Thousands of California’s most vulnerable children are at risk as a massive insurance crisis shutters foster care nonprofits across the state.
Since 2024, over two dozen agencies in 13 counties have closed their doors after the primary insurance provider exited the market, leaving remaining groups to struggle with skyrocketing out-of-state premiums.
While a previous $31.5 million state rescue fund has been exhausted, advocates warn that a new $30 million proposal is far too little to stem the tide of closures. Without these specialized agencies, foster parents are leaving the system, leaving counties ill-equipped to house children with complex medical and special needs.
Experts say that unless a sustainable funding solution is reached, the state’s entire foster care infrastructure could face a total collapse.
