West Virginia spent nearly $70 million last year to house foster children in out-of-state facilities due to a lack of in-state capacity. These costs covered housing, food, medication, and education for hundreds of children in foster care.
The Department of Human Services (DoHS) bore most of the expenses. According to department spokesperson Angelia Hightower, some children were removed from out-of-state programs due to safety concerns and educational deficiencies.
Despite ongoing investigations into sexual abuse and neglect at Devereux Behavioral Health facilities, which operate in 11 states, West Virginia continues to make payments to the company. State auditor records show the latest payment of $5,015 was made in late February.
The West Virginia Department of Education (WVDE), responsible for funding some out-of-state educational costs for foster children, noted that all such facilities had findings of noncompliance under the Individuals with Disabilities Education Act in fiscal year 2024. However, WVDE spokesperson Christy Day stated that no violations warranted student removal. Devereux was last monitored in 2018, and all educational violations found at that time were corrected within a year.
Experts suggest keeping children in-state would be more cost-effective and allow for better oversight. However, a shortage of foster homes and treatment facilities forces West Virginia to rely on out-of-state placements, mainly for teens with behavioral or mental health challenges.
In 2024, a teenager named Neveya (name partially withheld for privacy) was placed in Laurel Oaks, a residential treatment facility in Alabama, 706 miles from Charleston. She described the environment as chaotic, with frequent fights and poor living conditions. She also reported receiving minimal education during her five-month stay, where classes were often canceled due to disturbances.
Previously, Neveya had lived in a Charleston facility and attended public school, but she was abruptly transferred to Alabama when Child Protective Services determined that her mental health needs exceeded the Charleston facility’s capabilities.
DoHS has requested a 65% increase in foster care funding as lawmakers review state budget allocations. Delegate Adam Burkhammer, a foster parent and legislative advocate for foster care reform, emphasized the state’s urgent need for more in-state behavioral and mental health support for children.
The increase in foster care placements has been driven by West Virginia’s substance abuse crisis, which has left many children without homes. With over 5,800 children in foster care, 471 are placed out of state, primarily in group residential care. A review of state auditor data revealed payments to over a dozen out-of-state facilities, including a $687,908 payment to Grafton School Residential Treatment in Virginia in 2024.
Mike Folio, legal director for Disability Rights West Virginia, estimated that West Virginia spends three times more on out-of-state foster care than on in-state placements. His organization has sued the state for alleged mistreatment of foster children, including placements in unsafe facilities. He argued that out-of-state placements cause lasting trauma and urged lawmakers to redirect funding toward in-state community-based programs.
DoHS maintains that out-of-state placements are a last resort, used only when in-state services are unavailable at the required level of care. Placement decisions involve multiple stakeholders, but the court ultimately determines whether a child is sent out of state. Despite vetting processes and annual compliance reviews, concerns persist over the safety and quality of care in these facilities.
WVDE covered educational expenses for approximately 535 students in out-of-state facilities in fiscal year 2024, with some students appearing in multiple placements. Educational oversight remains a challenge, as some facilities provide only online schooling with minimal supervision, as experienced by Neveya at Laurel Oaks.
Jeanette Jackson, CEO of Laurel Oaks Behavioral Health Center, stated that all allegations at the facility are thoroughly investigated and emphasized the center’s commitment to providing safe and compassionate care.
DoHS reports that it has reduced the percentage of children in residential care from 24% to 14% in recent years and tripled spending on community-based mental health services. However, West Virginia continues to place children in group homes and treatment centers at a rate three times the national average, according to a recent investigation.
As part of its budget request for fiscal year 2026, DoHS has proposed more than $181 million for foster care, a 65% increase from the current $110 million allocation. DoHS Secretary Alex Mayer warned that the rising costs of out-of-state placements pose a financial risk and emphasized the importance of expanding in-state capacity.
Federal funds help cover out-of-state foster care costs, but Burkhammer noted that federal reimbursement rates contribute to the financial burden. He suggested that bringing children back to West Virginia would result in significant cost savings.
Folio urged lawmakers to study the financial impact of out-of-state placements and reinvest resources into local programs to keep children closer to home, ultimately saving taxpayer dollars.
By February, Neveya had returned to West Virginia and was preparing for a formal event at a local high school. Now living with a foster family that maintained contact with her while she was in Alabama, she is working to catch up on her education. She credits her new family and therapist for her progress.
Reflecting on her experience, she expressed hope for better facilities in West Virginia, saying, “It sucked.”
