EUGENE (AP) — U.S. District Judge Ann Aiken gave preliminary approval to a settlement in which Oregon will pay a total of $1.7 million to thousands of families who adopted foster children and then had their promised state assistance reduced because of a budget shortfall.

Andy Stahl of Eugene, the father of two children adopted through the state’s assistance program, was one of four adoptive parents who sued the state in 2003, challenging its unilateral decision to cut by 7.5 percent the monthly adoption subsidies agreed to in writing.

Though his family lost only about $38 per month during the 10-month period of reduced assistance, Stahl said the suit was a matter of principle.

“Before the adoption assistance program was established in 1980, many families who wanted to adopt foster children couldn’t afford to because these children, through no fault of their own, had many special needs,” he said. “When Oregon reneged on its legally binding adoption contracts with each family, it was a real slap in the face.”

Stahl said that adoption assistance generally covers such expenses as counseling for attachment disorders and effects of physical abuse or prenatal drug exposure.

The U.S. District Court in Eugene in 2004 rejected the adoptive families claim that they had a right to individual hearings to determine if reduced payments were appropriate. The families appealed to the 9th U.S. Circuit Court of Appeals, which overturned the District Court decision in 2005.

The state appealed to the U.S. Supreme Court, which declined to hear the case. The parties then worked on a settlement.

Jake Weigler, a spokesman for the Oregon attorney general’s office, said Monday the state was pleased to find a compromise. “Deep budget cuts forced the state to make difficult choices and we’re glad that this has been brought to a resolution,” he said.

The $1.7 million would reimburse all adoptive parents who had their child’s adoption assistance reduced in 2003. They will get to testify about the fairness of the settlement at a hearing on Sept. 24. If the court then gives final approval, the parents will receive their payments without having to file an application.

The lawyers will get none of the settlement money, but the court may order the state to pay a reasonable attorney fee.