The Foster Care Placement Transparency Act requires states to measure and publicly report on "hidden foster care arrangements," which are situations where child protective services agencies separate children from their parents without state involvement, court oversight, or formal foster care placement. This includes cases where agencies suggest or pressure parents to place children with relatives or other caregivers during investigations, as well as practices referred to as kinship diversion or safety planning that occur outside the court system. Starting two years after the bill's enactment, states receiving federal foster care funding must submit annual reports documenting the number of children affected, whether these arrangements end in formal foster care placement or return home, the types of allegations involved, and what services caregivers received. The federal Department of Health and Human Services will compile this data into annual reports to Congress and make them publicly available to provide a national picture of these practices and help determine how to better support families and caregivers in these situations.