SEC. 2. EXTEND THE ADOPTION INCENTIVE PAYMENT PRO-
GRAM TO INCENTIVE PAYMENTS FOR FOS-
TER CHILD EXITS TO REUNIFICATION, ADOP-
TION, AND GUARDIANSHIP. 
(a) IN GENERAL.—Section 473A of the Social Secu-
rity Act (42 U.S.C. 673b) is amended— 
(1) in the section heading, by striking ‘‘ADOP-
TION’’ and inserting ‘‘PERMANENCY’’; 
(2) in subsection (a), by striking ‘‘adoption’’ 
and inserting ‘‘permanency’’; 
(3) in subsection (b)— 
(A) by striking paragraph (2); 
(B) in paragraph (5), by striking ‘‘2008 
through 2012’’ and inserting ‘‘2013 through 
2017’’; and 
(C) 
by 
redesignating 
paragraphs 
(3) 
through (5) as paragraphs (2) through (4), re-
spectively; 
(4) in subsection (c)— 
(A) by striking paragraphs (1) and (2) and 
inserting the following: 
‘‘(1) IN GENERAL.—A State is in compliance 
with this subsection for a particular fiscal year if the 
State has provided to the Secretary the data de-
scribed in paragraph (2) for fiscal year 2010 and 
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each succeeding fiscal year through the fiscal year 
second preceding the particular fiscal year. 
‘‘(2) DETERMINATION OF NUMBERS OF EXITS 
BASED ON AFCARS DATA.—The Secretary shall de-
termine the numbers of exits to reunification, adop-
tion, and guardianship in a State during a fiscal 
year, on the basis of data meeting the requirements 
of the system established pursuant to section 479, as 
reported by the State and approved by the Secretary 
by August 1 of the succeeding fiscal year.’’; and 
(B) by adding at the end the following: 
‘‘(4) ANNUAL REPORTS TO THE SECRETARY.— 
Beginning 24 months after the effective date of this 
paragraph, each State to which a payment is made 
under this section for a fiscal year shall submit to 
the Secretary and shall make available to the public 
annual reports on the amount of the payment that 
is attributable to exits to reunification, the amount 
that is attributable to exits to adoption, and the 
amount that is attributable to exits to guardianship, 
and a breakdown of how the State used the total 
payment to improve or expand the provision of post- 
permanency services in the State.’’; 
(5) by striking subsection (d) and inserting the 
following: 
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‘‘(d) PERMANENCY INCENTIVE PAYMENT.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the permanency incentive payment pay-
able to a State for a fiscal year under this section 
shall be equal to the sum of— 
‘‘(A) $2,000, multiplied by the sum of— 
‘‘(i) the amount (if any) by which the 
number of exits to adoption in the State 
during the fiscal year exceeds the projected 
number of exits to adoption in the State 
for the fiscal year; 
‘‘(ii) the amount (if any) by which the 
number of exits to guardianship in the 
State during the fiscal year exceeds the 
projected number of exits to guardianship 
in the State for the fiscal year; and 
‘‘(iii) the amount (if any) by which 
the number of exits to reunification in the 
State during the fiscal year exceeds the 
projected number of exits to reunification 
in the State for the fiscal year; 
‘‘(B) $8,000, multiplied by the sum of— 
‘‘(i) the amount (if any) by which the 
number of exits to adoption of older chil-
dren in the State during the fiscal year ex-
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ceeds the number of exits to adoption of 
older children in the State for the base fis-
cal year; 
‘‘(ii) the amount (if any) by which the 
number of exits to guardianship of older 
children in the State during the fiscal year 
exceeds the number of exits to guardian-
ship of older children in the State for the 
base fiscal year; and 
‘‘(iii) the amount (if any) by which 
the number of exits to reunification of 
older children in the State during the fiscal 
year exceeds the number of exits to reunifi-
cation of older children in the State for the 
base fiscal year; 
‘‘(C) $6,000, multiplied by the sum of— 
‘‘(i) the amount (if any) by which the 
number of exits to adoption of pre-adoles-
cent children in the State during the fiscal 
year exceeds the number of exits to adop-
tion of pre-adolescent children in the State 
for the base fiscal year; 
‘‘(ii) the amount (if any) by which the 
number of exits to guardianship of pre-ad-
olescent children in the State during the 
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fiscal year exceeds the number of exits to 
guardianship of pre-adolescent children in 
the State for the base fiscal year; and 
‘‘(iii) the amount (if any) by which 
the number of exits to reunification of pre- 
adolescent children in the State during the 
fiscal year exceeds the number of exits to 
reunification of pre-adolescent children in 
the State for the base fiscal year; and 
‘‘(D) $4,000, multiplied by the amount (if 
any) by which the number of special needs 
adoptions of young children in the State during 
the fiscal year exceeds the number of special 
needs adoptions of young children in the State 
for the base fiscal year. 
