California Foster Care System Faces Unprecedented Insurance Crisis

San Diego, CA – Mar 18, 2025 – California’s foster care system is on the brink of catastrophe. An unprecedented insurance crisis is threatening the very existence of foster family agencies (FFAs) statewide, putting thousands of children at risk of losing the only stability they have ever known. As insurance rates skyrocket, agencies are being pushed to the edge-faced with impossible financial decisions that could force them to shut their doors, displacing vulnerable children and devastating the state’s child welfare system.

“The foster care system in California is in crisis,” said Teresa Stivers, CEO of Walden Family Services. “Insurance costs are spiraling out of control, and agencies like ours are left with no viable path forward. If we don’t act now to change the insurance structure for FFAs, children will suffer. Foster parents will walk away. Entire agencies will collapse. The stakes could not be higher.”

FFAs across the state are facing untenable financial burdens due to increased claims, stricter regulations, and a broken insurance model that fails to account for the unique nature of foster care. Without immediate intervention, the system that supports thousands of children-many of whom have already endured unimaginable trauma-will unravel.

Why Action is Needed Now

• Preventing Displacement – Without affordable insurance, foster family agencies will be forced to shut down, leaving children without stable homes.
• Protecting the Future of Child Welfare – If agencies collapse, California will face a child welfare disaster that will take years to repair.
• Ensuring Long-Term Stability – Systemic changes to insurance policies are urgently needed to provide FFAs with financial sustainability and security.

Walden Family Services is calling for immediate legislative action, insurance reform, and emergency support to keep foster family agencies afloat. The time for discussion has passed-this crisis demands action before it is too late.

Since 1976, Walden Family Services has provided life-changing support to foster children, youth, and adoptive families across Southern California. Through innovative programs and advocacy, Walden works tirelessly to create stable, nurturing environments where children can heal, grow, and thrive. 

For more info on how you can help, contact your CA State Representative TODAY at https://findyourrep.legislature.ca.gov/

Media Contact
Company Name: Walden Family Services
Contact Person: Shannon Lynard
Email: Send Email
Phone: +16195845777
Address:8525 Gibbs Dr #100
City: San Diego
State: CA
Country: United States
Website: https://waldenfamily.org/locations/corporate-office-san-diego/