In the 2025–2026 California state budget signed by Governor Newsom on June 27, 2025, the Legislature enacted AB 118, a budget trailer bill that creates new statutory protections for children adopted from California foster care who may be placed in out-of-state residential facilities through the Adoption Assistance Program (AAP). These changes address longstanding concerns about the safety and oversight of such placements and extend California’s child welfare reforms to a population that has previously fallen outside the scope of statutory protections.
The Youth Law Center advocated for these reforms in response to serious gaps in oversight and enforcement that had placed adopted children at risk of being sent to out-of-state residential facilities that do not meet California health, safety, or treatment standards that would be required if these children were in foster care. These protections are a direct response to growing evidence of harm in such placements, including recent public reports of abuse and facility closures- where adopted children, many of whom have significant trauma histories, were placed without adequate safeguards.
Recent incidents, including the abrupt closure of a Utah facility with a documented history of violations and abuse – highlighted in this article – illustrate the real dangers posed by such placements and underscore the urgency of stronger safeguards. The Youth Law Center identified that without statutory limits and clear criteria, adopted children remained at risk of being placed in the same dangerous environments from which youth in foster care are now protected.
These protections are a direct response to growing evidence of harm in such placements, including recent public reports of abuse and facility closures- where adopted children, many of whom have significant trauma histories, were placed without adequate safeguards.
While California ended the use of out-of-state residential placements for youth in foster care in 2021 due to repeated reports of child deaths, abuse, and lack of oversight, no equivalent protections existed for children adopted from foster care. AB 118 closes that loophole. It establishes clear requirements for when Adoption Assistance Program (AAP) funds can be used for out-of-state placements and ensures that any such placements are strictly limited, monitored, and subject to minimum care and safety standards.
This legislation reflects the urgent need for California to hold all placements funded with public dollars to the same standards of safety and care- regardless of whether a child remains in foster care or has been adopted.
“The Youth Law Center is grateful for the Legislature’s leadership in ensuring that children adopted from foster care are no longer left unprotected by outdated policies and helping to prevent future tragedies in facilities operating without meaningful oversight,” said Jennifer Rodriguez, Executive Director, Youth Law Center.
A fact sheet summarizing the provisions of AB 118 is available here.