Mr. Speaker, there is broad support for the underlying goal of H.R. 622 to assist adoptive families in meeting their expenses. Helping families afford the cost of adopting children into loving homes is clearly a worthwhile policy and targeted tax relief may help promote that goal.

Of course, many of us continue to wonder how this tax bill – the 8th tax measure considered by the House this year – fits into the larger budget picture. The cumulative cost of these bills far exceeds the amount provided for tax cuts in the Budget Resolution passed last week.

Furthermore, I am concerned that H.R. 622, as reported by the Committee on Ways and Means, does little to promote the adoption of the many special needs children in foster care. Under current law, the adoption tax credit is limited to "qualified adoption expenses," which are defined primarily as court costs and attorney's fees. Since State foster care programs cover most of these legal expenses, many adoptive families of special needs children have few qualified adoption expenses.

However, these families may have other significant adoption-related costs, such as home and vehicle modifications and out-of-pocket medical expenses. These expenses are neither reimbursed by the State, nor eligible for the current adoption tax credit.

A report from the U.S. Department of the Treasury released in October, 2000, found that only 15% of all special needs adoptions received any benefit from the current adoption tax credit.

Of those few families adopting special needs children that did benefit from the adoption tax credit, more than two-thirds reported expenses under the current $6,000 limit for eligible expenses incurred in connection with a special needs adoption. Therefore, simply raising the limit on eligible expenses to $10,000 will do next to nothing to help families adopting special needs children.

There are roughly 122,000 children now waiting to be adopted out of our Nation's foster care system. The vast majority of these children are classified as having special needs, meaning they are more difficult to place for adoption because of their age, medical condition, or because of a physical, mental or emotional handicap. These are the children waiting in line to be adopted, whereas other healthy babies and young children have prospective parents waiting in line for them. Policies designed to promote adoption should recognize this fact.

I am encouraged by Chairman Thomas' pledge to consider improvements for special needs adoptions when this bill goes to conference. I look forward to working with him and other Members to promote the adoption of children waiting to leave the foster care system for a permanent, loving home. Thank you.