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This assessment response should be shared broadly at the local level to help educate the community about child welfare program issues and guide local agencies in planning for their child welfare programs . IDAs were first included in the 1996 welfare reform legislation , which gave states the option of including them in their state welfare reform plan , and specified that savings in these accounts be excluded when determining eligibility for assistance . For example , experimental group caregivers residing in active waiver counties were significantly more likely to report that their children were better off because of the involvement of the child protection agency and that they were involved in making decisions about their case welfare case . Three of the four years covered under the first bonus predate enactment of the welfare reform law in August 1996 , which required all states to develop strategies and goals for reducing out-of-wedlock births as part of their state welfare reform plans . Our budget includes an option for States to receive their funds in an allotment , providing States more flexibility in the operation of their child welfare programs . It requires that , to remain eligible for federal assistance for their child welfare programs , states must diligently recruit foster and adoptive parents who reflect the racial and ethnic diversity of the children in the state who need foster and adoptive homes . States use the adoption incentive awards to enhance their child welfare programs . Two of the four years covered under this bonus predate the enactment of the welfare reform law in August 1996 , which required all states to develop strategies and goals for reducing out-of-wedlock births as part of their state welfare reform plans . For example , in Texas , caseworkers from all of their child welfare regions were recruited to provide input on design and development , as well as during initial testing , pilot testing , and implementation of the system . Therefore I want to thank the entire Ways and Means Committee - and Congressman Camp and Chairman Herger especially - for including in the recently passed Adoption and Promotion Act of 2003 a provision to penalize states that do not keep their child welfare records up to date . Over the past 5 years , States have fundamentally changed their child welfare programs , focusing their ASFA reforms , including permanency timelines , termination of parental rights , and adoption efforts on the goal of achieving safety and permanency for children .