Community Based Day Treatment and In-Home Services for Children and Families Act

Community- Based Day Treatment and In-Home Services for Children and Families Act - Amends Part B of Title IV (Child-Welfare Services) of the Social Security Act to provide for the establishment of day treatment and in-home arrangements for services to children and families in trouble.

Makes funds appropriated under the Social Security Act for child welfare services available to cooperating State agencies in the provision of day treatment and in-home services to children and families.

Authorizes the appropriation of an additional $50,000,000 for each of the two fiscal years following the enactment of this Act for the purposes of this Act.

Provides for the distribution of such funds to the appropriate State agencies.

Defines the terms "day treatment services," and "in-home services.

Requires States, as a condition to receiving Federal payments for child welfare services, to limit the placement of children outside of the home for treatment to those cases in which all feasible alternatives have been exhausted, or such placement has been ordered by a court of competent jurisdiction.

Requires State plans for aid and services to needy families with children to provide that the State agency supervising the administration of the plan will: (1) exhaust all feasible alternatives to placement of a child in a foster home, institution, or other residential facility before placing or approving the placement of such child in such a home, institution, or facility; and (2) submit to the Secretary of Health, Education, and Welfare periodic reports indicating the steps being taken to explore such alternatives (and the various types of alternative arrangements being considered) in connection with the placement of children in such homes, institutions, and facilities.