In examining the enforcement of the Federal Adoption Assistance and Child Welfare Act, testimony indicates that although the Act was instrumental in reducing the number of child out-of-home placements from 1977 to 1982, recently Federal enforcement efforts have dissipated. Not only have foster care placements increased, but there are allegations of abuse as well as lack of support and training for caretakers. Testimony also indicates that the Federal Juvenile Justice and Delinquency Prevention Act of 1974 is not being effectively monitored to ensure that juveniles are appropriately placed in training schools and detention facilities and are provided basic services and protections after placement. On the positive side, testimony documents community practices and services that have helped children thrive under permanent placements. The cost-effectiveness of community-based services is also documented. The overall focus of the testimony is on what The Federal Government can do to encourage the States to monitor the children in their charge to ensure they are appropriately placed and served while under State care. Prepared statements, letters, and supplemental materials.