In fact, it was even earlier when the U.S. government sowed the seeds for the disaster relayed herein. On July 25, 1962, the Public Welfare Amendments of 1962 were enacted, making permanent the temporary measure extending aid to dependent children to cover children removed from an unsuitable home. For the first time, the federal government created financial incentive for states to place children in foster homes, since by doing so for any children whose families fell under the Aid for Families with Dependent Children portion of the Social Security Act (or families on welfare), the State gained control of the portion of the family's federal welfare funds for the child. In other words, federal entitlement monies began dangling before the States, available for the taking simply by committing a child to foster care. For more information, the Social Security Administration provides a complete history by decade of amendments to the act

On July 30, 1965, President Johnson's administration along with Congress amended the Social Security Act to, among other things, increase the Federal grants to the States for maternal and child health and welfare services. On September 1, 1965, Social Security Act benefits were made payable to a divorced wife (married 20 years) and to dependents. The Vocational Rehabilitation Act Amendments were approved on November 8, 1965, making possible more flexible financing and administration of State vocational rehabilitation programs.