
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC673]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                       CHAPTER 7--SOCIAL SECURITY
 
 SUBCHAPTER IV--GRANTS TO STATES FOR AID AND SERVICES TO NEEDY FAMILIES 
              WITH CHILDREN AND FOR CHILD-WELFARE SERVICES
 
    Part E--Federal Payments for Foster Care and Adoption Assistance
 
Sec. 673. Adoption assistance program


(a) Agreements with adoptive parents of children with special needs; 
        State payments; qualifying children; amount of payments; changes 
        in circumstances; placement period prior to adoption; 
        nonrecurring adoption expenses

    (1)(A) Each State having a plan approved under this part shall enter 
into adoption assistance agreements (as defined in section 675(3) of 
this title) with the adoptive parents of children with special needs.
    (B) Under any adoption assistance agreement entered into by a State 
with parents who adopt a child with special needs, the State--
        (i) shall make payments of nonrecurring adoption expenses 
    incurred by or on behalf of such parents in connection with the 
    adoption of such child, directly through the State agency or through 
    another public or nonprofit private agency, in amounts determined 
    under paragraph (3), and
        (ii) in any case where the child meets the requirements of 
    paragraph (2), may make adoption assistance payments to such 
    parents, directly through the State agency or through another public 
    or nonprofit private agency, in amounts so determined.

    (2) For purposes of paragraph (1)(B)(ii), a child meets the 
requirements of this paragraph if such child--
        (A)(i) at the time adoption proceedings were initiated, met the 
    requirements of section 606(a) of this title or section 607 of this 
    title (as such sections were in effect on July 16, 1996) or would 
    have met such requirements except for his removal from the home of a 
    relative (specified in section 606(a) of this title (as so in 
    effect)), either pursuant to a voluntary placement agreement with 
    respect to which Federal payments are provided under section 674 (or 
    603 (as such section was in effect on July 16, 1996)) of this title 
    or as a result of a judicial determination to the effect that 
    continuation therein would be contrary to the welfare of such child,
        (ii) meets all of the requirements of subchapter XVI of this 
    chapter with respect to eligibility for supplemental security income 
    benefits, or
        (iii) is a child whose costs in a foster family home or child-
    care institution are covered by the foster care maintenance payments 
    being made with respect to his or her minor parent as provided in 
    section 675(4)(B) of this title,
        (B)(i) would have received aid under the State plan approved 
    under section 602 of this title (as in effect on July 16, 1996) in 
    or for the month in which such agreement was entered into or court 
    proceedings leading to the removal of such child from the home were 
    initiated, or
        (ii)(I) would have received such aid in or for such month if 
    application had been made therefor, or (II) had been living with a 
    relative specified in section 606(a) of this title (as in effect on 
    July 16, 1996) within six months prior to the month in which such 
    agreement was entered into or such proceedings were initiated, and 
    would have received such aid in or for such month if in such month 
    he had been living with such a relative and application therefor had 
    been made, or
        (iii) is a child described in subparagraph (A)(ii) or (A)(iii), 
    and
        (C) has been determined by the State, pursuant to subsection (c) 
    of this section, to be a child with special needs.

