The Impact of Childcare, Informal Support, and Economic Assistance on Foster Care Entry Risk

Background:

Approximately 6% of children in the United States enter foster care before age 18. Research consistently links child maltreatment and out-of-home placement to poverty, economic hardship, and limited access to critical resources such as housing and healthcare. In contrast, economic assistance, access to childcare, and informal support from family and peers have been identified as protective factors. While interest in childcare as a preventive intervention is increasing, evidence of its effectiveness in reducing out-of-home placements, particularly among families involved with the child welfare system (CWS), remains limited. This study examines the impact of childcare access, informal support, and economic assistance on the risk of foster care placement among CWS-involved families.

Methods:
Data were drawn from NSCAW II, a nationally representative sample of 5,872 children investigated for maltreatment. The analytic sample included 1,963 children aged 0–6 who remained with their biological or adoptive mothers. Childcare use (formal/informal) was measured at Waves I and II; economic variables (poverty status, TANF, WIC, SNAP) were measured at Wave I. General Linear Models were used to model out-of-home placement over a 36-month period, controlling for demographic and household characteristics.

Results:
Participation in childcare services was associated with a 5% reduction in the likelihood of out-of-home placement (b = –.0510, p = .006), regardless of maltreatment type. Living below the poverty line increased placement risk by 5.4% (b = .0696, p < .001), while receiving TANF and WIC increased risk by 7.3% and 3.5%, respectively. Importantly, informal social support from family and friends and formal CW agency assistance, particularly in arranging childcare, reduced placement risk by 6.2% (b = –.0523, p = .023).

Conclusions and Implications:
Our findings contribute to the growing body of research highlighting the protective role of both informal and formal social support, financial assistance, and access to childcare. They also underscore the complex relationship between economic hardship and the risk of out-of-home placement among families involved with CWS. These results suggest that policies ensuring reliable access to financial support and childcare programs may play a critical role in reducing the likelihood of foster care placement.