[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6893 Enrolled Bill (ENR)]

        H.R.6893

                       One Hundred Tenth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

          Begun and held at the City of Washington on Thursday,
            the third day of January, two thousand and eight


                                 An Act


 
To amend parts B and E of title IV of the Social Security Act to connect 
and support relative caregivers, improve outcomes for children in foster 
   care, provide for tribal foster care and adoption access, improve 
            incentives for adoption, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
    This Act may be cited as the ``Fostering Connections to Success and 
Increasing Adoptions Act of 2008''.
SEC. 2. TABLE OF CONTENTS.
    The table of contents of this Act is as follows:

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 Federal 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 children 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.

         TITLE I--CONNECTING AND SUPPORTING RELATIVE CAREGIVERS

    SEC. 101. KINSHIP GUARDIANSHIP ASSISTANCE PAYMENTS FOR CHILDREN.
    (a) State Plan Option.--Section 471(a) of the Social 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 paragraph (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 assistance agreements to provide 
    kinship guardianship assistance payments on behalf of children to 
    grandparents 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 following:
    ``(d) Kinship Guardianship Assistance Payments 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 written, binding 
            kinship guardianship assistance agreement with the 
            prospective relative guardian of a child who meets the 
            requirements 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 assistance 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;
                ``(ii) the additional services and assistance that the 
            child and relative guardian will be eligible for under the 
            agreement;
                ``(iii) the procedure by which the relative 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 
            obtaining 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 reimbursement.--Nothing in 
        subparagraph (B)(iv) shall be construed as affecting the 
        ability of the State to obtain reimbursement from the Federal 
        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 shall not exceed the foster care maintenance payment 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 determines the following:
                ``(i) The child has been--

                    ``(I) removed from his or her home pursuant to a 
                voluntary placement agreement or as a result of a 
                judicial 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 consecutive months in the home of the prospective 
                relative guardian.

                ``(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 respect 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 agency and 
            the relative agree on the appropriateness of the 
            arrangement for the siblings; and
                ``(ii) kinship guardianship assistance payments may be 
            paid on behalf of each sibling so placed.''.
    (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 guardianship 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 considered 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 subparagraph (C); 
            and
                (ii) by adding at the end the following:
            ``(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) of this paragraph on 
        any relative guardian and any other adult living in the home of 
        any relative guardian, before the relative guardian may receive 
        kinship guardianship assistance payments 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 subparagraph (D) as 
                subparagraph (C).

