Adoption in July 2025: Legislative Shifts Bringing Uncertainty

By Teesta Bhola-Shah

This July, a lot has been happening in the world of adoption, and honestly, it feels like there is finally some good news for people who want to adopt. At the same time, there are still a lot of debates and arguments about what adoption should look like and how it should work in our country. If you are interested in adoption or just want to know how laws are changing, here’s what you need to know.

The Adoption Tax Credit

On July 4th, as fireworks crackled across the country, adoption advocates had something tangible to celebrate: the federal adoption tax credit became partially refundable, allowing families with lower or zero tax liability to access up to $5,000 per child to cover adoption-related expenses.

“This is a meaningful win for families who have been waiting for relief,” says Ryan Hanlon, President & CEO of the National Council For Adoption. “For too long, the adoption tax credit was out of reach for the very families we need to support—those who open their homes to children out of foster care but don’t have high incomes.”

The partially refundable status is a compromise after years of advocacy to make the entire credit refundable (the full nonrefundable credit in 2025 sits at $16,810 per child). Advocates, including the National Council For Adoption and many child welfare coalitions, are pushing for the next step: full refundability. The rationale is straightforward: low- and middle-income families are the backbone of foster care adoptions, and making the credit refundable would directly reduce financial burdens that often delay or prevent permanency.

Yet critics warn that refundability alone will not solve broader issues. “We still need to simplify the process, provide post-adoption support, and prevent the commodification of children,” says Dr. Sharon Lee, a professor of Social Work at the University of Michigan, emphasizing the need for adoption reform beyond tax policy.

Image credits: The Herr Law Firm

The “Adoption Information Act” Reemerges

Another notable piece of legislation, H.R. 215 – the Adoption Information Act, has gained momentum in the House, requiring federally funded reproductive health clinics to provide printed materials about adoption when individuals inquire about pregnancy services.

Proponents argue this empowers women with choices. “Information is not coercion,” Rep. Bob Good (R-VA), the bill’s sponsor, stated on the House floor. “Women deserve to know that adoption is a loving option.”

However, critics argue that the bill is ideologically driven and could disrupt comprehensive counseling. “We do not need politicians mandating what medical professionals say in their offices,” says Rachel Berger of Planned Parenthood Advocates. “Adoption is important, but this is not the way to support it.”

Whether the bill will pass remains unclear, but it signals that adoption discussions continue to intersect with broader reproductive rights debates.

International Adoption News

While the federal government finalized new rules for international adoption in July 2024, their real impact is being felt now, as the rules became effective in January 2025.

Key changes include:

1. Direct payment to foreign providers to improve transparency.
2. Streamlined timelines for relative-based international adoptions.
3. Increased oversight of adoption service providers.

These changes have led to a mix of relief and anxiety among agencies and families, as some argue that it is too much paperwork to complete an adoption. Advocates hope these changes will gradually increase ethical adoptions while rebuilding trust after years of declining intercountry adoption numbers (which dropped below 1,500 annually by 2024).

The State Department emphasizes that these reforms are about ensuring ethical, transparent processes, especially in relative and special needs adoptions. Yet some fear the increasing costs of compliance may force smaller agencies out, limiting family choices.

In Conclusion

July 2025 reminds us that adoption policy is always changing, especially with new political administrations. The months ahead will show people involved with the adoptive process whether these changes will support the adoptees or not.

We will continue monitoring these developments to keep you informed in your adoption journey. Stay tuned for next month’s legislative adoption update!