Children’s residential treatment programs provide services to children, youth, and young adults under 21 years of age with serious behavioral health needs. These out-of-home treatment settings are intended to be time-limited — only for as long as needed to address the behavioral and emotional challenges individuals and their families are facing. The Family First Prevention Services Act, signed into law in 2018, changes how Title IV-E dollars can be used to support children’s residential treatment programs and creates an opportunity for child welfare agencies to collaborate more effectively with state Medicaid partners to increase access to and the quality of services, and improve outcomes for youth involved in the child welfare system.

This brief details how Medicaid funds support residential treatment programs and outlines considerations to help jurisdictions plan for Family First Prevention Services Act implementation in their state.