This report discusses: (1) the Department of Health and Human Services (HHS) policy requiring that foster care training costs be allocated proportionately between the Social Security Act Title IV-E foster care program and other programs; (2) adherence to this cost-sharing policy; and (3) the effect of cost-sharing on states' training programs. It was found that two of five states reviewed, New York and Illinois, do not allocate foster care training costs between the IV-E program and other programs, but charge all training costs to the IV-E program. California, Arizona, and Washington, in accordance with federal policy, charge only a portion of costs to the program. Four appendixes provide information about changes in funding for Section 426 child welfare training grants and about Children's Bureau staffing and qualifications, comments from the Department of HHS, and a list of major contributors to the report. (MDM)