                (ii) Effective date.--The amendments 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--
            (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 assistance payments under section 473(d), 
        a description of--
                ``(i) the steps that the agency has taken to determine 
            that it is not appropriate for the child to be returned 
            home or adopted;
                ``(ii) the reasons for any separation of siblings 
            during placement;
                ``(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 kinship guardianship 
            assistance payment;
                ``(v) the efforts the agency has made to discuss 
            adoption by the child's relative foster parent as a more 
            permanent alternative to legal guardianship and, in the 
            case of a relative foster parent who has chosen not to 
            pursue adoption, documentation 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 
            assistance arrangement, or the reasons why the efforts were 
            not made.''.
        (5) Section heading amendment.--The section heading for section 
    473 of such Act (42 U.S.C. 673) is amended by inserting ``and 
    guardianship'' after ``adoption''.
    (d) Continued Services Under Waiver.--Section 474 of such Act (42 
U.S.C. 674) is amended by adding at the end the following:
    ``(g) For purposes of this part, after the termination of a 
demonstration project relating to guardianship conducted by a State 
under section 1130, the expenditures of the State for the provision, to 
children who, as of September 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 Services 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 paragraph (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 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 
    attaining 16 years of age, are adopted from, or enter kinship 
    guardianship from, foster care''.
    (f) Categorical Eligibility for Medicaid.--Section 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 inserting after section 426 the 
following:
    ``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 nonprofit 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 kinship caregivers 
    in learning about, finding, and using programs and services to meet 
    the needs of the children they are raising and their own needs, and 
    to promote effective partnerships among public and private agencies 
    to ensure kinship caregiver families are served, which program--
            ``(A) shall be coordinated with other State or local 
        agencies that promote service coordination or provide 
        information and referral services, including the entities that 
        provide 2-1-1 or 3-1-1 information systems where available, to 
        avoid duplication or fragmentation of services to kinship care 
        families;
            ``(B) shall be planned and operated in consultation with 
        kinship caregivers and organizations representing them, youth 
        raised by kinship caregivers, relevant government agencies, and 
        relevant community-based or faith-based organizations;
            ``(C) shall establish information and referral systems that 
        link (via toll-free access) kinship caregivers, kinship support 
        group facilitators, and kinship service providers to--
                ``(i) each other;
                ``(ii) eligibility and enrollment information for 
            Federal, State, and local benefits;
                ``(iii) relevant training to assist kinship caregivers 
            in caregiving and in obtaining 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 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 designed 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 explore 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 domestic violence 
        issues in a safe manner and facilitate connecting children 
        exposed to domestic violence to appropriate services, including 
        reconnection with the abused parent when appropriate; 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, substance abuse 
        treatment services, children's early intervention services, 
        family counseling, medical, and mental health services, nursery 
        and pre-school, and other services that are designed to provide 
        comprehensive treatment that supports the family.
    ``(b) Applications.--An entity desiring to receive a matching grant 
under this section shall submit to the Secretary 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 initial 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 Secretary 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 by the grantee in the application approved by the 
Secretary 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 application 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 programs 
    described in subsection (a)(1).
        ``(2) Evaluation.--The Secretary shall reserve 3 percent of the 
    funds made available under subsection (h) for each fiscal year for 
    the conduct of a 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--
        (1) by striking ``and'' at the end of paragraph (27);
        (2) by striking the period at the end of paragraph (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 diligence 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 domestic 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 participate in the care and placement 
        of the child, including 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 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, describes 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 following: ``, 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 
Committee 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 standards 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 affected 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 legislative actions 
    that may increase the percentage of relative foster family homes 
    that are licensed while ensuring the safety of children in foster 
    care and improving their permanence and well-being.
    SEC. 105. AUTHORITY FOR COMPARISONS AND DISCLOSURES OF INFORMATION 
      IN THE FEDERAL PARENT LOCATOR SERVICE FOR CHILD WELFARE, FOSTER 
      CARE, AND ADOPTION ASSISTANCE PROGRAM PURPOSES.
    Section 453(j)(3) of the Social Security Act (42 U.S.C. 653(j)) is 
amended, in the matter preceding subparagraph (A), by inserting ``, 
part B, or part E'' after ``this part''.

