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Tim O'hanlon has a book called "Accessing Federal Adoption Subsidies After Legalization." It does have a section on children from private adoptions and they are eligible. I think it's Federal subsidy rather then state. You might want to check the library for the book. It tells you what steps you need to take and what laws are involved.
As for your first question, the parents rights were not terminated at the time they signed for the private adoption, so the state couldn't interfere as the placement with an agency removed the danger to the child.
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