Child Welfare and Preventive Services Act

Child Welfare and Preventive Services Act - Title I: Provisions Relating to Child Welfare and Family Support - Amends part B (Child-Welfare Services) of title IV of the Social Security Act to provide Federal funds to enable States to plan, develop, or expand innovative programs of child welfare services and family support services in order to preserve and strengthen families and prevent the need for placement in foster care. Authorizes appropriations.

Directs the Secretary of Health and Human Services (HHS) to authorize demonstration projects to improve the coordination of welfare services for families and children. Directs the Secretaries of HHS, Agriculture, and Education, and the Attorney General to: (1) review department policies to determine whether changes can be made without statutory changes to improve the funding and delivery of such services; and (2) issue a report to the Congress that includes recommendations for both legislative and nonlegislative changes to improve the coordination of the funding and delivery of such services.

Amends part E (Foster Care and Adoption Assistance) of title IV of the Social Security Act to set forth provisions to facilitate adoption, including provisions allowing States to disregard adoption assistance payments in determining a family's eligibility for the Aid to Families with Dependent Children (AFDC) program under part A.

Directs the Secretary of HHS to establish an Advisory Committee on Foster Care Placement to study and make recommendations regarding the current requirement that States make reasonable efforts to prevent the need for removal of a child from home, and to make it possible for the child to return home, under State plans for foster care and adoption assistance.

Requires that a child who is placed in foster care be placed in a setting that is most appropriate for that child.

Authorizes demonstration projects to facilitate the reunification of children eligible for AFDC services with their families.

Allows States to claim 90 percent Federal matching for the costs of planning, designing, developing, or installing a statewide data collection and information retrieval system for purposes of administering the Child-Welfare Services program and the Foster Care and Adoption Assistance program. Allows States to claim 50 percent Federal matching for the costs of operating a data collection and information system for purposes of administering the Foster Care and Adoption Assistance program.

Allows youths in independent living programs to accumulate assets sufficient to enable them to establish their own households.

Requires States to submit all claims for Federal reimbursement under the Foster Care and Adoption Assistance program within one year after the calendar quarter in which the expenditure is made (currently, within two years).

Outlines the criteria for the Secretary of HHS to use for approving applications by colleges for grants to provide child welfare traineeships.

Permits the Secretary of HHS to authorize up to ten States to establish and evaluate specified types of child welfare demonstration projects. Grants such States more flexible spending authority for such purposes.

Directs the Secretary, in order to improve the capacity of State and local child welfare agencies to administer Child-Welfare Services and Foster Care and Adoption Assistance programs and to provide services to families and children, to develop and publish a model staff training program for use by such agencies.

Requires the health and education records of foster children to include: (1) the telephone numbers of their health and education providers; and (2) a record indicating that their foster care provider was advised of their eligibility for services under the Medicaid program (title XIX of the Social Security Act).

Title II: Provisions Relating to Comprehensive Substance Abuse Programs for Pregnant Women and Caretaker Parents with Children - Amends the Child-Welfare Services program to provide Federal funds to enable States to establish comprehensive substance abuse programs for certain low-income pregnant women and caretaker parents with children. Authorizes appropriations.

Title III: Provisions Relating to Child Health - Amends the Medicaid program to allow States to provide federally reimbursed Medicaid coverage for children of families with income below 185 percent of the Federal poverty level. Allows States to extend Medicaid coverage to children born before October 1, 1983, who have attained six years of age but have not attained 19 years of age or a lesser age as selected by the State.

Provides for optional State Medicaid coverage for foster children.

Provides for optional State Medicaid coverage of: (1) home visitor services for medically fragile infants; and (2) home or community-based services to children with acquired immune deficiency syndrome or children who are ventilator-dependent.

Removes restrictions on the ownership of certain assets, such as automobiles and household goods, by pregnant women for purposes of determining Medicaid eligibility.

Provides for greater continuous Medicaid eligibility for certain children.

Requires States to provide medical assistance under the Medicaid program to any individual who is eligible for and receiving benefits under the Supplemental Security Income program (title XVI of the Social Security Act).

Revises the requirement that States with prospective payment systems must provide for outlier payment adjustments for certain expensive services provided to children under age six during their stay in disproportionate share hospitals to make such requirement applicable to children under age 19.

Requires the Federal Government to use the most recent data in calculating its matching share for Medicaid.

Provides for the extension of certain waivers for services related to pregnancy.

Increases the limit on the number of individuals allowed to participate in home and community-based programs under waivers.

Outlines various congressional reporting requirements imposed by this Act on the Secretary of HHS, including requirements with respect to the Maternal and Child Health Services program (title V of the Social Security Act).

Directs the Secretary of HHS to appoint a Commission on the Evaluation of Disability in Children. Directs the Commission to conduct a study and report to the Congress on the meaning of the term "disability" under the SSI program as it applies to determining whether a child under the age of 18 is eligible to receive benefits under such program. Terminates the Commission on September 30, 1993.

Title IV: Provisions Relating to Adoption Expense Deduction - Amends the Internal Revenue Code to allow a deduction for the expenses incurred to adopt a child with special needs, up to an annual limit of $3,000.