Yes - BUT (and NO excuses for the but)
In NY State, foster parents have NO rights - a judge makes ALL decisions - this is typical for foster care in NY. I know someone who was a foster parent - it's not pretty. The JUDGE tells you how you can punish the child, what gifts you can give, what trips you can take them one, even monitors what you feed them, bed times and everything. BUT you are responsible for them. It part of the reason that NY has less than HALF the foster parents they need. What is even MORE fun is you might be fostering a child for many years, TRYING to adopt them, the child WANTS to come with you (might even be a teen) and the judge will one day award them to another family that has never spent a day with the child
So the story doesn't shock me as much as it should - in fact I'd say "Typical"