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Foster care is the term used for a system in which a minor who has been made a ward is placed in an institution, group home , or private home of a state certified caregiver. The placement of the child is usually arranged through the government or a social-service agency. The institution, group home or foster parent is provided compensation for expenses.

The state via the family court and child protection agency stand in loco parentis to the minor, making all legal decisions, while the foster parent is responsible for the day-to-day care of the minor. The foster parent is remunerated by the state for their services.

In the United States, foster home licensing requirements vary from state to state, but are generally overseen by each state's Department of Child Protective Services or Human Services. In some states, counties have this responsibility. Each state's services are monitored by the federal Department of Health and Human Services through reviews such as Child and Family Services Reviews, Title IV-E Foster Care Eligibility Reviews, Adoption and Foster Care Analysis and Reporting System, and Statewide Automated Child Welfare Information System Assessment Reviews.

The foster parent licensing process is often similar to the process to become licensed to adopt. It requires preparation classes as well as an application process. The application varies but may include: a minimum age; verification that your income allows you to meet your expenses; a criminal record check at local, state and federal levels including fingerprinting and no prior record of child abuse or neglect; a reference from a doctor to ensure that all household members are free from diseases that a child could catch and are in sufficient health to parent a child; and letters of reference from an employer and others who know them.

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