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What It Is

For nearly a century, nonprofit Foster Family Agencies (FFAs) have provided essential services to children and families. In L.A. County alone, FFAs support nearly 1,800 children, offering high-quality, supportive care in family-settings. They directly support the work of the Department of Children and Family Services to keep children safe, ameliorate the effects of system involvement, provide guidance and support to foster parents, and facilitate reunification through a spectrum of services and supports available to families 24/7. Beginning November 1st, we will see many Foster Family Agencies lose their insurance coverage, which will prevent them from providing crucial services to families and children across the state. The potential loss of providers – should this insurance crisis go unresolved – would devastate the continuum of care for our state’s most vulnerable children and families. It would create an extreme gap in care and services throughout California. 

SCG is committed to supporting foster youth and families, but the philanthropic sector cannot fill the gap for services alone. We sent a letter to Governor Newsom advocating for urgent action like implementing short and long-term solutions, such as creating a pool of funds to help FFAs offset higher insurance premiums and building a risk pool to avoid future insurance crises.

Why It Matters

Foster Family Agencies (FFAs) have a profound role in securing permanency for children who cannot be reunited with their parents and are unable to be placed with relatives, often due to complex medical or behavioral health needs. The services provided by FFAs are unique and indispensable within our current child welfare system. If FFAs lose their insurance coverage because of higher insurance premiums, there will be tremendous placement disruption and irrevocable loss of critical services for thousands of children. 

SCG is concerned that we may see a ripple effect throughout the human services sector, further hampering nonprofit organizations that serve communities most in need. Addressing the child welfare system is critical to improving the resource and service distribution for children and people that depend on FFAs. Offering short and long-term solutions would prevent a nonprofit crisis and the reliance of the philanthropic sector to fill this critical gap. As an organization that values nonprofit sustainability and the welfare of all people, we are determined to advocate for vulnerable communities and ensure that the continuum of care for foster children and families are uphelpd in the state.