SAN FRANCISCO—An appeals court has barred California officials from cutting funding to foster care group homes.The 9th Circuit U.S. Court of Appeals on Monday ruled that federal law requires that the state Department of Social Services pay for the entire cost of housing, clothing, feeding and otherwise caring for about 7,000 children placed in foster care.

California had been paying about 80 percent of the costs over the last several years and moved to reduce funding to about 70 percent of the program’s cost next year.

A spokeswoman said the department is reviewing the decision and considering its next step, which could include an appeal to the U.S. Supreme Court.