Johnson Introduces Bill to Lower Costs for Foster Parents
WASHINGTON, DC — Congresswoman Julie Johnson (TX-32), along with Congresswoman Erin Houchin (IN-09), introduced the bipartisan Foster Care Tax Credit Act, which provides a federal tax credit to families who open their homes to foster children, reducing the financial burden and encouraging more Americans to consider becoming foster parents.
“The foster care system is at a breaking point, and short-term foster parents are on the front lines, stepping up for kids in desperate need of a loving home. However, they are left without critical support. In Texas, around 10,000 children entered the foster care system in 2022. For years, the state of Texas has failed to protect foster children, including forcing them to stay in unsafe housing and exposing children to abuse,” said Johnson. “Foster care isn’t cheap. It requires a significant financial investment, and many families don’t have the ability to foster those who need it the most, leaving vulnerable children without safe, stable homes. It is critical that the federal government provide every incentive we can for families to step up. The Foster Care Tax Credit Act is a good-faith, bipartisan effort to address this issue and provide relief. We cannot afford to wait—supporting foster families means protecting the most vulnerable in our communities, and the time to act is now.”
Currently, there is a nationwide shortage of foster parents. According to The Imprint’s foster care capacity project, in 2023, there were more than 340,000 kids in foster care at any one time, but only 187,000 licensed foster homes. According to the National Foster Parent Association and the Child Welfare League of America, 75 percent of foster parents say the payments they receive from the state are “sometimes,” “rarely,” or “never” sufficient to cover the full costs of caring for a child in their homes.
The Foster Care Tax Credit Act:
- Establishes a one-time-per-year $850 refundable tax credit for short-term foster parents who have a child placed in their home by a child welfare agency or court.
- Requires the Departments of Health and Human Services and Treasury to conduct a study on the costs and financial burden on foster families that experience multiple emergency and short-term placements annually, among other things.
- Require outreach to all foster families about existing federal financial tax benefits.
“We are deeply appreciative of Congresswoman Houchin and Congresswoman Johnson for their dedication to supporting the families who offer life-restoring care to the children in their homes, thereby leaving a lasting impact on our communities,” said Michael Loo, President & CEO of Upbring. “Founded in 1881, Upbring has amassed over 140 years of serving those in foster care and comprehending the myriad expenses associated not only with basic provisions but also with resources to help these children heal and thrive. This legislation serves as an excellent starting point to provide more support to foster parents, enabling us to further our work in serving, innovating and delivering leading-edge methodologies to advance child wellbeing and change the world through our children.”
“When children and youth cannot safely remain with their families and must be separated for a period of time, it is our collective responsibility to ensure that their foster and kinship caregivers have all the resources necessary to meet their needs,” said Linda Spears, President and CEO of the Child Welfare League of America. “The Foster Care Tax Credit Act will provide crucial financial assistance to resource parents who are providing care for children and youth for short periods of time. These caregivers can play a vital role in helping children heal and thrive. CWLA is pleased to endorse this legislation and we applaud Representatives Erin Houchin and Julie Johnson for their leadership in supporting foster parents.”
“The Foster Care Tax Credit Act is an important step in recognizing and supporting Foster family caregivers in the important critical role they provide in caring for vulnerable children while separated from their families,” said Arnie Eby, Executive Director of the National Foster Parent Association. “NFPA endorses this legislation and applauds Representatives Erin Houchin and Julie Johnson for their leadership in supporting foster parents.”
List of supporters of the bill include Upbring, Child Welfare League of America, National Foster Parent Association, National Network for Youth, John Burton Advocates for Youth, National Association of Counties, The Family Focused Treatment Association, National Center on Adoption and Permanency, ZERO TO THREE, Children’s Advocacy Institute, iFoster, California Alliance of Child and Family Services, Families Rising, National Association of Counsel for Children, Congressional Research Institute for Social Work and Policy, Youth Villages, Children’s Aid, Creating a Family, First Focus Campaign for Children, and Foster Care Alumni of America.
To read the full text of the bill, click here.
Congresswoman Julie Johnson represents Texas’ 32nd Congressional District in the United States House of Representatives, serving on the Homeland Security Committee, Foreign Affairs Committee, and the House Administration Committee. Her district includes parts of Collin, Dallas, and Denton Counties.
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