        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.
    (a) Definition of Child.--Section 475 of the Social 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 responsibility of 
        the State;
            ``(II) with respect to whom an adoption assistance 
        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 credential;
                ``(II) enrolled in an institution which provides post-
            secondary or vocational education;
                ``(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
                ``(V) incapable of doing any of the activities 
            described in subclauses (I) through (IV) due to a medical 
            condition, which incapability is supported by regularly 
            updated 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 ``except, 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 regulations,'' before ``but''.
    (c) Conforming Amendments to Age Limits Applicable to Children 
Eligible for Adoption Assistance 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 section to parents or relative 
guardians with respect to a child--
        ``(i) who has attained--
            ``(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 determines 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 receiving 
adoption assistance payments or kinship guardianship assistance 
payments under this section shall keep the State or local agency 
administering the program under this section informed of circumstances 
which would, pursuant to this subsection, make them ineligible for the 
payments, 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.
    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 maintenance payments are 
        being made on the child's behalf or the child is receiving 
        benefits or services 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 direction of the child, includes specific 
        options on housing, health insurance, education, local 
        opportunities for mentors and continuing support services, and 
        work force supports and employment 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 Social 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 inserting ``, 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, attorneys representing children 
    or parents, guardians ad litem, or other court-appointed special 
    advocates representing children in proceedings of such courts,'' 
    after ``part,'';
        (6) by inserting ``guardians,'' before ``staff members,'';
        (7) by striking ``and institutions'' and inserting 
    ``institutions, attorneys, and advocates''; and
        (8) by inserting ``and children living with relative 
    guardians'' after ``foster and adopted children'' the 2nd place it 
    appears.
    (b) Phase-in.--With respect to an expenditure described 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) through (viii) as clauses (iv) 
        through (vii), respectively; and
            (B) by adding at the end the following:
            ``(G) A plan for ensuring the educational stability of the 
        child while in foster care, including--
                ``(i) assurances that the placement of the child in 
            foster care takes into account the appropriateness of the 
            current educational 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 ensure 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, assurances by the State agency and 
            the local educational agencies to provide immediate and 
            appropriate enrollment in a new school, with all of the 
            educational records of the child provided to the school.''; 
            and
        (2) in the 1st sentence of paragraph (4)(A)--
            (A) by striking ``and reasonable'' and inserting 
        ``reasonable''; and
            (B) by inserting ``, and reasonable travel for the child to 
        remain in the school in which the child is enrolled at the time 
        of placement'' before the period.
    (b) Educational Attendance Requirement.--Section 471(a) of the 
Social Security Act (42 U.S.C. 671(a)), as amended by sections 101(a) 
and 103 of this Act, is amended--
        (1) by striking ``and'' at the end of paragraph (28);
        (2) by striking the period at the end of paragraph (29) and 
    inserting ``; and''; and
        (3) by adding at the end the following:
        ``(30) provides assurances that each child who has attained the 
    minimum age for compulsory school attendance under State law and 
    with respect to whom there is eligibility for a payment under the 
    State plan is a full-time elementary or secondary school student or 
    has completed secondary school, and for purposes of this paragraph, 
    the term `elementary or secondary school student' means, with 
    respect to a child, that the child is--
            ``(A) enrolled (or in the process of enrolling) in an 
        institution which provides elementary or secondary education, 
        as determined under the law of the State or other jurisdiction 
        in which the institution is located;
            ``(B) instructed in elementary or secondary education at 
        home in accordance with a home school law of the State or other 
        jurisdiction in which the home is located;
            ``(C) in an independent study elementary or secondary 
        education program in accordance with the law of the State or 
        other jurisdiction in which the program is located, which is 
        administered by the local school or school district; or
            ``(D) incapable of attending school on a full-time basis 
        due to the medical condition of the child, which incapability 
        is supported by regularly updated information in the case plan 
        of the child.''.
    SEC. 205. HEALTH OVERSIGHT AND COORDINATION PLAN.
    Section 422(b)(15) of the Social Security Act (42 U.S.C. 
622(b)(15)) is amended to read as follows:
        ``(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 approved under title XIX, and in consultation with 
    pediatricians, 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 placement, which shall ensure a coordinated strategy 
    to identify and respond to the health care needs of children 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 standards 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;
            ``(iv) steps to ensure continuity of health care services, 
        which may include the establishment of a medical home for every 
        child in care;
            ``(v) the oversight of prescription medicines; and
            ``(vi) how the State actively consults with and involves 
        physicians or other appropriate medical or non-medical 
        professionals in assessing the health and well-being of 
        children in foster 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);
        (2) by striking the period at the end of paragraph (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 guardianship, 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.''.

           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 Indian Tribal Organizations.--
        (1) In general.--Part E of title IV of the Social 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 ORGANIZATIONS.
    ``(a) Definitions of Indian Tribe; Tribal Organizations.--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 Education 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 organization, or tribal consortium 
that elects to operate a program under this part and has a plan 
approved by the Secretary under section 471 in accordance with this 
section.
    ``(c) Plan Requirements.--
        ``(1) In general.--An Indian tribe, tribal organization, or 
    tribal consortium that elects to operate 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 significant 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 populations.--For purposes of 
        complying with section 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--

                    ``(I) foster care maintenance payments under 
                section 472 only on behalf of children who satisfy the 
                eligibility requirements of section 472(a);
                    ``(II) adoption assistance payments under section 
                473 pursuant to adoption assistance agreements only on 
                behalf of children who satisfy the eligibility 
                requirements for such payments 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 requirements of section 
                473(d)(3).

