Federal Bill Criminalizes Unlicensed Adoption Intermediaries, Caps Birth Parent Payments at $2,500

The proposed ADOPT Act of 2025 is looking to drastically reshape private domestic adoption by creating new federal crimes aimed at preventing exploitation and the commodification of children. Essentially, this bill targets the gray area of adoption facilitation by making it a federal offense to act as an unlicensed intermediary, run certain paid adoption ads, or provide significant unauthorized financial help to a birth parent.

The New Rules: Who Can Help, and How Much

This legislation, found in Section 3, creates three major prohibitions, all carrying penalties of up to $50,000 in fines and five years in prison for individuals who knowingly violate them. First, it criminalizes offering adoption intermediary services for compensation—meaning you can’t get paid to link birth parents and adoptive parents unless you fall into a specific exempt category. Second, it bans certain adoption advertisements, specifically paid solicitations for parents or offers to pay a birth parent’s expenses. Third, and perhaps most practically relevant, it makes it illegal to provide unauthorized payments exceeding $2,500 to a birth parent before they consult with a licensed agency or attorney.

So, who gets a pass? The bill specifically carves out exceptions for licensed adoption agencies, licensed attorneys in the state where the action happens, and certain non-profit organizations. If you’re using one of these licensed professionals, the restrictions don’t apply. The goal here is clear: push all private, interstate adoptions through regulated, licensed channels to ensure oversight.

The $2,500 Threshold: Costs and Complications

That $2,500 limit on payments to birth parents is a big deal, particularly for prospective adoptive parents trying to cover legitimate expenses like rent, utilities, or medical co-pays. Think about it: if a birth parent needs $3,000 for rent this month, the adoptive family cannot legally provide that $3,000 until that birth parent has formally consulted with a licensed agency or attorney. This provision, while intended to prevent predatory financial arrangements, could complicate things for families needing immediate, necessary financial support, especially in a high-cost-of-living area where $2,500 doesn't go very far.

For adoptive parents, this means the days of working directly with an independent, unlicensed facilitator are likely over—or at least, they now carry a significant criminal risk. This could mean higher overall costs and longer timelines, as everything must be routed through licensed professionals who charge for their services. For birth parents, while the bill aims to prevent exploitation, it could also limit quick access to financial aid if they haven't yet connected with a licensed entity.

Why This Matters for Everyone

The reach of this new law is massive because it applies anytime the activity involves interstate or foreign commerce. Since almost all private adoptions today use the internet (a communication channel) or involve travel or bank transfers across state lines, this essentially federalizes the regulation of private adoption practices. The penalties are severe—up to five years in prison—which means this isn’t just about civil fines; it’s about criminal enforcement for activities that used to be regulated at the state level.

If the ADOPT Act passes, it creates an environment where only licensed agencies and attorneys can facilitate adoptions without risking felony charges. This will likely reduce competition, potentially driving up costs for families seeking to adopt, but it promises a more secure, regulated process for all parties involved. The bill is set to take effect 120 days after it becomes law, giving the adoption community a tight window to adjust to these major changes.