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Title IV-E Child Welfare Waiver Demonstration Capped Allocation Project (CAP)


California's request to extend the current Title IV-E Waiver Demonstration Project was sent to the federal Administration for Children and Families on March 29, 2013. The cover letter and extension proprosal are available below:

The Title IV-E Capped Allocation Project concluded on June 30, 2012. A review of the project was conducted by an independent, third party evaluator. The final report is available here:  

The current project is now in an official “Bridge” period, while CDSS awaits approval from the federal Administration of Children and Families for a multiyear extension.


Email: IV-EWaiver.CAP@dss.ca.gov
California Department of Social Services
Children and Family Services Division
Child Protection and Family Support Branch
744 P Street, MS 8-11-86
Sacramento, CA 95814
(916) 651-6600

Background for the California Title IV-E Waiver:

Section 1130 of the Social Security Act authorizes the U.S. Department of Health and Human Services (DHHS) to approve up to ten States per year to conduct demonstration projects involving the waiver of certain requirements of Title IV-E. These projects are intended to test new approaches to the delivery and financing of child welfare services by providing states with greater flexibility to use Title IV-E foster care funds to facilitate improved safety, permanency, and well-being for children.

The California proposal, originally submitted on May 25, 2004, to DHHS was based on a capped allocation strategy. Under this proposal, up to a total of 20 counties will be able to participate and to develop specific strategies and target distinct populations within their capped IV-E allocation. On March 31, 2006, the California Department of Social Services (CDSS) received approval from the DHHS for California's submitted Title IV-E Waiver proposal. On July 1, 2007, Alameda and Los Angeles Counties implemented the Title IV-E Child Welfare Waiver Demonstration Capped Allocation Project. The five-year project is scheduled to end on June 30, 2012.

What is the Title IV-E Child Welfare Waiver Demonstration Capped Allocation Project (CAP)?

The Capped Allocation Project (CAP) is a federal waiver demonstration project in California. This project will provide participating counties with flexibility in their use of federal and State foster care maintenance and administrative funds that were previously restricted to payment for the care and supervision of children in out of home placements and administrative expenditures. Under the CAP, participating counties will receive a capped allocation of their Title IV-E funds to provide direct services to children and families without regard to their federal eligibility or placement in out of home care.

The specific goals of the five-year demonstration project are:

  • To improve the array of services for children and families and engage families through a more individualized approach that emphasizes family involvement;
  • To increase child safety without an over-reliance on out-of-home care;
  • To improve permanency outcomes and timelines; and
  • To improve child and family well-being.

Who will it impact?

The target population is children ages zero through 19 who are already in out-of-home care, or at risk of entering or re-entering foster care. Alameda County Social Services Agency, Alameda County Probation Department, Los Angeles County Department of Children and Family Services and Los Angeles County Probation Department will participate in the CAP.

How will the CAP help Child Welfare in California?

This flexible funding waiver demonstration will support practice, program, and system improvements for early intervention, reunification efforts, and reduction in out of home placements. Any foster care savings that occur as a result of the demonstration project will be reinvested by the counties in Child Welfare Services program improvements. These foster care savings will support the counties in developing a broader and responsive array of services that will contribute to improved outcomes for children and families.