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I have traveled with foster children many, many times. You do need to get approval from the State, as they have custody of the child. We were always given a letter for travel that included contact info for the caseworker and medical insurance information in case something happened while we were away.
As for foreign travel, I think that would depend. While Brandy is correct, foster parents don't have the standing to get a passport for the child, CPS does. I know here they will do it for limited travel. I've seen foster parents take kids to Canada, Mexico, and the Caribbean because those places either don't require a passport, or can be accessed with one of those mini passports.