Nationally, families of color--particularly African American and American Indian and Alaska Native (AI/AN)--are over-represented in child welfare systems. These families also tend to have worse outcomes--such as children more likely to be removed from their homes, less likely to receive family preservation services, and in the case of African American children, experiencing longer stays in foster care. Public policy can play an important role in reducing these disparities and improving outcomes for children and families of color. This report highlights policy strategies that have shown promise in improving outcomes for children and families of color in child welfare systems. The strategic areas for policy development outlined in this report include: (1) Analyzing and using data, including collecting data by race, ethnicity, Indian Child Welfare Act (ICWA) eligibility, gender identity and age, and the supporting data analysis on the interplay of these categories; (2) Supporting families with appropriate services and resources, including investing in the development of the evidence needed to create effective solutions for families of color and the cross-system collaborations and diverse partnerships to support this work; (3) Ensuring policy implementation is supportive of family well-being and that race, ethnicity and cultural competence are key considerations in advancing a well-being agenda in child welfare policy; and (4) Safeguarding the well-being of AI/AN children through the development of meaningful state partnerships with tribes and ensuring that ICWA is applied and followed by state courts and state agencies. Although this is not an exhaustive list of the policy strategies needed to achieve racial equity, these strategies have shown promise throughout the country in reducing disparities and improving outcomes for children of color and their families. This report begins by providing contextual information about the disparities often experienced by children and families of color, followed by detailed policy strategies, state policy examples, and funding strategies to support the strategic areas for policy development proposed in this paper. Additionally, the appendices include a scan that captures the policies related to promoting race equity in child welfare throughout the states and a race equity impact assessment tailored to support policymakers in making more equitable child welfare policy decisions. This paper is a companion piece to the Improving Outcomes for Children of Color section on PolicyForResults.org.