The last sentence of section 672(a) of this title shall apply, for 
purposes of subparagraph (B), in any case where the child is an alien 
described in that sentence. Any child who meets the requirements of 
subparagraph (C), who was determined eligible for adoption assistance 
payments under this part with respect to a prior adoption, who is 
available for adoption because the prior adoption has been dissolved and 
the parental rights of the adoptive parents have been terminated or 
because the child's adoptive parents have died, and who fails to meet 
the requirements of subparagraphs (A) and (B) but would meet such 
requirements if the child were treated as if the child were in the same 
financial and other circumstances the child was in the last time the 
child was determined eligible for adoption assistance payments under 
this part and the prior adoption were treated as never having occurred, 
shall be treated as meeting the requirements of this paragraph for 
purposes of paragraph (1)(B)(ii).
    (3) The amount of the payments to be made in any case under clauses 
(i) and (ii) of paragraph (1)(B) shall be determined through agreement 
between the adoptive parents and the State or local agency administering 
the program under this section, which shall take into consideration the 
circumstances of the adopting parents and the needs of the child being 
adopted, and may be readjusted periodically, with the concurrence of the 
adopting parents (which may be specified in the adoption assistance 
agreement), depending upon changes in such circumstances. However, in no 
case may the amount of the adoption assistance payment made under clause 
(ii) of paragraph (1)(B) exceed the foster care maintenance payment 
which would have been paid during the period if the child with respect 
to whom the adoption assistance payment is made had been in a foster 
family home.
    (4) Notwithstanding the preceding paragraph, (A) no payment may be 
made to parents with respect to any child who has attained the age of 
eighteen (or, where the State determines that the child has a mental or 
physical handicap which warrants the continuation of assistance, the age 
of twenty-one), and (B) no payment may be made to parents with respect 
to any child if the State determines that the parents are no longer 
legally responsible for the support of the child or if the State 
determines that the child is no longer receiving any support from such 
parents. Parents who have been receiving adoption assistance payments 
under this section shall keep the State or local agency administering 
the program under this section informed of circumstances which would, 
pursuant to this subsection, make them ineligible for such assistance 
payments, or eligible for assistance payments in a different amount.
    (5) For purposes of this part, individuals with whom a child (who 
has been determined by the State, pursuant to subsection (c) of this 
section, to be a child with special needs) is placed for adoption in 
accordance with applicable State and local law shall be eligible for 
such payments, during the period of the placement, on the same terms and 
subject to the same conditions as if such individuals had adopted such 
child.
    (6)(A) For purposes of paragraph (1)(B)(i), the term ``nonrecurring 
adoption expenses'' means reasonable and necessary adoption fees, court 
costs, attorney fees, and other expenses which are directly related to 
the legal adoption of a child with special needs and which are not 
incurred in violation of State or Federal law.
    (B) A State's payment of nonrecurring adoption expenses under an 
adoption assistance agreement shall be treated as an expenditure made 
for the proper and efficient administration of the State plan for 
purposes of section 674(a)(3)(E) of this title.

(b) Aid for dependent children; assistance for minor children in needy 
        families

    (1) For purposes of subchapter XIX of this chapter, any child who is 
described in paragraph (3) is deemed to be a dependent child as defined 
in section 606 of this title (as in effect as of July 16, 1996) and 
deemed to be a recipient of aid to families with dependent children 
under part A of this subchapter (as so in effect) in the State where 
such child resides.
    (2) For purposes of subchapter XX of this chapter, any child who is 
described in paragraph (3) is deemed to be a minor child in a needy 
family under a State program funded under part A of this subchapter and 
deemed to be a recipient of assistance under such part.
    (3) A child described in this paragraph is any child--
        (A)(i) who is a child described in subsection (a)(2) of this 
    section, and
        (ii) with respect to whom an adoption assistance agreement is in 
    effect under this section (whether or not adoption assistance 
    payments are provided under the agreement or are being made under 
    this section), including any such child who has been placed for 
    adoption in accordance with applicable State and local law (whether 
    or not an interlocutory or other judicial decree of adoption has 
    been issued), or
        (B) with respect to whom foster care maintenance payments are 
    being made under section 672 of this title.

    (4) For purposes of paragraphs (1) and (2), a child whose costs in a 
foster family home or child-care institution are covered by the foster 
care maintenance payments being made with respect to the child's minor 
parent, as provided in section 675(4)(B) of this title, shall be 
considered a child with respect to whom foster care maintenance payments 
are being made under section 672 of this title.

