The Effects of Federal Adoption Incentive Awards for Older Children on Adoptions From U.S. Foster Care

This paper analyzes state responses to the 2003 and 2008 changes in the federal Adoption Incentives program to increase adoptions from the U.S. foster care system. The 2003 change introduced a $4,000 payment to states for every adoption of a child aged 9 and older above a state‐specific baseline. In 2008, the payment was doubled to $8,000. Using a discrete hazard model cast in a difference‐in‐differences framework, I do not find robust evidence that the incentives increased the probability of adoption for older children relative to younger children following the policy changes. I also do not find that the incentives affected the timing of adoption, likelihood of termination of parental rights, or the amounts of adoption assistance for older children relative to younger children. The findings illustrate the incentives are unable to help states overcome many of the challenges associated with achieving adoption for older children.