1. Short title This Act may be cited as the Create Accountable Respectful Environments (CARE) for Children Act . 2. Placement of foster children in cottage family homes (a) State plan requirement Section 471(a)(37) of the Social Security Act ( 42 U.S.C. 671(a)(37) ) is amended by inserting or a cottage family home before the comma. (b) Eligibility of cottage family homes for foster care maintenance payments Section 472(a)(2)(C) of such Act ( 42 U.S.C. 672(a)(2)(C) ) is amended by inserting a cottage family home, before with a parent . (c) Definition of cottage family home Section 472(c) of such Act ( 42 U.S.C. 672(c) ) is amended by adding at the end the following: (3) Cottage family home (A) In general The term cottage family home means a home— (i) that is operated by a public or private child care agency licensed or approved by the State in which the home is situated as an agency that meets the standards established for the licensing or approval; (ii) that encourages and supports the child and the family of the child in maintaining a strong connection through regular contact and involvement in a plan of care, except to the extent otherwise directed by a court of law; (iii) that is able to serve as a resource to facilitate sibling groups being placed together where daily contact and interaction strengthens family ties; (iv) that provides children access to activities or items that are age or developmentally-appropriate, including the ability to participate in extracurricular, social, or other home and community activities with the same freedom afforded to their peers who are living at home with their families; (v) that has and implements a trauma-informed approach in the care of children; (vi) that prohibits the use of seclusion or mechanical or chemical restraints and permits only short-term physical restraint if approved in the policies of the agency to prevent injury to self or others, and prohibits any prone physical restraint