1. Inform the parents and work out a plan.
2. If nothing changes, move the kids to the same foster home and work with the parents to create a better environment to the kids.
No one here is trying to raise damaged kids; the parents seem to just have a view of how to raise their children that infringes on their kids’ rights. If they break the law a second time after being informed that what they’re doing is illegal, then we know it will require more than just informing them. Taking the children away clearly should not be the first step unless we already know they are defying the law.