Create Accountable Respectful Environments (CARE) for Children Act

This bill establishes "cottage family homes" as a new foster care placement option under federal law. It defines cottage homes as licensed residences caring for up to 2 children per bedroom (with exceptions), requiring trauma-informed care, prohibiting most restraints, and mandating systems for children to report concerns. The bill directly affects foster children placed in these homes and state child welfare agencies, by making cottage homes eligible for federal foster care maintenance payments without time limits. Key provisions include requiring states to adopt the new definition, allowing states flexibility in how they classify these homes, and ensuring children in cottage homes receive the same care standards as those in traditional foster placements.