                ``(ii) Satisfaction of foster care eligibility 
            requirements.--For purposes 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:

                    ``(I) Use of affidavits, etc.--Only with respect to 
                the first 12 months for which such plan is in effect, 
                the requirement in paragraph (1) of section 472(a) 
                shall not be interpreted so as to prohibit the use of 
                affidavits or nunc pro tunc orders as verification 
                documents in support of the reasonable efforts and 
                contrary to the welfare of the child judicial 
                determinations required under that paragraph.
                    ``(II) AFDC eligibility requirement.--The State 
                plan approved 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 expenditures from third-party 
        sources for non-federal share of administrative and training 
        costs during initial implementation period.--Only for fiscal 
        year quarters beginning after September 30, 2009, and before 
        October 1, 2014, a list of the in-kind expenditures (which 
        shall be fairly evaluated, and may include plants, equipment, 
        administration, or services) and the third-party sources of 
        such expenditures that the tribe, organization, or consortium 
        may claim as part of the non-Federal share of administrative or 
        training expenditures attributable to such quarters for 
        purposes of receiving 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 purposes of receiving payments under section 474(a) 
            that a State with a plan approved 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 September 30, 2009, and before 
                October 1, 2011, for which the tribe, organization, or 
                consortium is eligible for payments 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 expenditures.--With respect to 
                amounts expended 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 subparagraph (A) or (B) of 
                section 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 government.
                        ``(bb) An Indian tribe, tribal organization, or 
                    tribal consortium other than the tribe, 
                    organization, 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.
                ``(iii) Fiscal year 2012, 2013, or 2014.--

                    ``(I) In general.--Except as provided in subclause 
                (II) of this clause and clause (v) of this 
                subparagraph, with respect to amounts expended 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 determining the non-
                Federal share of such expenditures (without regard to 
                whether the expenditures are specified on the list 
                required under this subparagraph to be submitted with 
                the plan) are in-kind expenditures that are specified 
                in regulations promulgated by the Secretary under 
                section 301(e)(2) of the Fostering Connections to 
                Success and Increasing Adoptions Act of 2008 and are 
                from an applicable 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, 
                organizations, 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 require the tribe, organization, or consortium to 
                comply with such regulations before October 1, 2013. 
                Until the earlier of the date such tribe, organization, 
                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 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 begins after September 30, 2011, and 
                before such date of compliance or October 1, 2013, 
                whichever is earlier.
                    ``(III) Definition of early approved tribe, 
                organization, or consortium.--For purposes of subclause 
                (II) of this clause, the term `early approved tribe, 
                organization, or consortium' means an Indian tribe, 
                tribal organization, or tribal consortium 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 thereafter.--Subject to 
            clause (v) of this subparagraph, with respect to amounts 
            expended during any fiscal year quarter beginning after 
            September 30, 2014, for which the tribe, organization, or 
            consortium 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 
            determining the non-Federal share of expenditures 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 Increasing 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 
            required 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--