(c) Children with special needs

    For purposes of this section, a child shall not be considered a 
child with special needs unless--
        (1) the State has determined that the child cannot or should not 
    be returned to the home of his parents; and
        (2) the State had first determined (A) that there exists with 
    respect to the child a specific factor or condition (such as his 
    ethnic background, age, or membership in a minority or sibling 
    group, or the presence of factors such as medical conditions or 
    physical, mental, or emotional handicaps) because of which it is 
    reasonable to conclude that such child cannot be placed with 
    adoptive parents without providing adoption assistance under this 
    section or medical assistance under subchapter XIX of this chapter, 
    and (B) that, except where it would be against the best interests of 
    the child because of such factors as the existence of significant 
    emotional ties with prospective adoptive parents while in the care 
    of such parents as a foster child, a reasonable, but unsuccessful, 
    effort has been made to place the child with appropriate adoptive 
    parents without providing adoption assistance under this section or 
    medical assistance under subchapter XIX of this chapter.

(Aug. 14, 1935, ch. 531, title IV, Sec. 473, as added and amended Pub. 
L. 96-272, title I, Secs. 101(a)(1), 102(a)(3), June 17, 1980, 94 Stat. 
504, 514; Pub. L. 99-272, title XII, Sec. 12305(a), (b)(1), Apr. 7, 
1986, 100 Stat. 293; Pub. L. 99-514, title XVII, Sec. 1711(a), (b), 
(c)(3)-(5), Oct. 22, 1986, 100 Stat. 2783, 2784; Pub. L. 99-603, title 
II, Sec. 201(b)(2)(B), Nov. 6, 1986, 100 Stat. 3403; Pub. L. 100-203, 
title IX, Secs. 9133(b)(3), (4), 9139(b), Dec. 22, 1987, 101 Stat. 1330-
314, 1330-321; Pub. L. 103-432, title II, Secs. 265(b), 266(a), Oct. 31, 
1994, 108 Stat. 4469; Pub. L. 104-193, title I, Sec. 108(d)(5), (6), 
Aug. 22, 1996, 110 Stat. 2167; Pub. L. 105-33, title V, Sec. 5513(b)(3), 
(4), Aug. 5, 1997, 111 Stat. 620; Pub. L. 105-89, title III, 
Sec. 307(a), Nov. 19, 1997, 111 Stat. 2133.)

                       References in Text

    Part A of this subchapter, referred to in subsec. (b)(1), (2), is 
classified to section 601 et seq. of this title.


