Rule for LGBTQI+ Foster Kids Canceled Before It Ever Started
Published Date: 7/14/2026
Rule
Summary
The government is officially canceling a 2024 rule that required special foster care placements for LGBTQI+ kids. This change affects state and tribal agencies that handle foster care, removing a rule that was never put into action due to a court decision. The update takes effect on July 14, 2026, and clears up confusion without changing funding.
Analyzed Economic Effects
2 provisions identified: 1 benefits, 1 costs, 0 mixed.
Mandated foster placements for LGBTQI+ kids rescinded
If a child in foster care self-identifies as LGBTQI+, State and Tribal title IV-E/IV-B agencies are no longer required by federal regulation to ensure a “Designated Placement” for that child. The rule removes 45 CFR 1355.22 and related cross-references and the change takes effect July 14, 2026.
Government saves $35.5M by rescission
By removing the 2024 requirements, the agency estimates it averts costs that were projected under the 2024 rule: $10,827,381 to the Federal government over FY2027–FY2029 and $45,743,070 combined Federal and agency costs over three years. The agency reports a present value cost savings of about $35.5 million and annualized savings of about $2.5 million.
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