                    ``(I) in the case of any quarter of fiscal year 
                2012, 2013, or 2014, the limitations on claiming in-
                kind expenditures from third-party sources under clause 
                (ii) of this subparagraph shall apply (without regard 
                to fiscal limitation) for purposes of determining 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 
                expenditures from third-party sources for purposes of 
                determining the non-Federal share of such expenditures 
                if a State with a plan approved under section 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 family homes and tribal child care 
    institutions.--For purposes of complying with section 471(a)(10), 
    an Indian tribe, tribal organization, or tribal consortium shall 
    establish and maintain a tribal authority or authorities which 
    shall be responsible for establishing and maintaining tribal 
    standards for tribal foster family homes and tribal child care 
    institutions.
        ``(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 Assistance Percentage for 
Foster Care Maintenance and Adoption Assistance Payments.--
        ``(1) Per capita income.--For purposes of determining 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 organization, or 
    tribal consortium shall be based upon the service population of the 
    Indian tribe, tribal organization, or tribal consortium, except 
    that in no case shall an Indian tribe, a tribal organization, or a 
    tribal consortium receive less than the Federal medical assistance 
    percentage for any State in which the tribe, organization, or 
    consortium is located.
        ``(2) Consideration of other information.--Before making a 
    calculation under paragraph (1), the Secretary shall consider any 
    information submitted by an Indian tribe, a tribal organization, 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 Agreements and Contracts.--Any 
cooperative agreement or contract entered into between an Indian tribe, 
a tribal organization, or a tribal consortium and a State for the 
administration 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 either party to the agreement or 
contract to revoke or modify 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 Independence Program.--Except as 
provided in section 477(j), 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 section 474(e)).
    ``(g) Rule of Construction.--Nothing in this section shall be 
construed as affecting the application of section 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 organization (as 
            defined in section 479B(a)) or a tribal consortium that has 
            a plan approved under section 471 in accordance with 
            section 479B; and''.
    (b) Authority to Receive Portion of State Allotment as Part of an 
Agreement to Operate the John H. Chafee Foster Care Independence 
Program.--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 Organization, or Tribal 
Consortium to Receive an Allotment.--
        ``(1) In general.--An Indian tribe, tribal organization, or 
    tribal consortium with a plan approved under section 479B, or which 
    is receiving funding to provide foster care under this part 
    pursuant 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 subsection (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--
            ``(A) satisfies such requirements of paragraphs (2) and (3) 
        of subsection (b) as the Secretary 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 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 provided 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 determined appropriate by the Secretary, except that in no case 
    shall an Indian tribe, a tribal organization, or a tribal 
    consortium receive a lesser proportion of such funds than a State 
    is authorized to receive 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 
    subsection 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 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 purposes of paragraph (4), 
    the tribal foster care ratio means, with respect to an Indian 
    tribe, tribal organization, 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 
        information 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 
            located; and
                ``(ii) the total number of children in foster care 
            under the responsibility of all Indian tribes, tribal 
            organizations, or tribal 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 following:
        ``(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 develop 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 who are placed in State or tribally 
    licensed foster family homes, adoption assistance payments, and, if 
    the State has elected to provide such payments, kinship 
    guardianship assistance payments under section 473(d), and tribal 
    access to resources for administration, 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 inserting ``that''; 
            and
                (ii) by striking the period at the end and inserting 
            ``; and that the State will negotiate in good faith with 
            any Indian tribe, tribal organization, or tribal consortium 
            in the State that does not receive an allotment under 
            subsection (j)(4) for a fiscal year and that requests to 
            develop an agreement with the State to administer, 
            supervise, or oversee the programs to be carried out under 
            the plan with respect to the Indian children who are 
            eligible for such programs and who are under the authority 
            of the tribe, organization, or consortium and to receive 
            from the State an appropriate portion of the State 
            allotment under subsection (c) for the cost of such 
            administration, supervision, or oversight.''.
        (2) Application of tribal federal matching rate to cooperative 
    agreements or contracts 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 respect to such payments made 
    during such quarter under a cooperative agreement or contract 
    entered into by the State and an Indian tribe, tribal organization, 
    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 
    paragraph referred to as the `tribal FMAP') if such Indian 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--
        (1) authorization to terminate funding on behalf of any Indian 
    child receiving foster care maintenance 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 
    between the State and an Indian tribe, tribal organization, or 
    tribal consortium is in effect on such date or an Indian tribe, 
    tribal organization, or tribal consortium 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 assistance payments, for 
        Indian children who are eligible for such payments and who are 
        not otherwise being served by an Indian tribe, tribal 
        organization, or tribal consortium pursuant to a program under 
        such section 479B of such Act or a cooperative agreement or 
        contract entered into between an Indian tribe, a tribal 
        organization, 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 administer, supervise, or oversee 
        programs carried out under that plan on behalf of Indian 
        children who are eligible for such programs if such children 
        are not otherwise being served by an Indian tribe, tribal 
        organization, or tribal consortium pursuant to an approved plan 
        under section 477(j) of such Act or a cooperative agreement or 
        contract entered into under section 477(b)(3)(G) of such Act.
    (e) Regulations.--
        (1) In general.--Except as provided in paragraph (2) of this 
    subsection, not later than 1 year after the date of enactment of 
    this section, the Secretary of Health and Human Services, in 
    consultation with Indian tribes, tribal organizations, tribal 
    consortia, and affected States, shall promulgate interim final 
    regulations to carry out this section and the amendments made by 
    this section. Such regulations shall include procedures to ensure 
    that a transfer 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 eligibility 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 subparagraph (B) of this 
        paragraph, not later than September 30, 2011, the Secretary of 
        Health and Human Services, in consultation with Indian tribes, 
        tribal organizations, and tribal consortia, shall promulgate 
        interim final regulations specifying the types of in-kind 
        expenditures, including plants, equipment, administration, 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, organizations, 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 October 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 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 section 471 of the Social Security Act in 
        accordance with section 479B of such Act, up to specific 
        percentages, for purposes of determining the non-Federal share 
        of administrative and training expenditures for which the 
        tribes, organizations, 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 required 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 that are dedicated to 
    improving services and permanency outcomes for Indian children and 
    their families through the provision of assistance described in 
    paragraph (2).
        ``(2) Assistance provided.--
            ``(A) In general.--The technical assistance and 
        implementation services shall be to--
                ``(i) provide information, advice, educational 
            materials, and technical assistance to Indian tribes and 
            tribal organizations with respect to the types of services, 
            administrative functions, data collection, program 
            management, and reporting that are required under State 
            plans under part B and this part;
                ``(ii) assist and provide technical assistance to--

