The Georgia Division of Family and Children Services is facing a projected budget shortfall of more than $85 million, a financial crisis that has already led to service reductions and a near-standstill in new foster care placements by private providers.
The deficit was disclosed during a Joint Judiciary Juvenile and Appropriations Human Resources Subcommittee meeting on December 18, 2025. State officials estimate the shortfall for the current fiscal year will range between $85 million and $87.5 million—despite Georgia reporting a historic $14 billion budget surplus.
According to the Georgia Department of Human Services, the deficit is the result of sharply rising costs and declining federal support. Officials say the cost of care has increased nearly 50 percent over the past three years, driven by inflation, reduced federal funding, and delayed grants caused by a federal government shutdown.
In response, DFACS has implemented aggressive cost-cutting measures, including terminating or suspending contracts with private providers and reducing supplemental assistance for foster families. That aid often supports children with complex needs, such as developmental disabilities or serious medical conditions.
Allison Ashe, CEO of Wellroot Family Services, warned lawmakers that financial decisions are now taking priority over child welfare. Ashe said children—particularly those with special needs—are at risk of “falling through the cracks” as providers lose funding and foster families see promised resources disappear.
The issue has also raised local concerns. Family members of accused murderer Jessica Motes have questioned whether DFACS could have intervened earlier in the circumstances surrounding the death of 4-year-old Autumn Fox earlier this year, citing what they describe as a lack of investigative involvement.
The impact of the shortfall expanded in November 2025, when DFACS directed private providers to stop accepting new cases without written state approval. DHS Commissioner Candice Broce confirmed the directive during the December meeting, saying it was necessary to manage spending.
Providers say the requirement has created a severe administrative bottleneck. One agency reported it typically manages between 300 and 500 cases per month but received approval for just five cases after the new rule took effect. Agencies say the added layer of review has slowed or halted critical services.
The cost of foster care varies widely. Basic placement in a family home costs the state an estimated $9,000 to $12,500 annually, while specialized care for children with significant medical or behavioral needs can reach approximately $76,000 per year. Officials say labor shortages and inflation have created a “seller’s market,” forcing the state to pay higher rates, particularly for temporary staffing or emergency hotel placements.
State lawmakers have questioned how the deficit developed given Georgia’s overall financial position. State Rep. Esther Panitch, a Democrat from Sandy Springs, criticized DFACS leadership, saying legislators are now “left trying to clean up the mess” created by the sudden shortfall.
As providers warn of layoffs and a foster care system under growing strain, advocates and lawmakers continue to point to the stark contrast between DFACS budget cuts and the state’s multi-billion-dollar surplus.