The shortfall has compelled DFACS to terminate or suspend contracts with private foster care providers, cut supplemental aid to foster families, and require written state approval before any new placement — a directive that has reduced one agency’s monthly case approvals from as many as 500 to just five, according to reporting by Now Habersham distributed through the Associated Press.
Georgia’s Division of Family and Children Services faces a projected budget shortfall of between $85 million and $87.5 million for the current fiscal year, state officials disclosed at a December 18, 2025 legislative hearing — even as the state of Georgia reports a $14 billion budget surplus.
The agency has responded with immediate cost-control measures, terminating or suspending contracts with private foster care providers and eliminating supplemental aid that foster families depend on for children with complex medical or developmental needs.
“Children — especially those with special needs — risk ‘falling through the cracks,’” said Allison Ashe, chief executive of the nonprofit Wellroot Family Services, adding that decisions are now being driven by financial constraints rather than the best interests of the child.
Contributing factors
The Georgia Department of Human Services attributes the shortfall to a convergence of pressures. The cost of care has risen nearly 50 percent over the last three years, according to the department. Inflation, a reduction in federal funding, and grant delays stemming from a federal government shutdown have compounded the pressure.
A shortage of available placements has created what officials described as a “seller’s market” for placement services, forcing the state to pay premium prices for temporary staffing and hotel placements when traditional family homes are unavailable.
DHS Commissioner Candice Broce disclosed the full scope of the deficit and the agency’s response directives at the December Joint Judiciary Juvenile and Appropriations Human Resources Subcommittee meeting.
Placement bottleneck
In November 2025, DFACS directed private providers to stop accepting new cases without explicit written approval from the state. Broce confirmed the directive at the December subcommittee meeting.
The requirement has effectively stalled routine authorizations. One provider, which typically processes between 300 and 500 cases a month, received written approval for only 5 cases after the directive took effect, according to the Now Habersham report. Providers described the approval layer as creating delays for services children need immediately.
Cost variation
The cost of care varies substantially based on a child’s needs. Basic foster care in a family home costs the state roughly $9,000 to $12,500 per year, according to officials. Specialized care for children with behavioral or medical needs can reach approximately $76,000 annually.
Foster families have reported losing resources they were promised when they initially agreed to take in children.
Legislative response
State lawmakers questioned DFACS leadership at the December hearing over how the deficit reached this scale given the state’s overall fiscal position.
State Rep. Esther Panitch (D-Sandy Springs) said legislators are “left trying to clean up the mess” created by the sudden shortfall, according to the legislative record from late 2025.
Private providers have warned that the service cuts may force layoffs and push the system toward collapse. The deficit has also drawn accountability questions locally, where family members of Jessica Motes — who faces accusations in connection with the death of 4-year-old Autumn Fox — have questioned whether earlier DFACS involvement might have altered the outcome, according to the report.