The Hidden Truth About CPS: A System Rooted in Financial Incentives

Washington, D.C. — Child Protective Services (CPS) was established with the noble intention of protecting vulnerable children from abuse and neglect. But the federal funding rules written in Washington and carried out by state CPS agencies reward removing children and keeping them in foster care, and Father’s Advocacy Network believes those financial incentives lead to unnecessary removals and prolonged placements.

Update (October 19, 2026): On November 13, 2025, President Trump signed Executive Order 14359, “Fostering the Future for American Children and Families” (Daily Compilation of Presidential Documents). The order calls for reducing unnecessary foster care entries, directs HHS to put federal child welfare funding to its most effective uses, and requires better publication of state-level child welfare data along with an annual scorecard of state outcomes. It does not mention Title IV-E by name or change the adoption bonus structure described below. Whether it changes how agencies are paid for removals will depend on how HHS carries it out.

There is also a later development in the Justina Pelletier case discussed below. On February 20, 2020, a Suffolk County jury in Boston found that Boston Children’s Hospital was not negligent in the family’s civil suit against the hospital and four of her doctors and caregivers (WBUR; Boston 25 News). That verdict predates this article.

How CPS funding creates the wrong incentives

Child Protective Services agencies receive federal funding based on the number of children they place into foster care. This creates a perverse incentive to remove children from their homes rather than focus on family reunification or support.

Under the Adoption and Safe Families Act (ASFA) of 1997, states also receive bonuses for increasing the number of adoptions from foster care, which further incentivizes removing children from their biological families. FAN tracks where foster care money actually goes.

Removal rates and longer stays in care

Reports suggest that many children are taken from their homes without adequate justification. Once they enter the foster care system, they often remain there longer than necessary because of financial incentives: the longer a child stays in foster care, the more funding the agency receives.

The result is a system focused on maintaining high foster care numbers rather than on reunifying families. Parents facing removal should know their rights in a CPS case.

Withheld evidence and fabricated allegations

Numerous cases have shown that CPS may engage in unethical practices, such as withholding evidence or fabricating allegations, to justify removing children. For instance, a report by the National Coalition for Child Protection Reform (NCCPR) revealed instances where CPS workers manipulated evidence or ignored exculpatory evidence to ensure children were placed into foster care.

These practices are not only unethical. They cause immense harm to the families involved and undermine the integrity of the entire child welfare system.

The case of Justina Pelletier drew national attention to these concerns. Massachusetts placed the 14-year-old in state custody in 2013 after a dispute over her medical diagnosis, when her parents rejected Boston Children’s Hospital’s diagnosis and tried to move her care to Tufts Medical Center. Her family alleged that the CPS workers involved withheld crucial medical evidence and fabricated claims of medical child abuse. She was returned to her parents in 2014 after a judge’s order, and her case highlighted the urgent need for systemic reform.

The damage to children and parents

Removal can have profound emotional and psychological effects on a child and family. Children placed in foster care often experience trauma, anxiety and a sense of abandonment, and the separation can leave long-term scars that affect their ability to form healthy relationships.

For parents, losing a child to the system is traumatic and can lead to depression, anxiety and hopelessness. The fear of losing a child permanently can take a devastating toll on their mental health.

Prolonged stays bring instability, frequent moves between foster homes and a lack of consistent emotional support. These children are more likely to have behavioral problems, struggle academically and have difficulty forming stable relationships. As they age out, many struggle with homelessness, unemployment and mental health issues, so the incentives that drive prolonged placements lead to lifelong challenges.

What this system shows

Despite numerous instances of unethical behavior, CPS agencies often operate with little oversight or accountability. That lack of transparency lets corrupt practices continue unchecked. The problem is not that families are failing the system; it is that the system is built to reward the wrong outcomes. More on this in our overview of foster care system problems.

Reform advocates call for:

• Prioritizing family reunification and support over removal and foster care placement
• Preventive measures such as family preservation programs and community-based support, so problems are addressed before they reach removal
• Independent oversight bodies and clear, stricter ethical guidelines for CPS
• Holding CPS workers accountable for their actions
• Revising funding structures so they reward reunification and support rather than foster care placements

CPS was meant to protect vulnerable children. As long as its funding rewards removal and long stays in care, the emotional, psychological and financial toll on families will continue. Father’s Advocacy Network is not a law firm, and this article is information, not legal advice.

Key facts

• CPS agencies draw federal foster care funding tied to the children placed in care, according to this analysis
• Adoption and Safe Families Act (ASFA), 1997: created bonus payments to states for increasing adoptions from foster care
• National Coalition for Child Protection Reform (NCCPR) has reported cases where caseworkers manipulated or ignored exculpatory evidence
• Justina Pelletier: placed in Massachusetts state custody (Department of Children and Families) at age 14 in 2013; returned to her parents in 2014 by court order
• 2016: the Pelletier family sued Boston Children’s Hospital and four doctors and caregivers
• February 20, 2020: a Suffolk County jury found Boston Children’s Hospital not negligent
• November 13, 2025: Executive Order 14359, “Fostering the Future for American Children and Families,” calls for fewer unnecessary foster care entries and a state outcomes scorecard

Sources

• Daily Compilation of Presidential Documents — Executive Order 14359, Fostering the Future for American Children and Families (2025-11-13)
• WBUR — Jury finds Boston Children’s Hospital was not negligent in sending teen to psych ward (2020-02-20)
• Boston 25 News — Jury clears Boston Children’s Hospital in controversial Justina Pelletier medical abuse case (2020-02-20)
• Justia Lawyer Directory (cited in the original article; no link provided)
• ReturnMyChild (cited in the original article; no link provided)
• National Coalition for Child Protection Reform (NCCPR) (cited in the original article; no link provided)

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