The federal agency has given the Florida Department of Children and Families 90 days to devise a plan to improve care for foster children.
The Department of Health and Human Services found DCF underperforming in critical areas during an analysis of 80 cases from April 1 to September 30.
The Tampa Bay Times reports the study found in more than half of the cases, child welfare agencies removed children from homes without providing appropriate services and were lax in follow up safety plans.
The study found DCF needs improvement in 11 of 14 categories.
The agency has scheduled a conference on Tuesday to come up with ways to reform the system.
Agency spokeswoman Jessica Sims says DCF takes "these findings very seriously" and will work aggressively to improve.