How Much Do You Get Paid for Foster Care?

Foster care provides a temporary, safe, and nurturing home for children who cannot remain with their biological families. This arrangement offers stability during challenging times. Foster parents receive financial assistance to help cover the costs associated with caring for a foster child. This support ensures the child’s needs are met, rather than serving as income for the foster parents.

Understanding Foster Care Reimbursement

Foster care reimbursement, often called a per diem or stipend, helps foster parents manage daily expenses. These payments cover necessities such as food, clothing, shelter, personal incidentals, and reasonable travel.

Foster care payments are considered reimbursements for expenses and not taxable income by the Internal Revenue Service (IRS). This means these payments do not need to be reported on federal tax returns. Exceptions exist, such as payments for maintaining emergency foster care space or if a foster parent is compensated beyond standard care, which may be taxable. Foster parents should consult a tax professional for guidance.

Factors Influencing Payment Amounts

The amount of financial reimbursement foster parents receive varies based on several factors. One determinant is the child’s age, with payments increasing for older children due to higher estimated expenses. For instance, daily rates might range from $17-$20 for children aged 0-5, increasing to $20-$23 for those aged 6-12, and reaching $22-$27 or more for teenagers aged 13 and older.

A child’s specific needs and the required level of care also influence payment rates. Higher payments are provided for children with special medical, behavioral, emotional, or developmental needs, sometimes called therapeutic or exceptional foster care. These enhanced rates cover additional resources and specialized attention, which can include intensive services or specialized respite care. Eligibility for these higher rates may depend on a foster parent’s ability to demonstrate specialized training or experience.

Geographic location plays a role, as reimbursement rates differ by state, and sometimes even by county or agency within a state. This regional variation reflects differing costs of living and state-specific funding policies. Rates can vary by hundreds of dollars per month across different jurisdictions.

The type of foster care provided also impacts the payment structure. Standard foster care placements receive a foundational rate, but specialized care, such as medical foster care or therapeutic foster family care, commands higher daily or monthly reimbursements. Kinship care, where a child is placed with relatives, may initially have lower reimbursement rates compared to licensed non-relative foster homes, unless the kinship caregiver becomes a fully licensed foster parent. Becoming a licensed kinship foster parent grants access to the full foster care rate and associated services.

The foster parent’s licensing level and any advanced training or certifications can affect the payment amount. Some agencies or states offer increased rates for foster parents who have completed specialized training, particularly for caring for children with complex needs. This acknowledges the enhanced skills and dedication required for these placements.

Additional Financial Assistance

Beyond regular daily reimbursement, foster parents may be eligible for additional financial assistance to meet specific needs of the foster child. These supplemental supports help ensure comprehensive care and reduce financial burden.

Clothing allowances are provided, often including an initial fund when a child is first placed. Seasonal or annual clothing allowances may also be available.

Medical and dental coverage for foster children is provided through Medicaid or other state-funded health insurance programs. This ensures access to healthcare services, including regular check-ups, dental visits, and prescription medications. Youth who age out of foster care are eligible to continue receiving Medicaid coverage until age 26, regardless of income.

Assistance with school-related expenses is another support. This can include funds for school supplies, fees for educational activities, or participation in extracurricular programs. For foster youth pursuing higher education, some states offer tuition waivers or provide access to Education and Training Voucher (ETV) programs, which can offer up to $5,000 per year for college or vocational training expenses.

Respite care, which provides short-term relief for foster parents, is also supported financially. This allows foster parents a temporary break while the child receives care from another approved provider. Reimbursement rates for respite care can vary, with some states offering payments around $25 to $50 per night, with higher rates for children with special needs.

Transportation assistance may be available for non-routine travel related to the foster child’s care. This can include mileage reimbursement for trips to medical appointments, therapy sessions, court hearings, or family visits. Routine transportation, such as daily school commutes, is expected to be covered by the monthly foster care grant.

In cases where a foster child is adopted, adoption assistance programs may provide ongoing financial subsidies. These subsidies include monthly payments and continued health care coverage, helping adoptive families meet the child’s needs.

Receiving Payments

Receiving foster care payments involves specific steps to reimburse foster parents. Payments are disbursed monthly, though some agencies or states may process them bi-weekly or based on the number of nights a child is in care. For example, if a child stays in a foster home for part of a month, payment is calculated based on the exact number of nights of care provided.

Payment methods include direct deposit, electronic funds transfer (EFT), or physical checks. Direct deposit is recommended for faster and more convenient receipt of funds. To set up direct deposit, foster parents provide banking information to the child welfare agency or a designated payment system.

Payments originate from the state or county child welfare agency responsible for the child’s placement. In some instances, a private foster care agency contracted by the state may handle disbursements. Agencies provide a statement or invoice detailing the estimated monthly payment based on the child’s placement information.

Foster parents may have reporting requirements to ensure accurate and timely payments. This can involve validating the days a child was in their care for a specific billing period or submitting invoices for reimbursement. It is important to confirm these details with the supervising agency.

If payments are delayed or incorrect, foster parents should contact their assigned case manager or the agency’s designated payment hotline. Agencies have procedures to address discrepancies and ensure foster parents receive correct reimbursement.