A 2-YEAR STUDY CONDUCTED BY THE CHILDREN'S DEFENSE FUND INDICATES THAT AT EVERY POINT IN THE CHILD PLACEMENT PROCEDURE CHILDREN AND THEIR FAMILIES ARE ISOLATED FROM EACH OTHER. DESPITE PROFAMILY RHETORIC, THERE IS AN IMPLICIT ATTITUDE IN THE AGENCIES WHICH PREVENTS AID TO FAMILIES IN TROUBLE. FEW AGENCIES HAVE DISCRETIONARY FUNDS OR RESPITE CARE PROGRAMS; TOO OFTEN, REMOVAL OF THE CHILD IS THE ONLY AUTHORIZED PROCEDURE FOR TREATMENT OF ABUSE. FUNDING MAY BE AVAILABLE THROUGH AID TO FAMILIES WITH DEPENDENT CHILDREN FOR PAYMENT TO STRANGERS, BUT NOT TO RELATIVES, FOR THE CARE OF THE CHILD. PARENTS ARE RARELY PERMITTED TO VISIT THEIR CHILDREN IN FOSTER CARE, ALTHOUGH SUCH VISITATIONS ARE CONSIDERED TO BE IDEAL THERAPY FOR THE FAMILY. IN ADDITION, PARENTAL PROBLEMS ARE OFTEN IGNORED BY SERVICE AGENCIES AFTER THE CHILD IS REMOVED, ALTHOUGH THE PARENTS MAY HAVE GENUINE NEEDS FOR HOUSING AND THERAPY. SEVENTY PERCENT OF THE FUNDS AUTHORIZED UNDER TITLE-4-B OF THE SOCIAL SECURITY ACT ARE USED FOR OUT OF HOME FOSTER CARE, ALTHOUGH THE STATUTE AUTHORIZES THE ALTERNATIVE USE OF FUNDS FOR PREVENTIVE AND REUNIFICATION SERVICES. DESPITE THE STATUTE'S AUTHORIZATION OF $300 MILLION FOR CHILD CARE, THE APPROPRIATIONS HAVE NEVER EXCEEDED $56.5 MILLION. STATE AND LOCAL AGENCIES LITERALLY ABANDON CHILDREN AFTER INITIAL PLACEMENT WITHOUT SEEKING PERMANENCE IN THE CHILDREN'S STATUS. DATA ON MANY CHILDREN ARE UNATTAINABLE IN SEVERAL JURISDICTIONS. MOREOVER, CHILDREN ARE TOO FREQUENTLY PLACED IN MENTAL INSTITUTIONS AFTER PARENTAL RIGHTS ARE TERMINATED, AND NO STATE HAS SPECIFIC GUIDELINES FOR TREATMENT OF CHILDREN IN CARE. (TWK)