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8.2D.3. TITLE IV-E, Adoption Assistance Program, Payments, Non-recurring expenses
Answer
The title IV-E agency must enter into an adoption assistance agreement prior to the finalization of the adoption and reimburse (up to $2000, or at title IV-E agency option a lower limit) the nonrecurring adoption expenses incurred by any parent who adopts a child with special needs. The only eligibility criterion to be applied for reimbursement of the nonrecurring expenses of adoption is that the title IV-E agency determine that the child meets the definition of special needs, in accordance with section 473 (c) of the Act. A child does not have to be eligible for Aid to Families with Dependent Children, title IV-E foster care, or Supplemental Security Income in order for the adoptive parents to receive reimbursement for their nonrecurring adoption expenses. Nor does the child have to be under the responsibility for placement and care of the title IV-E agency in order for the adoptive parents to be reimbursed for the nonrecurring expenses of adoption.
The term "nonrecurring adoption expenses" is defined as the reasonable and necessary adoption fees, court costs, attorney fees and other expenses which are directly related to the legal adoption of a child with special needs, which are not incurred in violation of State/Tribal or Federal law, and which have not been reimbursed from other sources or funds. Federal financial participation is available at the matching rate of 50 percent for title IV-E agency expenditures up to $2000 for each adoptive placement.
Source/Date
ACYF-CB-PA-01-01 (1/23/01)
Legal and Related References
Social Security Act - section 473(a)(6); 473(a)(1)(B)(i); 45 CFR 1356.41
Answer
No. The Tax Reform Act of 1986 (Public Law 99-514) amended title IV-E of the Act to require payments for the nonrecurring adoption expenses incurred by adopting parents in connection with the adoption of children with special needs. The only discretion is the flexibility to set a reasonable lower maximum than the $2000 for which Federal reimbursement is available at a 50% matching rate.
Source/Date
ACYF-CB-PIQ-89-02 (5/23/89)
Legal and Related References
Social Security Act - section 473; The Tax Reform Act of 1986 (P.L. 99-514)
Answer
No. A title IV-E agency may not limit reimbursement for nonrecurring adoption expenses by category. Adoptive parents who apply for reimbursement of the non-recurring expenses of adoption must be reimbursed for any of the non-recurring adoption expenses described at 45 CFR 1356.41 (i) when they adopt a child with special needs as set forth in section 473 (c) of the Social Security Act.
Source/Date
ACYF-CB-PIQ-89-02 (5/23/89)
Legal and Related References
Social Security Act - section 473
Answer
Yes. If the adoptive parents who are adopting a child with special needs incur an attorney fee for review of the adoption subsidy agreement, the title IV-E agency may reimburse the adoptive parents for that expenditure, up to the $2,000 limit, as a nonrecurring expense of adoption. In addition, the title IV-E agency also may claim the costs of the agency attorney's review of the adoption assistance agreement as an administrative cost, consistent with the policy in the Child Welfare Policy Manual (CWPM), Section 8.1A, Q/A #1.
Source/Date
7/6/05; (03/03/2020)
Legal and Related References
Social Security Act -- Section 473(a)(6) and 479B; 45 CFR 1356.41(i); CWPM, Section 8.1A, Q/A #1
Answer
The nonrecurring adoption expenses limit is applied per adoption episode.
Source/Date
7/6/2005
Legal and Related References
Social Security Act -- Section 473(a)(1)(B)(i), 45 CFR 1356.41
Answer
Yes. The title IV-E agency may claim FFP for the nonrecurring expenses of adoption in accordance with the requirements set forth in 45 CFR 1356.41 if:
- there is a title IV-E agreement for the nonrecurring expenses of adoption between the adoptive parent(s) and the title IV-E agency; and
- the title IV-E agency determined that the child is a child with special needs in accordance with section 473(c) of the Social Security Act (the Act).
Consistent with section 473(a)(5) of the Act, payments may be made on behalf of a child in an adoptive placement prior to the finalization of adoption when all eligibility requirements in section 473 of the Act are met and there is a signed adoption assistance agreement between the title IV-E agency and the adoptive parent(s). The regulation at 45 CFR 1356.41(b) provides that the agreement for the nonrecurring expenses of adoption may be a separate document or a part of the agreement for either Federal or State/Tribal adoption assistance. In allowing adoption assistance payments to be made prior to the finalization of the adoption, the Department has never differentiated between payments for ongoing adoption assistance under such agreements and payments for the nonrecurring expenses for adoption. Further, nothing in statute or regulation prohibits reimbursement for the expenses incurred by adoptive families in circumstances where the adoption is not finalized.
Source/Date
September 29, 2005; (03/03/2020)
Legal and Related References
Social Security Act - Sections 473(a)(1)(B)(i), 473(a)(5), and 479B; 45 CFR 1356.41(b).