The commissioner of the Administration for Children, Youth, and Families of the Department of Health and Human Services lists the goals of AACWA as the prevention of the unnecessary separation of the child from the parents, improved quality of care for children and their families, and permanent homes for children through reunification with their parents or through adoption. The commissioner notes progress made through the legislation: fewer children in foster care, shorter periods of foster care, more children reunited with their families, fewer children in institutions, more special needs children adopted, and more children in permanent placements. Federal oversight efforts are described, and representatives of child protection services in California, Illinois, New York, and Missouri comment on progress in foster care services under AACWA and problems of compliance and implementation. Some problems mentioned are excessive administrative costs and a flawed system for monitoring State compliance with Federal standards for State implementation of AACWA. Prepared statements, letters, and supplementary materials.