Res. No. 717
Resolution calling on the New York State Assembly to pass, and for the Governor to sign, A.9646A, whose companion bill S.9113A, has already been passed by the New York State Senate, to establish an insurance risk pool ensuring foster care agencies can obtain the required liability insurance to provide assistance with rapidly rising insurance costs, and, to update the State reimbursement rates to better reflect current insurance expenses, and to create the voluntary foster care agency insurance bridge fund
Council Members Brewer and Stevens
Whereas, According to the New York City’s Mayor’s Management Report, the average number of children in foster care declined to a historical low of 6,268 children per year in 2025; and
Whereas, On average, York State serves 13,000 to 15,000 children in its foster care system at any given time per data provided by the New York State Office of Children and Family Services (OCFS); and
Whereas, Foster care agencies’ liability insurance covers provider agencies from a broad range of claims including minor injuries to serious misconduct such as sexual abuse; and
Whereas, According to the New York State Council of Family and Child Caring Agencies (COFCCA), as of October 2026, an unprecedented crisis of rising liability insurance costs now “threatens to strain and could ultimately force some providers to close”; and
Whereas, Rising insurance costs are not matched equally by increased state funding, and leaves agencies to absorb the fiscal deficits and differences in the funding that the city and state do not provide; and
Whereas, According to COFCCA, if providers are unable to access or to afford liability insurance due to rising insurance costs and shrinking insurance availability, this could put more than 10,000 youth at risk of losing continuity of care who are currently in foster care in community foster homes, or residential settings, and potentially further jeopardize continued availability of services such as after school programs and mental health counseling; and
Whereas, While factors contributing to the crisis are varied, according to COFCCA,
liability insurance is a fundamental operational requirement for providers, and as coverage
becomes more expensive, and therefore harder to access and maintain, programs may face immediate consequences ranging from cutbacks in services to a complete closure of programs; and
Whereas, COFCCA points out a similar crisis in California after the withdrawal of major insurance companies there resulted in “dozens of programs [closing] in rapid succession,” and also warns that due to the shrinking pool of insurers, New York looks to be headed towards a similar “structural failure”; and
Whereas, Presently, just two insurance providers now cover 70 percent of the COFCCA members surveyed; and
Whereas, Proposed legislation from New York State Assemblymember Andrew Hevesi (A.9646A) and New York State Senator Jamaal Bailey (S. 9113A) would establish a state-backed insurance risk pool with a mechanism that would "spread the risk across insurers”; and
Whereas, Additionally, a summary of provisions described in S.9113A/A.9646A includes a provision directing the Office of Children and Family Services to establish standards for payment for liability insurance costs that ensure the maximum state aid rate accurately reflects the year over year increased cost for voluntary foster care agencies; and
Whereas, Additionally, the legislation would create the voluntary foster care agency insurance bridge fund along with requisite eligibility, supporting documentation, and disbursement requirements such that any state funding allocated could be utilized to financially assist voluntary foster care agencies while the risk pool and updated state aid rate processes are being established; and
Whereas, Given the shrinking pool of insurers available to provide coverage to this cohort, providers argue that the state must intervene to ensure access to the mandated coverage; and
Whereas, Given New York City’s total reliance on voluntary foster care agencies for New York City’s foster care placements and the urgency associated with the diminishing insurance availability for these programs, in order to stabilize access and affordability, passing S.9113A/A.9646A into law seems imperative at this time; now, therefore, be it
Resolved, That the Council of the City of New York calls on the York State Assembly to pass, and for the Governor to sign, A.9646A, whose companion bill S.9113A, has already been passed by the New York State Senate, to establish an insurance risk pool ensuring foster care agencies can obtain the required liability insurance to provide assistance with rapidly rising insurance costs, and, to update the State reimbursement rates to better reflect current insurance expenses, and to create the voluntary foster care agency insurance bridge fund.
LS 25868 and LS 26958
11/5/26
CD