This act establishes a national list of licensed and compliant adoption agencies, requiring states to report annually or risk losing federal incentive payments.
Jefferson Shreve
Representative
IN-6
The In Good Standing Adoption Agencies Act of 2026 mandates that states submit an annual list of licensed, compliant, and tax-exempt child placement agencies to the federal government. This information will be compiled into a publicly available national list maintained by the Secretary of Health and Human Services. States that fail to comply with this reporting requirement risk losing eligibility for adoption and legal guardianship incentive payments.
The In Good Standing Adoption Agencies Act of 2026 aims to pull back the curtain on the private adoption industry by creating a centralized, publicly accessible national database of child placement agencies. Under this bill, every state would be required to submit an annual report to the Department of Health and Human Services (HHS) by January 1, listing every private agency that is licensed, accredited, and in good standing. To make the cut, these agencies must also be registered as 501(c)(3) nonprofits. This isn't just a list for the sake of paperwork; it’s designed to be a verified directory for families and a tool for federal oversight, managed directly through the United States Children's Bureau.
For anyone who has considered adoption, the process often feels like a maze of private entities with varying levels of oversight. This bill attempts to simplify that search by putting all 'good' actors in one place. By requiring states to verify an agency’s standing and tax-exempt status, the legislation creates a baseline of trust. If you are a prospective parent in Ohio looking at an agency in Florida, you wouldn't have to guess if they are currently licensed; you could check the national list. Section 2 specifically mandates that the Secretary of HHS must include any disciplinary actions taken against agencies in annual reports to Congress, effectively creating a 'permanent record' for providers that fall short of state standards.
The bill uses a 'carrot and stick' approach to ensure states actually do the work. If a state fails to submit its list of agencies by the deadline, it risks losing out on federal adoption and legal guardianship incentive payments. These are the funds states use to support their child welfare systems, so the stakes for local governments are high. By amending Section 473A(b) of the Social Security Act, the bill ties administrative paperwork directly to the state's bottom line, ensuring that the national database stays updated and accurate rather than becoming a dusty digital shelf.
Beyond just helping parents, the bill adds a layer of accountability for the agencies themselves. Since the Secretary must report to Congress which licensed agencies didn't make the 'in good standing' list, it creates a public trail of performance issues. This could be a game-changer for transparency, as it forces disciplinary actions—which are often buried in state-level files—into a federal spotlight. For the social worker managing a heavy caseload or a child waiting for a home, this system aims to ensure that only the most reliable and legally compliant organizations are facilitating these life-changing placements.