‘‘(2) PRO RATA ADJUSTMENT IF INSUFFICIENT 
FUNDS AVAILABLE.—For any fiscal year, if the total 
amount of permanency incentive payments otherwise 
payable under this section for a fiscal year exceeds 
the amount appropriated pursuant to subsection (h) 
for the fiscal year, the amount of the permanency 
incentive payment payable to each State under this 
section for the fiscal year shall be— 
‘‘(A) the amount of the permanency incen-
tive payment that would otherwise be payable to 
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the State under this section for the fiscal year; 
multiplied by 
‘‘(B) the percentage represented by the 
amount so appropriated for the fiscal year, di-
vided by the total amount of permanency incen-
tive payments otherwise payable under this sec-
tion for the fiscal year.’’; 
(6) in subsection (f), by striking ‘‘any service 
(including post-adoption services) that may be pro-
vided under part B or E.’’ and inserting ‘‘post-per-
manency services to help ensure that children re-
main with the families with whom they have been re-
unified, adopted, or placed for guardianship, and a 
State shall not use the amount to supplant other 
funds being used for the services.’’; 
(7) by striking subsection (g) and inserting the 
following: 
‘‘(g) DEFINITIONS.—In this section: 
‘‘(1) ADOPTION.—The term ‘adoption’ means 
the final adoption of a child who, at the time of 
adoptive placement, was in foster care under the su-
pervision of the State. 
‘‘(2) BASE FISCAL YEAR.—The term ‘base fiscal 
year’ means fiscal year 2012. 
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‘‘(3) EXIT TO REUNIFICATION.—The term ‘exit 
to reunification’ means, with respect to a State and 
a fiscal year, the permanent reunification of a child 
who was in foster care under the responsibility of 
the State for a period of at least 90 consecutive days 
in the fiscal year, excluding any such placement of 
children who returned to foster care in the fiscal 
year. 
‘‘(4) FOSTER
CHILDREN.—The term ‘foster 
children’ means, with respect to a State and a fiscal 
year, children in foster care under the responsibility 
of the State for a period of at least 90 consecutive 
days in the fiscal year. 
‘‘(5) GUARDIANSHIP.—The term ‘guardianship’ 
means the placement with a relative guardian of a 
child with respect to whom— 
‘‘(A) a payment is made under section 
474(a)(5); or 
‘‘(B) a payment is made using only State 
or local guardianship assistance funds, and the 
case plan for the child documents the steps that 
the agency has taken to determine that it is not 
appropriate for the child to be returned home 
or adopted. 
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‘‘(6) OLDER CHILDREN.—The term ‘older chil-
dren’ means children who have attained 14 years of 
age. 
‘‘(7) ADOPTION PLACEMENT RATE.—The term 
‘adoption placement rate’ means, with respect to a 
State and a fiscal year— 
‘‘(A) the total number of exits to adoption 
in the State during the fiscal year; divided by 
‘‘(B) the number of children in foster care 
under the responsibility of the State on the last 
day of the preceding fiscal year. 
‘‘(8) GUARDIANSHIP
PLACEMENT
RATE.—The 
term ‘guardianship placement rate’ means, with re-
spect to a State and a fiscal year— 
‘‘(A) the total number of exits to guardian-
ship in the State during the fiscal year; divided 
by 
‘‘(B) the number of children in foster care 
under the responsibility of the State on the last 
day of the preceding fiscal year. 
‘‘(9) REUNIFICATION PLACEMENT RATE.—The 
term ‘reunification placement rate’ means, with re-
spect to a State and a fiscal year— 
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‘‘(A) the total number of exits to reunifica-
tion in the State during the fiscal year; divided 
by 
‘‘(B) the number of foster children with re-
spect to the State for the fiscal year. 
‘‘(10) 
POST-PERMANENCY
SERVICES.—The 
term ‘post-permanency services’ means the services 
needed once children and youth have been reunified, 
adopted, or placed with guardians to stabilize and 
support the child and family, including— 
‘‘(A) financial support; 
‘‘(B) case management; 
‘‘(C) connections with community services; 
‘‘(D) individual, group and family coun-
seling and other mental health services; 
‘‘(E) respite care; and 
‘‘(F) training of public and private child 
welfare staff on delivering post-permanency 
services. 
‘‘(11) PRE-ADOLESCENT CHILDREN.—The term 
‘pre-adolescent children’ means children who have 
attained 9 years of age but have not attained 14 
years of age. 
‘‘(12) PROJECTED NUMBER OF EXITS TO ADOP-
TION.—The term ‘projected number of exits to adop-
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tion’ means, with respect to a State and a fiscal 
year— 
‘‘(A) the number of children in foster care 
under the responsibility of the State as of the 
last day of the preceding fiscal year; multiplied 
by 
‘‘(B) the average of the adoption place-
ment rates for the State for the 3 fiscal years 
most recently preceding the fiscal year referred 
to in subparagraph (A). 
‘‘(13) PROJECTED
NUMBER
OF
EXITS
TO 
GUARDIANSHIP.—The term ‘projected number of 
exits to guardianship’ means, with respect to a State 
and a fiscal year— 
‘‘(A) the number of children in foster care 
under the responsibility of the State as of the 
last day of the preceding fiscal year; multiplied 
by 
‘‘(B) the average of the guardianship 
placement rates for the State for the 3 fiscal 
years most recently preceding the fiscal year re-
ferred to in subparagraph (A). 
‘‘(14) PROJECTED NUMBER OF EXITS TO RE-
UNIFICATION.—The term ‘projected number of exits 
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