Licensing Reforms Benefit Children and Families in Kinship Care

In the past year, 16 states and tribes have revised their foster care licensing requirements to improve support for kinship caregivers and the children placed with them.
These jurisdictions are the first to create and implement kin-specific licensing rules since the Administration for Children and Families allowed states and tribes to simplify the pathway to approval, which occurred in 2023. As a result, more kinship caregivers may become licensed and gain access to financial assistance and vital support services.
“The rapid uptake of these standards shows how ready and eager jurisdictions are for this flexibility to help support their goals of child welfare transformation through a kin-first culture,” said Ana Beltran, director of the Grandfamilies & Kinship Support Network at Generations United, a leader among kinship organizations developing best practices and resources to help states adapt the federal rule.
How Licensing Determines Access to Foster Care Resources
Licensing is the key to obtaining foster care financial assistance and support services, including federally funded resources distributed by states. In 2022, only 13 states made monthly foster care payments available to unlicensed kinship caregivers, while most states considered licensed caregivers eligible for support, according to a survey by the Annie E. Casey Foundation.
Most kinship caregivers are unlicensed because they don’t meet locally set standards for foster care provider age, income or home size. For example, a grandmother with a fixed income could be denied a license and assistance in some states.
“Families and others with longstanding relationships can provide healthy, supportive cultural and community bonds that help children and youth thrive,” said Sarah Morris-Compton, a senior associate with the Casey Foundation’s Family Well-Being Strategy Group. “Now, with the revised licensing standards, they will also receive the resources they need to house, feed, clothe and provide close relationships for these young people.”
Removing Barriers, Prioritizing Kin and Community Connections
By eliminating layers of local requirements for the caregivers and their homes — all while maintaining federally mandated background and safety checks — child welfare agencies aim to make it easier and faster to place children in secure, loving homes with relatives and other adults who know them.
Children benefit when placed with their extended families or adult friends in their communities where they feel a sense of belonging, research shows. These children are more likely to feel loved and accepted compared to children placed in foster homes with unfamiliar caregivers or in institutional settings. At the same time, kin placements reduce both the likelihood that a child is moved from placement to placement and their time spent in foster care. Such placements also improve a child’s chances of exiting foster care having forged a permanent relationship with a caring adult.
Ensuring Maryland Youth Have Permanent Relationships With Caring Adults
These new “kin-specific” approval pathways and standards are as varied as the jurisdictions creating them. Some systems have revised their rules so that, once a child is placed in a home, their kinship caregivers can begin receive assistance right away — even before the lengthy licensing process runs its full course. This is particularly important because a child’s initial placement in foster care is a significant predictor of their future well-being and success.
Though their approaches may differ, states leading the way with licensing reforms share the end goal, which is to strengthen strategies so that children and youth in foster care are forging permanent relationships. Maryland is one of these states, and about 28% of its foster care population are in kin placements today.
With support from the Casey Foundation, Maryland’s Department of Human Services (DHS) introduced streamlined licensing in December 2024 as part of a larger effort to make kin placements the preferred option for children who cannot stay in their original home. This statewide shift in philosophy, policy and practice — an initiative called Family Matters — is designed to ensure that young people and their families have access to the connections and resources they need to thrive.
Lawmakers laid groundwork for Family Matters by expanding the state’s definition of kin to include not just blood relatives but also adult family friends whom a child knows and trusts.
Maryland DHS is also taking kinship care best practices first adopted in Baltimore City and implemented these practices statewide. DHS officials anticipate that this approach will help its 23 counties as well as Baltimore — the state’s largest city — recruit, license and support more kin caregivers.
“I am proud that we were able to remove barriers and ensure children are able to be placed with their relatives and kin,” said Dr. Alger Studstill, executive director of the Social Services Administration for Maryland DHS.