Current federal legislation identifies three goals for the child welfare system: safety, permanence, and family and child well-being. Unfortunately, child well-being becomes subordinate to the more easily achievable and measurable goal of permanence--returning children to the biological family, facilitating an adoption, or placing them with relatives. Most people assume that permanency leads to child well-being. However, there is little research, if any, documenting the development of children after permanency is established. The focus on permanence adversely affects the potential outcomes that could be achieved. Instead of viewing time in foster care as a significant developmental window for a child who has undoubtedly suffered, foster care becomes a "parking lot" where children are safely held pending more permanent arrangements. Cost and safety become the most important considerations while little attention is paid to improving child development and well-being. Residential group care, when done well, is one of the strongest links in the foster care system. This article discusses the current state of residential group care and the challenge it faces. (Contains 1 footnote.)