California Plan Will Nearly Triple State Spending on Foster Youth and Their Caregivers

June 28th 2024: This week Gov. Gavin Newsom and the California Legislature reached a budget agreement that includes a remarkable $1 billion boost to enrich life in foster care. While it won't begin for three years, California will double rates paid to caregivers, provide at least $500 a month for enrichment activities and invest more in therapeutic services through a novel use of Medicaid funds. Despite critics' concerns, the plan is being called “life-changing” and “incredibly innovative.” California lawmakers have approved a $1 billion plan aimed at ensuring foster youth have access to enrichment activities like swim classes and after-school sports, specialized therapy when they’re suffering, and help with housing when they leave government custody as young adults.

Although the expanded budget for foster care won’t take effect for three years, the new approach would triple the state’s investment in foster care, from $317 million in the current fiscal year to $896 million in 2030. Its scope — and the state’s commitment to the change — has caught the attention of child welfare leaders across the country: Payments for individual foster children will double and even triple under the plan.

“This is going to be life-changing for the young people who are in foster care right now,” said Kristina Tanner, statewide policy coordinator for the California Youth Connection, an advocacy group led by foster youth. “They’re going to see a different system that actually truly builds them up and doesn’t tear them down.”

The sprawling new policy first appeared as a trailer bill earlier this year, with details later included in Gov. Gavin Newsom’s May budget proposal. The California Legislature, which announced a state spending agreement with the Democratic governor last weekend, also supported the plan in concept, and further details will be hashed out later this year.