Today, the President and First Lady announced bonus awards of $20 million to 35 states that have increased the number of children adopted from the public foster care system. These bonuses, awarded for the first time today, were first proposed by President Clinton's Adoption 2002 initiative and included in the Adoption and Safe Families Act of 1997. The President today also announced $5.5 million in grants to innovative programs that remove barriers to adoption, and he unveiled a national progress report on adoption that documents the success of the Administration's strategy. From 1996 to 1998, the number of adoptions nationwide rose 29 percent - from 28,000 to 36,000 - and is on a pace to meet the President's goal of 56,000 adoptions in 2002. This is the first significant increase in adoptions since the national foster care program was established nearly 20 years ago.

INCENTIVE AWARDS SUCCEED IN INCREASING ADOPTIONS. In the Administration's Adoption 2002 proposal and the adoption law of 1997, the President created the first-ever financial incentive for states to increase adoptions of children from the foster care system. Today, the President released $20 million in bonus awards to 35 states that in 1998 had exceeded their average adoption rate from 1995-1997. The $20 million in bonuses provide for up to $4,000 per adopted child, and $6,000 for each child with special needs. In fact, the states' performance in 1998 entitled them to an additional $22.5 million.

INNOVATIVE GRANTS REDUCE BARRIERS TO ADOPTION. The President today also announced $5.5 million in new awards under the Adoption Opportunities program. This program provides grants to public and private organizations to eliminate barriers to adoption, particularly for children with special needs. This year's grants reward a variety of initiatives, including efforts to increase adoptions of minority children, targeted field research, and awards for collaborative planning to increase adoptions across jurisdictional lines.

REPORT SHOWS CLINTON ADMINISTRATION STRATEGY IS WORKING. Since taking office, the President has championed efforts to make foster care work better, to find and assist adoptive families, and to break down barriers to adoption. Today the President received a progress report from the Department of Health and Human Services that documents the effectiveness of the Administration's strategy.

• Reforming the Child Welfare System. In 1997, the President signed the Adoption and Safe Families Act. This landmark law was based largely on recommendations from the Administration's Adoption 2002 report, which the President requested by executive memorandum in order to meet his goal of doubling adoptions by 2002. The law expedited permanent placement decisions for children, ensured health insurance coverage for all special-needs children in subsidized adoptions, and created the bonus awards released today.
  
  
• Making Adoption Affordable for Families. The Small Business Job Protection Act of 1996, signed by the President in 1996, provides a $5,000 tax credit to families adopting children, and a $6,000 tax credit for families adopting children with special needs. This provision helps middle class families for whom adoption - particularly of children with special needs - might have been prohibitively expensive.
  
  
• Giving States More Flexibility and Support. The Administration has granted waivers to 20 states and the District of Columbia to test innovative strategies for improving child welfare systems. In addition, it has secured new funds to support state implementation of the 1997 law and has, through the Adoption Opportunities program, supported local initiatives to promote adoption and provide post-adoptive services.
  
  
• Using the Internet to Make Adoption Easier. In 1998, the President directed HHS to develop Internet tools to link children in foster care more quickly to possible adoptive families. Secretary Shalala reported that HHS will launch a national web site by September 2001 to break down geographic barriers to adoption.
  
  
• Removing Racial and Ethnic Barriers to Adoption. New inter-ethnic adoption provisions, passed as a part of the Small Business Job Protection Act of 1996, help ensure that the adoption process is free of delays and discriminatory practices driven by race, culture and ethnicity. They do so by strengthening the Multi-Ethnic Placement Act which the President signed in 1994.
  
  
• Providing Supports for Child Protection and Adoption. The Family and Medical Leave Act, signed by the President in 1993, enables working parents to take time off to adopt a child without losing their jobs or health insurance coverage. The 1996 welfare reform law signed by the President also maintains child protection and adoption guarantees.

NOW IS THE TIME TO TAKE IMPORTANT NEXT STEPS. To follow through on this record of achievement, the President and First Lady today urged Congress to provide new support for young people leaving foster care. Under the current system, federal financial assistance for young people in foster care ends just as they are making the critical transition to independence. The President's FY 2000 budget request increases funding by nearly $300 million to help these youth secure health care, life skills training, and educational opportunities. With the Administration's strong support, the House has already passed bipartisan legislation to address these needs. The President today urged the Senate to take prompt action on the companion measure and to safeguard the interests of vulnerable young people leaving foster care.

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Note: A copy of the FY 1998 Adoption Incentive Bonuses can be obtained at: http://www.hhs.gov/news/press/1999pres/990924.html.