The Economy's Impact on Adoption

Many people are wondering how our tanking economy is affecting adoption. Are fewer people inclined to adopt in these troubled times? Does the availability of adoption subsidies for children in the foster care system make this kind of adoption more affordable? What about those who have spent big bucks to adopt a child from another country?

The answer is that it is too soon to tell. Certainly, many of those who have been able to bear the cost of international adoption, which can be considerable, and of adoption of infants in this country, which is often costly, may not be able to do it now. However, the need for a child is so strong for most people thinking about adoption that they may cut down on other expenses before postponing the addition of a child to their families.

On the other hand, there is little cost to adopting a child from this country’s foster care system. These children who are mainly of school age through teenagers need permanent families; many have been waiting for a long time for parents to give them the security and stability that all children need and deserve. The current economic climate may work in their favor.

Let us know what you think.

Economic Crisis' Impact on Foster Care System Part 3

Despite the bleak outlook presented in the past two blogs, there is a wealth of assistance available to current and prospective foster parents. Foster children need loving families more than ever. The more informed you are about the benefits available, the more realistically you can decide if and when adoption is an option. Below are some of the options available in helping to make the decision to adopt an easier one:

• Many employers offer benefits including paid or unpaid leave and reimbursement of adoption-related expenses.
• By filling out Form 8839 you are eligible for a tax credit worth $10,960.
• If your child qualifies, they may be eligible for reimbursements under Title IV-E.
• In certain states, adopted children receive partial or full college tuition.

Agencies like the National Adoption Center exist to provide information on programs and incentives that improve the conditions of foster children. Talk to your social worker to see what credits and reimbursements you are eligible for. Once you’ve gotten all of the necessary information, adopting a child at such a difficult economic time might not seem so improbable.

Economic Crisis' Impact on Foster Care System Part 2

Poverty, homelessness and unemployment are some of the main contributing factors to children being placed in foster care. Considering the current economic recession, it is possible that more children than ever will be placed in foster care in the coming months. The American foster care system is already facing challenges due to a lack of funding and workers. It is difficult to recruit and hold on to trained social workers who might improve the experiences of children in foster homes, which have gained a reputation as being unsafe in recent years. According to a 2004 report in The Future of Children, “30% to 80% of children in foster care exhibit emotional and/or behavioral problems, either from their experiences before entering foster care or from the foster care experience itself.”

This makes the job of a current or prospective foster parent harder than ever. Not only are they expected to deal with a variety of developmental disorders in their children, but the networks available to assist them are becoming increasingly dysfunctional. Without the proper funding, fewer parents will consider adoption and those who do will find it harder to raise their children successfully. It is easy to forget children who are still in foster care when so many families on both ends of the adoption process are already facing problems that seem insurmountable. Consider the following statistics: 37% of foster youth aged 17–20 had not completed high school and 12% reported being homeless at least once. With poverty and homelessness as two of the main contributors to placement in foster care, the resulting statistics seem neither promising nor surprising.

Economic Crisis' Impact on Foster Care System

In the next few posts we are going to look at the impact of the current financial crisis and it's potential impact on the foster care system. America’s foster care system was in financially-bad condition even before the global financial crisis. Last fall the Washington Post reported that “in nearly every state… the cost of providing basic care for a foster child exceeds the government's foster-care reimbursement rate.” Collectively, states are reimbursed $5 billion per year towards annual foster care expenditures; a large but still inadequate number. Researchers at the University of Maryland, who conducted the study, factored in basic needs such as food and clothing. The ensuing subprime mortgage crisis and stock market crash and the resultant bail-out plans have likely halted plans for any future government increase in funding for children currently in foster care. According to the aforementioned Washington Post report, the only state that adequately covered the costs of caring for foster children was Arizona.

Over 760,000 Americans have lost their jobs in the last nine months, many of whom are either current or prospective adoptive and/or foster parents. The prices of basic needs such as food and transportation are steadily rising and tax hikes are expected for all income levels. In addition, 47 million Americans still lack health care and 400,000 face foreclosures. A 2002 study reported that for every 1,000 people who call a public child welfare agency, only 36 ultimately go on to adopt. With numbers like these, the future of America’s 130,000 foster children seems bleaker than ever.

The Economy and Adoption From Foster Care

With the economy tanking, we are pleased that potential adopters of children who now live in foster care can continue to count on adoption subsidies to help defray any costs associated with raising their adopted children. In addition, children are provided with medical coverage, which may include coverage for psychological challenges. In addition, the federal government provides anyone who adopts with additional benefits for those who adopt children from the foster care system. And increasing numbers of companies are offering employees benefits which range from paid or unpaid time off to a cash payment to help with adoption costs. If you are considering adoption, but worry that you may not be able to afford it, ask your social worker about adoption subsidies…and learn whether your employer provides adoption benefits. If it does not, maybe you can convince the human resources manager to consider adding adoption benefits to the employee package. It is cost effective because it is seldom used, creates positive feelings among employees and is a win-win situation.