                               Amendments

    1997--Subsec. (a)(2). Pub. L. 105-89 inserted at end ``Any child who 
meets the requirements of subparagraph (C), who was determined eligible 
for adoption assistance payments under this part with respect to a prior 
adoption, who is available for adoption because the prior adoption has 
been dissolved and the parental rights of the adoptive parents have been 
terminated or because the child's adoptive parents have died, and who 
fails to meet the requirements of subparagraphs (A) and (B) but would 
meet such requirements if the child were treated as if the child were in 
the same financial and other circumstances the child was in the last 
time the child was determined eligible for adoption assistance payments 
under this part and the prior adoption were treated as never having 
occurred, shall be treated as meeting the requirements of this paragraph 
for purposes of paragraph (1)(B)(ii).''
    Pub. L. 105-33, Sec. 5513(b)(3), substituted ``July 16, 1996'' for 
``June 1, 1995'' wherever appearing.
    Subsec. (b)(1). Pub. L. 105-33, Sec. 5513(b)(4), substituted ``July 
16, 1996'' for ``June 1, 1995''.
    1996--Subsec. (a)(2)(A)(i). Pub. L. 104-193, Sec. 108(d)(5)(A), 
inserted ``(as such sections were in effect on June 1, 1995)'' after 
``section 607 of this title'', ``(as so in effect)'' after ``specified 
in section 606(a) of this title'', and ``(as such section was in effect 
on June 1, 1995)'' after ``603''.
    Subsec. (a)(2)(B)(i). Pub. L. 104-193, Sec. 108(d)(5)(B), inserted 
``would have'' before ``received aid under the State plan'' and ``(as in 
effect on June 1, 1995)'' after ``602 of this title''.
    Subsec. (a)(2)(B)(ii)(II). Pub. L. 104-193, Sec. 108(d)(5)(C), 
inserted ``(as in effect on June 1, 1995)'' after ``606(a) of this 
title''.
    Subsec. (b). Pub. L. 104-193, Sec. 108(d)(6), amended subsec. (b) 
generally. Prior to amendment, subsec. (b) read as follows: ``For 
purposes of subchapters XIX and XX of this chapter, any child--
        ``(1)(A) who is a child described in subsection (a)(2) of this 
    section, and
        ``(B) with respect to whom an adoption assistance agreement is 
    in effect under this section (whether or not adoption assistance 
    payments are provided under the agreement or are being made under 
    this section), including any such child who has been placed for 
    adoption in accordance with applicable State and local law (whether 
    or not an interlocutory or other judicial decree of adoption has 
    been issued), or
        ``(2) with respect to whom foster care maintenance payments are 
    being made under section 672 of this title,
shall be deemed to be a dependent child as defined in section 606 of 
this title and shall be deemed to be a recipient of aid to families with 
dependent children under part A of this subchapter in the State where 
such child resides. For purposes of the preceding sentence, a child 
whose costs in a foster family home or child-care institution are 
covered by the foster care maintenance payments being made with respect 
to his or her minor parent, as provided in section 675(4)(B) of this 
title, shall be considered a child with respect to whom foster care 
maintenance payments are being made under section 672 of this title.''
    1994--Subsec. (a)(6)(B). Pub. L. 103-432, Sec. 266(a), substituted 
``section 674(a)(3)(E) of this title'' for ``section 674(a)(3)(C) of 
this title''.
    Pub. L. 103-432, Sec. 265(b), substituted ``section 674(a)(3)(C) of 
this title'' for ``section 674(a)(3)(B) of this title''.
    1987--Subsec. (a)(2). Pub. L. 100-203, Sec. 9139(b), made technical 
amendment to Pub. L. 99-603. See 1986 Amendment note below.
    Subsec. (a)(2)(A)(iii). Pub. L. 100-203, Sec. 9133(b)(3)(A), added 
cl. (iii).
    Subsec. (a)(2)(B)(iii). Pub. L. 100-203, Sec. 9133(b)(3)(B), 
inserted ``or (A)(iii)'' after ``(A)(ii)''.
    Subsec. (b). Pub. L. 100-203, Sec. 9133(b)(4), inserted sentence at 
end.
    1986--Subsec. (a)(2). Pub. L. 99-603, as amended Pub. L. 100-203, 
Sec. 9139(b), inserted at end ``The last sentence of section 672(a) of 
this title shall apply, for purposes of subparagraph (B), in any case 
where the child is an alien described in that sentence.''
    Pub. L. 99-514, Sec. 1711(a), substituted par. (1) and introductory 
text of par. (2) for former introductory text of par. (1) which read as 
follows: ``Each State with a plan approved under this part shall, 
directly through the State agency or through another public or nonprofit 
private agency, make adoption assistance payments pursuant to an 
adoption assistance agreement in amounts determined under paragraph (2) 
of this subsection to parents who, after June 17, 1980, adopt a child 
who--''. Former par. (2) redesignated (3).
    Subsec. (a)(3). Pub. L. 99-514, Sec. 1711(a)(1), (c)(3), 
redesignated par. (2) as (3), substituted ``payments to be made in any 
case under clauses (i) and (ii) of paragraph (1)(B)'' for ``adoption 
assistance payments'', and inserted ``made under clause (ii) of 
paragraph (1)(B)''. Former par. (3) redesignated (4).
    Subsec. (a)(4). Pub. L. 99-514, Sec. 1711(a)(1), redesignated par. 
(3) as (4). Former par. (4) redesignated (5).
    Subsec. (a)(5). Pub. L. 99-514, Sec. 1711(a)(1), (c)(4), 
redesignated par. (4) as (5) and substituted ``in accordance with 
applicable State and local law shall be eligible for such payments'' for 
``, pursuant to an interlocutory decree, shall be eligible for adoption 
assistance payments under this subsection''.
    Subsec. (a)(6). Pub. L. 99-514, Sec. 1711(b), added par. (6).
    Subsec. (b). Pub. L. 99-272, Sec. 12305(a), amended subsec. (b) 
generally. Prior to amendment, subsec. (b) read as follows: ``For 
purposes of subchapters XIX and XX of this chapter, any child with 
respect to whom adoption assistance payments are made under this section 
shall be deemed to be a dependent child as defined in section 606 of 
this title and shall be deemed to be a recipient of aid to families with 
dependent children under part A of this subchapter.''
    Subsec. (b)(1)(A). Pub. L. 99-514, Sec. 1711(c)(5), substituted 
``subsection (a)(2)'' for ``subsection (a)(1)''.
    Subsec. (c)(2). Pub. L. 99-272, Sec. 12305(b)(1), substituted 
``without providing adoption assistance under this section or medical 
assistance under subchapter XIX of this chapter'' for ``without 
providing adoption assistance'', and inserted ``or medical assistance 
under subchapter XIX of this chapter'' after ``appropriate adoptive 
parents without providing adoption assistance under this section''.
    1980--Subsec. (a)(1). Pub. L. 96-272, Sec. 102(a)(3), inserted 
references to voluntary placement agreements in subpars. (A)(i) and 
(B)(i), (ii).


