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(5) Although substantial progress has been 
made to promote adoptions, attention should be fo-
cused on promoting adoption of older children. Re-
cent data suggest that half of the children waiting 
to be adopted are age 9 or older. 
SEC. 3. REAUTHORIZATION OF ADOPTION INCENTIVE PAY-
MENTS PROGRAM. 
(a) IN GENERAL.—Section 473A of the Social Secu-
rity Act (42 U.S.C. 673b) is amended—
(1) in subsection (b)—
(A) by striking paragraph (2) and insert-
ing the following: 
‘‘(2)(A) the number of foster child adoptions in 
the State during the fiscal year exceeds the base 
number of foster child adoptions for the State for 
the fiscal year; or 
‘‘(B) the number of older child adoptions in the 
State during the fiscal year exceeds the base number 
of older child adoptions for the State for the fiscal 
year;’’. 
(B) in paragraph (4), by striking ‘‘and 
2002’’ and inserting ‘‘through 2007’’; and 
(C) in paragraph (5), by striking ‘‘2002’’ 
and inserting ‘‘2007’’;
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(2) in subsection (c), by striking paragraph (2) 
and inserting the following: 
‘‘(2) DETERMINATION OF NUMBERS OF ADOP-
TIONS
BASED
ON
AFCARS
DATA.—The Secretary 
shall determine the numbers of foster child adop-
tions, of special needs adoptions that are not older 
child adoptions, and of older child adoptions in a 
State during each of fiscal years 2002 through 
2007, for purposes of this section, on the basis of 
data meeting the requirements of the system estab-
lished pursuant to section 479, as reported by the 
State and approved by the Secretary by August 1 of 
the succeeding fiscal year.’’; 
(3) in subsection (d)(1)—
(A) in subparagraph (A), by striking 
‘‘and’’; 
(B) in subparagraph (B)—
(i) by inserting ‘‘that are not older 
child adoptions’’ after ‘‘adoptions’’ each 
place it appears; and 
(ii) by striking the period and insert-
ing ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(C) $4,000, multiplied by the amount (if 
any) by which the number of older child adop-
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tions in the State during the fiscal year exceeds 
the base number of older child adoptions for the 
State for the fiscal year.’’; 
(4) in subsection (g)—
(A) in paragraph (3), by striking subpara-
graphs (A) and (B) and inserting the following: 
‘‘(A) with respect to fiscal year 2003, the 
number of foster child adoptions in the State in 
fiscal year 2002; and 
‘‘(B) with respect to any subsequent fiscal 
year, the number of foster child adoptions in 
the State in the fiscal year for which the num-
ber is the greatest in the period that begins 
with fiscal year 2002 and ends with the fiscal 
year preceding that subsequent fiscal year.’’; 
(B) in paragraph (4)—
(i) in the paragraph heading, by in-
serting ‘‘THAT
ARE
NOT
OLDER
CHILD 
ADOPTIONS’’ after ‘‘ADOPTIONS’’; and 
(ii) by striking subparagraphs (A) and 
(B) and inserting the following: 
‘‘(A) with respect to fiscal year 2003, the 
number of special needs adoptions that are not 
older child adoptions in the State in fiscal year 
2002; and
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‘‘(B) with respect to any subsequent fiscal 
year, the number of special needs adoptions 
that are not older child adoptions in the State 
in the fiscal year for which the number is the 
greatest in the period that begins with fiscal 
year 2002 and ends with the fiscal year pre-
ceding that subsequent fiscal year.’’; and 
(C) by adding at the end the following: 
‘‘(5) BASE NUMBER OF OLDER CHILD ADOP-
TIONS.—The term ‘base number of older child adop-
tions for a State’ means—
‘‘(A) with respect to fiscal year 2003, the 
number of older child adoptions in the State in 
fiscal year 2002; and 
‘‘(B) with respect to any subsequent fiscal 
year, the number of older child adoptions in the 
State in the fiscal year for which the number is 
the greatest in the period that begins with fiscal 
year 2002 and ends with the fiscal year pre-
ceding that subsequent fiscal year. 
‘‘(6) OLDER
CHILD
ADOPTIONS.—The term 
‘older child adoptions’ means the final adoption of a 
child who has attained 9 years of age if—