News Release

HHS Approves Indiana Child Welfare Waiver
Initiative to Help Youth Live in Permanent, Stable Homes

HHS Secretary Mike Leavitt today announced the approval of a child welfare waiver demonstration project for the state of Indiana.

The waiver enables Indiana to use federal funds more flexibly to expedite the reunification of children in foster care with their own families. It will also help prevent recurrence of child abuse and neglect as well as help improve family well-being.

"Every child deserves to grow up in a safe and stable home," Secretary Leavitt said. "By providing Indiana with greater flexibility, this Administration is helping to strengthen families and offer children the care and permanency they need to become successful adults."

Under the waiver, Indiana will be able to use title IV-E federal foster care dollars more flexibly to develop and test innovative programs to deliver and finance child welfare services.

"President Bush believes states should be empowered with flexibility to develop ways to strengthen services to families in crisis," said Wade F. Horn, Ph.D., HHS assistant secretary for children and families. "This waiver will help Indiana make a positive impact in the lives of hundreds of children and families."

An independent evaluation of the first five years of Indiana's waiver demonstration found that in the 25 Indiana counties most actively engaged in the waiver demonstration project, children enrolled in the demonstration were more likely to receive family preservation services, individual counseling, respite care, child care and basic household assistance than children in a matched comparison group who did not have access to the flexible funding provided by the waiver.

The evaluation also found that children in the group with access to waiver funds were less likely than matched children to be placed in foster care and, if placed, were more likely to be reunified with their families.

Section 1130 of the Social Security Act authorizes HHS to approve up to 10 new child welfare waiver demonstration projects each year. All demonstration projects are required to be evaluated by a third party and must be cost-neutral to the federal government.