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flag California’s foster care crisis deepens as agencies close due to skyrocketing insurance costs from abuse lawsuits, threatening 6,500 children’s stability.

flag California’s foster care system is in crisis as over two dozen foster family agencies have closed since 2024 due to soaring insurance costs, driven by a surge in lawsuits from survivors of past sexual abuse. flag A major insurer pulled coverage after a $25 million jury award, triggering premium hikes of 200% to 400%—some agencies now pay over $350,000 annually. flag The state’s one-time $31.5 million relief fund is exhausted, and lawmakers seek $30 million more. flag Closures threaten placements for about 6,500 of the state’s 45,000 foster children, risking instability, school disruptions, and homelessness. flag Agencies provide critical emergency housing and case management, and their decline strains an already overburdened system. flag Without sustained funding, the state risks failing its most vulnerable youth.

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