                    ``(I) Indian tribes, tribal organizations, and 
                tribal consortia seeking to operate a program under 
                part B or under this part through direct application to 
                the Secretary under section 479B; and
                    ``(II) Indian tribes, tribal organizations, tribal 
                consortia, and States seeking to develop cooperative 
                agreements 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 organizations, 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 developing a plan 
                under section 471 to carry out a program under section 
                479B, including costs related to development of 
                necessary data collection systems, a cost allocation 
                plan, agency and tribal court procedures necessary to 
                meet the case review system requirements under section 
                475(5), or any other costs attributable to meeting 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 tribal 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 
            subparagraph.
                ``(ii) Exception.--The Secretary shall waive the 
            requirement to repay a grant imposed by clause (i) if the 
            Secretary determines that a tribe's, tribal organization's, 
            or tribal consortium's failure to submit a plan within such 
            period was the result of circumstances beyond the control 
            of the tribe, tribal organization, or tribal consortium.
            ``(C) Implementation authority.--The Secretary may provide 
        the technical assistance and implementation services described 
        in subparagraph (A) either directly or through a grant or 
        contract with public or private organizations 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
        (4) in each of subsections (h)(1)(D), and (h)(2), by striking 
    ``2008'' and inserting ``2013''.
    (b) Updating of Fiscal Year Used in Determining 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 adoptions 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 follows and 
        inserting ``means, with respect to any fiscal year, the number 
        of special needs adoptions 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 adoptions in the State in fiscal year 
    2007.''.
    (c) Increase in Incentive Payments for Special Needs Adoptions and 
Older Child Adoptions.--Section 473A(d)(1) of such Act (42 U.S.C. 
673b(d)(1)) is amended--
        (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 succeeding fiscal 
    year'' and inserting ``for the 24-month period beginning with the 
    month in which the payments are made''.
    (e) Additional Incentive Payment for Exceeding 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 preceding subparagraph 
        (A), by striking ``paragraph (2)'' and inserting ``paragraphs 
        (2) and (3)'';
            (B) in paragraph (2), by striking ``this section'' each 
        place it appears and inserting ``paragraph (1)''; and
            (C) by adding at the end the following:
        ``(3) Increased incentive payment for exceeding the highest 
    ever foster child adoption rate.--
            ``(A) In general.--If--
                ``(i) for fiscal year 2009 or any fiscal year 
            thereafter the total amount of adoption incentive payments 
            payable under paragraph (1) of this subsection are less 
            than the amount appropriated under subsection (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 subsection for the State shall be 
        increased, subject to subparagraph (C) of this paragraph, by 
        the amount determined for the State under subparagraph (B) of 
        this paragraph.
            ``(B) Amount of increase.--For purposes of subparagraph 
        (A), the amount determined under this subparagraph with respect 
        to a State and a fiscal year is the amount equal to the product 
        of--
                ``(i) $1,000; and
                ``(ii) the excess of--

