Adoption and Legal Guardianship Incentive Payments Program

Adoption and Legal Guardianship Incentive Payments, ALGIPP
CFDA 93.603 Active Grant
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Program Funding

Annual program obligations reported to SAM.gov.

Latest annual funding (estimated)
$75M FY2026
$61.1M
FY24
$39.8M
FY25
$75M
FY26*
* estimated

Funded Projects

Examples of what this program has supported.

FY2025 In FY 2025, 45 states received adoption and legal guardianship incentive payments.

Program Objective

The objective of the Adoption and Legal Guardianship Incentive Payments Program is to provide incentives to states and eligible tribes to increase annually the number of children in foster care who find permanent homes through adoption or legal guardianship.

Eligibility

Eligible Applicants

  • Federally Recognized Tribal Government
  • U.S. Territory Government
  • State

States (including the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam and American Samoa) and tribes that have an approved title IV-E plan and that submit data to the Adoption and Foster Care Analysis and Reporting System (AFCARS) are eligible to receive payments. The Children's Bureau (CB) shall determine an agency's eligibility for funding based on foster care, adoption and guardianship data reported to AFCARS. of the fiscal year subsequent to the fiscal year in which the adoptions or guardianships were finalized.

Beneficiaries

  • Infant and Toddler (0–3)
  • Young Child (4–9)
  • Pre-Teen (10–12)
  • Teen (13–19)

Beneficiaries are those children and families eligible under title IV-B and title IV-E of the Social Security Act, as amended.

How to Apply

Award Procedure

Incentive payments will be issued annually, in the fiscal year subsequent to the earning year. Payment will be based on AFCARS data submitted no later than May 15 of the fiscal year following the earning year. AFCARS data must be accepted and approved by the Children's Bureau. The Children's Bureau (CB) shall determine the number of foster child adoptions, foster child guardianships, pre-adolescent (age 9 - 13) adoptions and guardianships, and older child (age 14 and over) adoptions and guardianships eligible to earn incentive payments. Adoption and Legal Guardianship Incentive awards are generally made in August or September each year. Post award, the Division of Payment Management will establish an account from which a recipient may draw down award funds.

Program details & compliance

Description

The Adoption and Legal Guardianship Incentive Payments Program provides financial incentives to states and eligible tribes (agencies that operate a title IV-E program) for achieving permanency for children and youth in foster care through finalized adoption or legal guardianship. Incentive amounts differ based on the age of the child and are awarded based on a formula.

Mission Categories

Primary: Families and Child Welfare Services

Use of Funds

Allowed Uses

State and tribal agencies receiving incentive payments must spend the funds for services (including post-adoption services) and activities allowable under titles IV-B and IV-E of the Social Security Act (the Act). Payments must be used to supplement and not supplant Federal or non-Federal funds for services under titles IV-B or IV-E of the Act (see section 473A(f) of the Act).

Restrictions

ZZ9999 - to provide to children or families any service (including post-adoption services) that may be provided under part B or E.

Required Documentation

An approved title IV-E plan is required to be eligible for funding.

Except for § 75.202 (effective on or after 10/1/2025: 2 CFR §200.203), the guidance in subpart C of this part does not apply to the Foster Care and Adoption Assistance Program (Title IV-E of the Act, 42 U.S.C. 670-679c).

Reporting & Compliance

Audit Required
Yes — Ad-hoc
Records Retention
3 years

Applicable 2 CFR 200 Subparts

  • Subpart B — General Provisions
  • Subpart D — Post-Federal Award Requirements
  • Subpart E — Cost Principles

Formula

42 USC

Contacts

Linda Viales — Director, Division of Program Implementation
(202)205-5783
330 C Street, SW, Room 3509B, Washington, DC 20201
Data from SAM.gov Federal Assistance Listings. Source published: 2026-01-14. Spec v2.0. Last synced: 2026-05-30 02:33:39.