Thousands of Foster Youth On The Brink
Thousands of Foster Youth On The Brink
California's Child & Youth Services Insurance Crisis
California's counties, schools, foster family agencies (FFAs), Short-Term Residential Therapeutic Programs (STRTPs), and other child-serving organizations are experiencing an unprecedented insurance crisis that threatens their ability to care for children and youth facing adversity.
Within the child welfare system, counties depend on FFAs and STRTPs to provide critical support for children and youth with high needs. These providers advance Governor Newsom's vision of prioritizing family placements by supporting reunification, strengthening bonds between adoptive families and children in foster care, and offering vital services such as parenting classes, family therapy, and substance use counseling.
However, without urgent action to address the insurance crisis, many providers face closure—putting at risk the very supports that thousands of children and families depend on. Other states, like Texas, have already recognized that rising liability costs are driving providers out of the foster care system and have taken legislative action to ensure insurance access and protect organizational capacity. California now faces a similar crossroads: without a long-term solution, the state risks losing critical providers and undermining its commitment to safe, family-based care for children and youth.
The Immediate Challenge
For thousands of California's most vulnerable children, the stability they desperately need is being put at risk. When foster care providers cannot secure or afford adequate insurance, their ability to operate is jeopardized. This crisis directly threatens the safe and stable placements, access to mental health care, educational continuity, and essential, daily supports that these children and youth rely on to heal and thrive.
Potential Impacts
California's insurance crisis is creating potentially disastrous risks for youth and the systems that support them.
Unsustainable insurance premiums are devastating the operations of FFAs, STRTPs, and licensed care facilities, directly threatening the critical support systems for thousands of children, including medically fragile youth, LGBTQ+ teens, and high-needs students.
Short-Term Relief
With the support of our amazing partners and members, the CA Alliance secured $31.5 million in emergency bridge funding in the 2025–26 state budget to keep FFAs operational. This funding provides critical short-term relief—but this is only a short-term solution.
As the insurance crisis spreads across sectors serving children, youth, and families, California needs a comprehensive, long-term solution to stabilize the system. State leaders have acknowledged this reality, and now is the time to act to ensure children and youth do not lose access to the vital care and support they depend on.
Take Action
Stand Up for California's Children & Youth: Protect Care, Secure Futures
Help spread the word—share this report from ACRC with your networks and urge your elected officials to take action to protect essential child-welfare services from the insurance crisis.
Resources
This section is your central source for information and support related to the insurance crisis. We are actively building this library for you, so expect new resources to be added regularly.
DOI Letter
Commissioner Lara's official letter urging insurers to expand coverage for FFA.
CDSS FAQs
Information on licensing, closures, and how to navigate this critical situation.
Brokers List
CA Alliance list of brokers who are supporting organizations through this crisis.
Insuring Care
National data revealing the impact of the liability insurance crisis on child welfare services.
Insurance Carriers
List of insurance carriers based on CA Alliance member feedback.
WA Liability Insurance Study
Study on Market Study of Liability Insurance for Washington State Adult Family Homes.
IL Liability Insurance Study
Illinois Survey Results of Child Welfare Liability Insurance Survey Act
AB 2333 Information
Documents, letters, and fact sheets to help understand and support AB 2333 (Pellerin) Expand County Indemnification Language in AB 2496
Latest News
Behind the numbers are real stories of vulnerable children and families, and the providers who support them. These news articles document the human impact of the insurance crisis happening right now.