendar quarter beginning after the close of 
the 1st regular session of the State legislature that ends 
after the 1-year period beginning with the date of the en-
actment of this Act. For purposes of the preceding sen-
tence, in the case of a State that has a 2-year legislative 
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