1. Short title This Act may be cited as the Caring Homes and Improved Lives for Dependents (CHILD) Act . 2. Placement of foster children in cottage homes (a) State plan requirement Section 471(a) of the Social Security Act ( 42 U.S.C. 671(a) ) is amended— (1) by striking and at the end of paragraph (36); (2) by striking the period at the end of paragraph (37) and inserting ; and ; and (3) by adding at the end the following: (38) provides that, with respect to a child who has attained 6 years of age and who is removed from the child’s home, if a suitable relative or other designated caregiver is not available as a placement for the child, placing the child in a foster family home or a cottage home shall be considered the least restrictive setting for the child. . (b) Eligibility for foster care maintenance payments of certain children placed in a cottage home Section 472(a)(2)(C) of such Act ( 42 U.S.C. 672(a)(2)(C) ) is amended by striking home or child-care institution and inserting home, a child-care institution, or (if the child has attained 6 years of age and a suitable relative or other designated caregiver is not available as a placement for the child) a cottage home that is not a foster family home or child-care institution . (c) Definition of cottage home Section 472(c) of such Act ( 42 U.S.C. 672(c) ), as amended by the Family First Prevention Services Act, is amended by adding at the end the following: (3) Cottage home The term cottage home means a residential operation— (A) in which not more than 12 children reside; (B) that has and implements a trauma-informed treatment plan for its residents; (C) that involves family members of a child in the treatment for the child, and maintains contact with the family of the child, if available and if the involvement is clinically appropriate for the well-being of the child; (D) that is licensed by the State in which it is situated or has been approved, by the agency of such State responsible for licensing or approval of institutions of this type