H.R. 7236 — In Good Standing Adoption Agencies Act of 2026

This section amends the Adoption and Legal Guardianship Incentive Program (i.e., provides grants to states that achieve increased adoptions and legal guardianships of children formerly in foster care, including older children and those with special needs) to condition state eligibility on annual reporting of licensed private child placement agencies. Specifically, it (1) requires each state, by January 1 of each fiscal year, to submit to the Secretary of Health and Human Services (HHS) a list of private child placement agencies (i.e., those that place children in prospective adoptive homes) that were licensed or accredited, in good standing, and tax-exempt under IRC §501(c)(3) as of the end of the prior fiscal year; (2) directs HHS, through the Children's Bureau, to compile and maintain a publicly available national list from state submissions; (3) requires HHS to submit annual reports to Congress beginning no later than the second December 31 after enactment, including the national list, any state-licensed agencies not on the list, and state disciplinary actions against such agencies; and (4) adds compliance with the reporting requirement for the prior fiscal year as a new eligibility criterion under 42 U.S.C. 673b(b)(5) for states to receive incentive payments.