                    Effective Date of 1997 Amendments

    Section 307(b) of Pub. L. 105-89 provided that: ``The amendment made 
by subsection (a) [amending this section] shall only apply to children 
who are adopted on or after October 1, 1997.''
    Amendment by Pub. L. 105-33 effective as if included in section 108 
of the Personal Responsibility and Work Opportunity Reconciliation Act 
of 1996, Pub. L. 104-193, at the time such section 108 became law, see 
section 5518(b) of Pub. L. 105-33, set out as a note under section 652 
of this title.


                    Effective Date of 1996 Amendment

    Amendment by Pub. L. 104-193 effective July 1, 1997, with transition 
rules relating to State options to accelerate such date, rules relating 
to claims, actions, and proceedings commenced before such date, rules 
relating to closing out of accounts for terminated or substantially 
modified programs and continuance in office of Assistant Secretary for 
Family Support, and provisions relating to termination of entitlement 
under AFDC program, see section 116 of Pub. L. 104-193, as amended, set 
out as an Effective Date note under section 601 of this title.


                    Effective Date of 1994 Amendment

    Section 265(d) of Pub. L. 103-432 provided that: ``Each amendment 
made by this section [amending this section and sections 608 and 675 of 
this title] shall take effect as if the amendment had been included in 
the provision of OBRA-1989 [Pub. L. 101-239] to which the amendment 
relates, at the time the provision became law.''
    Section 266(b) of Pub. L. 103-432 provided that: ``The amendment 
made by this section [amending this section] shall take effect as if the 
amendment had been included in the provision of OBRA-1993 [Pub. L. 103-
66] to which the amendment relates, at the time the provision became 
law.''


                    Effective Date of 1987 Amendment

    Amendment by section 9133(b)(3), (4) of Pub. L. 100-203 effective 
Apr. 1, 1988, see section 9133(c) of Pub. L. 100-203, set out as a note 
under section 672 of this title.


                    Effective Date of 1986 Amendments

    Amendment by Pub. L. 99-514 applicable only with respect to 
expenditures made after Dec. 31, 1986, see section 1711(d) of Pub. L. 
99-514, set out as a note under section 670 of this title.
    Section 12305(c) of Pub. L. 99-272 provided that: ``The amendments 
made by this section [amending this section and sections 675 and 1396a 
of this title] shall apply to medical assistance furnished in or after 
the first calendar quarter beginning more than 90 days after the date of 
the enactment of this Act [Apr. 7, 1986].''


                    Effective Date of 1980 Amendment

    Amendment by section 102(a)(3) of Pub. L. 96-272 effective only with 
respect to expenditures made after Sept. 30, 1979, see section 102(c) of 
Pub. L. 96-272, as amended, set out as a note under section 672 of this 
title.

                  Section Referred to in Other Sections

    This section is referred to in sections 671, 672, 673a, 673b, 674, 
1320a-9, 1396a, 1396v of this title; title 10 section 1052; title 14 
section 514.