                    ``(I) the number of foster child adoptions in the 
                State in the fiscal year; over
                    ``(II) the product (rounded to the nearest whole 
                number) of--

                        ``(aa) the highest ever foster child adoption 
                    rate determined for the State; and
                        ``(bb) the number of children in foster care 
                    under the supervision of the State on the last day 
                    of the preceding fiscal year.
            ``(C) Pro rata adjustment if insufficient funds 
        available.--For any fiscal year, if the total amount of 
        increases in adoption incentive payments otherwise payable 
        under this paragraph for a fiscal year exceeds the amount 
        available for such increases for the fiscal year, the amount of 
        the increase payable to each State under this paragraph for the 
        fiscal year shall be--
                ``(i) the amount of the increase that would otherwise 
            be payable to the State under this paragraph for the fiscal 
            year; multiplied by
                ``(ii) the percentage represented by the amount so 
            available for the fiscal year, divided by the total amount 
            of increases otherwise payable under this paragraph for the 
            fiscal year.''.
        (2) Definitions.--Section 473A(g) of such Act (42 U.S.C. 
    673b(g)) is amended by adding at the end the following:
        ``(7) Highest ever foster child adoption rate.--The term 
    `highest ever foster child adoption rate' means, with respect to 
    any fiscal year, the highest foster child adoption rate determined 
    for any fiscal year in the period that begins with fiscal year 2002 
    and ends with the preceding fiscal year.
        ``(8) Foster child adoption rate.--The term `foster child 
    adoption rate' means, with respect to a State and a fiscal year, 
    the percentage determined by dividing--
            ``(A) the number of foster child adoptions finalized in the 
        State during the fiscal year; by
            ``(B) the number of children in foster care under the 
        supervision of the State on the last day of the preceding 
        fiscal year.''.
        (3) Conforming amendments.--
            (A) State eligibility.--Section 473A(b)(2) of such Act (42 
        U.S.C. 673b(b)(2)) is amended--
                (i) in subparagraph (A), by striking ``or'' at the end;
                (ii) in subparagraph (B), by adding ``or'' at the end; 
            and
                (iii) by adding at the end the following:
        ``(C) the State's foster child adoption rate for the fiscal 
    year exceeds the highest ever foster child adoption rate determined 
    for the State;''.
            (B) Data.--Section 473A(c)(2) of such Act (42 U.S.C. 
        673b(c)(2)), as amended by subsection (a)(3) of this section, 
        is amended by inserting ``and the foster child adoption rate 
        for the State for the fiscal year,'' after ``during a fiscal 
        year,''.
    SEC. 402. PROMOTION OF ADOPTION OF CHILDREN WITH SPECIAL NEEDS.
    Section 473 of the Social Security Act (42 U.S.C. 673), as amended 
by section 101(b) of this Act, is amended--
        (1) in subsection (a)--
            (A) in paragraph (2)--
                (i) in subparagraph (A)--

                    (I) by redesignating items (aa) and (bb) of clause 
                (i)(I) as subitems (AA) and (BB), respectively;
                    (II) in subitem (BB) of clause (i)(I) (as so 
                redesignated), by striking ``item (aa) of this 
                subclause'' and inserting ``subitem (AA) of this 
                item'';
                    (III) by redesignating subclauses (I) through (III) 
                of clause (i) as items (aa) through (cc), respectively;
                    (IV) by redesignating clauses (i) and (ii) as 
                subclauses (I) and (II), respectively;
                    (V) by realigning the margins of the items, 
                subclauses, and clauses redesignated by subclauses (I) 
                through (IV) accordingly;
                    (VI) by striking ``if the child--'' and inserting 
                ``if--

        ``(i) in the case of a child who is not an applicable child for 
    the fiscal year (as defined in subsection (e)), the child--'';

