In Good Standing Adoption Agencies Act of 2026
- Bill Number
- H.R. 7236
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Families
- Status
- Introduced
- Latest Action
- 2026-01-23: Referred to the House Committee on Ways and Means.
- Last Updated
- 2026-02-12T15:35:39Z
AI-Generated Summary
Purpose
The "In Good Standing Adoption Agencies Act of 2026" aims to promote transparency and accountability in the adoption process by requiring the U.S. Department of Health and Human Services (HHS) to create and maintain a national, publicly available list of licensed private child placement agencies that are in good standing with state authorities and qualify as tax-exempt nonprofits under section 501(c)(3) of the Internal Revenue Code (a federal tax status for charitable organizations).
Key Provisions
- State Reporting Requirement: Each state with an approved child welfare plan must submit an annual list (by January 1 of each fiscal year) to HHS identifying private child placement agencies (defined as organizations that place children in prospective adoptive homes) that were licensed or accredited by the state, in good standing (meaning no unresolved violations or sanctions), and tax-exempt as 501(c)(3) entities as of the end of the prior fiscal year.
- National List Maintenance: HHS, through the United States Children's Bureau (a division focused on child welfare), must compile the state-submitted lists into a single, publicly accessible national database.
- Annual Congressional Reports: Starting no later than the second December 31 after enactment (and annually thereafter), HHS must report to Congress with the full national list, plus details on any state-licensed child placement agencies not included (e.g., due to lack of good standing or tax-exempt status) and any disciplinary actions taken by states against such agencies.
- Funding Penalty for Non-Compliance: States that fail to submit the required list will lose eligibility for federal adoption and legal guardianship incentive payments (financial rewards to states for increasing adoptions and guardianships of children in foster care).
Significant Changes to Existing Law
- Amends Section 474 of the Social Security Act (which covers federal funding for child welfare services) by adding a new subsection (h) to establish the reporting, list maintenance, and congressional reporting requirements.
- Modifies Section 473A(b) of the Social Security Act (governing incentive payments) by adding a fifth eligibility criterion: states must comply with the new reporting rule to qualify for these funds. This ties child welfare funding directly to transparency efforts.
Potential Impacts
- On Government Agencies: HHS gains a new administrative responsibility to manage the national list and reports, potentially increasing workload for the Children's Bureau. States may face added reporting burdens but risk losing incentive payments (which can total millions per state annually) if they do not comply, encouraging stricter oversight of agencies.
- On Citizens: Prospective adoptive parents and families benefit from a centralized, public resource to identify reputable agencies, which could streamline the adoption process and reduce risks from unlicensed or problematic providers. Children in foster care may indirectly benefit from better-regulated placements.
- On International Relations: No direct impacts, as the bill focuses on domestic child welfare and private agencies operating within the U.S.
Main Stakeholders Affected
- States and Child Welfare Agencies: Responsible for submitting accurate lists and maintaining agency oversight; non-compliance affects their federal funding.
- Private Child Placement Agencies: Tax-exempt nonprofits involved in adoptions must meet "good standing" criteria to appear on the national list, potentially facing scrutiny or exclusion if disciplined.
- U.S. Department of Health and Human Services (HHS): Oversees list compilation, public access, and reporting to Congress.
- Prospective Adoptive Families and Children: Gain easier access to verified agencies, improving safety and efficiency in adoptions.
- Congress: Receives annual updates to monitor implementation and agency compliance.
Notable Legal, Constitutional, or Political Implications
- Legal: Enhances federal oversight of state child welfare programs without overriding state licensing authority, using funding conditions (a common federal tool) to enforce compliance. The focus on 501(c)(3) status ensures the list targets nonprofit agencies, avoiding broader regulation of for-profit entities.
- Constitutional: Aligns with Congress's spending power under the Constitution (Article I, Section 8), as it conditions federal funds on state actions without mandating changes to state laws. No apparent free speech or due process concerns, as the list is factual and public.
- Political: Could spark debates on federal versus state roles in child welfare, with potential support from adoption advocates for transparency but criticism from states viewing it as added bureaucracy. May encourage bipartisan interest in protecting vulnerable children while holding agencies accountable.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Shreve, Jefferson [R-IN-6]
Cosponsors (1)
Recent Actions
- 2026-01-23: Referred to the House Committee on Ways and Means.
- 2026-01-23: Introduced in House
- 2026-01-23: Introduced in House
Bill Versions
- In Good Standing Adoption Agencies Act of 2026 — issued 2026-01-23 — PDF (3 pages)