I was a foster kid for over 10 years in California while my siblings were in foster care in Oklahoma. There are tons of state funded orphanages even it being in was the most traumatic experience of my life. They just mostly exist in wealthier states like California which is one of many downsides to not managing it on a national level. A state like Oklahoma just doesn't have the tax income to pay for these things and they are already reliant on the federal government for several other services.

My siblings spent most of their time in group homes with 20+ kids or were housed in juvenile detention centers mixed in with the convicted children. I think that's in part due to the low compensation foster parents receive and the lack of supplemental programs like free breakfast and lunch at school. The medical coverage for foster kids also varies wildly from state to state which is I think I major issue. In California I went to a psych every week until I aged out of the system while my siblings could not unless they were acting out violently.