This bill, titled the "Hidden Foster Care Transparency Act," aims to address the issue of children being separated from their parents through informal arrangements that lack court oversight. It defines a "hidden foster care arrangement" as any separation of a child from their parents or primary caregivers without the state taking responsibility for care or placement, and without a court order or judicial involvement. This includes situations where a Child Protective Services (CPS) agency suggests or insists a child live with someone else during an investigation, often referred to as kinship diversion or safety planning. To promote transparency, the bill mandates that states, as a condition for receiving federal foster care funds, must collect and report specific data on these arrangements to the Secretary of Health and Human Services. This data includes the number of children separated, how these arrangements ended, the types of allegations involved, and whether parents received legal counsel. The Secretary is then required to compile this information into an annual report to Congress, ensuring the data is collected in a standardized manner to provide a comprehensive national picture and is made publicly available.