ACYF-IM-CB-95-28 7/25/95

ACF Administration for Children and Families	U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES Administration for Children, Youth and Families
	1. Log No.: ACYF-IM-CB-95-28	2. Issuance Date: 7/25/95
	3. Originating Office: Children's Bureau
	4. Key Word: Change in Allotment of Funds to Indian Tribes and ITOs

INFORMATION MEMORANDUM

TO: INDIAN TRIBES, STATE ADMINISTRATORS OF STATE PUBLIC WELFARE AGENCIES AND OTHER INTERESTED INDIVIDUALS

SUBJECT: Change in the Allotment of Direct Grants to Eligible Indian Tribes and Indian Tribal Organizations: Section 428 of the Social Security Act.

LEGAL AND RELATED REFERENCES: Sections 422(a), (b)(2)(8), 425, 427 and 428 of the Social Security Act; 45 CFR 1355.30, 1357.10(c), 1357.15(b), (c) and (d), 1357.25(d), 1357.40.

CONTENT: A final rule was published on June 2, 1995 which amends the regulations governing direct payments to Indian Tribal Organizations (ITOs) for child welfare services, by eliminating the requirement that to be eligible, ITOs must provide services under contract (or grant) with the Secretary of the Interior under section 102 of the Indian Self-Determination Act, and by adding a description of the formula used to calculate the amount of Federal funds available to eligible ITOs under title IV-B. Complex and limiting eligibility requirements, and low grant amounts have resulted in low ITO participation rates. The amendment, which is effective October 1, 1995, will improve the quality of Indian child welfare services nationally by broadening eligibility, and by allowing for an increase in ITO grant amounts in fiscal year 1996.

Currently, Title IVB allotments for ITOs are calculated by computing the amount per child under 21 in the State under the title IVB allotment for the State multiplied by the ITO population in the State and multiplied (or weighted) by a factor of 1.4. For fiscal year 1996, Title IV-B allotments for ITOs will be calculated by computing the amount per child under 21 in the State under the title IV-B allotment for the State multiplied by the ITO population in the State and multiplied (or weighted) by a factor of 3.0.

Indian Tribes and ITOs located in States eligible to receive funds under section 427 of the Social Security Act may certify eligibility for funds under section 427. All States are currently eligible to receive funds under section 427. Interested Indian Tribes and ITOs should consult with their appropriate HHS Regional Office on both the amount of additional payments available and the specific foster care protections required.

In order to receive the funds potentially available to it, the ITO must provide at least 25 percent of the total funds expended by the ITO for Child Welfare Services. The Federal share is 75 percent of the total expenditures. The ITO's total expenditures may be greater than the amount needed to draw down the Federal funds, but the Federal reimbursement is limited to the amount in the allotment.

Attachment A lists the estimated maximun fiscal year 1996 title IV-B allotments. Attachment B contains a copy of the final rule.

Section 428 of the Act specifies that direct payments to Indian tribes and ITOs shall be deemed to be a part of the allotment of the State(s) in which the Indian tribe or ITO is located. As a result, the total amount of title IV-B funds available in a State will be unchanged. However, the proposed rule change will result in an increase in direct payments to Indian tribes and ITOs, and an equivalent decrease in payments to the States in which they are located.

INQUIRIES TO:

Regional Administrators
Administration for Children and Families
Olivia A. Golden
Commissioner

ATTACHMENTS:

Attachment A: Indian Tribes Currently Or Potentially Eligible For Direct Grants Under Section 428
Attachment B: Final Rule