How IP-CANS Will Shape California’s New Tiered Foster Care Rate Structure
California is preparing for a major shift in how foster care support is funded. The state’s new Tiered Foster Care Rate Structure, or TRS, is expected to begin on July 1, 2027, subject to legislative appropriation and completion of the necessary statewide automation. Under this new structure, foster care rates will be based on a child or youth’s assessed needs and strengths rather than primarily on their placement type. (California Department of Social Services)
At the center of this change is the Integrated Practice-Child and Adolescent Needs and Strengths tool, commonly referred to as IP-CANS or CANS. This assessment will play a critical role in helping determine the level of support a child, youth, or nonminor dependent may need while in foster care.
A Shift Toward Individualized Support
Historically, foster care rates were often connected to the type of placement a child was in. California’s new Tiered Rate Structure changes that approach by focusing more directly on the individual child: their needs, strengths, circumstances, and the supports required to help them remain stable and cared for in the most appropriate setting.
This is a meaningful shift. Rather than asking, “Where is the child placed?” the new structure asks, “What does this child need to be safe, supported, and well?” CDSS has stated that the Tiered Rate Structure is designed, so funding follows the child’s assessed needs and strengths, not the placement type. (California Department of Social Services)
For resource families, relatives, foster family agencies, counties, and community-based providers, this change reinforces the importance of high-quality assessment, strong teaming, and coordinated care planning.
What Is IP-CANS?
The IP-CANS is a functional assessment tool used to identify a child or youth’s strengths, needs, social and behavioral health concerns, and areas where support may be needed. CDSS selected IP-CANS in 2018 as the assessment tool for children and nonminor dependents in foster care. It is designed to support care coordination, monitor outcomes, and inform case planning. (California Department of Social Services)
Just as important, IP-CANS is not intended to be completed in isolation. It is part of a collaborative Child and Family Team, or CFT, process. The assessment should reflect input from the youth, family members, caregivers, professionals, and, in the case of an Indian child, the child’s Tribe. This team-based approach helps ensure the assessment is not simply a form, but a shared understanding of what a child needs and what strengths can be built upon. (California Department of Social Services)
How IP-CANS Will Inform Foster Care Tiers
Under the Tiered Rate Structure, information from the IP-CANS will help determine a child or youth’s assigned tier. CDSS used a statistical method called Latent Class Analysis to review patterns in California IP-CANS data and organize children and youth into tiered groupings based on their needs and strengths. (California Department of Social Services)
The structure includes Tier 1, Tier 2, Tier 3, and Tier 3+ for rate purposes. Tier 3 applies to children ages 0–5 with more complex needs, while Tier 3+ applies to youth ages 6 and older with the most significant and complex needs. (California Department of Social Services)
The goal is to create a more responsive and equitable system—one that better recognizes the support a child needs and helps make those supports available across placement settings, including family-based homes.
Three Key Funding Components
The new Tiered Rate Structure includes three major components:
1) Care and Supervision
This is the monthly rate paid to the caregiver or foster care provider to support the child’s day-to-day care and supervision. For fiscal year 2027–28, the planned Care and Supervision rates are $1,788 for Tier 1, $3,490 for Tier 2, and $6,296 for Tier 3 and Tier 3+. Additional provider administrative rates may apply for children placed with certain licensed providers, such as foster family agencies, community treatment facilities, or short-term residential therapeutic programs. (California Department of Social Services)
2) Strengths-Building Funding
All eligible children and nonminor dependents will receive tier-based Strengths-Building Funding. These funds are intended to support activities, goods, or services connected to a child’s strengths and developmental growth. Planned monthly amounts are $500 for Tier 1, $700 for Tier 2, and $900 for Tier 3 and Tier 3+. (California Department of Social Services)
3) Immediate Needs Funding
Immediate Needs Funding will be available for eligible children and youth in Tier 2, Tier 3, and Tier 3+. This funding is intended to help address urgent or more complex needs through timely services and interventions. Planned monthly amounts are $1,000 for Tier 2, $1,500 for Tier 3, and $4,100 for Tier 3+. High-Fidelity Wraparound is expected to be a key component of the Immediate Needs Program, with additional CDSS and DHCS guidance continuing to develop. (California Department of Social Services)
Why Timely and Accurate IP-CANS Completion Matters
Because IP-CANS will help determine a child’s tier, accuracy and timeliness will be essential. For children and nonminor dependents entering or reentering foster care, the IP-CANS must be completed and entered into the statewide system within 60 days, or within 30 days for an Indigenous/Native child. CDSS has emphasized that delays in CANS completion or data entry may affect foster care rates, services, and timely support for children and families. (California Department of Social Services)
Beginning in 2027, new entries into foster care are expected to receive an entry rate while the IP-CANS is pending. Once the assessment is completed and the tier is determined, the appropriate tier-based rate and related supports will apply. (California Department of Social Services)
This makes fidelity especially important. A strong IP-CANS process depends on collaboration, cultural responsiveness, youth and family voice, caregiver input, and clear documentation. When completed well, IP-CANS can help create a fuller picture of what a child needs and how the team can support stability, healing, and growth.
What This Means for AFS
For Alternative Family Services, this transition reinforces the work we already value: individualized care, trauma-informed practice, strong resource family support, and coordinated services that keep children and youth at the center.
As California moves toward implementation, AFS will continue preparing for these changes by following CDSS guidance, supporting staff and resource families, strengthening CFT and IP-CANS practices, and staying engaged in the evolving details of Strengths Building Funding, Immediate Needs Funding, and High-Fidelity Wraparound.
The Tiered Rate Structure represents more than a change in funding. It is an opportunity to align resources more closely with each child’s lived experience, strengths, and needs. With thoughtful implementation, this shift can help create more stable placements, stronger caregiver support, and better pathways for children and youth to thrive.
The Tiered Rate Structure represents more than a change in funding. It is an opportunity to align resources more closely with each child’s lived experience, strengths, and needs.
Stay connected with AFS for future updates as California continues preparing for this important statewide transition.
