Michigan officials say the state is now complying with federal requirements for child welfare and foster care.
Gov. Rick Snyder's administration said Monday that Michigan has completed a program improvement plan required by the U.S. Administration for Children and Families.
Federal officials determined the state wasn't in compliance in 2009.
Officials say by meeting the federal goals, about $2.8 million in federal penalties have been rescinded.
Snyder says in a statement the state has "more work to do," but "Michigan's vulnerable children receive better services today than they did five years ago."
The state's child welfare system still is under the oversight of a federal judge in Detroit and court-appointed monitors.
The next hearing is scheduled for Feb. 2.
