Georgia's child welfare system grapples with $85 million funding gap

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ATLANTA, Ga. – Georgia’s child welfare system is currently experiencing a significant financial challenge, with an estimated $85 million shortfall in funding. This gap has raised concerns among state leaders and advocates, who argue that it is already impacting children and families throughout the state.

During a recent meeting of a state legislative committee, child welfare advocates expressed their worries to lawmakers about the strain on the system that is meant to protect children from abuse and neglect. They highlighted several critical issues, including a lack of available foster homes, staffing shortages, and increasing costs that are limiting safe placement options for children entering state care.

Dr. Joel Lyon, CEO of ProFamily Georgia, emphasized the urgency of the situation during his testimony. “The shutdown has resulted in a total shutdown of services for children and families,” he stated.

The Georgia Division of Family and Children Services (DFCS), which operates under the Department of Human Services, has also pointed to federal funding cuts, workforce shortages, and a limited number of foster placements as key challenges. Officials noted that many children entering the system have experienced trauma, instability, and significant mental health needs, which further increase the demand for support and services.

DHS Commissioner Candice Broce addressed the issue during her testimony, describing the agency’s struggle to meet these growing needs with limited resources. “We’re fighting a forest fire with a squirt bottle,” she said.

Broce became emotional while discussing the difficult decisions the agency is now forced to make due to the mounting pressure on its budget. “I am being forced to make decisions that no one should have to make,” she shared.

Nonprofit organizations that collaborate with the state to support children and families say that prevention and wraparound services are now facing increased scrutiny or potential cuts. These services include transportation, in-home therapy, and behavioral health support programs, which help stabilize families and prevent children from entering more severe crises.

“When family’s needs aren’t centered, children fall through the cracks,” said Allison Ashe, CEO of Wellroot Family Services.

State Rep. Kim Schofield, D-Atlanta, who has worked on child welfare legislation, urged lawmakers to treat the issue as an urgent priority when the General Assembly returns to the Capitol. “We have the opportunity when things go awry to step in and step up,” Schofield said. “We have to do that right now. Our time is up.”

In a statement, the Governor’s Office acknowledged that lawmakers have taken steps to address the funding gap, while also recognizing the rising costs and evolving budget picture. “After DHS made our office aware of the projected deficit in January of 2025, we were able to work with our legislative partners to appropriate $38.6 million to address the shortfall in the AFY25 budget and $19.3 million in the FY26 budget,” the statement said. “The current budget development process is ongoing, and the Governor will unveil his budget proposal to both chambers at a later date. We have seen exponential cost increases in this program area in a very short time span. I would also refer you to the Commissioner’s testimony on the fact that this deficit is ever-changing.”

The governor is expected to release his full budget proposal after lawmakers return to the Capitol later this month, where child welfare funding is expected to be a major focus of the upcoming legislative session.