Feds Scrap Special Placements for LGBTQ+ Foster Children
Published Date: 3/6/2026
Proposed Rule
Summary
The government is proposing to remove a rule that required special foster care placements for LGBTQI+ kids who want or need them. This change comes after a court said the rule went beyond what the law allows, so it’s no longer in effect. Agencies and kids in foster care will see this update soon, and public comments are open until April 6, 2026.
Analyzed Economic Effects
2 provisions identified: 1 benefits, 1 costs, 0 mixed.
Removal of LGBTQI+ Designated Placements
If you have a child in foster care who self-identifies as LGBTQI+ and requests or would benefit from a special "Designated Placement," this proposal would formally remove the 45 CFR 1355.22 requirement that State and Tribal title IV-E/IV-B agencies ensure such placements are available. The Administration for Children and Families says the April 30, 2024 final rule was vacated by the U.S. District Court on June 13, 2025 (after a nationwide stay issued March 13, 2025), and ACF proposes removing the rule from the Code of Federal Regulations to clarify that it is no longer in effect or enforceable.
Federal Deregulatory Cost Savings
ACF estimates that removing the rule would avert costs that had been estimated for the final rule: $10,827,381 in Federal costs over FYs 2027–2029 and $45,743,070 combined Federal and agency costs over three years. Adjusted to 2024 dollars with a 7% discount rate, ACF reports a present value cost savings of about $35.5 million and annualized savings of about $2.5 million if the NPRM is finalized.
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