                    (VII) in subclause (II) of clause (i) (as so 
                redesignated)--

                        (aa) by striking ``(c)'' and inserting 
                    ``(c)(1)''; and
                        (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--
            ``(I)(aa) at the time of initiation of adoption proceedings 
        was in the care of a public or licensed private child placement 
        agency or Indian tribal organization 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 contrary to 
            the welfare of the child; or
                ``(BB) a voluntary placement agreement or voluntary 
            relinquishment;
            ``(bb) meets all medical or disability requirements of 
        title XVI with respect to eligibility 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 contrary to 
            the welfare of the child; or
                ``(BB) a voluntary placement agreement 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;
                    (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 redesignated 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 applicable child for 
    the fiscal year (as defined in subsection (e)), the child--'';

                    (VI) in clause (i)(I) (as so redesignated), by 
                striking ``(A)(ii)'' and inserting ``(A)(i)(II)'';
                    (VII) in clause (i)(IV) (as so redesignated)--

                        (aa) in the matter preceding item (aa), by 
                    striking ``(A)'' and inserting ``(A)(i)''; and
                        (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 payments under this part with respect to a prior 
    adoption (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 determination 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 respect to any applicable child for 
a fiscal year that--
        ``(i) would be considered a child with special needs under 
    subsection (c)(2);
        ``(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 purpose of being adopted.
    ``(B) Subparagraph (A) shall not be construed as prohibiting 
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 provide 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 unless'' and inserting 
        ``this section--
        ``(1) in the case of a child who is not an applicable 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 redesignated, by striking 
        the period at the end and inserting ``; 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 considered 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 returned 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 medical 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 assistance under 
        this section and medical assistance under title XIX; or
            ``(ii) the child meets all medical or disability 
        requirements of title XVI with respect to eligibility for 
        supplemental security income benefits; 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 existence of significant emotional ties with 
        prospective adoptive parents while in the care of the parents 
        as a foster child, a reasonable, but unsuccessful, 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 assistance agreement is entered into under 
        this section during any fiscal year described in subparagraph 
        (B) if the child attained the applicable age for that fiscal 
        year before the end of that fiscal year.
            ``(B) Applicable age.--For purposes of subparagraph (A), 
        the applicable age for a fiscal year is as follows:


----------------------------------------------------------------------------------------------------------------
               ``In the case of fiscal year:                                The applicable age is:
----------------------------------------------------------------------------------------------------------------
2010.......................................................  16
2011.......................................................  14
2012.......................................................  12
2013.......................................................  10
2014.......................................................  8
2015.......................................................  6
2016.......................................................  4
2017.......................................................  2
2018 or thereafter.........................................  any age.
----------------------------------------------------------------------------------------------------------------


        ``(2) Exception for duration in care.--Notwithstanding 
    paragraph (1) of this subsection, beginning with fiscal year 2010, 
    such term shall include a child of any age on the date on which an 
    adoption assistance agreement is entered into on behalf of the 
    child under this section if the child--
            ``(A) has been in foster care under the responsibility of 
        the State for at least 60 consecutive months; and
            ``(B) meets the requirements of subsection (a)(2)(A)(ii).
        ``(3) Exception for member of a sibling group.--Notwithstanding 
    paragraphs (1) and (2) of this subsection, beginning with fiscal 
    year 2010, such term shall include a child of any age on the date 
    on which an adoption assistance agreement is 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 applicable 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 paragraph (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 
    Federal tax credit under section 23 of the Internal Revenue Code of 
    1986.''.

    TITLE V--CLARIFICATION OF UNIFORM DEFINITION OF CHILD AND OTHER 
                               PROVISIONS

    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 taxpayer 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.--
        (1) Child tax credit.--Section 24(a) of such Code is amended by 
    inserting ``for which the taxpayer 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 individual 
        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 ``Except as provided in subparagraphs (B) and 
            (C), if (but for this paragraph) an individual 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:
``Sec. 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 Government; and
        ``(3) repurchase agreements with parties acceptable to the 
    Secretary.
    ``(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 market 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 subsection (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 `appropriate 
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 prohibitions on 
Federal payments to individuals who are unlawfully present in the 
United States.

                        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 
beginning on or after the effective date of the amendment.
    (b) Delay Permitted if State Legislation Required.--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 requires State legislation (other than legislation 
appropriating 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 enactment of 
this Act. For purposes of the preceding sentence, in the case of a 
State that has a 2-year legislative session, each year of the session 
is deemed to be a separate regular session of the State legislature.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.