TO OBTAIN DATA ON CHILDREN IN OUT-OF-HOME CARE, A TWO-PAGE QUESTIONNAIRE WAS SENT TO CHILD WELFARE AND PROBATION OFFICES IN A STRATIFIED RANDOM SAMPLE OF 140 COUNTIES, 27 COUNTIES WITH A POPULATION OVER 300,000 AND 113 COUNTIES WITH A POPULATION UNDER 300,000. BASIC INFORMATION WAS SOUGHT REGARDING CHILDREN PLACED IN OUT-OF-HOME CARE, SUCH AS AGE, SEX, RACE, TYPE OF PLACEMENT, LENGTH OF STAY IN CARE, NUMBER OF MOVES, AND LEGAL STATUS. NEXT, SEVEN STATES WERE INVESTIGATED IN DETAIL, INCLUDING ARIZONA, CALIFORNIA, MASSACHUSETTS, NEW JERSEY, OHIO, SOUTH CAROLINA, AND SOUTH DAKOTA. THESE STATES REFLECTED DIFFERENT GEOGRAPHIC REGIONS, PATTERNS OF URBAN AND RURAL CONCENTRATION, PROPORTIONS OF MINORITY POPULATIONS AND MINORITY GROUPS, PER CAPITA INCOMES, AND SOCIAL SERVICE STRUCTURES. LASTLY, A SPECIAL SURVEY IN THE 50 STATES AND THE DISTRICT OF COLUMBIA WAS CONDUCTED TO EVALUATE CHILDREN PLACED IN RESIDENTIAL FACILITIES IN STATES OTHER THAN THEIR OWN. A NUMBER OF FEDERAL POLICIES WERE REVIEWED INCLUDING RELEVANT LEGISLATION, REGULATIONS, FUNDING PATTERNS, RESEARCH AND DEMONSTRATION GRANTS, AND ADMINISTRATIVE ORGANIZATION OF FEDERAL PROGRAMS AFFECTING CHILDREN AT RISK OF PLACEMENT OR IN OUT-OF-HOME CARE. FINDINGS INDICATED THAT CHILDREN AND THEIR NATURAL FAMILIES WERE ISOLATED FROM ONE ANOTHER AT EVERY POINT, THAT A PERVASIVE AND IMPLICIT ANTIFAMILY BIAS OFTEN SHAPED DECISIONS, AND THAT CHILDREN PLACED OUT OF THEIR HOMES WERE LIKELY TO BE CUT OFF FROM FAMILIES AND ABANDONED PSYCHOLOGICALLY AND SOMETIMES LITERALLY BY THE RESPONSIBLE PUBLIC SYSTEMS. CHILDREN IN INSTITUTIONAL OR GROUP HOME SETTINGS, RATHER THAN IN FOSTER HOME CARE, APPEARED PARTICULARLY VULNERABLE TO PUBLIC NEGLECT AND INSTITUTIONAL ABUSE, AND FEW CHANNELS EXISTED FOR COMPLAINTS. SUGGESTIONS FOR IMPROVED FEDERAL, STATE, AND LOCAL GOVERNMENT ACTION ARE LISTED, AND SUPPORTING DATA, PHOTOGRAPHS, AND 19 APPENDIXES ARE INCLUDED.