Lawsuit: DCS illegally slashes subsidies if special-needs kids adopted

Dave Stafford for www.theindianalawyer.com

A lawsuit filed Thursday claims the Indiana Department of Child Services violated federal law when it proposed to slash assistance for three profoundly disabled children after their grandparents who served as foster parents planned to adopt them.

Julie and David Arthur sought to adopt the three minor grandchildren. DCS had placed the children with the Arthurs after their mother’s parental rights were terminated. The children are boys ages 2, 3 and 6. Two were born addicted to drugs and another was born at 22 weeks. All have significant physical or developmental difficulties detailed in the suit.

Because of the nature of the children’s severe disabilities, the agency approved total foster payments of $145.72 per day. But after the Arthurs adopt the children, DCS said it would cut assistance to $52 per day, according to a lawsuit filed by the American Civil Liberties Union of Indiana. DCS “has stated that this is its ‘final offer,’” the suit says.

“This sum will render it impossible for the Arthurs to adequately and appropriately care for the children and violates the State’s duty under 42 U.S.C. § 673(a)(3), to ‘take into consideration the circumstances of the adopting parents and the needs of the child being adopted’ in computing the adoption subsidy,” the suit says. “The actions and inactions of (DCS) are therefore unlawful and appropriate injunctive and declaratory relief should issue.”

The suit contends adoption assistance payments under Title IV-E of the Social Security Act are meant to facilitate permanent placement of children in foster care. “The actions and inactions of (DCS) thwarts that purpose,” according to the complaint, Julie Arthur and David Arthur et al. v. Director, Central Eligibility Unit, Indiana Department of Child Services,1:15-CV-1718.

“As the lawyer for state government, the Attorney General’s Office will review the plaintiffs’ lawyers’ assertions with our agency clients and will file a response in court at the appropriate time,”Office of the Indiana Attorney General spokesman Bryan Corbin said in a statement.

A spokesperson for DCS did not immediately respond to messages seeking comment about the case Friday.

“The federal government provides money to the State of Indiana to allow special needs adoptions to occur and to allow the adoptees’ needs to be met,” said Ken Falk, ACLU of Indiana legal director. “We believe that DCS is failing to comply with the law in this case.”