In state fiscal year (SFY) 2022, child welfare agencies across the country spent $1.5 billion in Social Services Block Grant (SSBG) funds. SSBG is a flexible source of federal funds that child welfare agencies can use to promote self-sufficiency, prevent or remedy child maltreatment, reduce inappropriate use of institutional care, and more. SSBG spending by child welfare agencies has decreased by 24 percent over the past decade and by 12 percent since SFY 2020.
Child welfare agencies’ use of SSBG funds, SFYs 2012-2022*
Source: SFY 2022 Child Welfare Financing Survey
Note: All dollar amounts have been inflated to 2022 levels.
*The figures presented in this graph reflect an analysis of 42 states with sufficient data across all six surveys conducted by Child Trends from 2012 to 2022 (surveys are conducted every two years). Therefore, the total amount of SFY 2022 SSBG expenditures presented in this graph ($1.4 billion) differs from the total amount presented in the text ($1.5 billion).
This decrease in SSBG expenditures is due, in part, to a reduction in SSBG funds following the 2013 across-the-board spending cuts enacted by Congress (i.e., sequestration). The decrease in child welfare agency SSBG spending is also due to some states’ intentional choices to decrease their use of SSBG funds for child welfare purposes.
Child Trends and Child Welfare Financing
To help policymakers understand the ever-shifting financing options available to child welfare agencies, Child Trends—with support from Casey Family Programs and the Annie E. Casey Foundation—conducts a national survey of states every two years. These data on funding sources like Title IV-E, Temporary Assistance for Needy Families (TANF), Medicaid, state/local funding, and more are compiled into a national report, state-level factsheets, funding source factsheets, and other products.
In addition, Child Trends partners directly with states to help them map the financing of their unique child welfare systems. This work can help states’ considerations around budgeting and promoting best practices that improve outcomes for children and families. If you are interested in learning more about our work in this area, please contact Kristina Rosinsky.